| When your eCommerce business grows to the point | | | | entering orders into a web-based application, but it |
| where you can no longer package and ship the | | | | can be tedious if your business grows to the point |
| orders yourself, it's time to begin outsourcing your | | | | where you have more orders than you have time to |
| order fulfillment. Although all order fulfillment centers | | | | enter. You may pay a higher price to automatically |
| offer the same basic services, their individual | | | | email each individual invoice to the warehouse, but it |
| methods and costs will help you choose one over the | | | | may be worth the extra costs to have orders may |
| other. When selecting an order fulfillment service, | | | | be shipped as they arrive. Same day shipping could |
| keep the following in mind: | | | | give you the edge over your competitor. On the |
| Location | | | | other hand, if you have a high volume of orders, you |
| Order fulfillment warehouses are located all over the | | | | won't want to individually enter each order into a |
| country. It's more important to select a warehouse | | | | web-based system and may not want to pay the |
| that is close in proximity to your customers than to | | | | extra charge of having individual orders emailed to |
| select one that is close to your business. For | | | | the warehouse. If you don't mind shipping the next |
| example, if your warehouse is located in California, | | | | business day, you can send an Excel spreadsheet |
| and most of your customers are located on the East | | | | containing all of your orders once a day. Choose a |
| coast, your shipping rates will be higher than if you | | | | warehouse that offers an order entry method that |
| had a warehouse located in Kansas. Fulfillment centers | | | | meets your business needs and fits your budget. |
| located in the middle of the country will be able to | | | | Communication |
| ship to both the east and west coast for similar | | | | Communication is an important part of every |
| prices. | | | | business. There will be times when you need to |
| Size | | | | contact the fulfillment center to modify a customer's |
| Fulfillment warehouses range from small business with | | | | address or cancel an order. Select a fulfillment center |
| just a few employees to large companies such as | | | | that is available via phone and email. You should not |
| UPS. Select a fulfillment service that can meet your | | | | have to wait more than a few hours for a return |
| daily order fulfillment needs. Do you have consistent | | | | email or call from the fulfillment center. |
| orders each day or do your orders spike? If you | | | | Error Rate |
| have orders that spike, be sure to choose a | | | | Mistakes will happen. Some customers will receive the |
| fulfillment center that can handle the extra workload | | | | wrong items or the items will be shipped to the billing |
| and still ship the orders within the agreed timeline. | | | | address rather than the shipping address. When |
| Shipping Options | | | | interviewing potential fulfillment centers, ask about |
| Most fulfillment centers offer a variety of shipping | | | | their error rate and their process for remedying the |
| options. Make sure the fulfillment service you select | | | | situation. For example, do they issue UPS call tags to |
| offers all of the shipping options you currently offer | | | | pick up the incorrect item and pay to ship a |
| your customers and the shipping options that you | | | | replacement item? Will they ship the replacement |
| may want to offer in the future. | | | | item at a faster rate to compensate the customer? |
| Turn-around Time | | | | Costs |
| Each fulfillment warehouse has it's own policy | | | | Each fulfillment center operates under a different |
| regarding order processing. For example some | | | | payment schedule. Some use sliding scales and require |
| fulfillment centers will ship all orders that arrive before | | | | contracts while others charge per order or per item |
| 1pm on the same business day. If you miss the 1pm | | | | with no contracts. You will also be charged a base |
| deadline, the order is shipped the next business day. | | | | fee to store your inventory at the warehouse and |
| This could impact your customers if a next-day order | | | | an additional fee per pallet or per item. Be sure you |
| is placed after 1pm. In this case, next day shipping | | | | have a clear understanding of the fulfillment center's |
| turns out to be two-day shipping. | | | | costs and any contracts. |
| Order Entry | | | | When choosing a fulfillment center, create a checklist |
| Order entry methods can be very important when | | | | of the features you would like. Interview a member |
| considering a fulfillment service. The most common | | | | of the warehouse staff, as well as, their references |
| methods include: | | | | to make sure the warehouse will meet the needs of |
| · Forwarding individual order invoices to the | | | | your growing eCommerce business. When you |
| warehouse | | | | outsource order fulfillment, the time that you |
| · Entering each order on the fulfillment | | | | normally spend packaging orders, managing inventory, |
| center's web-based system | | | | and dealing with returns, can now be focused on |
| · Emailing an Excel spreadsheet with all order | | | | growing your business. Use this time to expand your |
| once a day | | | | product line, enhance your online image, promote |
| Each method has a different affect on your business. | | | | your business or expand into new markets. |
| For example, you may save money by manually | | | | Copyright 2004. Danna Henderson. |