Three things your e-commerce fulfilment services partner should be doing
Did you know that e-commerce fulfilment is more than just a convenient solution for businesses? It has become an essential service for the global retail marketplace.
Understanding supply chain management is key to any business’s longevity, even those who may not have considered third party logistics in the past.
Due to Covid-19, many companies are now moving to online selling. Retailers are grappling to find the best online platform to serve their markets.
After all, when the market shifts, your business needs to shift with it.
As we saw in 2020, times are rapidly changing. The online market exploded with even more opportunities than ever before, as consumers are developing more trust with online brands, thus increasing buying online.
The latest statistics now estimate:“e-commerce now accounts for more than 25% of all retail sales in the UK”
Understanding what makes an e-commerce fulfilment service good from great is a must-know distinction for retailers.
What differentiates e-commerce fulfilment companies?
E-commerce fulfilment is much more than shipping and receiving products. Anyone can do that, but not everyone can do it well.
When we talk about good e-commerce fulfilment, we are talking about a company’s ability to not only meet the needs of both the business and the customer but exceed them.
This can only be achieved through adequately leveraging technology, using intuitive systems, strategic partnerships, and developing the best processes.
Fulfilment services must make the experience easy, transparent, and rapid. Instant gratification like same-day dispatch and next day delivery has become increasingly popular, so you need to partner with the right fulfilment company.
Not being efficient in your processes will slow down your orders, ruin your customer retention rates, brand trust, and the ability to grow your business.
When a customer needs to return an order, it needs to be simple, or chances are they will not be doing business with you ever again.
According to a study done by TrueShip “over 60% of customers review a Returns Policy before they make a purchasing decision.”
Also, according to a survey done of 15,000 consumers by PWC, they discovered that “one in three customers will leave a brand they love after just one bad experience, while 92% would completely abandon a company after two or three negative interactions.”
So, let’s learn about three critical qualities your e-commerce fulfilment services partner should be doing.
1) Use a tech first approach
Technology allows fulfilment services to increase both the speed and efficiency of operations. Now we can digitally map products in the warehouse, allowing for less human error, ensuring time saving benefits.
Also using an online approach allows for information to be stored and shared easier, thus rapidly increasing accuracy.
Time equals money, so you must also have the ability to easily integrate your products within the company’s platform and courier network. Your platform must have a quick and straightforward integration.
New technology makes the process easy, compared to the defective and antiquated hard to use software systems from the past two decades.
Many companies are upgrading to new platforms, therefore more tech companies are arising as a result. However, it is more useful to use companies that have both the warehouse and software capabilities.
It is a “360 hands on approach” that can truly only be understood by experienced shippers and suppliers.
Having a proprietary platform with the ability to make adjustments based on user feedback is preferable to a company with no warehousing or shipping experience at all.
It allows for flexibility of the best practical solutions for their customers, allowing the company to adapt to the needs of a rapidly changing world.
2) Use a flexible “pay as you go” model
Many businesses are often limited by the price gouging costs initiated by 3PLs.
With the flexible pay as you go model, there are no subscription fees, and you only pay for what is needed. Monthly subscription models cater more to the larger retailers, leaving the smaller companies stranded.
This means pick and packing, storage, shipping and bundling are all areas that businesses need to be aware of when choosing the best solution, along with a no cost monthly subscription.
Not only does the flexible pay as you go model free up your bottom line, allowing you to invest capital in the other aspects of the business, but it gives you peace of mind.
3) Later dispatch cut-off times
Being innovative and customer-centric in our industry is vital. It’s essential to understand the best business practices for faster delivery.
This means specifically that the process of pick and packing needs to be available for longer periods of time within the warehouse environment.
Some of the busiest times for customers to buy online is when they get off of work. However, if they didn’t place an order before 2pm that day, based on industry standards, that order won’t be collected and dispatched until the next day.
Therefore, to alleviate this issue and improve this process, companies should be increasing this time to at least 7pm, like Selazar does.
This means that if a customer places an order before 7pm, the staff can still prepare the order ready for dispatch that night.
Thus, the end result creates better overall customer satisfaction, allowing shoppers to place an order and get their products in a matter of hours, instead of days.
The times have changed
Is it time for you to make a switch in 2021? Traditional retail has changed dramatically. It’s imperative to take a deep dive into your operations and fulfilment network. It could save you both time and money.
From small to large volumes of products, having a dynamic and optimised operation provides the much-needed support to make the switch online, or scale and simplify existing operations.
Make sure you have a robust and expandable platform to fulfil the needs of your customers. It is critical to the viability of the future of your business.
Remember these three important qualities when choosing your e-commerce fulfilment provider.
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