5 Fulfillment Mistakes That Are Costing You

Running an e-commerce business is challenging. From customer service to product fulfillment, there are a lot of moving parts that can make or break the success of your venture. One essential element of e-commerce is fulfillment — getting orders to customers promptly and cost-effectively. Unfortunately, many businesses make costly mistakes when it comes to fulfillment. Here are 5 fulfillment mistakes that are costing you:

1. Not Offering Multiple Fulfillment Options

Not offering multiple fulfillment options can significantly reduce your customer base. Not everyone lives near a store and wants to pay for expensive shipping. Offering multiple fulfillment options such as in-store pickup, curbside pickup, BOPIS and free shipping can help you reach a broader customer base and increase revenue.

2. Not Automating Fulfillment Processes

Automating your fulfillment processes can streamline business operations and save time and money. To begin automating your fulfillment processes, define your current fulfillment processes and evaluate which ones can be automated. Once you have identified the functions that can be automated, decide which software solutions or applications to use.

This can include an Order Management System (OMS), a Warehouse Management System (WMS), or a Customer Relationship Management (CRM) system. Once you have identified the solutions, implement them and train your staff. You should also ensure that the automation solutions you choose have the necessary features to help streamline your fulfillment processes. Finally, track the performance of the automation solutions and make changes as needed to optimize them. The beauty of automating your fulfillment processes is it reduces manual errors and makes it easier to track inventory and shipments.

3. Not Utilizing a Warehouse

If you’re not utilizing a warehouse for your fulfillment needs, you’re likely spending more money than necessary. Investing in a warehouse for fulfillment can save you money in the long run. They are more efficient than home-based fulfillment because they provide more space and specialized equipment. This increased efficiency saves you on labor and shipping costs and reduces the time it takes to fulfill orders. In addition, warehousing allows you to take advantage of bulk discounts, which can help you reduce costs further. Lastly, the warehouse can also help you reduce the risk of damage and loss from improper storage of products. Overall, if you are still fulfilling out of your garage, this could cost you time and money.

4. Not Investing in Inventory Management Software

Inventory management software can help you keep track of your inventory, reduce stockouts, and ensure you always have popular items. It allows you to track incoming and outgoing inventory, set reorder points, and manage inventory levels. Investing in this type of software can save you money by allowing you to control your inventory and inventory costs better.

When you can accurately predict inventory needs, you can avoid overstocking or understocking, saving you the cost of excess or lost sales due to a lack of inventory. Additionally, inventory management software can help you better track the cost of goods, allowing you to optimize your supplier relationships and take advantage of cost savings. Finally, inventory management software can help you better manage warehouse and staffing costs, ensuring that you are efficiently utilizing your resources and maximizing your savings.

5. Not Utilizing Fulfillment Service Providers

Fulfillment service providers can help you save time and money by managing your fulfillment needs. Working with a fulfillment service provider can save you money in several ways. By outsourcing fulfillment services, you can avoid expensive overhead costs associated with warehousing, shipping, and order fulfillment.

Additionally, fulfillment service providers have access to discounted rates with shipping carriers, allowing you to reduce the cost of shipping orders. Furthermore, fulfillment service providers are experienced in packing orders efficiently, which can help you reduce the cost of packing materials. Finally, working with a fulfillment service provider can help you save money on labor costs by eliminating the need for in-house staff to manage the fulfillment process.