What is outsourcing fulfillment and why is it a good choice for small businesses?

\nWhen it comes to ecommerce, one of the most important aspects of a successful business is having a reliable and efficient fulfillment process. This means having a system in place that can handle orders quickly and efficiently, packing and shipping products in a timely manner, and providing excellent customer service. For small businesses, outsourcing fulfillment to a fulfillment center can be the best option for achieving these goals.\n\nThere are many advantages to outsourcing fulfillment to a fulfillment center. First, a fulfillment center can handle orders much more quickly and efficiently than a small business could on its own. Second, a fulfillment center can pack and ship products more quickly and efficiently than a small business could on its own. Finally, a fulfillment center can provide better customer service than a small business could on its own.\n\nSmall businesses should consider outsourcing their ecommerce operations to a fulfillment center because it can be the best way to ensure quick and efficient order processing, packing and shipping, and excellent customer service.\n

What are the benefits of outsourcing fulfillment to a fulfillment center?

\nThere are many benefits to outsourcing fulfillment to a fulfillment center. First, a fulfillment center can handle orders much more quickly and efficiently than a small business could on its own. Second, a fulfillment center can pack and ship products more quickly and efficiently than a small business could on its own. Finally, a fulfillment center can provide better customer service than a small business could on its own.\n\nSmall businesses should consider outsourcing their ecommerce operations to a fulfillment center because it can be the best way to ensure quick and efficient order processing, packing and shipping, and excellent customer service. Outsourcing fulfillment to a fulfillment center can help small businesses save time and money while providing the best possible customer experience.\n\nHow does a fulfillment center handle orders quickly and efficiently?\n\nA fulfillment center is responsible for ensuring that orders are fulfilled quickly and efficiently. They do this by having a process in place that allows them to manage and track orders. This process usually starts with the customer placing an order, and then the fulfillment center receiving the order. They will then pull the product from the inventory and package it up for shipment. Once it is shipped, they will mark the order as complete in their system.\n\nA fulfillment center needs to have a few key things in place in order to run smoothly. First, they need to have an accurate inventory system. This system needs to be able to track where each product is located and how many of each product is available. Second, they need to have a way to quickly and easily pull products from the shelves and get them packaged up for shipment. Third, they need to have a good shipping process in place so that orders can be sent out quickly and efficiently.\n

How does a fulfillment center pack and ship products in a timely manner?

\nFulfillment centers are able to pack and ship products in a timely manner by using a variety of techniques. One common technique is to use an assembly line system. Products are brought to the center and then put onto the assembly line. From there, they are packaged and shipped out according to the customer’s specifications. This method allows for a high degree of accuracy and efficiency, ensuring that products reach their destination on time.\n\nAnother way that fulfillment centers ensure timely shipping is by partnering with reliable shipping companies. By working with companies that have a proven track record of delivering products on time, fulfillment centers can rest assured that their products will arrive at their destinations when they are supposed to. This partnership allows for peace of mind on both the part of the fulfillment center and the customer.\n\nFinally, fulfillment centers use state-of-the-art technology to track orders and product inventory. This ensures that items are always in stock and that orders are filled as quickly as possible. By using these methods, fulfillment centers can provide customers with the level of service they expect and deserve.\n

How does a fulfillment center provide excellent customer service?

\nA fulfillment center needs to provide excellent customer service in order to be successful. There are a few key ways to do this:\n\n- First, make sure that orders are processed and shipped quickly and efficiently. Customers should not have to wait long for their order to arrive.\n\n- Secondly, communication is key. Keep customers updated on the status of their order and let them know if there are any delays or issues.\n\n- Finally, offer great customer support. Be friendly and helpful, and resolve any issues that may come up.\n\n

Why should small businesses consider outsourcing their ecommerce operations to a fulfillment center?

\n\nSmall businesses should consider outsourcing their ecommerce operations to a fulfillment center because it can be the best way to ensure quick and efficient order processing, packing and shipping, and excellent customer service. Outsourcing fulfillment to a fulfillment center can help small businesses save time and money while providing the best possible customer experience.\n\nA fulfillment center can handle orders more quickly and efficiently than a small business could on its own. A fulfillment center can pack and ship products more quickly and efficiently than a small business could on its own. Finally, a fulfillment center can provide better customer service than a small business could on its own.\n

Conclusion

\nSmall businesses should consider outsourcing their ecommerce operations to a fulfillment center because it can be the best way to ensure quick and efficient order processing, packing and shipping, and excellent customer service. Outsourcing fulfillment to a fulfillment center can help small businesses save time and money while providing the best possible customer experience.\n\nOutsourcing fulfillment to a fulfillment center can be the best way to ensure quick and efficient order processing, packing and shipping, and excellent customer service. Outsourcing fulfillment to a fulfillment center can help small businesses save time and money while providing the best possible customer experience.”}]}],”section_settings”:””},”scripts”:{},”css”:{},”css_page”:””,”template_setting”:{“settings”:{“id”:”settings”}},”template_setting_top”:{},”page_setting”:{“settings”:[“lock-mode-off”]},”post_type_setting”:{“settings”:{“image”:”https://shiphype.com/wp-content/uploads/2022/10/Why-Outsourcing-Fulfillment-is-a-Smart-Choice-for-Small-Businesses-shiphype.png|314|706|999993774″,”excerpt”:”Small businesses often find that having a reliable and efficient outsourcing fulfillment is the best way to ensure quick and efficient order processing. “,”extra_1″:””,”extra_2″:””,”icon”:{“icon”:””,”icon_style”:””,”icon_image”:””}}}}

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1. Benefits of Optimized Returns Management
2. Returns Should Focus on the Customer Experience 
3. Set up a Rework and Refurbishment Program 
4. Make Sure You Have Reliable Quality Control Processes
5. Automate Everything to Increase Efficiency

Benefits of Optimized Returns Management

By streamlining the way products move back through your supply chain, you will see benefits such as cost savings and improve customer loyalty. Here are the big benefits your brand will see.

Better Profit Margins. Regain value from returns by refurbishing them for resale. If your operations are efficient, your profit margins will improve.

Increased Customer Satisfaction. The way your business handles returns could directly affect how customers feel about your brand. Offer your customers a smooth way to return items and they are likely to come back for other items in the future.

Faster Turnaround. Everyone wants to know when their refund will hit their bank account. With optimized operations you’ll provide a speedy refund process for your customers, and a fast resale program for yourself.

Reduced Waste. Returns give you great data. Identify the products that aren’t working from the items that are returned most often. Set up a reuse or recycle program to extend the lifecycle of your product materials.

Industry insight! outsourcing fulfillment and logistics can give you a lot more leverage to execute customer returns quickly, accurately, and in a customer-friendly way. When vetting a new 3PL be sure to ask how they handle returns. Some fulfillment providers won’t at all, some will have a lean program to receive returns, and others will go above and beyond to help with customer requests and communication.

Returns Should Focus on the Customer Experience 

The customer should be top of mind in every aspect of your returns management process. Here are a few milestones in the reverse logistics journey that need to be considered from the customer’s point of view.

How are returns initiated? 

Will returns be initiated via phone, email, or chat? Does the customer need to log in somewhere to start a return, or are their directions and a shipping label in their package already? Is your returns policy clearly stated?

Your choices will likely depend on your customer demographic and your product. Larger items may need special packaging or pickup to be returned easily. Smaller items can often be resealed in the same mailer they were sent in.

Is the shipping documentation clear?  

It should be stated very clearly where the product needs to be taken to get shipped back to your fulfillment center. For example, many customers might conflate USPS with UPS if they don’t read carefully. Eliminate disgruntled customers who may go to the wrong carrier only to finally reach the front of the line and realize they are in the wrong place.

Make your documentation incredibly clear with easy-to-follow directions. Don’t leave much for the customer to fill in or complete. For example, a return address should already be filled in for them. No one has the time to look up the correct address for returns.

Notifications!

How will you alert your customer that their refund was process? Everyone wants to make sure they get the maximum refund possible. Better than just an email about their refund, let the customer know when the return has arrived at the facility, and how long they may have to wait for the next step to be processed. By proactively communicating, you’ll save your customer service team from fielding calls inquiring about refunds.

Industry insight!

A note on international returns. If you’re starting to ship into international markets, mapping out your reverse logistics is imperative. If your international customers want to return products, it’s a complex process with many ways to handle it. Be sure you have a plan for refunding the duties and customs fees to those customers.

Set up a Rework and Refurbishment Program 

Depending on the type of products you sell you’ll want to capture returned items and add them back into your inventory for resale if they are in good condition (this won’t work for food and beverage, or other consumer packaged goods).

Many 3PLs offer value-added services like rework which means your returns can be processed and returned to your sellable inventory all under one roof. This will save you the following costs:

• Hiring a third party company to inspect your returned items.
• Shipping costs to send returned items to your offices to get inspected and refurbished.
• Shipping costs to send the refurbished items back to the fulfillment provider.
• Some 3PLs will also take care of waste, product disposal, or separating components to be recycled into new products and shipping those parts back to the manufacturer.

Make Sure You Have Reliable Quality Control Processes

Getting products back to the warehouse is one thing, but an underappreciated aspect of returns management is the operation of receiving and processing products once they are returned. This requires organization, clear documentation and above all a quality control process.

When items come back to the warehouse they need clear pathways to get processed: some may be able to be resold, which means they’ll need quality checks and possible refurbishment, and the rest will be waste that needs to either be disposed of or recycled.

Speed and efficiency are paramount to either process. If your products are re-sellable once returned, you want to get them back into your inventory cycle quickly. If they need to be disposed of, you’ll want to get the waste out quickly as well.

The bottom line is you’ll need strong operational procedures to accurately sort through returned items and efficiently get them processed. The way you get there is quality control. Here are a few aspects you can add to your quality control returns process.

Go deep with documentation and data collection.

The more you document what happens with each return (why it was returned, how it came back, etc.) the more data you’ll have to improve both your reverse logistics and your product iteration. Here are three things to consider in your documentation to ensure returns are processed quickly.

1. Traffic distribution-like incoming orders and outgoing shipments, returns will develop their own patterns with a peak day each week which you can add more staff.
2. Intake-how quickly does your team take to open, identify and prepare products for inspection or rework? Documenting this will lead to finding ways to make the process faster and more efficient.
3. Product verification-you’ll need to classify each item to sort products that are moving to each various next destination. Is your process for doing this simple? Can it be improved?

Make the return labels and packaging very clear.

If packages are coming into your warehouse, it will be much more efficient for receiving to know immediately which packages are returns and which are not. Even better, provide a label with a dedicated location or address that your shipper can use to keep the returns separate from other inbound shipments.

Set up a dedicated returns quality team.

Processing returns requires specialized skills: identification, sorting, restocking, or disposing of products. By building a dedicated team to these tasks you can be assured that the job is being completed by people who are trained.

Industry insight!

Remember, even if you use just one shipping carrier for your outgoing packages, you will likely get returns delivered from USPS, UPS, Fedex and other carriers. You should have relationships with all of them so you can set your preferences and work together on getting your returns delivered in a manner that benefits you the most.

Automate Everything to Increase Efficiency

Many ecommerce businesses implement returns management software to automate many aspects of their reverse logistics operations. A modern 3PL will have returns tracking baked into their fulfillment management tools.

You can automate aspects like parcel auditing, routing return requests, label creation, and many more. Here are some key areas you’ll want to add automation:

Customer Communications

So many ecommerce platforms now have ways to automate many parts of the product journey. Add in return emails to that list. Your customers should get notified when their returns have been processed and they’ve been refunded.

Shipment Tracking

“Where is my package?” is the most common customer service request, followed by “When will my refund be processed?” By tracking reverse logistics shipping information you’ll be able to give customers a head’s up of the stages of the journey.

Inventory

If returns need to be manually placed back into your inventory there will likely be errors. Automating products going back into inventory will save time and give you greater accuracy.

Many supply chains stop measuring success once the product is delivered. While this is sometimes an accurate measure of customer satisfaction and profit, it doesn’t account for all situations. By adding reverse logistics data to your fulfillment and logistics software management tools, your operations will be transparent across your network. You’ll be better able to track performance across the entire life cycle of a product, and better identify opportunities for improvement.

We provide hassle-free fulfillment for high-growth brands.

DCL Logistics is a modern 3PL, grounded in 40 years of operational expertise. Our full suite of fulfillment services allow brands to scale without sacrificing flexibility, quality, or customer satisfaction.

Our customer-centric approach to fulfillment has attracted trendsetting brands like GoPro, Magic Spoon, Shokz, and maude, to work with us for decades.

Reach out for a quote if you’re interested in partnering with us.

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Overview

\nIn the last week alone, I received 3 packages from Amazon. A hard cover for my laptop which arrived in an Avengers printed corrugated box, rainbow-colored shoelaces and a T-shirt both of which came packaged in Poly Mailers. An ordinary customer like you and I are concerned about getting what we ordered delivered to us without any damage done to the parcel, however when you’re a person working in eCommerce, shipping is a vital part of your business and ensuring that customers get their deliveries in time and in the right way is what ensures that they will keep coming back!\n\nWhich is why a lot of thought is put into deciding how items should be stored, packaged, and delivered when running an eCommerce business. Most of the time these businesses leave it up to fulfillment centers to handle the shipping, and their job is to make sure deliveries are being made in the correct way. What is the correct way? You must be thinking. Well for starters, packaging is key and there are many types of packaging solutions that can be used, but the most common ones that you have probably seen a lot of are – Poly Mailers, Bubble Mailers, Cardboard Boxes and Corrugated Boxes. In this article I’m going to explain the difference between these varieties and how each can be used at its best.\n

Poly-Mailers

\nPoly Mailers are the most common form of packaging used and seen. Almost everything we receive comes wrapped in plastic/polythene. Poly-Mailers are just that – Polyethylene bags/envelopes. Items that aren’t too fragile and do not have to rely on the packaging to stay protected can be shipped using poly-mailers. Poly mailers are a great cheap alternative to standard packaging options such as boxes, and they also take up less space in terms of storage.\n\nImagine if you were to ship out or receive a bunch of hoodies, would you rather have it sent to you in a lightweight packaging that resists tears and protects the item from external particles, or have it sent to you in bulky boxes that are unnecessary? To save yourself the trouble of having to break and trash cartons/boxes, you would choose Poly Mailers. For clothing items and other unpackaged items that do not have the risk of bending or piercing through the packaging, Poly-mailers are the best options. They come in many sizes and can be clear, colored or customized according to a company’s brand logo/colors.\n

Bubble Mailers

\nSo now that you know what a Poly Mailer is, a Bubble-Mailer is just that but with an extra layer of padded protection inside the envelope! Bubble Mailers have all the great characteristics of a Poly-Mailer, but with an added bonus of bubble wrap protection. They are almost as easy to store while saving space and can be customized according to your needs and comes in many sizes. However, they are slightly bulkier, are not stretch proof, and are also on the pricier end than Poly-mailers.\n\nBubble Mailers are used for items that are not strong enough to go in Poly-Mailers and not fragile enough to go in cartons. So, if you are shipping items that have a sharp, angled edge or those that can be semi-fragile and need an extra layer of protection, Bubble Mailers your guy. And when thinking in an end customer’s perspective, it’s better to receive semi- fragile items in a bubble mailer rather than a carton that is full of bubble wrap or packing peanuts (which will also create a mess).\n

Corrugated Boxes

\nFragile and/or bigger items such as dinnerware are usually packaged in boxes. These boxes are often mistaken for cardboard boxes, but the correct term is corrugated boxes, and they are a broadly used packaging, storage and shipping solution. Corrugated boxes also come handy for retail packaging and display options, and any other function that requires a lightweight yet hard wearing material. Poly and bubble mailers are extensively used for shipping small to medium items but there are some jobs only sturdy boxes can do.\n\nCorrugated boxes are made from linerboard on the sides and a wavy fluted paper in the middle creating layers that strengthen the board and allows it to be the most reliable packaging solution by enduring severe wear and tear. Corrugated boxes vary in sizes, shapes and even sturdiness, which depends on the number of layers of fluted paper and linerboard.  They are very easy to customize and brand, and the durability of the boxes and its strength may vary depending on the item that is being shipped/stored.\n\nCorrugated boxes stay intact even with rain, heavy falls or scratches. While no box is indestructible, corrugated offers a greater level of guarantee that your products will move from the starting to end point in great condition.\n

Comparison

\nA comparison between the three of these packaging solutions is tough, as each are most suitable and appropriate for specific categories and sizes of products. A corrugated box will be the best choice when shipping a wall mirror, but a Bubble mailer would be incompetent to do so no matter how large in size.\n

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Where to buy

\nShipping and eCommerce companies can purchase Poly-mailers, Bubble Mailers and Corrugated Boxes in bulk from companies that sell these supplies. Uline is widely known among shipping and eCommerce firms for their vast variety of shipping supplies and custom branded labels and packaging. Other places to bulk buy shipping supplies are esupplystore, International Paper, Shipping Supply, Global Industrial, Lumi and so on.\n\nCustomized or designed Poly-mailer and bubble-mailers are available in many online stores, and they can be bought in packs of up to 50. Etsy and Amazon are two commonly used sites for designed, eye catching and decorative packaging supplies.”}]}],”section_settings”:””},”scripts”:{},”css”:{},”css_page”:””,”template_setting”:{“settings”:{“id”:”settings”}},”template_setting_top”:{},”page_setting”:{“settings”:[“lock-mode-off”]},”post_type_setting”:{“settings”:{“image”:”https://shiphype.com/wp-content/uploads/2021/08/Poly-Mailers-vs-Bubble-Mailers-vs-Corrugated-Boxes_shiphype.png|314|706|999993770″,”excerpt”:”Shipping is a vital part of your business and ensuring that customers get their deliveries in time and in the right way is very important.”,”extra_1″:””,”extra_2″:””,”icon”:{“icon”:””,”icon_style”:””,”icon_image”:””}}}}

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A Stretch Wrap Pole

\nWarehouses often need to put cartons on a pallet to move inventory around the warehouse floor or to ship it out on a truck. Unfortunately, no matter how perfectly a pallet is built, no matter how carefully it is moved, there is a substantial risk of the stack toppling over.  To help avoid this, it is vital to wrap loaded pallets with plastic stretch wrap.\n\nA major reason for wrapping pallets is to enhance load stability. A pallet that has been wrapped is less likely to collapse and cause injury to workers or damage to inventory. This is a very important part of the palletization process and there are a few different ways to do this manually. The way most warehouses do this is to simply grip both ends of the stretch wrap roll and go round and round the pallet. If all else fails, you can fall back to this method. This method however, risks hand and back injury, and lacks efficiency.\n\nAn essential piece of equipment that every warehouse should have on hand to combat this problem is a stretch wrap application tool. There are a few handheld options, but the best kind of application tool is the long pole-type. It is an essential piece of equipment because it reduces workers’ injury risk while also making manual pallet wrapping a more efficient process.\n

Pallet Jack (or pallet truck)

\nSo you have wrapped your newly built pallet with a handy stretch wrap pole, how do you move that pallet to where it needs to be? Palletized inventory can easily weigh hundreds of pounds. The only real option here is to use the second essential piece of equipment every warehouse should have: a pallet jack. Also called a “pallet truck,” this equipment operates on a basic level by sliding the forks under slots on one side of the pallet. Then the operator uses the handle to lift the pallet (kind of like an old water pump handle). Once raised off the floor, the operator can easily pull the pallet to its new destination.\n

Plastic Organization Bins

\nAn organized warehouse is a safe and efficient warehouse. There just is not any way to run a warehouse well without good organization. Systems, processes, and routines all contribute to maintaining an organized warehouse. But, something essential that every warehouse should have are simple plastic bins to store various supplies on shelves. These bins are often colored blue, yellow, green, or black and come in various sizes. This is essential equipment to keep hand tools, box cutters, tape, and other supplies in designated locations so that staff know exactly where to get the materials they need to work.\n\nIt is a good idea to label these bins according to what they contain to maximize their usefulness.\n

First Aid Kits

\nEven while following best practices when safety is concerned, accidents may happen. Injuries can and do occur. So, an essential piece of equipment that every warehouse needs is a first aid kit. Depending on the size and layout of your warehouse, it’s a good idea to keep at least two first aid kits on the warehouse floor in clearly marked locations that all staff can identify in case of emergencies. A basic first aid kit should include items such as an assortment of adhesive bandages, rubbing alcohol pads, medical tape, and gauze. Well-stocked first aid kits should also include common over-the-counter medications for pain relief. An unused first aid kit is better to keep around than to not have one when you need it. Always be prepared!\n

Personal Protective Equipment (PPE)

\nAn important part of preventing injuries in the first place is to have appropriate personal protective equipment suitable for each person’s role in your warehouse. Commonly referred to as PPE, personal protective equipment is essential to have on site at any warehouse operation. There is a wide range of PPE available for all industry types, but most warehouses would need to rely on PPE that guards against physical hazards.\n\nFor light warehouse duties, simple work gloves (either disposable or reusable) with a nitrile coating will protect workers’ hands from minor abrasions and cuts. These light duty work gloves preserve hand dexterity by being made from flexible material and the nitrile coating on the palm and fingers provides grip support.\n\nAnother necessary item of PPE is a high visibility vest (or hi-vis vest). Such vests are typically brightly colored orange or yellow and made of reflective material. These vests do exactly what the name says: a wearer is going to be highly visible, even in low-light conditions. These vests signal to others that there is a worker present, so proceed with caution. You can see workers wearing these vests everyday while repairing roads or doing general construction.\n\nIn a warehouse, these vests should be worn by all workers operating powered industrial trucks (PIT) such as a forklift, as well as workers who are in loading and unloading areas with high truck traffic.\n\nOf course you can provide all of these essential pieces of equipment to your warehouse, but that is no substitute for appropriate training to use the equipment. All staff should be trained on safe and effective use of the equipment they will need to use to perform their job to the best of their abilities.”}]}],”section_settings”:””},”scripts”:{},”css”:{},”css_page”:””,”template_setting”:{“settings”:{“id”:”settings”}},”template_setting_top”:{},”page_setting”:{“settings”:[“lock-mode-off”]},”post_type_setting”:{“settings”:{“image”:”https://shiphype.com/wp-content/uploads/2021/07/5-Essential-Pieces-of-Equipment-Every-Warehouse-Should-Have-in-shiphype.png|314|706|999993761″,”excerpt”:”Safe and efficient work requires specific equipment. There are five pieces of equipment that every warehouse should have.”,”extra_1″:””,”extra_2″:””,”icon”:{“icon”:””,”icon_style”:””,”icon_image”:””}}}}

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Is happy customers a sign that your business is doing well?

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\n\nMost would say yes but I think it’s a requirement. \n\nEnsuring customer satisfaction is key, especially in such a competitive landscape (online world) where businesses are offering 60-day return policies and satisfaction guarantees.\n\nThe bar is just set very high. Ultimately, this is a good thing. It forces businesses to provide more value to customers. \n\nBut don’t be scared, it’s not rocket science. It’s actually quite simple.\n\nCustomers are happy when they get what they want, when they want. When you’re selling online, you’re making a promise to the customer that you will deliver their order in the promised time-frame.\n\nEven though you’re handing the package over to a carrier (like UPS or FedEx) to deliver, your commitment is still with the customer. If something goes wrong, they will hold you accountable (and rightfully so) because the promise was made by you.\n\nWhen shipping packages, it’s not as simple as just packing the item in a box and handing it off the carrier. There’s a lot more that goes into it and it should be attended properly as well.\n\nThere’s some key considerations when shipping packages to your customers. Depending on your product and your customers, some of these may not apply to you but they are good to know regardless. If you’re not careful, you can open yourself up to undue risks. Let’s discuss some of them.\n

Lost Packages

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\n\nYes, it’s a reality. Packages do get lost. This can happen for so many reasons. To list a few:\n

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• Item fell out of a truck

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• Shipping label got smudged or is hard to read

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• Item got sent to the wrong distribution center

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• Carrier stole it (very uncommon but can happen)

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• Item was very small (can happen to big items as well)

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\nThis isn’t 100% avoidable but there are steps that can be taken to minimize the issue on your part.\n\nIf you’re shipping expensive items (like a MacBook), try to use packaging that doesn’t disclose the contents of the box.\n\nAlso, try not to use boxes that have previously been used. The reason is because they may have previous shipping labels on them and if they weren’t removed, it could cause problems for the carriers.\n\nI know these tips aren’t game changers but they might help you.\n

Packages can be returned

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\n\nIf you’ve been shipping for a few months, you’ve had to face this first hand. This can happen for a variety of reasons but the most common one is where someone entered the wrong address.\n\nSounds like it shouldn’t be a problem right because most people know their address. The issue is usually the way they format their address. How I type my address might be different than someone else who lives in the same house as me.\n\nPackages can also be returned if the correct postage wasn’t paid. Make sure that you’re entering the correct package weight and dimensions when printing shipping labels. Understating actual values. \n

Packages can get damaged

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\n\nYour package can be returned if it was damaged in transit. The item could also arrive at its destination damaged. Also, it could be put on hold because it was damaged. In all situations, it’s a problem.\n\nThis usually happens when the package was not packaged properly. The best way to prevent this is to ensure that the package you are shipping is not moving. If there’s empty space in the package, the package will move. Some of the best materials to use are as follows:\n\nIf your items are heavy, you should make sure that the strength of the package can withstand the weight of the item. Most boxes can handle up to 40 pounds and heavy duty boxes can easily handle 60+ pounds.\n

Special Considerations for Dangerous Goods

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\n\nNot all items are made equal. There’s certain items which pose a higher risk than general merchandise. An example of this would be batteries.\n\nBatteries are considered “Dangerous Goods” by carriers. This means that the mode of transport for these is pretty limited. You’re not allowed to ship them by air and even items that contain batteries might have certain restrictions.\n\nWhen shipping batteries, you must mention it on the outside of the box based on the type of battery.\n\nIf you’re shipping batteries internationally, it gets even trickier and you might require a safety data sheet.\n\nEven though we talked about batteries in this example, there’s a wide range of different items that are classified as dangerous goods. It’s best to check the carriers website to see what items they can service and it’s also a good idea to check the laws of your region and country.\n

International Shipments

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\n\nWhen shipping items international, you have to follow some extra guidelines. There needs to be a Commercial Invoice or CN22 form attached to your shipment that describes the contents of the package and their value.\n\nIf the items are high value, there might be additional forms you need to fill out.\n\nThis is required because customers who are shopping international aren’t paying taxes but they must still pay tariffs in the form of import duties. \n\nSome countries have rules that make it easier for residents to shop internationally and others may not have lenient rules. \n\nCustomers in the United States WILL NOT be charged any duties for items worth $800 or less.\n\nCustomers in Canada WILL be charged duties for items worth $30 or more.\n\nDepending on the item, the amount of duty paid will vary and you might have to pay brokerage fees on top.\n\nUnfair? Yes\n\nCan you do anything about it? Not really.\n

What is the best way to minimize these issues?

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\n\nThe first thing is to be aware of these issues. Even if someone didn’t know of these problems off the bat, they’ll become familiar over time once their volume gets large enough. \n\nSome of these issues are inevitable and there’s probably a lot more that weren’t discussed today. In all cases, the best thing to do is attend these problems and then set procedures in place to ensure they don’t happen again. \n\nAs a business owner, you’re getting paid to solve problems and consider this something you must attend to as well. Honestly, these aren’t big problems and they shouldn’t repeat once the line of action is set.“}]}],”section_settings”:””},”scripts”:{},”css”:{},”css_page”:””,”template_setting”:{“settings”:{“id”:”settings”}},”template_setting_top”:{},”page_setting”:{“settings”:[“lock-mode-off”]},”post_type_setting”:{“settings”:{“image”:”https://shiphype.com/wp-content/uploads/2020/09/5-Risks-eCommerce-Businesses-Face-with-Shipping-Orders_shiphype.png|314|706|999993778″,”excerpt”:”Shipping packages is lots of fun but it brings it’s own set of challenges. Sometimes things can go very wrong if not handled properly. “,”extra_1″:””,”extra_2″:””,”icon”:{“icon”:””,”icon_style”:””,”icon_image”:””}}}}

The post 5 Risks eCommerce Businesses Face with Shipping Orders appeared first on SHIPHYPE Fullfillment.

Lack of Control

\n\n

\n\nThis is big and that’s why it’s first. When using a fulfillment center, you give up control. This is because you no longer have the order in front of you. If you need to open a package to modify an order, it’s not as simple as grabbing a box cutter and walking over to where the package is. \n\nIt’s also possible that the fulfillment center you’re using doesn’t allow packages to be modified once they’ve been processed. For 3PLs where they have this option, you’ll need to go into your dashboard and put in a request to have the order modified. They probably have dozens of other requests from sellers which means they won’t be able to make the change that very minute you put the request in. This is just 1 example of loss of control but the point of focus here is that it’s going to slow things down when there’s lack of control.\n\nGetting more time to focus on areas of improvement instead of shipping is convenient, but it comes at a cost. Handing over the responsibility of a big part of your business requires you to trust your 3PL. Giving up control of the shipping process can be tricky. If your fulfillment centre makes a mistake and the customer complains, you will need to depend on them to figure the situation out and get back to you. In the circumstance that the product was damaged, it could be difficult to determine whether that was a problem on your part, the vendors, or if it occurred while being shipped, since you would not have been physically present to know. This could result in some difficulties if not properly communicated, though fulfillment centres will often compensate for any losses made on their part. Other major and minor issues could also surface, and it is possible that you may not have been made aware of them until a customer complained. \n\nLoss of control isn’t always a bad thing. It’s simply the tradeoff that comes with delegating the task at hand to someone else. It can be seen in non-fulfillment related things as well such as hiring. Most successful companies have multiple people working for then. The synergy of people working together allows for the organization to succeed. If the founder decided that he doesn’t want to hire people because he wants to maintain his control, it would severely limit the growth of the organization. Although lack of control is a disadvantage, it’s often a tradeoff that’s made in exchange for growth.\n\nLosing control over the shipment cycle will need some getting used to, and will require you to trust the 3PL.  The fulfillment process is an important aspect of your business and that’s why I encourage you to do your due diligence when finding the right dance partner. Let’s look at other issues.\n

Lack of Customization 

\n\n

\n\nFulfillment centers are special businesses that have optimized the processes of storage, picking & packing and shipping and offer these services to others. You’re in business because you do something you’re really good at. Depending on what you sell, you might have unique processes in place that are different from other businesses. It could be anything as simply as hand-writing a “thank you” note to a strict quality control process that you put products through before final shipment. In either case, this is going to be difficult to do when using a fulfillment center. Most 3PLs offer simple services and won’t do anything beyond their offerings. Others are highly customizable and will work with you to understand and implement your processes. Even after you find a fulfillment center that can accommodate your requirements, it’s hard to ensure remote work.\n\nHow your customers receive their orders is also extremely important – everything from the speed, the packaging, the condition and care all matter. Companies such as FabFitFun are big on making sure their brand stands out with their unique packaging and exciting unboxing. Aside from the products they deliver, they’re actually selling an experience. They’re able to do this through their personalized materials and their own custom packaging. This isn’t possible without the level of customization they do at all levels. If FabFitFun goes searching for a fulfillment center, they would ensure the fulfillment center gives them the ability to use their own packaging instead of generic boxes.\n\nIt’s important to ensure the fulfillment center you’re using will allow full customization options if your business requires that. Whether that’s using your own custom packaging or adding promotional inserts such as brochures or business cards. Accepting custom work orders and special instructions is also important – especially for Amazon sellers who require FBA Prep Service from fulfillment centers. Labeling and preparing items to be sent to amazon requires unique care and attention to detail as each product is different. \n\nOnce you’ve found a fulfillment center that can take care of your customization needs, it’s also important to look at costs.\n

May Not be Cost Efficient for You

\n\n

\n\nThe irony of this one. There are many reasons why a brand may hire a fulfillment centre. For most, letting a 3PL handle their shipping process is a way to manage time. Others look towards fulfillment services in an effort to reduce costs. Using a 3PL will reduce your workload, but it’s not guaranteed that it will reduce your expenses. Ultimately, your order volume will decide whether a fulfillment center is cost-effective.\n\nFulfillment centres provide sellers with many different services and all of those cost something. From the moment your items arrive at their warehouses, to when your customer’s order is shipped, you will be charged. Some of the most common fees include receiving fees, storage fees, picking & packing fees, shipping fees and also fees on additional services. Besides this, some fulfillment centers may also have minimum charges that they will charge you no matter what.\n\nFulfillment centers are usually affordable (they wouldn’t be in business otherwise) but if your own operations are extremely streamlined, it can be cheaper fulfilling orders yourself. For this to be true, you also need to be doing a significant volume so that your overhead expenses are justified. When fulfilling orders yourself, your storage is only being used for your items. What this means is that you have the flexibility of storing items the way you want to store them and you can customize your storage for your unique efficiency. What this also means is that the space can be optimized and your items can also be placed closer to the packing area to reduce the picking time. \n\nA fulfillment center is storing items on behalf of hundreds or even thousands of other businesses. Where your item is stored is decided by the fulfillment center and the price you’re paying is based on the average time it takes to pick an order. This time is usually higher than if it was picked at your warehouse  (where the placement of products will always be your products first) and because that factor and additional profit is what dictates the price, it is likely that the fulfillment cost per order is higher.\n\nThis is the very reason fulfillment centers also have SKU limits sometimes. With more SKUs in the warehouse, it impacts the fulfillment time of all orders and ultimately costs more. \n\nFor a company that’s growing and shipping 300+ orders per month, this may not be an issue for you. For a smaller business with tight margins, using a fulfillment center could mean higher cost especially when considering minimums.\n

Stale Inventory

\n\n

\n\nThe attraction of a fulfillment center mainly comes from their cheap prices for storing your products. It might sound like a great idea to send all your inventory over and make it their responsibility, but in the long term, that can be a risky move as they are more than a warehouse for storage space. The cost of storing your products at their warehouses is usually determined by how many products you send, how much space they take and the quantity of each.\n\nIf you have SKUs that sell a lot, you won’t mind paying storage fees. The drawback is that if your products are not selling, you still have to pay the storage fees. Certain fulfillment centers may even charge long-term storage fees which can be really expensive. If you were storing on your own, you’re also paying rent but this forces you to be extra careful with your inventory projections – especially for seasonal businesses. it doesn’t make sense to be honest but in their defense, they can replace your product with a product that sells more which is more beneficial for them. \n\nSHIPHYPE doesn’t care whether your product sells or not because of the way our business is structured but certain fulfillment centers do.\n

Multi-Location Fulfillment Centers

\n\n

\n\nAs supply chains grow, you may need to consider a fulfillment center with various locations for optimal reach and to stay competitive. This will have its advantage but also comes with its own set of challenges. Although your shipping cost and order processing cost will go down, you will have to account for the doubled inventory, storage, and handling costs. This is especially true if you’re using multiple fulfillment centers.\n\nIn addition, different locations can have different strategies for servicing. It will be crucial to keep up communication with each location. Even if the fulfillment centres are handling your shipping, the products and business are yours and the ultimate responsibility is on the seller to keep the inventory balanced and avoid confusion between locations. Managing inventory is important with just one fulfillment center. With multi-location fulfillment centres, it becomes crucial. If you are looking to expand your business, the tradeoff of having access to a bigger market might offset the drawback. It all just depends on your exact business. In any case, it’s always best to be well prepared knowing both the pros and cons before diving in.\n

\n\n

\n\nAs you can tell by now, there are quite a few disadvantages of using fulfillment centers and there’s probably a lot more. I believe the ones I’ve listed are the most important and should be considered before hiring a fulfillment center.\n\nYou might be asking yourself why I’m listing disadvantages of a fulfillment center when I work for a fulfillment center. The reason is because we want you to be in the know and to make the most informed decision for your business. We’re successful as a fulfillment center because we focus on providing value to our clients. Depending on the current stage and goals of your business, we might not be a good fit today but we’ll be right here when the time is right.\n\nFulfillment centers have been around for a while and it’s a business model that’s constantly challenged. Running this kind of business forces you to adapt to change and constantly improve your services. Another part of the reason we’re listing these disadvantages is so people know we’re aware and paying attention to where we need to work. As a fulfillment center, our job is to minimize these issues to ensure excellence.“}]}],”section_settings”:””},”scripts”:{},”css”:{},”css_page”:””,”template_setting”:{“settings”:{“id”:”settings”}},”template_setting_top”:{},”page_setting”:{“settings”:[“lock-mode-off”]},”post_type_setting”:{“settings”:{“image”:”https://shiphype.com/wp-content/uploads/2020/09/5-Disadvantages-of-Hiring-a-Fulfillment-Center_shiphype.png|314|706|999993780″,”excerpt”:”Fulfillment centers are a great tool. We’ll talk about some of the most common disadvantages of today’s fulfillment centers.”,”extra_1″:””,”extra_2″:””,”icon”:{“icon”:””,”icon_style”:””,”icon_image”:””}}}}

The post 5 Disadvantages of Hiring a Fulfillment Center appeared first on SHIPHYPE Fullfillment.

Labor/Labour Cost

\n\n

\n\nYou must figure out how much time is spent on each order individually. Once you receive an order, someone has to start working on it. There will be time spent on each of the following tasks:\n

\n \t
1. Processing Time on Computer

\n \t

2. Printing Packing Slip (unless you’re computerized)

\n \t

3. Picking Time at Warehouse

\n \t

4. Packing Time at Warehouse

\n \t

5. Marking order as complete and updating tracking information.

\n

\nI recommend tracking the total time from start to finish instead of tracking each time separately. I say this because there’s also a transition period when going from 1 task to another.\n\nFigure out how long it takes to go from receiving an order to having it fully packed for FedEx to pickup.\n\nFigured it out? Great. Now multiply that by 1.2. This is important because your calculations might not include all the little things and we also need to account for minor interruptions as well.\n\nLet’s say it takes 15 minutes to process an order. After multiplying it by 1.2, we get 18 minutes. If you are paying $20/hour, the labour on this order is costing you $6 per hour.\n\nHow to calculate this? See simple way below:\n

\n \t
1. Labour Rate = $20/hour

\n \t

2. Minutes in an hour = 60

\n \t

3. Dividing $20/60 = $0.33 per minute

\n \t

4. Minutes required per order = 18

\n \t

5. Labour Cost Per Order = $0.33 x 18 =$6.00

\n

\n

Cost of Supplies

\n\n

\n\nSome of the supplies that are used up when processing an order include:\n

\n \t
1. Printer Toner

\n \t

2. Printer Paper

\n \t

3. Thermal Labels

\n \t

4. Windows Slips

\n \t

5. Stickers

\n \t

6. Box/Polymer Bag

\n \t

7. Dunnage (Bubble Wrap, Air Pillows, Counter Rolls etc)

\n \t

8. Tape

\n \t

9. Blade Cutter

\n \t

10. Pens & Markets

\n

\nAssign a value to the items you know the cost for (I would do this for just the box and the bubble wrap):\n

\n \t
1. Box = $0.50

\n \t

2. Bubble Wrap = $0.10

\n \t

3. Total Supplies Cost = $0.60

\n

\nIt’s not worth it to calculate the cost of the rest of the items such as pens & markers. The cost per order is probably very low and also really hard to calculate. One of the first things they taught in my accounting class was that accounting is an essential process of a business but the cost of accounting must first be worth it.\n\nIf you really want to, go ahead and assign $0.10 each or multiply the $0.60 x 1.2 as well.\n

Overhead Costs

\n\n

\n\nSome businesses don’t like to factor this in but I think it’s important. Figure out how much you’re paying monthly for the following expenses:\n

\n \t
1. Rent

\n \t

2. Insurance

\n \t

3. Utilities

\n \t

4. Website/Software Cost

\n \t

5. Maintenance

\n

\nLet’s say everything combined was $5,000.\nIf you’re doing 250 orders per month, the overhead cost you are incurring for each order is $20 per order.\nIf you’re doing 2500 orders per month, the overhead cost per order becomes only $2 per order.\n\nIf your order volume isn’t large enough, it’s very possible that you won’t be making a profit. As you can tell by now, the fixed expenses are expenses you must pay for no matter what. Whether you have 0 orders or 1000 orders, it’s something you must pay for. If you don’t calculate it into your shipping cost, that’s fine too but it needs to be accounted for somewhere.\n

Total Shipping Cost

\n\n

\n\nNow that you’ve calculated each of them individually, time to put them together.\n

\n \t
1. Labour = $6.00

\n \t

2. Supplies = $0.60

\n \t

3. Overhead Cost = $2.00

\n \t

4. Fulfillment Cost =$8.60 per order.

\n \t

5. Freight (Variable per order depending on package dimensions and destination)

\n \t

6. Total Shipping Cost = Freight (what the carrier charges you) +$8.60. 

\n

\nIf FedEx is charging you $10 for a package, then your true shipping cost comes up to $8.60 per order.\n

\n\n

\n\nThere’s a lot of ways to calculate cost but I think this is the simplest. It combines both your fixed expenses and variable costs. Another cool thing about this method is that you can calculate your savings per order as you scale to a larger volume. Low order volume can also cost you a lot of money per order and what seems like profit might not actually be profit.”}]}],”section_settings”:””},”scripts”:{},”css”:{},”css_page”:””,”template_setting”:{“settings”:{“id”:”settings”}},”template_setting_top”:{},”page_setting”:{“settings”:[“lock-mode-off”]},”post_type_setting”:{“settings”:{“image”:”https://shiphype.com/wp-content/uploads/2020/08/How-to-Calculate-Your-Real-Shipping-Cost-per-Order-shiphype.png|314|706|999993784″,”excerpt”:”When calculating your fulfillment cost, make sure to account for the following: Labor Cost, Cost of Supplies as well as Overhead Costs. “,”extra_1″:””,”extra_2″:””,”icon”:{“icon”:””,”icon_style”:””,”icon_image”:””}}}}

The post How to Calculate Your Real Shipping Cost per Order? appeared first on SHIPHYPE Fullfillment.

Using Free Shipping as a Tool

\n\n

\n\nThere’s a lot of different advantages to free shipping and they ultimately translate into increased orders. Besides increasing the number of sales, you can use free shipping to instantly increase your average order value as well. Both of these combined are huge. They can make the difference between a good business and a great business. \n\nLet’s say you’ve decided to offer free shipping to your customers. This is where it gets fun. \n\nWhen offering free shipping, you have to be smart – you can’t just offer free shipping for all orders. You must set a minimum order threshold for customers to be eligible for free shipping. The shipping cost will have to be factored in as a percentage where it only becomes a small portion of the order value.\n\nSetting a minimum order value has 2 main advantages:\n

\n \t
1. Ensures You Don’t Lose Money

\n \t

2. Customers Spend More

\n

\n

Ensures You Don’t Lose Money

\n\n

\n\nIf you’re selling something for $10 (let’s say a mask), you can’t afford to offer free shipping on this. This is because the shipping cost might be $5 alone. That’s 50% of the sale price. Most businesses don’t have a 50% gross margin.\n\nIn this situation, offering free shipping doesn’t make sense.\n\nNow, let’s say you offer free shipping at $100 and the shipping cost is still $5. In this case, the shipping cost will only be 5% of the order value. If you’re operating at a 30% margin, you’re now down to 25% margin in this situation. You’ll still be happy at 25% because there might not be a sale without the free shipping.\n\nThe $100 minimum is a more realistic scenario but it still might not be the right number for you. Spend some time and figure out the sweet spot for your business.\n

Customers Spend More

\n\n

\n\nPeople don’t like to pay for shipping. People also like deals. When customers aren’t paying for shipping, they feel like they’re getting a deal. They will add more items to cart to not have to pay that annoying shipping fee. It’s a psychological trick but it has benefits behind it too. I also do this all the time. \n\nIn fact, I did this today purchasing socks from Van Heusen. My cart had $36 of socks in it. I needed to get to $75 to get the free shipping. Want to know what I did? See below:\n\n\n\n \n\nI justified it to myself because I had $80 worth rewards saved up but either way, I took advantage of “free shipping”\n\nThis works on everyone. It works because there’s value to the customer. The customer is in-fact not spending money on shipping. The trade-off is that they had to spend a bit more. They’d rather do this. Both parties are happy and that’s why everyone loves free shipping!“}]}],”section_settings”:””},”scripts”:{},”css”:{},”css_page”:””,”template_setting”:{“settings”:{“id”:”settings”}},”template_setting_top”:{},”page_setting”:{“settings”:[“lock-mode-off”]},”post_type_setting”:{“settings”:{“image”:”https://shiphype.com/wp-content/uploads/2020/08/Increase-Average-Order-Value-with-Free-Shipping_shiphype.png|314|706|999993786″,”excerpt”:”Before you start offering free shipping, check out this little trick to increase your average order value!”,”extra_1″:””,”extra_2″:””,”icon”:{“icon”:””,”icon_style”:””,”icon_image”:””}}}}

The post Increase Average Order Value with Free Shipping appeared first on SHIPHYPE Fullfillment.

Is there a SHIPHYPE location in Vancouver?

\n\n

\n\nSorry, we don’t have a location in Vancouver yet. We’ll probably get one there next year but there’s other locations we’re targeting first. With approximately 25% of the Canadian population living in the western part of the country, there’s definitely a need for a 3PL.\n\nEven though we don’t have a location there, we’ve found some options that may be helpful. Although they can be considered our “competitors”, it’s okay. We’re not purposely trying to shoot ourselves in the leg here either. We understand the value we bring as a fulfillment center and if another solution is better suited for our customers, they should know about it. \n\nP.S. We’re not being compensated in any way by these fulfillment centers.\n\nWe also can’t guarantee the efficiency or credibility of any of these parties. The purpose of this article is simply to point you in a certain direction. I highly recommend you do your due diligence.\n

Fulfillment Centers in Vancouver, BC

\n\n

\n\n

\n \t
1. IFMS (Integrated Fulfillment Management Services Inc.)

\n \t

2. DelGate Warehousing & Distribution

\n \t

3. Evolution Fulfillment

\n \t

4. 3PL Center (They mention that they are at capacity currently)

\n

\n

Fulfillment Centers in Richmond, BC

\n\n

\n\n

\n \t
1. ShipWire

\n \t

2. ShipBob

\n \t

3. I2i Fulfillment

\n \t

4. Blueleaf Warehouse

\n

\nVancouver and Richmond are expensive cities. This means that the cost of real estate and labour are more than other cities. We also recommend looking for fulfillment centers in other cities such as:\n

\n \t
1. Victoria

\n \t

2. Kelowna

\n \t

3. Abbotsford

\n \t

4. White Rock

\n \t

5. Nanaimo

\n \t

6. Kamloops

\n \t

7. Chilliwack

\n

\n

Why should you look for a fulfillment center in Vancouver?

\n\n

\n\n

\n \t
1. Your Customers are in Western Canada

\n \t

2. Offer Late Cutoff Times

\n \t

3. Vancouver is beautiful

\n

\n

\nIf your customers are located in Vancouver, then this makes sense. If most of your customers are located in Toronto (Eastern part of Canada), you don’t need a fulfillment center in Vancouver.\n

\nVancouver runs on Pacific State Time. What this means is that when it’s 6PM in Canada, it’s 3PM in Vancouver. Ultimately, this means that more orders can go out the same day.\n

How to find a fulfillment center online?

\n\n

\n\n

\n \t
1. Go to Google Maps

\n \t

2. Search for the city. E.g. Vancouver, BC

\n \t

3. Type in Fulfillment Center\n
   \n \t
   1. You may also want to try other synonymous terms such as 3PL, fulfillment house, pick & pack services setc.

   \n

   \n

\n \t

4. Get in touch with the fulfillment centers

\n

\nAlternative, just type in “fulfillment centers in vancouver, canada” to see the popular options.“}]}],”section_settings”:””},”scripts”:{},”css”:{},”css_page”:””,”template_setting”:{“settings”:{“id”:”settings”}},”template_setting_top”:{},”page_setting”:{“settings”:[“lock-mode-off”]},”post_type_setting”:{“settings”:{“image”:”https://shiphype.com/wp-content/uploads/2020/08/Fulfillment-Centers-in-British-Columbia-Canada_shiphype.png|314|706|999993790″,”excerpt”:”Fulfillment centers are everywhere. This is amazing because you can be close to your customers. They’re easy to find and get in contact with. “,”extra_1″:””,”extra_2″:””,”icon”:{“icon”:””,”icon_style”:””,”icon_image”:””}}}}

The post Fulfillment Centers in British Columbia, Canada appeared first on SHIPHYPE Fullfillment.

What to look for in a Fulfillment Center?

\n\n

\n\nPicking a fulfillment center can be difficult but it’s important to spend some time and do your research. Luckily, there’s a lot of options and you’re bound to find one that fits your requirements. There’s a lot of factors to consider but I think the biggest one is the fulfillment center’s proximity to your customers. It’s important to get orders to customers in time. You also have to consider the customization options the fulfillment center offers. Every business is different and you’ll probably have your own needs as well. We also can’t forget pricing. The cost you’re paying for fulfillment needs to be worth it and justified.\n\nIn this article, you’ll find a lot of things you should look for when searching for the right fulfillment center. It will be difficult to find one that has each and every thing but I doubt there’s a business that will need every feature either. Check it out:\n

Proximity to Customers

\n\n

\n\nIf you are a business located in Canada but your customers are in the states, it’s probably a good idea to look for a fulfillment center in the states. It’s a good idea because:\n

\n
1. Cheaper shipping

\n

2. Your customers will get their products faster

\n

3. Customers won’t have to pay duties/tariffs. 

\n

\nFulfillment centers usually have multiple locations too. If you’re a business located in New York but your clientele is in California, you may want to look at options on the west coast.\n

Worldwide / International Shipping

\n\n

\n\nMost fulfillment centers only ship within their specific country. Some fulfillment centers can ship everywhere in the world. If everything else was identical, I would go with the one that can also ship international. With this, you have the option of expanding into new markets without having to double down on inventory costs. Selling internationally can add a lot of new orders to your business.\n

Integrations

\n\n

\n\nMost fulfillment centers have integrations that will connect to the main online marketplaces like Amazon, eBay etc. They will also integrate with your online store whether it’s WooCommerce, Shopify, Magento etc.\n\nYou want to make sure the fulfillment center connects to your specific store or marketplace. If you don’t see it on their website, you can always call or email them to make sure. It’s a crazy space. Certain fulfillment businesses will only work within certain marketplaces. Others will do custom integrations with each and every one of their clients.\n

Initiation Fees

\n\n

\n\nNobody likes initiation fees. They’re annoying. Sometimes they’re necessary depending on how deep the level of integration is with the fulfillment center. It’s very possible your integration requires a lot of extra work on the fulfillment center’s side. There’s other times where fulfillment centers try to cover their marketing costs with initiation fees and that I’m not a big fan of.\n\nI’m not saying you shouldn’t pay for this but it’s important to know what you’re paying for.\n

Maximum SKUs

\n\n

\n\nThis is a big problem in the fulfillment industry. Most fulfillment centers have a cap on how many unique SKUs (items) they will store from an individual business. Some cap at 50, some cap at 500. There’s very few that don’t have a cap.\n\nThe reason they do this is because ideally they want items that sell a lot. They might be charging high pick & pack fees and they make more money if your product sells more.\n\nThe more products you have, the more space it will take up and that means the more time the pickers have to spend to prepare the order. If the fulfillment center offers cheap storage, they probably don’t want products sitting at their warehouse that don’t sell.\n\nWhat matters for you as the seller is that the fulfillment center doesn’t discriminate. I think the job of a fulfillment center is to help businesses compete with the big players.\n

Manual Orders

\n\n

\n\nNot everyone sells on marketplaces or online stores. It could be that your customers place orders through an online form. In this case, you will need the option to create manual orders with the fulfillment center you are using.\n\nThere’s probably times where you need to send replacement orders to customers. Having the ability to create manual orders is essential. There should be an option to either create orders manually or by uploading spreadsheets.\n\nI think this is one of the most important things to have in a fulfillment center. To me, this means they are giving you a high level of control (which is really important in your position)\n

Pricing

\n\n

\n\nA fulfillment center can have all the offerings you want but ultimately it comes down to the cost. If a fulfillment center is not affordable for you, you can’t move forward. Most fulfillment centers are transparent about their pricing. You can check out their website and find how much they charge for services. Generally, fulfillment centers will charge you for the following:\n\nReceiving\nStorage\nPicking & Packing\nShipping\n\nBased on your order volume, pricing will vary. You can quickly estimate how much a fulfillment center will cost you per order based on your order volume. You can then compare pricing across fulfillment centers that meet your needs to see who offers the best pricing. It doesn’t always come down to pricing because most fulfillment centers will be in similar range but it is important to consider when making the decision.\n

\nMost fulfillment centers do a good job with this. They have published prices on their website for the services they charge. I think this saves both parties a lot of time. As the seller, it’s annoying to fill out all your information online just to get a quote you’re not happy with. It’s also a great feeling knowing you’re paying the same as everyone else.\n

Extra Services / Customization Options

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\n\nThis one is key. Your business is different from other businesses which means your products need to go out a certain way. Perhaps you’re selling items that are big, heavy, fragile or all of the above. You’d need a fulfillment center that can support these kinds of products.\n\nI know there’s fulfillment centers that won’t deal with certain kinds of products such as Food Products or Batteries etc. This doesn’t mean that nobody will. There are even fulfillment centers built specifically around “Temperate Controller Products” or Lab Products. It’s a cool industry and you’ll find what you’re looking for if you look deep enough.\n\nBesides this, you can also have them do special tasks like bagging products, inventory counts and some will even do quality control. You will need to contact them individually to find out what they can and can not do. Just get in touch with them and make sure.\n

Subscription Box Kitting

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\n\nSubscription box businesses need to prepare their shipments ahead of time. Everything is custom for them. They have custom boxes, their products and also have promotional inserts as well. This means they need to be put together a certain way. Most won’t do this for you but there are fulfillment centers that specialize in kitting.\n\nIf you’re a subscription box business, make sure the fulfillment center can support this.\n

Scheduled Shipments

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\n\nIf you’re a subscription box business, you have recurring orders that need to go out on certain days. Check with the fulfillment center to see if they’ll ship your packages in batches on certain days.\n\nEven for non-subscription box orders, you can have orders that you want going out on certain days. This is not a normal feature of subscription boxes to have but if it’s important to you, make sure they provide this.\n

Returns Handling/RMA Processing

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\n\nThis one is great. Just like fulfillment, returns handling can become an operation of its own.\n\nModern day fulfillment centers will offer you the option to accept returns at their address. They can accept all your returns and store them until you’re ready to have them shipped back. Or, they can inspect and process returns for you based on the information you provide.\n\nIf returns are something you’re tired of taking care of, find a fulfillment center that will.\n

Control /Ability to Modify Orders

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\n\nThis one is real. The opportunity cost of using up a fulfillment center is giving up control over your orders. No matter which fulfillment center you choose, you will have to sacrifice some degree of control – it’s simply inevitable. I say inevitable because you won’t just be able to open up a package to modify an order if the customer needs you to do this. The items aren’t even in your hands, they’re at the fulfillment center.\n\nAt SHIPHYPE, my goal is to provide sellers with every tool they need to experience the same degree of control they have when fulfilling on your own.\n\nYou need the option to be able to modify orders. There’s going to be times when your customers call in and want to make changes. They either want to cancel an order, remove items or add additional. In all cases, you want the fulfillment center you’re using to be able to facilitate this.\n\nFulfillment software should also be accessible from all devices. Sometimes you’re in a different city or on vacation and might not have access to your personal computer. Even in those times, you want to be aware of what’s going on. Make sure the fulfillment center’s software is easily accessible.\n

Shipping via Parcel vs LTL vs Lettermail

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\n\nSome fulfillment centers ship parcels only. This makes sense because 95% of eCommerce orders go out as parcels. There’s going to be times when you need to send your items using LTL (Pallet) service. It’s very possible you sell in wholesale as well and need the fulfillment center to process those orders as well.\n\nThere’s a small percentage of fulfillment centers that can process lettermail orders as well. This one is cool because certain eCommerce sellers use lettermail service to save on shipping. It sounds crazy but it’s true. They’re saving a lot of money doing this. \n\nIn any cases, based on what kind of shipments you’re sending, you want to make sure the fulfillment center you’re using can support that.\n

Same-Day Shipping

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\n\nSuper important. Does your fulfillment center ship orders the same day or the next day? Or is it the case that they don’t ship orders until the 2nd or 3rd day?\n\nThere are businesses for whom that could work for but it won’t work for most eCommerce businesses. Customers in eCommerce want their products ASAP and as a seller it’s in your best interest to make that happen. 3PLs that ship orders the same day will usually have a cut-off time posted on their website.\n

Late Cut-off Time

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\n\nLate Cut-off times are important because it means more orders can go out the same day. If a fulfillment center has a 12PM cutoff time, it means that all orders received before 12PM will go out the same day.\n\nIf a fulfillment center has a cutoff time at 3PM, it means orders before 3 will go out the same day.Comparatively, the fulfillment center with the later cut-off time will be able to ship more orders the same day.\n

Contracts

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\n\nContracts are the opposite of flexibility. Nobody likes being tied into a contract. One the reasons people look towards fulfillment centers is because of the flexibility they bring. Being locked into contracts kind of defeats the purpose.\n\nIt’s not always a bad idea to have a contract in place and it all just depends. It depends on the deal you have set up with the fulfillment center. It could be that they’re promising you better rates if you choose to go into a contract. But if all else was equal, I’d lean towards a fulfillment center that doesn’t lock me in.\n

Customer Service

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\n\nNo matter how simple your business is or the fulfillment center you’re using, you will have problems. If you don’t have problems, you will have questions. If you don’t have questions, you will have feedback. The point is, you’re going to need to speak to somebody. When you do need to do this, the last thing you want is to be put on hold for the next available agent.\n\nIdeally, find a fulfillment center that will provide a dedicated rep to manage your account. It’s the reps job to make sure everything is nice and dandy and your account isn’t running into any issues. It’s also nice having a point of contact whom you can get in touch with at any time for your questions.\n

Insurance (for products)

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\n\nYour inventory is worth money. You want to make sure it’s protected. In case of theft, a fire, an earthquake, or any other unexpected circumstance, you want to make sure your products are protected. Check with the fulfillment center to make sure they provide options.\n\nMost 3PLs will let you add their address on to your insurance policy.\n

Insurance (for shipments)

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\n\nDepending on what you’re shipping, you might want to be protected on that shipment. Check with your fulfillment center to see if they provide insurance on the packages they ship. This is a service that’s purchased directly from the carrier so you’ll need to check if they extend these services over.“}]}],”section_settings”:””},”scripts”:{},”css”:{},”css_page”:””,”template_setting”:{“settings”:{“id”:”settings”}},”template_setting_top”:{},”page_setting”:{“settings”:[“lock-mode-off”]},”post_type_setting”:{“settings”:{“image”:”https://shiphype.com/wp-content/uploads/2020/08/How-to-Pick-a-Fulfillment-Center-What-to-look-for_shiphype.png|314|706|999993792″,”excerpt”:”With so many fulfillment centers available, finding the right one can be difficult. We will give you some tips for it. “,”extra_1″:””,”extra_2″:””,”icon”:{“icon”:””,”icon_style”:””,”icon_image”:””}}}}

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