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The importance of fulfillment services for e-commerce business

The importance of fulfillment services for e-commerce business

Logistics play a defining role in the success of e-commerce businesses, and a critical component of logistics is fulfillment services that are typical of the E-commerce setup. Executing online orders successfully by ensuring timely and safe delivery of consignments is part of the Sherpack announced fulfillment services that have won the hearts of satisfied customers. 

Shipping is the most dominating feature of fulfillment services and has the power to make or break any e-commerce business. However, there are many more elements to the fulfillment services offered by third parties that other equally important – packing, storage, and customized bundling or kitting.  Fulfillment services are a vital part of the e-commerce business because it is the point where customers finally experience the product physically, which influences their views about how much they like or dislike the business measured in terms of customer satisfaction. 

What is e-commerce fulfillment?

E-commerce fulfillment service is the concluding part of the e-commerce operations that deliver the products to customers. The fulfillment services comprise various activities from picking the products from the e-commerce company to packing and shipping by adhering to the delivery time for that product as specified in the order. Interim storage, if required, is also a part of the service. Fulfillment services even include the return of goods which is a part of the e-commerce business. The return process follows the same stages as that of the delivery process. Only the direction of movement is reversed, from customers to the e-commerce company. 

Shipping costs impact buying decisions

E-commerce companies must be ready to spend some decent money on Fulfillment services, which are mostly outsourced. It is worth spending because the quality of fulfillment services impacts the user experience heavily. The majority of online shoppers prefer free shipping, as revealed in a 2018 survey that showed 93 percent of respondents were driven to buy products shipped free of cost. On the other hand, making customers pay for the shipping cost is a considerable deterrent to draw customers to the e-commerce business.  Since the price of fulfillment increases the total cost of products, customers do not mind canceling orders on discovering later about bearing the shipping cost. 

Why stress on the quality fulfillment services?

Online customers are very sensitive not only to the shipping costs but also about the time of delivery. As they agree to the given delivery schedule, expectations about receiving the ordered items on the promised date keep growing with each passing day. Even if the item is not urgent for customers, they would still like to see that the e-commerce company honors the delivery commitment without fail. Any deviation or deferment of the delivery schedule makes customers very unhappy, and it has a negative impact on the business rating.  The poor experience can turn away customers as they would be looking for better alternatives. 

The third party service providers that offer the fulfillment services work as partners of e-commerce companies and shoulder the immense responsibility of delivering goods safely and on time, every time, which is a critical factor for rating e-commerce businesses. Even the slightest lapse in delivery or return can have a huge adverse impact on e-commerce business.

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