The success of your business depends on the quality of the products and the order fulfillment service provider you pick. You might be offering high-quality products, but always remember that order fulfillment plays a critical role in the success of that business.
To help sellers understand the importance of Amazon fulfillment services, here are some benefits of outsourcing your order fulfillment that will help grow that business.
Improved delivery standards
You probably started operating your eCommerce business due to your entrepreneurial skills and not your expertise in shipments. Expert fulfillment service providers would advise you to learn about the difference in delivery standards before picking a service provider. The future of fulfillment needs to be efficient, whereby all constituents of the supply chain work in coherence to serve the customers profitably. Amazon has a better reputation when delivering goods to its customers from how your products are packed to the speed of delivery. With Amazon, you are always assured of better delivery standards, and you will have some control over the shipment process.
Reduced operating costs
Based on IBISWorld public storage market research, the industry in the United States of America employs over 500,000 people and is valued at $22 billion. Amazon is a thriving industry because most sellers have come to realize the cost-saving potential whereby they only pay for the services that they use. Amazon charges a flat storage fee for all warehoused products, and after that, you will be charged for picking, packing, and shipped orders. You might experience some seasonal increments or decline in sales, but that will not affect your base cost. The storage charges will only change when the number of products that you store at the warehouse changes.
Sellers can focus on selling
Amazon creates efficiencies for that retail business of yours. Order fulfillment is often manageable for small businesses, although the task can be tough once you scale up that business. When you receive an increased number of orders from sales events and online distributors, then, order fulfillment can consume much of your working hours. Instead, you can leave that cumbersome task to Amazon and spend most of your time growing that business of yours. Using the order fulfillment services, you can now focus on the marketing, designing, and sale of your products.
Extending your reach
In case you need to receive an order from a different country or a different state, Amazon can take that business of yours to the next level. Amazon has a framework that can deliver or ship orders to numerous parts of the world. You can always use their global reach to sell your products and grow into new markets.
Low shipment cost
Most order fulfillment providers have numerous facilities all over a country and overseas that create a foundation that can offer lower shipment charges. The scenario results in bulk delivery discounts that sellers can benefit from. Despite the cut being dependent on the order fulfillment provider, when using Amazon, a seller can save between 10% to 37% of the shipping rates. Amazon also has software that enables sellers to compare shipment rates from different carriers and choose the lowest price. For instance, in case you pay $5 per shipment that you do in the house, then you happen to ship 200 orders every month, that will be $1000 per month and $12000 that you spend on shipping annually.
Based on the example described above, if a seller takes advantage of bulk delivery discounts offered by Amazon, assuming that they save 15% per month, a seller will save $150 per month, and for the whole year, you would have saved $1800.
Technology is used to streamline order fulfillment
Amazon uses the latest technology when shipping and processing your products. Their system will integrate with your eCommerce store, the result being an effective order fulfillment process that includes item tracking, more manageable payment processing, better shipment, and handling of goods, and better inventory management.
Improved customer service
The backbone of running any business is reliable customer service support, and with Amazon, you will get 24/7 support through phone calls, social media, or even through email services. The services will include the execution of refunds, exchanges, and returns. With the fulfillment services, Amazon meets the ever-dynamic customer expectations such as online purchases, pick up in-store, and online reservations. Amazon offers these options to keep the customers happy, the reason you should consider using the platform.
You are always in control
Given that Amazon has a secure warehouse, you will have better control over the handling of your items, delivery speeds, better inventory, and packaging. Most Amazon sellers tend to prefer maintaining their control that guarantees quality delivery; thus, sellers have improved customer value figures.
Generally, there are numerous fulfillment strategies that you can adapt to meet your Amazon orders. The Fulfillment by Amazon would be an excellent service for you in case you have just begun your Amazon journey, but you will notice that it might be expensive as your business grows. There are numerous fulfillment service providers out there, but your decision to pick a provider should boil down to the affordability and timely delivery of your goods.
