One of the most important aspects of running an e-commerce business is how you get the orders to the customers. For a new and upcoming business, managing delivery, getting payments, returns, and more can be cumbersome. That’s why a lot of enterprises hand it over to 3rd parties, employ their fulfillment services, and focus on what is important to them.
So, what are these fulfillment practices and services, how do they operate, and what are some of the best in the business? We discuss and answer all of these queries in this article.
So, without further ado, let’s begin.
What Are Fulfillment Services?
When we talk about order fulfillment services, we mean the services employed to deliver a customer’s order to their doorstep. It can include logistics from the factory to the collection center and then to the customer. They can also provide warehouses where you can store dispatched items before sending them out when an order is placed. It can also include a dashboard where the business or supplier can overview the status of different orders.
Depending on what your business requires, you go into a contract with a 3rd party logistics company or 3PL to provide you with these services.
How Do Fulfillment Services Work
Here are some of the crucial aspects and steps of fulfillment services:
- Integration with E-commerce System – The business sets up an account that integrates with its business online. Every order a customer makes is automatically assigned to the appropriate facet. Furthermore, it gives detailed insights.
- Goods Delivery – Most 3PL companies will procure the purchased goods from the supplier or factory and retain them in either their collection center or warehouse. From there, they can be dispatched when needed.
- Warehousing – The inbound goods are shelved after being arranged according to destination. When the delivery trucks arrive, the assigned goods are loaded to be dispatched.
- Picking and Packing – All the goods received after being picked up and stored in the warehouse are packed before delivery as per the requirement.
- Shipping – The delivery logistics will pick up the packed goods and deliver them to the destination based on the delivery requirements.
- Processing of Returns – Some of the goods, based on the condition or want of the customer, are returned. The whole process repeats but in reverse order.
Types of Fulfillment Services
Following are the major types of fulfillment based on who handles the logistics.
In-House Fulfillment
In this type of fulfillment service, a business handles order fulfillment on its own, either via using its stuff or outsourcing logistics to a 3PL provider. You can benefit from this approach when delivering goods to customers in the same city. Though courier services can handle deliveries, they don’t offer a complete fulfillment solution.
Third-Party Fulfillment
A 3PL provider handles everything from warehousing and packing to shipping. Businesses outsource these tasks to leverage the expertise and infrastructure of a 3PL to reduce costs and streamline the order fulfillment process. This way, businesses can focus more on core activities such as marketing and customer service.
Dropshipping
In this fulfillment method, businesses sell products without holding inventory. When an order is placed, the business forwards it to a supplier, manufacturer, or wholesaler, who ships the product directly to the customer. Unlike 3PL fulfillment, businesses don’t own inventory or control branding in dropshipping. They act as intermediaries without managing logistics or stock.
10 Best Order Fulfillment Service Providers
There are many benefits to using a 3PL company for fulfillment services, which we will discuss in the next section. Here, we share the best of these companies that can take logistics off your hands.
1. NextSmartShip
NextSmartShip is the 3PL company for you if you are looking for a company that:
- Experienced in logistics
- Large warehouse footprint worldwide
- A full-fledged console for their customers
- Take on other responsibilities like marketing, providing insight, and more.
For more competitive pricing and servicing, visit our official page.
2. Shopify Fulfillment Network
Shopify isn’t just a storefront for business; it also provides services that help you connect with others to take care of fulfillment. These companies will have a reliable score, give you enough storage, and easily deliver goods nationwide. The best part is that you can deliver your goods to over 20 retailers in the US.
3. Fulfillment by Amazon
You, as a business, can use fulfillment by Amazon or FBA if you are a seller on Amazon. They provide all the services a competent 3PL provides but also add to the security of returns and damages. The best part about FBA is that they have the best protocols and customer service and allow users free shipping for Prime subscribers.
4. FlexPort
FlexPort Fulfillment is a digital storefront that helps in managing logistics support for businesses. You can use its front to manage your inventory, rely on secure delivery, and allow freight forwarding with its software. The best part about this service is that it helps its users plan for a more streamlined delivery through machine learning data.
5. Fulfill by TikTok
If you are selling and promoting your products on TikTok, then you can use the service called FBT or Fulfilled by TikTok to boost your sales. FBT helps you manage all the logistics, such as packing, storing, and digitally delivering. So, if your main storefront marketing is through them, their service, FBT, is the best bet for you.
6. ShipBob
ShipBob is well known among smaller businesses that want to grow as they take pride in their scaling business services. It is not just a fulfillment service but a full-stack fulfillment platform for global fulfillment.
7. ShipMonk
ShipMonk specializes in inventory management for your business and connects you with major shipping companies with better rates than others. They help you track your inventory, whether from the supplier or the customer.
8. Red Stag Fulfillment
While most Red Stag Fulfillment does what other services do on this list, it prides itself on providing a more advanced form of inventory management. With this advanced inventory management system, the users can be more efficient while actively monitoring the logistics.
9. ShipHero
Most of the 3PL services in our list provide logistic fulfillment services, while ShipHero only provides a tool for fulfillment. They have a warehouse management system that makes it easier for 3PL companies to manage their inventory. A lot of these companies don’t have a management system of their own so that this tool can fill this gap.
10. Easyship
Easyship is a fulfillment company that provides a complete package of fulfillment services or tailored services to meet your needs. So, if you are a business, a 3PL company, a logistic solution, or any of these, Easyship has a plan for you.
Benefits of Using Fulfillment Services
In this section, we discuss some of the benefits of using one of the fulfillment services we shared in the previous section.
- Scalability – The provider should be able to assess the increasing and decreasing magnitude of your orders and scale accordingly. This scalability should be possible even if the cost varies.
- Cost Variation – Depending on the structure of your business and demand, the fulfillment company should allow variable pricing based on your preference. However, larger businesses prefer fixed pricing as they want to save from this service while reaching more customers.
- Cost Saving – You as a business are avoiding the high overhead costs of warehousing, inventory management, and employee hiring and getting a lower shipping rate through them.
- Better Delivery Times – Fulfilment services have streamlined and automated processes that make the downtime much smaller. Furthermore, with better timing, they can have better accuracy and deliver on time.
- Customer Satisfaction – Everyone wants their package delivered as soon as possible. Fulfillment services can achieve faster times.
How to Choose a Fulfillment Services Provider?
Let’s discuss some of the key factors that will help you choose a service provider.
- Shipping Speed—More and more companies are providing shorter delivery times, so customers are now used to it. Choose the company that offers shorter times and better customer care.
- Warehouse Location – Does the company you want fulfillment from have a regional warehouse in your area? If yes, then you move on to other factors and see how many of these they can fulfill.
- Management System Features – You need system integration with either your in-house software or the platform you are using. Most of these companies provide one-click onboarding for your store.
- Transparency and Commitment – You can easily retain customers if your tool provides accurate information. For example, if the platform says 2-day delivery and it delivers, you gain trust and likely stay with them long term.
- Unique Branding – Generic boxing and packing don’t make your products stand out, so go for services that make sure your shipment is according to your brand.
When to Consider Outsourcing Fulfillment Services?
Functions to a fulfillment service.
- Struggling to Meet Orders – There are times when you have too many orders, and you do not have the resources to fulfill them in time. This situation can mostly happen during a season change or holiday season. Now, it’s better to outsource even if you do just delivery logistics instead of lowering customer experience.
- Lower Efficiency – The delivery times are remarkably quick these days but that requires good warehousing knowhow. If you cannot fulfill these or don’t want to spend on warehousing or management workers, it is time you outsource.
- Limited Storage – As a growing business, you didn’t anticipate that your storage areas would be overflowing most of the time. Now, it’s more about dumping out your inventory and making mistakes instead of efficiently managing tasks.
- Focus on Core Competencies – It might be that you are better at marketing or selling your product, but focusing on logistics keeps you away from them.
Let NextSmartShip Handle Your Fulfillment Services
Now that you have read in detail what we discussed in this article about fulfillment services, it is time to understand their benefits. Furthermore, if you are considering outsourcing your fulfillment, NextSmartShip is the best option for you. Not only do they provide all the features we shared above, but they also have tons of other services that make them the prime option.
With the latest marketing and lead generation, the tools and dedicated team they can provide are unparalleled at the moment. So why not visit their website, talk to one of their experts, and see which services you need the most right now to grow your business?
Conclusion
It is better to outsource your logistic requirement to 3PL fulfillment services instead of removing focus from your core competency. You also save tons on stuff like warehousing, employees, and other overhead charges.
If you want a reliable and experienced company that offers the best order fulfillment services, then choose NextSmartShip. Visit their website today and see the difference yourself.
