Fulfilment refers to storing, packaging, and shipping products to customers. It is a crucial aspect of e-commerce and can significantly impact the customer experience and the overall success of a business. Here are few frequently asked questions and answers about fulfilment.

A beginner’s guide to understanding fulfillment services.

How do I calculate fulfilment costs?

Calculating fulfilment costs can be a complex process involving various factors such as storage fees, pick and pack fees, shipping costs, and returns handling fees. To calculate the total fulfilment cost, you need to consider the following factors:

Storage fees: These are the fees charged by the fulfilment centre for storing your products. The cost is usually calculated based on the product volume or weight and the time they are stored.

Pick and pack fees: These are the fees for picking the products from the warehouse and packing them for shipping. The cost is usually calculated based on the number of products and the complexity of the packing process.

Shipping costs are the costs associated with delivering the products to the customer. The cost is usually calculated based on the weight and dimensions of the package, the distance it needs to be shipped, and the shipping method chosen.

Returns handling fees: These are the fees charged for handling returned products, including inspecting and repackaging them for resale or disposing of them.

To calculate the total fulfilment cost, you need to add all the overhead costs and divide it by the number of orders fulfilled to get the average fulfilment cost per order. You can then use this number to determine the profitability of your business and adjust your pricing accordingly.

How do I choose the right fulfilment provider for my business?

When choosing a fulfilment provider for your business, there are several factors to consider. Some of the key considerations include the following:

Location: Choose a fulfilment centre close to your target market to reduce shipping costs and delivery times.

Capacity: Make sure the fulfilment centre can handle your current and future volume of orders.

Services offered: Consider the range of services offered by the fulfilment centre, such as order processing, returns handling, and inventory management.

Pricing: Compare the pricing of different fulfilment providers to ensure you get the best value for your money.

Reputation: Look for a fulfilment provider with a good reputation and a track record of providing high-quality services.

Scalability: Choose a fulfilment provider that can scale with your business as it grows to avoid disruptions in the future.

What are the different types of fulfilment models?

There are several fulfilment models that businesses can choose from, depending on their needs and preferences. Some of the common fulfilment models include:

In-house fulfilment: This model involves managing the fulfilment process in-house, using your resources and infrastructure. This model is suitable for businesses with large orders and the necessary resources to handle fulfilment internally.

Third-party fulfilment: This model involves outsourcing the fulfilment process to a third-party provider. This model is suitable for businesses that need more resources or expertise to handle fulfilment in-house.

Drop shipping: This model involves having the supplier ship the products directly to the customer, bypassing the retailer’s warehouse. This model is suitable for businesses that need more resources to hold inventory.

Crowdsourced fulfilment: This model involves leveraging the excess capacity of other businesses or individuals to fulfil orders. This model suits businesses with fluctuating order volumes or those looking to reduce fulfilment costs.

To learn more about this service click here or get in touch with our team.