Increasing sales and customer acquisition is the main focus of any online business, and while some companies seem to have a talent for it – others need to work on their strategy a bit more.
The customer experience can be one of the most significant deciding factors for whether people make a purchase or if they become loyal customers and make repeat purchases.
We live in a world where almost anything can be delivered in the same 24 hours it was purchased, and often it can be hard to compete with that.
The Shopify fulfillment process is where you can make a huge impact, and it is a key part of running your eCommerce website.
So how can you improve your fulfillment process, and how can you streamline it?
What is fulfillment?
In the eCommerce world, fulfillment is the steps the store takes to deliver the item to the buyer. It should be a streamlined process.
In practical terms, the person who is selling the goods needs to create entire progress and use several different tools or processes to get it perfected. It can become complicated unless you have the right partner in place.
What is 3PL?
It isn’t always the most productive or efficient to have everything in-house. In fact, it can be more costly to take this approach, depending on the size of your business.
So how can you create a fulfillment process that delights your customers and allows for growth? Work with a 3PL.
3PL or third-party logistics is a company that provides a range of services that make your fulfillment process smoother (and usually more cost-effective too).
Here are some of the services that you will likely see:
- Reverse logistics (returns)
- Picking and packing
- Kitting and customization
- Shipping and receiving
- Inventory Management
- Warehousing
- FTL and LTL freight shipping
A 3PL will offer everything you need to make sure you can outsource your eCommerce fulfillment.
Often 3PL will be used interchangeably with order fulfillment. There are other options like 5PL and 4PL. However, 3PL is the most popular.
How do you choose a 3PL company?
The expert supply chain solutions offered by a 3PL can revolutionize how you do business and the standard of care you can give your customers. But choosing the right company can feel overwhelming.
When you opt to work with a 3PL, you free yourself up to take care of marketing, product development, creation, advertisement, and partnerships. You can work IN and ON your business, rather than overseeing and dealing with fulfillment.
Choosing a 3PL should be something that is done carefully, and at all times, consider your reputation. The wrong partner can cause irreparable damage.
Scalability
One of the main focuses in your business will be growth and scaling. When you choose your 3PL partner, you should make it clear that you have a growth plan and make sure that their capabilities align with your future goals.
Ask what systems have in place to work with you as you scale – how do they remain efficient? Do they have both the personnel and the space to enable you to stay with them as a partner in the long term?
If you were to have a huge success, would they be able to handle it?
Location
When you are considering a 3PL partnership, their location might be a deciding factor based on your distribution plan. You ideally want them to be in (or within easy reach) of your highest consumption area.
Shipping to your customers as fast as possible should be a goal, and the location of your 3PL can make it happen.
Tech
While there is a lot to be said for great organizational skills, the right warehouse management system is invaluable when it comes to giving you the data you need. Is their material handling manual or automated? How accurate is their inventory system?
You need to be sure that the technology they use is suitable for your needs and that it gives you what you need in terms of data so you can make the right decisions for your company.
KPIs
Develop a set of in-depth key performance indicators (KPIs) that include specific timings, amounts, and other numerical data to ensure that your team and your 3PL are working toward the same objectives.
When working with a 3PL, it’s critical to have a comprehensive understanding of your existing and future company needs.
Compare
When it comes to choosing the right 3PL, comparing several different options is how you will be able to see the difference in how they conduct business, if they are a cultural fit, or if they offer the services that you need.
You will likely start with a long list, but it is a good idea to trim that down to about three options. And, if you want to be as transparent as possible, let them know that you are discussing your options with more than one company.
Sometimes in order to win new business, you might be offered a better price. Keep in mind that cheapest isn’t always best, so be careful you don’t get sucked in by a cheaper rate.
In order to impress your customers, what you are looking for here is to get the highest quality – even if that comes at a high price.
Contract length
If you have signed a 1-year contract, and after three months, your chosen 3PL starts underperforming – you’re stuck with them, or you need to buy yourself out of the contract. Either way, you are going to make a loss.
Instead, look for rolling contracts or a maximum of 3 months until you have had a chance to test them out.
Tours
It is vital that you take a look at the company from the inside too. Ask for a tour and make sure that you understand how your products are going to move through the 3PL. Talk to those on the floor who do the job if you can. And get a general feel for the people who work there – are they trustworthy? Is there a high level of cleanliness and pride in the warehouse? How do they handle the products when no one is looking?
Choosing a 3PL that meets your requirements is one of the final pieces of the puzzle when it comes to making sure your customers have a relaxing and enjoyable eCommerce experience with you.
As well as your fulfillment, you can also look to make some impact on your sales department, read more: How to Automate and Streamline Your Sales Department | Dorm Room Biz.
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