✅ What is ecommerce fulfillment?

Posted by Lógicos 3PL on Dec 7, 2020 12:47:22 PM

When it comes to implementing an ecommerce business, there are new terms and processes that you should take into account in your day-to-day business, especially if your business starts selling more and more. For example, you will have to answer questions regarding product storage, packaging or shipping.

One of the options that ecommerce stores use the most is to delegate to a third party the integral logistics management, which is known as ecommerce fulfillment.

What is Ecommerce Fulfillment?

As we have already mentioned, fulfillment is an integral logistics service for ecommerce. The provider of this type of service will be responsible for receiving the goods and storing them, but also for packaging, delivery to the carriers, returns and even automated response to customers. 

The aim of the fulfillment is to manage the goods quickly and efficiently and also to create a positive shopping experience for the end customer. 

In other words, the fulfillment service provider will take care of:

  • Receiving and organising your products 
  • Storing them according to your needs and characteristics
  • Preparing orders for shipment: packaging, labelling, invoices, customs formalities
  • Contacting the customer in an automated way to notify them that their order is in transit
  • Managing and receiving returns.

ecommerce fulfillment

Why is ecommerce fulfillment so important?

A logistics operator specialized in fulfillment will have the experience and resources required to deal with every stage of the supply chain management. In addition, by delegating this operational part, you will have more time to devote to tasks that add more value to your business such as product development or marketing. 

But what other advantages does ecommerce fulfillment have for your business?

  • Cost Saving

By delegating to a third party the integral logistics management, you will not have to face costs such as the rent of a warehouse, the payroll of new personnel or the means of transport for the shipments.  

You will only have to face a monthly fee to which an amount will be added for each order processed. You will only pay more if you sell more. 

  • Scalability 

With the fulfillment you will be able to attend any variation in the demand without seeing increased costs. The logistics operator will know how to adapt to both peak sales and times when the demand decreases. 

  • Final customer satisfaction

Typically, customers of ecommerce services are small businesses or individuals. These two customers translate into two types of fulfillment models:

    • B2B

It is a business model in which one company performs various services for another. Normally, B2B fulfillment involves two parties: companies and traders (wholesalers, retailers, specialized stores, etc.).

The fulfillment centers that provide these services have to deal with large quantities of product and tight delivery times. 

    • B2C

In B2C fulfillment services, products and services are delivered to the final consumer. In this model, the volume of orders will be much lower than in B2B. In most B2C logistics operations, parcels are shipped instead of pallets

In this model, it is very important to have an excellent returns management process. The faster they are processed, the sooner your customers will receive a refund. Furthermore, this also means that the product is immediately ready to be sold again.

One of the main objectives is that the final consumer is satisfied with every option and delivery times for the chosen product. 

We live in the era of immediacy, so when a customer buys a product he wants to receive it as soon as possible. In this respect, a fulfillment service operator will also become your ally. The operator's warehouses are usually in strategic positions that reduce shipping time. 

Lógicos 3PL, your alternative to Fulfillment by Amazon

It was Amazon, the giant of ecommerce, who began to use the term “Fulfillment”, as it centralized the stock of its vendors in its own warehouses and also took care of shipping orders.  

Lógicos 3PL services are the perfect alternative to fulfillment by Amazon, because in addition to helping you sell on the Amazon sales channel, we also help you sell on the rest of your channels by centralizing all your stock in our warehouse. 

In addition, when it comes to preparing shipments, we adapt to your needs. Forget about envelopes and brown boxes without personality! We use your own packaging, which will give visibility to your brand. In addition, we also take care of the packaging of gifts or special promotions.  

Another key part for us is to work side by side with you. So whether you sell through an ecommerce platform, marketplace or retail or use an inventory management system, our cloud-based system integrates with yours easily and securely. 

Finding the right fulfillment and third-party logistics partner to work with whether you run a B2C or B2B business is essential to your success.

what is ecommerce fulfillment

What are you waiting for to scale up your business? One of the steps that will put you on the path is ecommerce fulfillment and we can help.