Order fulfillment can be a huge margin eater of your online business. If you attempt to share the high fulfillment cost with your customer in the product price, you lose competitiveness in the eCommerce battle, while you choose to bear it all, you cannot struggle to make ends meet. So, are there any ways to cut fixed costs and lead to a win-win situation? Here are 5 feasible ways that an order fulfillment company can help.
- Warehouse and Inventory Management
Warehousing charge can be costly considering that you need to hire a team of stuff, purchase all kinds of supporting equipment and pay other overheads, especially for start-up and small business. Partnering with a third party order fulfillment service company ChinaDivision allows you to send goods to their order fulfillment service warehouse, so that you are free from warehouse and inventory management. Some order fulfillment center, like ChinaDivision, offers free warehousing for the first three months, enabling you to send test order first and alleviate your pressure of capital.
- Kitting and Assembly Service
An order fulfillment company also offers kitting services to ship multiple products as a set rather than individually. Their order-grouping technology recognizes orders shipping to an identical address and person and groups the products into one shipment to save you on both packaging and postage costs.
Online sellers often struggle with finding the right packaging, which can accommodate a wide variety of items while also eliminating empty space and excess dunnage. Packers in a fulfillment center who are adept at all kinds of packaging will try their best to minimize waste and cut back on dimensional weight and expensive oversize fee for you. Leveraging their large order quantities, they can also offer custom packaging with discounted rates.
- Direct Shipping – Avoid Tax Reasonably
Take the made-in-China products for example. If you have a fulfillment warehouse away in a different country rather than China, import duties will be applied at the border customs when importing bulk goods into the country for most made-in-china products. However, if you have a fulfillment warehouse in China, you are able to send smaller orders directly to the individual customers worldwide, then you are very likely to avoid the import duties.
Working with an order fulfillment company makes your online business more flexible and scalable by reducing high fixed costs, which in return brings improvements to your order quality and increased customer satisfaction.
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