Scale Up Your Business in a Post-Covid World with Fulfilment Services
Covid and Brexit, both have presented a myriad of challenges for eCommerce businesses for sure, but the monumental shift in consumer attitudes and behaviours has also opened up new opportunities.
In years to come, we will look back at 2020 as the moment that changed everything. Nowhere else has unprecedented and unforeseen growth occurred as it has in the digital and e-commerce sectors, which have boomed amid the COVID-19 crisis.
Amid the slowing economic activity, COVID-19 has led to a surge in e-commerce and accelerated digital transformation.
As lockdowns became the new normal, businesses and consumers increasingly “went digital”, providing and purchasing more goods and services online, raising e-commerce’s share of global retail trade to an all time high in 2020 and many companies are now building for a sustainable digital future.
Running an Online Business
There are many parts to running a successful online business and even more so for global retailers. From end to end there are a great number of steps needed to run a smooth operation, however, a lot of the process can be outsourced to enable the business to do what they do best, product acquisition, marketing and customer support.
Reasons Why You Should Outsource Your Fulfilment
In today’s post-Covid world with uncertainty surrounding the global economy, companies need the ability to expand or downsize quickly. So one thing that can help is by outsourcing their fulfilment for a number of compelling reasons…
Part of running a business is learning how to delegate. Because let’s be honest: We can’t do it all — even if we try.
Letting go of certain tasks is important. It frees up your valuable time and allows you to focus on building your retail business. It may be hard to trust other people to work on your “baby” with the same passion as you.
Or, you may have budget constraints. However, if you can afford to, there are certain tasks that are easier to let go of — and one of those is order fulfilment.
What is an Order Fulfillment Service Provider?
Order fulfilment services providers essentially warehouse your goods (i.e. your products) and fulfil orders on your behalf.
To accomplish this, fulfilment services typically integrate their software with your eCommerce store to streamline the entire fulfilment process. Once they receive an order, they pick, pack, and prepare the product for shipment.
Fulfilment providers also coordinate and schedule shipment pickups with carriers.
Fulfilment providers typically charge a flat monthly storage fee. The flat fee is determined by the number of bins/palettes you warehouse in their facility. Then, once they ship an order, they charge additional fees.
The Benefits of Outsourcing Order Fulfillment
Outsourcing order fulfilment has many benefits, such as lower shipping rates, reduced operating costs, and a broader reach to help you grow into new markets. And working with a fulfilment service provider allows you to focus on other aspects of your business and continue to grow.
Your success does not only depend on the quality of your product, but it also depends on the quality of your order fulfilment service. While you may offer a high-quality product, order fulfilment plays a crucial role in whether your business excels. Delayed, missing, or incorrect shipments are all surefire ways to alienate your customers, which is why it’s important to get order fulfilment right.
To help retailers better understand how fulfilment services can be advantageous for your business, we’ll look at a number of benefits of outsourcing order fulfilment that can help you offer a better customer service experience while you focus on growing your business.
Lower Your Shipping Costs
Many order fulfilment providers have facilities all over the country and overseas. This creates a solid foundation to offer lower shipping rates, resulting in bulk delivery discounts that you can take advantage of.
While it depends on the order fulfilment provider you choose, on average, you can save around 15% to 35% off published shipping rates. Fulfilment providers also have software that allows them to browse shipping rates from various carriers and select the most cost-effective rate.
Warehousing and Fulfilment Costs
With fulfilment services, you only pay for what you use. Fulfilment services usually charge a flat storage fee for your products that are being warehoused. After that, you’re only charged for picked, packed, and shipped orders.
And while you may experience a seasonal increase or decrease in sales, that won’t affect your base costs. Your storage expenses only change when the number of units you warehouse changes.
Extend Your Reach
Go global. Whether you receive an order from another county or another country, with the right order fulfilment provider, you’ll be ready to take your business to the next level.
Many fulfilment companies have the framework in place to ship and deliver orders to any part of the world. You can use their global platform to extend your reach and grow into new markets.
Improve Your Customer Service
Reliable customer service support is an essential part of running a business. Many order fulfilment providers offer 24/7 support through email or phone. This includes executing easy returns, exchanges, and refunds.
Fulfilment services can also help retailers meet evolving customer expectations. According to recent data, about half (49%) of shoppers say same-day delivery options are enticing enough to get them to shop online from a specific retailer. Almost two-thirds (63%) want estimated or guaranteed delivery dates and companies with same-day delivery tend to gain an advantage over 85% of their competitors.
Using Technology to Streamline Order Fulfillment
Many fulfilment companies use the latest technology to process and ship your products. Their systems integrate with your eCommerce store, and the result is a streamlined order fulfilment process.
Moving Forward with Outsourcing Order Fulfillment
Now that you know the benefits of outsourcing order fulfilment, it’s a good idea to get a better understanding of the costs involved. Ultimately, you need to do what is best for you and your business.
If you have any questions about this blog or you would like information about how Uneek Forwarding can help your business with Fulfilment Services or Freight Forwarding, please get in touch.
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Uneek Forwarding is part of the Uneek Group Ltd