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The Impact of Ecommerce Fulfillment Solutions

Many eCommerce brands slash prices to boost sales, but it’s not always the wisest move. A more effective strategy for elevating sales and improving the overall customer experience is offering faster shipping and delivery.

According to a global report by Wunderman Thompson, free delivery, fast and convenient delivery, and free returns rank among the top 5 factors that encourage online shoppers to buy from eCommerce brands.c

The bottom line? Meeting customer expectations becomes a severe challenge if your eCommerce order fulfillment system isn’t running like a well-oiled machine. That’s where outsourcing to a fulfillment centre becomes a game-changer, smoothing out operations and ensuring customer satisfaction.

Keep reading to discover more about eCommerce fulfillment centres and how they can significantly enhance the efficiency of your shipping processes.

What is an Ecommerce Fulfillment centre? 

A fulfillment centre is a specialized facility designed to efficiently manage inventory storage, shipping, and delivery service, focusing on serving small to medium-sized businesses. 

Acting as a third-party service provider, it delivers your products to customers once a purchase is made. This way, you can sidestep the hassle of packing and shipping tasks, as the fulfillment centre handles everything.

These centres cut costs by consolidating inventory storage and order fulfillment processes. Instead of juggling multiple companies and dealing with assorted fees, you can simplify things by choosing a single provider. This provider stores your products until they’re sold and oversees the shipping process directly to the buyer.

How Does a Fulfillment centre Work?

Image source: Fitsmallbusiness

1. Receiving and Storage

  • The fulfillment centre receives and stores your inventory. Each item is carefully inspected and then allocated a designated storage location within the facility.

2. Inventory Management

  • Advanced inventory management systems keep real-time track of your stock. It prevents issues like stockouts or overstocking.

3. Order Placement

  • When a customer orders from your online store, the fulfillment centre is notified to kickstart the process.

4. Order Picking

  • Fulfillment centre staff locate the items in the order from their designated storage spaces. 

5. Packing and Shipping

  • Items are carefully packed for shipping, often with efficient packaging techniques.

6. Collaboration with Shipping Carriers 

  • Fulfillment centres work with shipping carriers to ensure timely and cost-effective delivery.

7. Shipment Tracking

  • Advanced tracking systems allow real-time monitoring of the package’s status and location.

8. Returns Processing

  • In the case of returns, fulfillment centres handle the process efficiently, inspecting and restocking items. Depending on the company you choose to help you, they might talk to the customer, handle return shipping, and give refunds – all without you needing to do anything.

7 Benefits of eCommerce Fulfillment centres 

Ecommerce fulfillment centres offer the following benefits to eCommerce merchants 

1. Saves You Time

Ecommerce fulfillment centres are invaluable assets strategically designed to optimize operational efficiency. You free up precious time by outsourcing tasks like managing inventory and shipping. 

This means you can focus on the exciting parts of your business – planning, creating, and keeping customers happy. It lets you drive your business forward without getting bogged down in the nitty-gritty.

2. Enhances Customer Satisfaction

Happy customers are repeat customers, and eCommerce fulfillment centres are pivotal in ensuring customer satisfaction. Orders are accurately picked, securely packed, and swiftly dispatched with streamlined processes. 

The result? Satisfied customers receive their purchases promptly and in excellent condition. Additionally, fulfillment centres often provide order tracking, contributing to a positive customer experience by keeping them informed throughout the shipping journey.

3. Improves Shipping Speed

Dedication to fast and reliable order fulfillment is a key strength of eCommerce fulfillment centres. Equipped with advanced order processing systems and solid connections with shipping providers, these centres speed up the shipping process.

The outcome is quicker product deliveries, boosting the overall customer experience and strengthening the brand’s standing in a competitive market. This efficiency is further enhanced by strategically located fulfillment hubs in key cities. These hubs play a pivotal role in rapidly getting your products to customers, aligning seamlessly with the commitment to improved shipping speed.

4. Saves on Shipping Costs

Cost efficiency is a key benefit of leveraging eCommerce fulfillment centres. These centres often consolidate shipping volumes, negotiating favorable rates with shipping providers. It helps online businesses save money.  By tapping into the fulfillment centre’s expertise and network, you can benefit from economies of scale that might be challenging to achieve independently. The result? Reduced shipping costs without compromising on the quality and speed of delivery.

5. Faster Returns Processing

Returns are an inevitable part of eCommerce, and how they are handled can significantly impact customer satisfaction. Ecommerce fulfillment centres excel in processing returns efficiently. With dedicated processes for inspecting returned items, updating inventory, and restocking, they turn the often challenging task of returns into a seamless operation. 

Faster returns processing satisfies customers and contributes to maintaining a positive brand image.

6. Enhancing Brand Visibility

Utilizing fulfillment centres in eCommerce offers a key benefit – a substantial boost to your brand’s visibility. By tapping into these centres, you open avenues to elevate brand awareness through smart cross-promotion of your products. These centres are effective platforms for showcasing and marketing your offerings, ultimately contributing to a more prominent and recognized brand presence in the competitive market.

7. Technology and Innovation Boost

For eCommerce retailers, shipping technology is a game-changer — whether it’s tracking inventory, measuring shipments, processing payments, or ensuring customer data security. Getting these systems usually means a hefty investment and a learning curve. However, fulfillment centres already possess state-of-the-art software, providing eCommerce retailers access to the latest technology at a minimal cost.

Final Thoughts

In the fast-moving realm of online business, order fulfillment must match the pace of evolving eCommerce. Beyond the benefits outlined earlier, Chit Chats Fulfillment and Shipping Solutions sets itself apart with a user-friendly platform, seamless integrations, and time-saving features.

Chit Chats helps Canadian entrepreneurs explore their potential in the U.S. and international markets through low-cost and fully-tracked postage. With the power to reduce shipping costs by up to 71%, Chit Chats ensures your packages reach destinations worldwide.

Join the community of thousands of online sellers who rely on Chit Chats as their preferred shipping solution, making the entire shipping experience effortless and delightful. Let’s get down to business. Contact us today.

Author Bio

Virginia Andrus is an independent Digital Marketing Consultant with 6+ years of marketing experience. Virginia is a chef by heart. In her free time, she is either writing marketing copies for brands and agencies or experimenting with new recipes at her home. Connect with her on Twitter: @andrus_virginia.