Perhaps the two most common order fulfillment options right now can be broadly categorized as fulfillment by Amazon (FBA) and fulfillment by merchant (FBM).
Fulfillment by Amazon (FBA) vs. Fulfillment by Merchant (FBM)
Dealing with Common Errors in Product Fulfillment
In product fulfillment, failures can and will happen. While they may be impossible to predict, some are more common than others and can be easily prepared for.
Be Thorough
Many product fulfillment businesses think having an e-fulfillment service means nothing can go wrong, but the online aspects of a business are just as prone to error as the offline ones.
11 Ways to Make Fulfillment Easier
You’re likely more than busy enough running your fulfillment company; after all, today’s fulfillment companies are large, multi-channel enterprises. It’s not just about taking orders and shipping them out; it’s also about delivering quality goods to loyal customers and, above all else, sustaining a high reputation.
As such, it can be difficult to keep things running smoothly. However, there are ways to make operating a fulfillment business easier. Check them out:
1. Use Dynamic Pricing
Dynamic pricing is when businesses base their prices on current demand, changing when necessary. Companies do this to help deplete excessive stock and remain competitive. If you have products that aren’t moving and want to be rid of them, offering dynamic pricing can help you sell off that stock.
2. Use Demand Sensing
It’s always tough to determine what people are going to want. This can be subverted with demand sensing, a method of forecasting based on current information. Demand sensing allows you to determine what products you should stock more of and which you shouldn’t more accurately.
3. Use On-Demand Printing
Some fulfillment companies who work with print materials are opting to add in-house printing facilities to reduce expenses. This is a good idea in theory, as you can handle everything while saving on external costs. But on the other hand, on-demand printing businesses are rather competitive, meaning they’re often willing to charge you reduced rates. Take advantage of this option if it presents itself.
4. Use Global Order Promising
Many fulfillment companies work through a variety of order channels and supply networks. Global order promising allows you to connect with multiple suppliers, ensuring you always have items in stock when needed. This avoids any issues that being out of stock of a desired product would cause.
5. Use a Third Party
When so busy that you risk being unable to keep up, it’s wise to hire a third party to perform some of the work for you. Having the option to outsource can lighten your workload significantly, allowing you to focus on keeping your operation running smoothly.
6. Use the P’s in Shipping
The P’s of shipping refers to postage and packaging. When allowing customers to make online purchases, they should have a clear indication of what their total cost will be, including these two factors. That requires you as a business to know well ahead of time what you’ll be paying for postage and packaging so your costs are balanced.
7. Use Suitable Methods of Picking Orders
The efficiency with which you pick your orders dictates how quickly you are able to have them packed and delivered. For large-volume orders, batch picking is usually the best option. This involves several orders being picked at once. For businesses that work with much lower volumes, discrete order picking usually works well. Contrary to batch orders, items in discrete order picking are selected one by one. Then there is pick-and-pass order picking, which helps cut down on the distance walked between items in the warehouse.
8. Use Accessible Methods
One way to ensure customers complete their orders is to make sure the online ordering process is made simple. Provide your customers with all the forms they need to make that step accessible. There should always be the minimum number of steps possible and customers should only be asked to provide mandatory information. Anything hampering customers from ordering, including excessive requests for information, can turn customers away from completing orders and negatively impacts your business.
9. Use a Clear and Convenient Return Policy
Returns are inevitable in almost all online businesses. Knowing this, you must find a return policy that is both fair for you and your customers. The trouble is that so many businesses today, particularly larger businesses, are offering free returns. This puts pressure on your small business to do the same. While you want to remain competitive, it’s more important to be clear and consistent with your return policy. Let your customers know upfront what they can expect. If they continue shopping on your site, they do so knowing what they can and can’t do when it comes to returning any products.
10. Use Communication Channels
Unless you’re Facebook and have a billion customers to deal with, you need to have as many channels open to communicating with your customers as possible. Posting a contact form on your site is a good start, but customers should be able to reach you by phone, e-mail, and even live chat if possible. As long as you are capable of servicing these channels effectively, you should give your customers the option.
11. Use Customs and VAT Rate Calculators
You need to be on top of any kind of rate change that will impact your fulfillment, including customs or value-added tax (VAT). The more aware you are of these changes, the more prepared you can be to adjust your own rates. This also means that you can make any adjustments to the costs incurred by your customers. You of course want to maintain a level of consistency, but when changes do arise, it’s always best to be ahead of the curve than trying to figure out ways to adjust after the fact.
Need solutions to your product fulfillment problems? APS Fulfillment, Inc. has the knowledge and services to make your direct mail and product fulfillment ventures more successful. Contact APS Fulfillment, Inc. by e-mail at [email protected], visit their web site at www.apsfulfillment.com, or phone at (954) 582-7450.
8 Causes of Frustration in In-House Order Fulfillment
There are a lot of frustrating jobs, and it’s fair to say that product fulfillment is one of them. There’s a lot to handle when running a fulfillment company, including having a constant product line, delivering proper shipping, and addressing client complaints.
That’s why it’s good to be able to identify the most common frustrations and how to overcome them. Here are eight:
Answering the Demand of Today’s Fulfillment Customers
Fulfillment clients have never been more lucky given the amount of consumer freedom they have. A lot of fulfillment services are scared they will fail to meet this demand, causing clients to go elsewhere. But that’s not the attitude to have. After all, if consumers have such power, why not go the extra mile for them? You’re all about fulfillment, and doing just that is a great way to show how skilled and professional your business is. Here’s what you need to know.
Offering Specialty Items in Product Fulfillment
People have always desired specialty items. And if they’re what people want, it stands to reason that providing them could be a great source of income. As a product fulfillment business that’s already providing products to consumers, offering specialty items doesn’t require too much extra effort. If this sounds like a profitable venture, be aware that there’s certain aspects of offering unique items that differ from selling more traditional items.
The Benefits of Social Media for Product Fulfillment
The use of social media is heavily prevalent in today’s society. It’s a great way to keep in touch with others, and for businesses, it’s a new outlet for success. This is especially true for product fulfillment, in which it’s a component of online fulfillment and a company’s fulfillment solutions.
If you opt to use social media as part of your product fulfillment business, you have a lot of options for how to use it effectively. It’s simply a matter of planning and executing the right procedure.
How to Handle Damaged and Defective Products
Products are always on the move, which means things will go wrong along the way. This could be a defect in its production at the factory, an organic component expiring, or damage while being shipped.
In product fulfillment, successful delivery of products is the lifeblood of a business. That’s why if a client orders something and it turns up damaged, you can bet there will be a complaint. And if that happens, it’s up to you to rectify it.
If It Ain’t Broke
Dealing with damaged and defective products begins and ends with your shipping and logistics solutions. Based on these, your business will either have to mitigate the problem itself or pass the problem off to a third party.
Proper order fulfillment and a good processing system that provides order confirmations and invoices are necessities. With today’s reliance on digital media, electronic invoices and/or receipts sent to clients via e-mail are the ideal forms of shipping confirmation. Clients should also be provided with tracking information so they can keep tabs on where their product is, even if you are using mailing fulfillment services.
It also helps to have some sort of insurance policy prepared for when products get lost, stolen, or damaged while in transit. A lot of businesses include this as a mandatory part of their service fees while others make it optional.
When it comes to other damage or errors, sometimes you’ll have no choice but to fix the problem on your own. For example, if there were issues with your kitting assembly and a client didn’t get what they were supposed to, send it to them with an extra gift, such as coupons, as compensation and to apologize for the error. And if the product is damaged once they receive it, be ready to have it sent back for inspection and have the means to refund fees quickly.
Shipping and Handling
In fact, giving the clients options on how they want to have products shipped, including the aforementioned optional insurance, is a good way to properly handle any damage that could happen. Also, by placing the decision in the hands of the client, less blame can be placed on your business if there are any problems.
Bad things can happen and products can get broken mid-delivery, but you can overcome this by working out your shipping methods for product fulfillment in advance.
Need solutions to your product fulfillment problems? APS Fulfillment, Inc. has the knowledge and services to make your direct mail and product fulfillment ventures more successful. Contact APS Fulfillment, Inc. by e-mail at [email protected], visit their web site at www.apsfulfillment.com, or phone at (954) 582-7450.
