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Why Fulfillment Services Can Help Ecommerce Businesses Common misconceptions about online fulfillment services fact: You can actually wind up paying more for your fulfillment services in the long run than you would by purchasing the inventory yourself, simply because shipping charges must travel further to get to your consumer. Fact: Online fulfillment companies charge much less for the fulfillment service itself than they do for storage space and inventory. Fact: Fulfillment services actually take up valuable storage space. Fact: Fulfillment services are an important part of the ecommerce business model. There's good news, though. With the advent of the latest technology, online e-commerce fulfillment services can now handle nearly all of an online retailer's inventory. The best fulfillment services utilize state-of-the-art equipment and software to keep track of each of a retailer's products. The best services not only allow customers to place an order and have it shipped directly to their door, but also to track inventory, determine where orders should be placed next and more. Today's most advanced ecommerce fulfillment services provide a comprehensive view of inventory and shipment status to help an ecommerce business run smoothly. For example, some services include easy to use software that will create custom reports to track product sales and expenses. Other software will keep tabs on shipments and fulfill orders as quickly as possible. It's no secret that customer service plays a key role in running an effective e-commerce business. But what some retailers don't realize is that by taking advantage of today's latest technology, they can improve customer service. Here are a few ways that online fulfillment companies can help you improve customer service. Reduce Shipping Costs - Shoppers love the convenience of shopping online, but some users pay more than they need to for shipping costs. Instead of using fulfillment services to ship orders, many shoppers pay excessive shipping costs that drive up overall shipping costs for their customers. When using fulfillment services to ship orders, an online retailer can reduce shipping costs by choosing to fill orders in house or pick them up at a local location. Fulfillment companies also offer the ability to pick up orders off of the web. This means that when a customer places an online order, the retailer can use the latest technology and equipment to pick the order up from a warehouse, store or warehouse located anywhere in the country. Reduce Drop Shipping Costs - Online retailers that don't utilize ecommerce fulfillment services often end up shipping goods to clients instead of their specified vendors. Dropshipping allows customers to place their orders with a third-party order fulfillment provider who then ships the items directly to the client. Drop shipping helps an online business stay in contact with its customers and provides an excellent opportunity to expand its customer base. As a result, online businesses that choose to work with dropshippers often find that they save significant expense over shipping costs. Improve Customer Experience - By using fulfillment services, an e-commerce business can make every customer experience an exceptional one. If customers are impressed with the products that they order from an online retailer, they will tell others about it. Word-of-mouth advertising is very powerful. And a website that has a great shipping cost advantage and excellent customer service can help an online business increase the amount of sales that it earns on a regular basis. Fulfillment services are designed to provide exceptional customer service from start to finish. Once an order is placed, the company does all it can to ensure that the item reaches the customer that ordered it in a timely manner. These are just a few ways that fulfillment services can benefit an ecommerce business. An online retailer can easily find fulfillment providers to take care of many of the tasks that traditional packers and carriers used to do. The cost of shipping and handling becomes almost completely eliminated. In order to take advantage of these benefits, an online retailer should always evaluate fulfillment options.
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