Fulfillment. What Is a Mean?

Modern successful e-commerce is unthinkable without e-fulfillment.
This is the process by which the online retailer takes various measures to deliver the order to its buyer. In other words, the seller does everything to organise the logistics of his online business in such a way that a fast and smooth order processing is possible.

Order fulfillment is often outsourced in e-commerce. In this case, an external fulfillment provider takes over either all the logistics of an online shop or only part of it. The fulfillment service in e-commerce thus includes all logistics services: Storage of the goods, acceptance of the order, picking, packaging, shipping. A fulfillment service provider can also provide additional services, such as complaints handling, returns management, advertising.

If you want to have satisfied customers when trading online, then e-fulfillment is a practical solution for you.
By hiring a fulfillment service provider to handle the necessary logistical tasks, you can spend more time developing your online shop.

Fulfillment for E-Commerce: services and profit

The scope of e-commerce fulfillment services depends on the particular fulfillment company. Fulfillment services can include direct logistics activities as well as other related activities:

  • Delivery of goods from suppliers to the warehouse
  • Receiving goods, checking for defects
  • Storage of goods
  • Picking and packing
  • Delivery of orders to customers, acceptance of payments
  • Customer service (management of returns, negative feedback from customers)
  • Photo and video recordings for product descriptions
  • Monitoring orders
  • Call centre operation
  • Informing customers about delivery via SMS, email and social media
  • Web promotion
  • Creation of promotional materials: banners, branding, graphics

It is not necessary to hand over the entire logistics cycle to a fulfillment provider. One can only order individual services and pay for them separately.

A fulfillment service provider enables a fast logistics process, from storage to handover to the customer. Fulfillment service through outsourcing offers several advantages for those who are just starting their online business as well as for experienced sellers.

For start-ups, it is an opportunity to avoid mistakes and financial losses in the start-up phase of the business and to avoid negative feedback due to low-quality packaging or late deliveries.

For experienced sellers, e-commerce fulfillment is an effective way to sell at competitive prices. The logistics effort affects the total cost of goods. If the logistics process is not regulated, the costs can be enormous. Thanks to the services of a professional fulfillment provider, this can be avoided.

Key benefits of outsourcing e-commerce fulfillment include:

  • Encouraging the development and establishment of online commerce. Many vendors get lost with the building of their online shop because they lack the staff for a number of tasks. By delegating these tasks to a fulfillment service provider, the vendor frees up time for other important tasks such as marketing, launching new products. This allows them to better focus on the development of the online shop.
  • Lower financial costs. Having a fulfillment provider take care of the storage, packaging or delivery of orders eliminates the need for the supplier to rent a warehouse, hire additional staff, buy equipment or packaging that meets the requirements of the trading centre.
  • Improved quality of service. Established and proven fulfillment companies provide quality packaging, prompt delivery and timely handling of customer objections.

Among other benefits of e-fulfillment one could mention:

  • Ensuring a high level of customer service and freeing you from a number of complicated tasks.
  • Reducing the risk of damage, loss or theft of goods.
  • Depending on the season, the number of orders can fluctuate greatly.
  • Fulfilment service providers ensure the same quality even during peak periods.
  • Reduce overall costs and strengthen the brand.
  • Additional services such as customer service for enquiries, packaging according to special specifications or marketing campaigns. In this way, the fulfilment service contributes to higher customer satisfaction.

Thanks to e-commerce fulfillment, companies can scale their business, optimise their logistics processes and expand distribution geographically to a neighbouring region or country.

Choosing the fulfillment service provider

Each fulfillment provider in the e-commerce market develops its own individual service offering. Some fulfillment service providers only deal with basic operations. Others offer the entire logistics cycle, including payment acceptance, product photography, website content, a call centre and other additional fulfillment services.

Professional fulfillment service providers already have optimal algorithms for product preparation and cooperation with carriers. This ensures that online shop buyers receive their orders as quickly as possible. As a rule, the fulfillment costs for services from external fulfillment providers are lower than maintaining a warehouse with full-time staff.

If you want to build a truly efficient logistics chain, you need to choose a reliable fulfillment partner.

The fulfillment market is oversaturated with offerings. So how do you find a most reliable fulfillment provider among this wide range?
Regardless of whether you choose a marketplace or an external fulfillment operator, you have to calculate all possible costs and risks.

When choosing a fulfillment service provider, one should consider the following factors:

Location, scale and layout of warehouses:

Find out whether the technical conditions of the premises permit the storage of goods. Do you need special conditions? Preferably, the available space should be large and the fulfillment warehouse should be in a convenient location. It is also important to know how secure the storage space is.

Range of services

Consider what services fulfillment providers offer beyond basic services and how beneficial they are to your e-commerce. What rates and packages does the operator offer?

Billing and charging transparency

Analyse how much you will pay and for what. Compare your current logistics costs with the amount of the fulfillment service provider you want to hire.

Technical capabilities

Find out how automated the processes are for providing fulfillment service. Is it possible to integrate the IT system with your website? Is there video surveillance in the warehouse to control the execution of collection, packing of orders, etc.

Delivery problems

Find out in advance the average delivery time for your orders. Clarify which courier services and transport companies the fulfillment provider works with.

Before signing the contract, explain to the potential fulfillment partner your needs, specifics of the business processes in the online shop. This way you can choose the fulfillment service in the scope that best suits your needs. The more services the fulfillment service provider offers, the better. It is much easier to entrust everything to a single employee than to work with 3-5 employees.

When choosing e-commerce fulfillment through outsourcing, you should additionally check how long the company has been in the market, what experience it has, what references it can provide, what its reputation is and what kind of staff it employs. The number of staff can affect the speed with which orders are processed and delivered.

It is important that the contract with the fulfillment service provider specifies the following:

  • format and deadline for submission of order fulfillment requests
  • deadline for completion of tasks specified by the fulfillment provider
  • a price tag or specific formula for calculating the fulfillment costs of each service
  • technical intricacies of the integration
Our service: Comprehensive comparison of fulfillment service providers on MyFracht.com

If you have decided to take advantage of e-commerce fulfillment for your online trade and manage your goods through outsourcing, it is important to choose a reliable fulfillment service provider. However, you should consider many criteria when doing so. Are you looking for a suitable fulfillment partner, but does comparing the services of different fulfillment providers seem too complicated? We have an optimal solution for you: Use our service.

We offer a free comparison of the services of different fulfillment providers.

Save a lot of time with our comparison service! When you contact us, you will receive a fast, free and high quality comparison of fulfillment services according to criteria entered. We will help you find your ideal European fulfillment partner.

It’s that simple with MyFracht.com:
  • You fill in the enquiry form for the calculation of fulfillment costs, specifying:
  • desired localisation of your fulfilment service (this can be one country, multiple countries or a region);
  • space requirements for your warehouse;
  • number of shipments per month.
  • Taking these parameters into account, we analyse the fulfillment service and the fulfillment costs of different fulfillment operators.
  • You will receive a price comparison of fulfillment providers according to your requirements.