There’s a lot of information about what services fulfillment companies can offer new and relatively young home-based and ecommerce businesses. Yet amid all that discussion lies the fact that many fulfillment service companies are also of great use to established and mid-sized companies looking to expand their product line and/or market presence.
Why Switch To A Fulfillment Company?
Businesses that have grown to a certain point find themselves at something of a crossroads. In short, they must decide whether to outsource their mail order fulfillment needs to a third party logistics provider or to attempt to expand their own order fulfillment and logistics capabilities.
Going your own route can be expensive, tricky, and dangerous. There are numerous hidden costs to consider, for example property taxes and building inspection permits, that most small businessmen and women fail to take into account when estimating the cost of buying warehouse space. Renting warehouse fulfillment space is also an option, but then staffing and training, as well as payroll taxes, also fall on the business owner’s shoulders, too.
Enlisting the aid and services of a fulfillment provider allows you to bypass all those regulations, hassles, and time searching for warehouse space and hiring its staff, all in one powerfully profitable gesture.
Affording The Right Fulfillment Company For Your Needs
Another misconception about fulfillment companies is that they’re too expensive for established business to reasonably employ, or that the transfer costs make switching logistics over to a third-party fulfillment service company unrealistic in keeping with a healthy profit margin. In fact, fulfillment service companies are more affordable than many people understand, owing to a unique but versatile payment structure.
Fulfillment service companies typically deduct a portion of every product warehoused, processed, and shipped at the point of sale, or conversion. In other words, the fulfillment service company makes a profit off every unit of merchandise you sell via your own mail order fulfillment business. Because they profit when you do, this gives them a powerful incentive to fulfill all your customer service orders in a timely and productive fashion.
Choosing the Right Fulfillment Service Company
There are many fulfillment service companies to choose from, with agreement conditions and terms varying with almost every one. Researching the right fulfillment service company for your particular business is therefore extremely important. Experts advise asking for referrals and to see testimonials from each fulfillment service company before making a decision.