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Understanding the Order Fulfillment Issues for E-Commerce Companies

Posted by Dave Micek in Articles

Remember the most recent time you purchased something, and the product didn’t show up, showed up late or was damaged. Did you ever make a purchase from that seller again? According to some research, nearly 40% of customers say they’ll never shop again with a company after they’ve had a bad delivery experience.

Most people choose to work with Amazon since the company already has a solid structure in place for accepting and shipping orders in a timely fashion. This can be a problem for someone who has to handle the shipping on their own, but Amazon FBA makes sure that is taken care of from Amazon’s end.

Keep this in mind as you choose to structure your own online business. More business owners than ever are turning to Amazon FBA because the fulfillment is handled completely by Amazon, taking these delivery concerns off of your plate. Order fulfillment refers to the process of getting, packaging, processing, picking and shipping orders.

A third-party fulfillment services provider or partnering with Amazon FBA is critical for developing an effective order fulfillment strategy. This builds customer loyalty and causes people to feel trust in your business.

There’s no way to determine a one size fits all fulfillment strategy, but there are numerous important things to keep in mind when deciding how to scale fulfillment for the online store.

Many people turn to Amazon FBA for selling a high volume of orders because doing the research on your end means you can hand over much of the fulfillment to Amazon’s processes.

The total volume of products you sell and your total monthly volume of orders plays a significant role in identifying the fulfillment solution right for you. Low order volume can assist with the cost effective nature for you to maintain your fulfillment inhouse instead of outsourcing.

If you can sell a limited volume of products and only handle shipping a few orders each week, you likely don’t need a warehouse system for management or a full inventory.

However, if your order value is slowly increasing or if your business is growing quickly, you can tap into the power of the customers already visiting Amazon’s website and use this to your advantage in selling your products.

Order fulfillment management that already works with your existing e-commerce platform makes things much easier, which is why Amazon FBA is a leading way for third party sellers to get involved.

When partnering with Amazon FBA, you can ensure that the fulfillment options are aligned specifically with what customers have come to expect. Since many people are familiar with the Amazon brand and have a high level of trust in it, when it comes to sell your business you can leverage the power of experienced and knowledgeable business brokers to list your company for sale and obtain a buyer request sooner rather than later.

The support of an experienced business broker is instrumental in outlining a strategy for you to sell your company as soon as possible and receive maximum compensation for the profits you have worked so hard to build.