Fulfillment centers are critical in modern eCommerce practice. The global market size for the fulfillment service industry stood at $77.57 billion. The sector will grow at a steady annual rate of about 10% for the next seven years.
Fulfillment solutions are popular for a good reason. They help eCommerce merchants outsource value-added services not available in regular warehouses. This includes inventory management, packaging, B2B shipping, and B2C order fulfillment.
Choosing the right fulfillment solutions can help grow your business with minimum operating costs. You’ll also enhance customer satisfaction by shipping orders on time.
But how do you choose the right fulfillment center? What tips should you consider? Keep reading to learn more.
1. Consider Location When Choosing Fulfillment Solutions
Your business will fulfill customer and warehouse orders more conveniently if you choose a center situated in a strategic location. This includes proximity to airports and seaports to facilitate cross-border shipping.
Also, consider a location with great highway connectivity and a flowing traffic speed. The shorter the time your goods will take on the road, the happier your customers will be.
2. Workforce Availability and Handling Equipment
Does the fulfillment center have a solid workforce? Unlike warehouses, eCommerce fulfillment solutions are always busy with goods coming in and out every time. Moreover, bigger centers serve hundreds of businesses.
Do your research to find out about the workforce present. You want to partner with skilled individuals who won’t disrupt supply chains. Most importantly, ensure the facility has modern equipment for the safe handling of goods.
3. Storage Solutions
When considering storage solutions, think beyond space. Where do they place your fragile goods such as electronics? How about perishable goods?
Remember, some clients may cancel their order for the following day. That means you may need to store the product longer than necessary.
A fulfillment center with both internal and external docks will offer storage solutions for all types of goods. On top of that, consider electronic inventory to prevent product mix up during storage.
Every business owner knows that the secret to growth and success is cutting operating costs. You would want to start that by negotiating relatively affordable rates with your fulfillment solutions service provider.
You’ll likely get affordable rates if you partner with a reputable company serving many businesses. Such a company enjoys logistics discounts because of high volume. They pass these benefits to their customers at lower costs.
5. Proximity to Customers
Consumers resort to eCommerce stores to save more on buying costs. It will help if you choose a fulfillment center within the proximity of your target market. This way, you’ll charge less for shipping costs. Moreover, you’ll enhance customer satisfaction due to quick delivery.
The happier your customers are, the more sales you’ll likely make. This translates to a steady business growth rate and long-term success.
Go for Complete Fulfillment Solutions
Choose a fulfillment center that rounds up all the above factors into one. Ensure the company leverages the latest technologies to guarantee flawless order fulfillment. Also, it can help if you get a company that offers fulfillment solutions in multiple locations.