In the marketplace market, fulfillment companies have become an integral part of business processes. It is not always convenient for beginning sellers or sellers with a small turnover to handle order picking, storage, and packaging of goods themselves. This requires their own warehouses, processing and delivery systems, and employees. It is easier to use the services of third-party companies. Fulfillment is also used by large brands that want to cover new territories without changing their location.
“Near-marketplace” services are provided by both large companies and narrowly focused small firms. Large players often offer a wider range of services, including IT integration, analytics, and marketing support. Some marketplaces create their own fulfillment centers or acquire small companies to expand their capabilities.
But as in any business, there are dishonest performers and problems in fulfillment: loss of goods, overpricing of services, poor quality packaging.
Today, experts from the top digital content agency in Dubai will tell you how to choose an operator so that you don’t regret it later.
Pros and cons of working with fulfillment
Why sellers choose fulfillment:
- Cost reduction: If sales volumes are not that high, delegating packaging, storage and delivery of goods is more profitable than renting a warehouse, hiring employees and organizing transportation yourself.
- Order processing speed: Fulfillment operators work quickly, according to proven schemes. Therefore, delays in processing and delivery of goods are rare. This increases customer satisfaction and has a positive effect on the brand’s reputation.
- Focus on the main thing: Fulfillment allows sellers to concentrate on promoting goods, attracting customers, creating high-quality selling photo and video content. This allows you to increase profits and improve the quality of service.
But there are also disadvantages to working with fulfillment:
- Dependence on the operator: If the company that provides you with fulfillment services has problems, this can negatively affect the business.
- Cost of services: For small companies, fulfillment services can be quite expensive.
- Quality control: Most often, sellers negotiate cooperation with fulfillment centers remotely. Because of this, it can be difficult to influence the speed of delivery of goods and control the quality of packaging.
How to choose a fulfillment partner
To ensure that your work with fulfillment has fewer disadvantages and more advantages, pay attention to these points when choosing an operator.
1. Your needs
Before you start looking for a fulfillment partner, clearly define your needs and expectations. To do this, answer the questions:
- What volume of orders do you process monthly?
- What types of goods do you sell? (sizes, weight, special storage conditions)
- What markets do you serve? (local, international)
- What services do you need? (warehousing, packaging, delivery, return processing)
2. Location and coverage
The location of the fulfillment center is of great importance. The closer the center is to your main sales markets, the faster and cheaper the delivery will be. Pay attention to the following aspects:
- Availability of warehouses in strategically important regions;
- Possibility of international delivery;
- Speed of order processing and delivery.
3. Technologies and integrations
Modern fulfillment centers use advanced technologies to manage warehouse stock and fulfill orders. Make sure that your potential partner offers:
- Integration with your trading platform and IT systems;
- Transparency of work and access to data in real time;
- Automation of processes.
4. Service level
The quality of customer service directly affects your reputation and customer satisfaction. Pay attention to:
- Speed of order processing;
- Quality of packaging;
- Return and exchange policy;
- Availability of customer support.
5. Cost of services
The cost of fulfillment services may vary depending on the volume of orders, type of goods and additional services. To calculate your costs, carefully study the pricing structure:
- Storage fee;
- order processing fee;
- cost of packaging materials;
- delivery rates.
- Compare offers from several companies and choose the best value for money.
- Important: to avoid hidden payments and obligations, carefully study the terms of contracts.
6. Reputation and reviews
Study the reputation of potential partners. Read reviews from other clients to understand the level of reliability and quality of services provided. You can find them on forums, specialized sites and social networks.
7. Flexibility and scalability
Your business will grow and transform over time, the workload may change depending on the season, so it is important to choose a partner who can adapt to your needs. Make sure that the fulfillment center offers:
- Flexible terms of cooperation;
- The ability to scale services if necessary;
- Support for seasonal sales peaks.
8. Additional services
Some fulfillment centers offer additional services that may be useful for your business:
- Customization of packaging;
- Marketing inserts in orders;
- Sales analytics and reports.
These services can improve customer experience and increase customer loyalty.
Choosing the right fulfillment operator is a key step for the successful operation of a marketplace business or online store. Carefully analyze your needs, study the offers of different companies, and do not forget about the importance of service quality. This way, you can find a reliable partner who will help you effectively manage logistics, meet customer needs and focus on strategically important tasks. Also, do not forget that you can always get a free consultation from our top marketing content agency.
