To fulfil or not to fulfil?

Discussion in 'Ecommerce Forum' started by Roada UK, Oct 7, 2019.

  1. Roada UK

    Roada UK UKBF Newcomer Full Member

    6 1
    Hi

    Just wanted to know people's thoughts on why or why not they decide to do order fulfilment for their businesses?

    Cheers
     
    Posted: Oct 7, 2019 By: Roada UK Member since: Oct 3, 2019
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    16,753 1,871
    Time, price, someone else doing the work.

    When someone else is sending out hundreds of parcels a week that you don't have to find, pack and put labels on, when you don't have to employ a couple of staff to help get the orders out quickly, when cost is relatively cheap - what's not to like?

    Most impact in run up to Christmas for us. Try it with a box or two of items, see what impact it makes.
     
    Posted: Oct 7, 2019 By: Mr D Member since: Feb 12, 2017
    #2
  3. WebshopMechanic

    WebshopMechanic UKBF Regular Full Member

    349 148
    Another vital factor is the cost of sending and buying packaging. Fulfilment houses usually get the best rates because they have economies of scale.

    If you are limited in terms of time/resource and you want to grow your business then it makes, provided you find the right fulfilment company to work with.

    However, you should still think about customer experience and finesse the 'out of the box experience'. Fulfilment companies are generally 'box shifters'. You are the one who is responsible for giving them the tools to make it special for your customers.

    Trust me. It's worth it.
     
    Posted: Oct 7, 2019 By: WebshopMechanic Member since: Apr 27, 2017
    #3
  4. crackerjackcommerce

    crackerjackcommerce UKBF Contributor Free Member

    61 4
    We fulfil most orders ourselves as we sell items from our B&M store so we have the staff, the space and the resources in place. However, we also use Amazon FBA for many items and I personally see a big benefit in outsourcing fulfilment in terms of volume and scale. Good points above re: time, money and cost of packaging. I think it depends on the product you are selling and how realistic it is for you to store and fulfil yourself i.e are you in a warehouse, an office, your home. These would be factors to consider.

    Also, some external fulfilment companies may have a wider range of delivery options at better prices, especially for EU and ROW, plus some specialise in gift packaging, returns, recycling etc
     
    Posted: Oct 8, 2019 By: crackerjackcommerce Member since: Aug 1, 2019
    #4
  5. Mr D

    Mr D UKBF Legend Free Member

    16,753 1,871
    Even with a warehouse and 2 dedicated packing stations set up with everything to hand we found it cost effective to store thousands of items at amazon to do FBA. At our busiest we'd get through maybe 50 parcels packed in a long working day (I had warehouse duties slowing me). Call it 300 in a week between the two of us.
    Amazon picked, packed and shipped hundreds more for us at a cost lower than we were paying per unit in packaging & shipping at the warehouse.
     
    Posted: Oct 8, 2019 By: Mr D Member since: Feb 12, 2017
    #5
  6. Roada UK

    Roada UK UKBF Newcomer Full Member

    6 1
    It is good that you fellas took the TOTAL cost of shipping a product out to your customers. It isn't just postage and ebay fees, it is also the complete cost of labour to pack the items as well as rent for warehouse as well as lighting, heating, insurance etc.

    We are an order fulfilment company at Roada and I couldn't tell you how many times businesses overlook this total cost when considering using our services or not...they get hung up on postage costs only.
     
    Posted: Oct 10, 2019 By: Roada UK Member since: Oct 3, 2019
    #6