What is an Order Fulfillment Company?
When you are ready to outsource your product fulfillment, you should look at the many advantages of working with an order fulfillment company. This article outlines a few of these benefits, including automation, labor costs, and customer service. You can also learn about the benefits of an Order Fulfillment Company’s returns policy. Read on to learn more. When you choose an Order Fulfillment Company, you essentially band together with other businesses to receive the best services possible.
You can improve the customer service of an order fulfillment company in many ways. The shipping process and packing and handling of products directly impact the customer experience. A few companies take pride in their quality control, but others don’t. One customer, for example, reassigned their quality control team to shipping because it helped to reduce error rates. This is the last opportunity for an order fulfillment company to create a positive first impression.
Automated order fulfillment has many benefits for companies and consumers. It guarantees accurate fulfillment, fast order throughput, and superior product presentation. And with the right tools, ensures a positive customer experience. As a result, consumers can be confident that they will receive their purchases as promised and in excellent condition. Unlike traditional methods, automated fulfillment is both cost-efficient and error-free. You can use automation to streamline workflow, ensure accurate inventory control, and boost productivity.
Many businesses are reluctant to invest in automation, but its ROI can be tremendous. If implemented correctly, automation can help a company achieve immediate productivity improvements. Further, it can dramatically increase efficiency, reducing the need for labor. Automation can help companies improve their customer satisfaction. After all, a customer who receives an incorrect order can return it, leading to costly rework. Even if the customer is satisfied, the company’s reputation is at stake.
Most order fulfillment companies charge a fee for picking, packing, and shipping products. This fee can range anywhere from $20 to $100 per order. The prices include the costs of receiving products from suppliers, organizing inventory, and entering products into the fulfillment system. They can also charge per hour ($20-$50) or by unit (per pallet, piece, box, or boxed unit).
The cost of labor is another significant factor in order fulfillment. Choosing a single location for completion can result in higher postage because the packages must travel between multiple shipping zones. Additionally, numerous trips to the post office can add up quickly and add up. Additional costs related to operational infrastructure for fulfillment include warehouse space, forklifts, and warehouse management software. Recruiting and labor can be expensive, as can liability and workers’ compensation insurance.
Another factor to consider is the availability of qualified labor. The labor shortage is a growing problem for eCommerce fulfillment centers. There is a shortage of quality labor in many markets, which increases the overall labor cost. Furthermore, many states have started raising their minimum wage each year, making it difficult for many businesses to hire enough labor to keep up with increased demand. Therefore, a slight increase in pay does not always mean a significant increase in sales.
In today’s gift-giving culture, returns and refunds are inevitable. During the 2019 holiday season, customers returned $41.6 billion in online purchases. While it is not unusual for an order fulfillment company to receive a few returns, it’s not uncommon to deal with a large volume of unreturned products. Therefore, the returns policy of an order fulfillment company should make it clear to customers what to expect. The company should also maintain accurate inventory counts so that it doesn’t have to reorder products already out of stock.
A good return policy is easy to understand. While some customers expect gift cards and immediate refunds, others desire a full refund. The listed steps should be easy to follow, and any specific requirements should be stated. Likewise, customers should be able to determine whether they’re entitled to an exchange or a refund based on the returns policy. If the return process requires the customer to print out a label, this might not be the best choice for some merchants.