A guide to e-Commerce fulfilment for established retailers
What different types of fulfilment providers are there?
Fulfilment companies differ in terms of their chosen target market, (e.g. verticals: health and wellness, clothing, food and drink), type of storage (e.g. frozen foods, long term non-perishable) or reworking, repacking and restocking capabilities (e.g. custom-made-to-order homewares, luxury items or clothing). Some fulfilment providers pride themselves on their speed of dispatch, order processing technology or simply their client experiences, and others are particularly good at the shipping element, offering multi-carrier delivery options.
What do mid-market retailers want from a fulfilment provider?
If you’re reading this article you’re likely already an established retailer. If, like 88% of retailers you aren’t currently outsourcing fulfilment, it isn’t to be taken lightly. One thing is outsourcing the delivery, like most retailers do (other than those with their own delivery vehicles), but another entirely is outsourcing the storage, order processing, stock management, picking and packing.
Your brand reputation is at stake, and it’s important that you work with a provider that has experience dealing with merchants who share your product sector and business model.
At Whistl we work with thousands of e-commerce retailers and our 500,000 sq ft fulfilment warehouse network caters for businesses in a variety of sectors, from print to sporting goods, medical devices to fashion retailers. We have found that it is important to demand the following from an order fulfilment provider:
- Robust technical infrastructure that integrates seamlessly with your sales channels and order management system
- Getting orders out on time, every time
- Having enough space for stock
- Orders being delivered correctly
- Returns processed efficiently and cost-effectively
- Fast refund processing to customers
- Flexible approach with a laser focus on clients’ continuously evolving needs
The benefits of outsourcing order fulfilment
Outsourcing fulfilment means you can better focus on your own core competencies such as product development, product sourcing and marketing. It can also give you access to cost savings and mean your products are stored more securely. You can piggyback on their buying power and club together with other retailers to access ‘pooled volume’ discounted shipping rates.
Do consumers care if you outsource fulfilment, and can they even tell? With seamless and efficient fulfilment processes such as fast dispatch, and nearly perfect order picking accuracy in place, your customers will not be able to tell.
Potential drawbacks of outsourcing fulfilment
If you have already invested in your own fulfilment premises and you’re looking to expand, outsourcing is a less risky option. Many retailers have chosen to cease investing, because of fears surrounding Covid-19 and Brexit.
However if you have already invested in your own in-house fulfilment centre and have spare capacity, it might make sense for you to utilise what you already have and instead work with a delivery management provider to access the same discounted shipping rates normally the preserve of those who outsource through major fulfilment houses.