Strategies,for,Order,Fulfillme ecommerce 5 Strategies for Order Fulfillment
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Fulfillment is simple at a brick and mortar store.The customer pays for the merchandise and carriesit away. However, fulfillment is more complicatedfor a mail order business or a business that isselling via the Internet.Fulfillment includes taking the order, packing,shipping and processing the financial transaction.It could also include customer service, technicalsupport, inventory management, and processingrefunds, returns and warranty claims.Fulfillment is a vital but costly aspect of operatinga business. Your situation determines which approachworks best for you.1. Drop ShippingDrop shipping is an arrangement in which a wholesaleror manufacturer agrees to fulfil orders from items intheir warehouse. You make the sale, conduct thefinancial transaction, and send relevant data to thecompany to process. Since the company ships themerchandise, you do not have to arrange warehousingor inventory management.Many businesses will not agree to drop shipping, asthey find it more profitable to process large ordersinstead of individual orders. However, there areexceptions. Find a company that produces merchandisethat you would like to sell then contact them and seeif they will negotiate.Alternatively, look for a company that promotes dropshipping. Run a Net search or a Yahoo search for "dropshipping." Before signing a drop shipping agreement,ask for references from satisfied merchants.2. Set Up Your Own Mail RoomMicro businesses might set up a "mailroom" in thebasement. It's cost effective, but labor intensive.You will need a means of processing payment (i.e. creditcard capabilities) and a means of keeping track ofinventory, orders, refunds, etc. Yahoo's Small Businesscategory lists numerous companies selling software forsmall business management.Larger small businesses might opt to set up a mailroomin the workplace and assign employees to handle orderfulfillment. This allows the most control over fulfillmentas everything is done on site. You can ensure thatknowledgeable people handle customer service, thatpackaging is appropriate, and that refunds, warrantiesand are processed in a timely manner.3. Integrated Fulfillment for the WebBusinesses that are adding online sales to theirregular operations require software that integrateswith the existing system, manages inventory, facilitatescustomer service and generally handles all aspectsof fulfillment.If you're too large for the basement mailroom and toosmall to outsource, you might consider using one of thecompanies that are catering to small business. Checkout Yantra, Manugistics and EXE Technologies.4. Fulfilling Digital ProductsBusinesses selling only digital products (computerdocuments, software, music, video, etc.) have theeasiest time with fulfillment. You will need a website, shopping cart software to take the order, anda means of processing payment. The most automatedbusinesses use technology that serves automaticdownload information to the customer upon processinga transaction.Online businesses might opt to purchase web storage,shopping carts, encryption for secure ordering, and acredit card processing service individually. Alternatively,they might look for a "one stop shop" that handlesthe entire thing for a fee. The former is likelyto be lower cost but labor intensive; the latter couldbe more costly but simpler to set up and manage.To find ecommerce providers, run a Net search for"ecommerce billing fulfillment service".5. Out-Source to a Fulfillment FirmIf your sales justify it, you could outsourcethe entire process to a fulfillment company.This may or may not be more expensive than doingyour own fulfillment. Calculate the cost of on-sitefulfillment and compare the price.Out-sourcing reduces your control over fulfillment,as well as the amount of contact you have with yourcustomers. If customer contact is very importantto your operations, or if you need to explain yourproduct to customers before making a sale, outsourcingmight not be your best choice.Before signing a contract, consider these issues:1.Will the company package your merchandiseappropriately? Can they handle your perishableproducts quickly? You want to avoid returns ofdamaged goods.2. Does the firm process orders quickly enoughto accommodate your turn-around time?3. Is the company strategically located? Shippingcosts and transit times will be reduced if yourfulfillment company is located close to the majorityof shipping addresses. For example, 74% of the U.S.population lives close to or in UPS zone five. Acompany situated in that region might be a goodchoice for businesses that sell primarily to theUS public.4. Are sales reps assigned to your orders and areyou permitted to train them?5. Can the firm provide references from customersrunning similar operations to yours?As the comedian said, "Delivery is everything." Article Tags: Businesses Might
Strategies,for,Order,Fulfillme