DETAILED INSIGHTS INTO FULFILLMENT SERVICES
Ensuring that orders reach customers quickly is always a challenge for businesses operating on e-commerce platforms. Fulfillment has emerged as an ideal solution for companies struggling with logistics. So, should businesses use fulfillment services? What role does this service play for businesses? Let’s explore with Smart Link in the article below!
What is Fulfillment?
Fulfillment, also known as order fulfillment, product distribution center, or logistics services, is the process that takes place from when goods are received in the warehouse until they are delivered to the customer.
This process includes activities such as receiving goods from the seller, warehousing, order processing, picking goods from the warehouse, packaging, and shipping to the customer.
Who is Fulfillment Suitable For?
Fulfillment is suitable for businesses operating on e-commerce platforms or individuals and organizations selling on social media. In Vietnam, some major e-commerce platforms that use this service include Tiki, Shopee, Lazada, Sendo, and more.
In-house Fulfillment
In-house fulfillment is when a business handles all activities in the order fulfillment process on its own, without the support of any third-party service providers. This process includes selecting and packaging orders, storing and managing inventory, and delivering products to customers.
Dropshipping
Dropshipping is a model where the seller does not own the goods. Their task is to find customers and contact the supplier to deliver the goods directly to the buyer. This model is chosen by many e-commerce platforms such as Aliexpress, Shopify, Amazon, and is suitable for sellers offering a wide range of products without requiring significant capital.
Outsourced Fulfillment
Outsourced fulfillment is the best solution when a business lacks the resources to handle orders on its own. This involves hiring an entire service from a third party. The intermediary company will handle all processes, such as picking, warehousing, order processing, delivery, and cash collection. They are also responsible in case any issues arise.
When Should You Use Fulfillment Services?
- Unstable Sales Volume: If your sales are inconsistent and tend to decline, you should consider using logistics services to adjust warehouse management.
- Lack of Infrastructure: If your infrastructure cannot meet the demand when order volumes increase, outsourcing to a fulfillment company is a reasonable choice.
- Lack of Time to Focus on Sales Growth: If order fulfillment consumes too much time, using fulfillment services will allow the business to focus on sales growth.
Should You Use Fulfillment Services?
Nowadays, consumers expect orders to be delivered quickly, sometimes within just a few hours. Using fulfillment services helps businesses meet this demand, retain customers, and maintain a competitive edge. The benefits of fulfillment services include:
- Reducing shipping costs;
- Lowering warehousing costs;
- Enhancing competitiveness;
- Increasing purchase rates and expanding the potential customer base;
- Improving customer service;
- Focusing on sales activities.
Above are some insights into the role and details of fulfillment services that Smart Link wants to share. We hope this information will be helpful to our readers! We are committed to offering you services and solutions that help your goods reach global markets with dedication and customer collaboration. With over 13 years of experience in the logistics industry, we take pride in being a reliable and professional partner.
Hotline: + 84 935 766 039 to know more about our services
If you require assistance with international import and export of goods, please contact our team at Smartlink Logistics. We are available to provide you with professional guidance on our services and the necessary customs procedures.
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