Most ecommerce companies are surprised by how little third-party fulfillment costs, particularly when compared to how much they already spend to Ecommerce fulfillment warehouse, package, and ship products. Outsourcing order fulfillment is cost effective and allows you to switch variable costs to fixed costs. Gene Kent, President of Medallion Fulfillment & Logistics said, “Many times companies are surprised at the overall cost savings our services have supplied when they review their bottom line after the first six months. As we have heavily invested in technology, both in order processing and bar coding in our warehouse, we are able to process orders faster and cheaper than you can typically do order fulfillment service yourself.”
When you compare the total cost of order fulfillment, i.e. maintaining a warehouse, lease payments, staff, benefits, unemployment taxes, insurance etc., to an order fulfillment provider’s fixed cost model, you quickly realize that making the switch saves money. Your business can save from 20 to 50 percent on current order fulfillment expenses.
Minimizing Errors Saves Money
If you’re experiencing even slight errors in the order fulfillment process you might be losing a significant amount of repeat business. Order errors inspire new customers and dedicated customers to buy products from other companies, especially in highly competitive niches. A high quality order fulfillment company satisfies customers which lead to repeat business. “Our warehouse bar coding system eliminates problems. When customer merchandise is received in our warehouse it is immediately bar coded and entered into inventory. Hand held scanners are used by our packers and your inventory is tracked all the way to order shipping. We are using one of the most technologically advanced order and inventory management systems allowing business owners to review stock and order statuses of items on our system 24/7 from anywhere in the world just by using the Internet.” said Gene Kent.
Looking to Expand Your Reach?
Fulfillment houses are ideal for companies seeking to sell products overseas because they have the expertise to ensure your products arrive on time and safely. If you’re seeking to expand your company’s customer base by providing customers more alternatives for ordering products and paying, don’t increase your overhead, outsource the fulfillment process.
Wholesale Orders or Business to Business Orders
As your company expands, a fulfillment company can handle your wholesale or B2B orders. Wholesale orders from large retail chains, catalogs and other mass merchants have different demands than business-to-consumer orders. The penalty for noncompliance with an order from a chain of retail stores for even something trivial can be costly.