3 Things To Consider When Researching Fulfillment Centers
Outsourcing your order fulfillment is a big step in your business. When it comes to fulfillment centers, there are three main considerations to keep in mind as you research which fulfillment center is best suited for your subscription box or eCommerce shop.
Location
You don’t necessarily need your fulfillment center to be close to you, but location plays a big role in what your costs will be and product transit times. For example, if the majority of your customers are on the West coast, but your fulfillment center is on the East coast you are going to pay a lot more in shipping and your transit time will be longer. Additionally, the fulfillment center’s location will also impact your inbound and outbound freight costs.
Cost + Fees
If I’m being honest with you, this is where they get you, especially if you’re a smaller business. While the per box rate may seem reasonable, what that doesn't account for is all the fees that get tacked on to your monthly invoice. Fees for monthly storage, extra “touches”, kitting and more, which will ultimately increase the actual cost of order fulfillment each month.
Ask your fulfillment center the fees associated with:
Storage
Additional touches
Kitting
Having a dedicated account manager
Products with customizations/personalizations
Inventory Management (aka counting your inventory)
Fragile items that require additional padding
Contract cancellation and transfer of your inventory
Flexibility
Traditional fulfillment centers rely on analytics and automation. They want to be able to fulfill as many orders, from as many brands as they can. When there is a variation in numbers or processes typically there’s an additional cost associated. For example, if a product is late for delivery to the fulfillment center and you have to push back your ship-by date, are they able to do so without issue? Ask exactly how their fulfillment process works and don’t shy away from asking those ‘what if’ questions.
Learn the difference between fulfillment centers, 3PLs and dropshipping, check out this blog post.
Looking for a personalized, customer-focused fulfillment option?
Check out Sub SupportHer Fulfillment