When an ecommerce business starts trading – assuming it has been started from scratch – it’s more than likely that the products will be produced or sourced by the company itself and that order fulfillment will be carried out at the same location where every other business responsibility is handled. In real terms, what we’re talking about here is making products at home and shipping them out to online customers personally. Most ecommerce enterprises start this way, but if they hope to survive, there comes a definite time for growth.
When this point comes along, the natural option is to outsource fulfillment to a third party. This is all but necessary if customers are to be reached far beyond the location of the business, and when the number of customers exceeds the amount that can be handled in-house. This is the stage that normally presents something of a challenge for many small ecommerce ventures.
You suddenly have a reach beyond that which you can realistically deliver to yourself, and the time comes to use one of the many ecommerce fulfillment services that exist precisely to serve ecommerce companies. When that point comes, a company needs to be ready to grow and, to be ready to grow, they need to have the cash flow and revenue to fund fulfillment. Indeed, many small ecommerce companies fail precisely because they are not ready to grow at this point.
The Next Stage
Nevertheless, where ecommerce fulfillment is concerned, it doesn’t stop there. As a company grows, the fulfillment services used need to be constantly expanded. Fulfillment as a process includes things like inventory management, warehousing, and, of course, delivery. You may have made the leap to third party fulfillment but, as your company grows, you need to make subsequent steps.
This is where things can get even more complicated. Many mid-sized fulfillment companies get caught up in the speed of growth (as it tends to only get faster as it proceeds) and are unaware that their fulfillment processes need to be revised. Beyond the first leap to third party fulfillment – which comes along when you simply cannot handle orders yourself – it can become difficult to realize when your fulfillment process needs another step up.
Shipping and Handling of Texas, a fulfilment service out of Houston, advise though that there are indeed some tell-tale signs that a fulfilment service needs to be expanded. Learning what these are then is the only way to proceed.
Signs that a Fulfillment Overhaul is Overdue
Warehouse Space is Becoming Limited
This is the simplest indication that you should expand your fulfillment services. Sometimes it becomes clear that you’re running out of warehousing space. This doesn’t just mean that not enough space is available, but it could simply be that you have less of it. It’s always best to anticipate the problem.
It Takes Too Much of Your Attention
Diversification of roles is a clear sign of business growth. Therefore, when the point comes where seeing to order fulfillment is leaving you scant time to focus on other parts of the business, it’s clearly time to expand.
You Have a Seasonal Sales Cycle
Unless you specialize in specifically seasonal products, it is likely that seasons will not make much of a difference to your order load at first. However, when you start experiencing things like a Christmas rush, it’s clear that you have enough products to inspire increased interest at certain times of year. That means it’s time to expand your order fulfillment.
The key take-away here is that order fulfillment expands in tandem with business growth, and that you have to keep up.
With how important fast shipping speeds are to consumers, it is important to always examine your fulfillment strategy. For help speeding up your e-commerce deliveries to satisfy same-day demands, please see the resource below.
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