3 Key Points to Consider When You Choose Order Fulfillment Center

Everything starts small, including e-commerce stores. Although your online store is still in its infancy, you may have to take care of most things yourself, including order fulfillment and shipping.

But, as the store grows and the customer base expands, you may need more help to help your business go to the next level when you realize that you can no longer handle everything on your own.

order-fulfillment-center丨ChinaDivision
order-fulfillment-center丨ChinaDivision

What is order fulfillment service?

Order fulfillment service covers the entire process from sales to delivery to customers. Successful order fulfillment depends on third-party logistics to complete the order fulfillment steps of an e-commerce online store, from receiving, processing, packaging, packing, and shipping products to customers.

A good e-commerce order fulfillment strategy is essential for online companies to maintain competitiveness and build customer loyalty.

And, what is order fulfillment center?

The order fulfillment center provides warehousing (storage) and transportation services so that online companies can conduct business without having their warehouse or storage space.

E-commerce sellers can send their inventory directly to a fulfillment center, and then deliver it to customers from there.

Most order fulfillment centers will be integrated with major online shopping platforms (such as Amazon, Shopify, eBay, etc.) to make it easier for sellers to manage inventory and deliver products.

order-fulfillment丨APS-Fulfillment-Inc丨ChinaDivision
order-fulfillment丨APS-Fulfillment-Inc丨ChinaDivision

Why you need order fulfillment center?

One of the most obvious benefits of using a fulfillment center is that you don’t have to do everything yourself. But the benefits go far beyond that. Outsourcing order fulfillment can have a meaningful impact on the growth of your business.

Reduce rental costs

Many third-party logistics service providers offer flexible pricing. This means that as your business develops, they will be able to adjust costs accordingly to your needs. Renting a warehouse yourself involves many potential costs and considerations.

Professional solution

When you use an order fulfillment center, you not only get warehouse space, but you also have the professional services of a team responsible for operating the fulfillment center.

Each 3PL has a team composed of logistics experts and technical support personnel, who will help you all the way. You can easily implement receipt management, inventory management, order processing, and transportation operations.

Optimize customer experience

Although it is basically free for you to do this work yourself, it may actually cost you a lot of money in the long run. Customers want faster shipping time, so in-house fulfillment may cause you to fail to meet these expectations and bring a bad customer experience.

Wonderful Ecommerce Fulfillment Model Keep Your Customers

Fast! Faster! Nowadays, the development of technology makes us more and more impatient. We expect technology to make things faster, and when we have to wait, we will feel frustrated.

Almost the entire process of e-commerce order fulfillment is facing the problem of acceleration. Customers want the lowest transportation costs and the shortest delivery time.

If your product’s sales volume grows steadily, but you cannot have better technical support, then customers who add shopping carts may turn to your competitors.

However, if you can provide customers with fast delivery speed and excellent customer experience, it will help promote your orders’ continuous growth and increase brand awareness.

Ecommerce-Fulfillment-Model丨ChinaDivision
Ecommerce-Fulfillment-Model丨ChinaDivision

How to Choose the Most Suitable Ecommerce Fulfillment Model?

Choosing the most suitable ecommerce fulfillment model is crucial because you cannot take responsibility for making mistakes. If you lose customers due to a poor fulfillment experience, they will quickly turn to your competitors for help.

A study showed that nearly 40% of customers said they would choose to return or stop shopping with retailers because of a negative delivery experience.

The perfect e-commerce fulfillment model depends on the size and nature of your business. If you are happy to do everything yourself and have the time and space to do so, then in-house fulfillment will be the best choice.

However, self-fulfillment may bring many hidden costs. For example, if you decide to sell through Amazon, remember that regardless of the fulfillment method, they will charge all sellers 15% of each product’s sales price.

Order-fulfillment丨ChinaDivision-1
Order-fulfillment丨ChinaDivision

In-house fulfillment may become a burden for your business because supply chain management is not a simple matter. It needs enough space to store inventory and enough time to complete all tasks.

If you choose to work with a third-party logistics provider, then you need to take the time to screen which partner is best for your business.

It is meaningful to choose 3PL with experience and mature technology. At the same time, you should also consider price, quality control, the number of warehouses and their location, and whether the order fulfillment system seamlessly integrates with your system.

Good fulfillment companies will also handle returns management properly. Of course, you need to make sure that your budget can meet all the features you need.

Three Reasons of Fulfillment Centers Start a Business in Shenzhen

As a cross-border e-commerce entrepreneur, you will be surrounded by many choices when finding the warehouse address. However, you will take many detours on the way to your cheapest fulfillment service. What’s worse, some Amazon sellers have been very confused about global ecommerce fulfillment owing to the Amazon warehouse fire and COVID-19.

To tell you the truth, Shenzhen warehouse plays an inportant role in the international orfer fulfillment. A latest study concerning Chinese warehouse location indicated that 75% warehouses come from Shenzhen. Here we have summarized three reasons as shown below:

As you can check in Google Maps, Shenzhen is near the international parcel processing centre——Hongkong, which provides more convenience for picking, packing and shipping. Take Amazon ePacket tracking as an example, Shenzhen warehouse can sent the items directly if your customer has ordered successfully from your webstore. That is to say, you don’t need to manage your own warehouse or distribution center.

Shenzhen is the birthplace of China’s reform and opening up, where many foreign trade enterprises and drop-shippers had been created. So they have more experience in the field of warehousing and shipping for e-commerce, and it is hard to find disorderly shipping and wrong delivery. In this way, you can reduce business risk and increase customer satisfacton.

During COVID-19 pandemic, the majority of e-commerce sellers want continuous selling on AliExpress, eBay and Amazon. Therefore, it is essential to reduce the chance of infection with COVID-19, whether it is warehouse or transportation staff. The number of people diagnosed in Shenzhen is cleared on May 21. Additionally, the government insists on strict pandemic prevention work, requiring everyone in Shenzhen to measure body temperature every day, especially warehouses and catering staff, mask wearing and hand washing are indispensable work.

All in all, you can get a fully automated with less money and time if you choose the most suitable order fulfillment center, and Shenzhen is a competitive choice.