In this article, we will get acquainted with the concept of fulfillment, discuss its advantages and figure out who it suits.
It would be much easier and faster for most suppliers to access marketplaces if they used order fulfillment. But many do not know what it is.
Perform all stages of the processes for the preparation of goods, delivery, storage, etc. on your own, especially at the initial stage, which can be pretty tricky. Many people postpone the launch on marketplaces for months, because it is pretty difficult to understand all the intricacies of packaging and shipment, there is a fear of making mistakes.
But there is a solution – part of the processes can be outsourced. Fulfillment companies help with this.
The literal translation is “execution of the order.”
In simple terms, fulfillment is a set of actions aimed at delivering an order to a customer.
To make it even easier to understand, let’s consider what services fulfillment companies can provide:
- storage of goods;
- collection of goods from the manufacturer;
- checking the integrity and quality of products;
- packaging and marking of the order according to the established requirements;
- picking and forming orders, including the collection of individual items from other warehouses;
- delivery of goods to warehouses and points of acceptance of marketplaces;
- work with the documentation.
Fulfillment companies can be delegated both a part of the actions and a full cycle of activities for the organization and movement of goods.
Benefits of working with fulfillment companies:
- savings on rent of premises and wages of employees;
- minimization of participation in many processes;
- regulation of the required stock of products;
- independence from warehouse processes of marketplaces;
- there is a possibility of self-delivery, your product is not held hostage by marketplaces;
- minimizing the risks of additional costs.
What investments are necessary for the supplier at the start, if fulfillment services are connected:
- purchase of goods;
- fulfillment services.
They cost an average of 5-10% of the profit (margin).
Summing up, we want to say that fulfillment is an excellent solution:
- if you want to delegate part or all of the task cycle;
- for sellers from distant regions or abroad who want to conduct a remote business;
- if you want to quickly and efficiently enter the marketplace.
