If you run a Shopify store, you have an inevitable logistics dilemma: should you fulfill your orders internally or outsource to a third-party logistic company (3PL)?
Order fulfillment largely shapes your customers’ perception of your business. It’s the difference between a thriving e-commerce store and a withering one. Outsourcing your order fulfillment automates your order processes, fast-tracks deliveries, and conserves time and efforts.
In this article, we highlight seven (7) key factors to consider when choosing an order fulfillment service (provider) on Shopify.
Order Fulfillment Service Providers
An order fulfillment service provider is a company or a third-party service that specializes in handling the logistics and processes involved in fulfilling customer orders on behalf of another business.
These providers are often known as third-party logistics (3PL) companies. Their primary role is to help you manage various aspects of your order fulfillment process, including receiving, processing, picking, packing, shipping, and tracking customer orders.
Key functions of an order fulfillment service provider may include:
- Inventory management: Keeping track of stock levels and ensuring products are available for fulfillment.
- Order processing: Receiving and processing incoming orders from customers.
- Warehousing: Storing products in a warehouse or distribution center.
- Pick and pack: Selecting the ordered products from the inventory and packaging them for shipment.
- Shipping: Arranging the shipping and delivery of orders to customers.
- Returns management: Handling product returns and exchanges.
Outsourcing order fulfillment to a service provider allows you to focus on the core aspect of your business.
7 Factors To Consider Before Choosing an Order Fulfillment Service for Your Shopify Store
These factors ensure that your preferred 3PL service provider aligns with your business objectives.
Here are some key factors to consider:
Integration with Shopify
Ensure that the order fulfillment service seamlessly integrates with your Shopify store. You can visit the Shopify app store to find suitable apps that render this service. Look for a fulfillment provider that integrates directly with Shopify or has a well-documented API to sync order data, inventory levels, and shipping details between your store and their system.
Services Offered
Check the range of services the fulfillment service provider offers to be sure they match your needs. Services such as order processing, inventory management, picking and packing and customer support are non-negotiable.
Experience and Expertise
Evaluate the experience and expertise of the fulfillment service provider. Look for a company with a proven track record in the industry and a solid understanding of order fulfillment processes.
Consider their experience in handling similar products or industries. Read reviews to know what existing customers have to say about the company.
Cost Structure
Look beyond the initial subscription fee and analyze how much they charge for the individual process of order fulfillment. Look out for fees such as storage fees, pick-and-pack fees, shipping costs, and any additional charges for value-added services.
Compare their pricing to your budget and consider the overall value they provide in terms of service quality and efficiency.
Scalability and Flexibility
If you aim to grow your business in the future, you need to find out if the provider can handle your current order volume and future growth.
Another thing to look out for is their ability to adapt to seasonal fluctuations or unexpected spikes in demand.
Location and Coverage
The location and coverage of the fulfillment center cannot be overlooked. The closer the fulfillment center is to your primary customers, the faster the shipping times and potentially lower shipping costs.
This is a great way to improve customer satisfaction and retention. If you have a global customer base, choose a provider with international fulfillment capabilities.
Customer Support
Some fulfillment service providers offer better customer support than others. The level of customer support a fulfillment center offers can impact the performance of your Shopify business.
Find out if they have dedicated support teams to address any inquiries, issues, or special requests from you or your customers and their availability. Prompt and effective communication is crucial for a smooth fulfillment process.
By carefully considering these factors, you can choose an order fulfillment service that complements your Shopify store and helps you deliver a seamless and exceptional customer experience.
Bonus: Tips to Stay Ahead While Fulfilling Orders in Shopify
Here are some tips to help you enhance your order fulfillment process:
Optimize Inventory Management
Maintain accurate and real-time inventory tracking to prevent stockouts and overselling. Use inventory management software that integrates with your sales channels to update stock levels automatically.
Choose the Right Fulfillment Partners
If you work with third-party logistics (3PL) providers, carefully evaluate their capabilities, reliability, and experience. Choose partners that align with your business requirements and have a track record of excellent fulfillment services.
Provide Clear Product Descriptions
Accurate and detailed product descriptions can prevent misunderstandings and reduce the likelihood of returns due to customer dissatisfaction.
Offer Multiple Shipping Options
Provide customers with a range of shipping choices, including standard, expedited, and express delivery. Catering to different customer preferences can increase sales and customer satisfaction.
Streamline Returns and Exchanges
Make the returns process straightforward for customers. Clearly communicate your returns policy, and process refunds or exchanges promptly after receiving returned items.
Wrapping Up
With these factors in mind, you can pick the best third-party order fulfillment service provider for your business. To help make the selection process even easier, we have compiled a list of the top 10 third-party logistic service providers for you.
Picking the best 3PL is just one piece of the puzzle when it comes to growing your business and keeping your customers engaged. This is where Adoric comes in.
Adoric can help you get more value from your Shopify website traffic.
Why not give Adoric a try today?
