Managing a successful online company store comes with plenty of challenges, and fulfillment is easily one of the most critical. Partnering with an online company store provider might seem like a hassle-free solution, but it’s important to consider the potential drawbacks when that provider relies on fulfillment outsourcing online. This is especially true in this space, where extra layers can sometimes stand between your business and the actual fulfillment process.
Let’s explore the ins and outs.
What is Outsourced Fulfillment?
Essentially, fulfillment outsourcing means entrusting a 3PL to handle all or part of your order fulfillment process. This includes receiving inventory, storage, order processing, picking and packing, shipping, and even returns management.
What Does Online Fulfillment Do?
Online fulfillment covers everything it takes to get a product from the moment a customer clicks “add to cart” to when it arrives at their doorstep. This process includes:
- Receiving and storing inventory
- Processing orders
- Picking and packing items
- Shipping orders
- Managing returns and exchanges
What Is an Online Fulfillment Center?
An online fulfillment center is a specialized warehouse designed to handle the unique needs of online retail. Many of these centers use advanced company store software to manage inventory, track orders, and streamline the entire fulfillment process.
Why Is it Appealing?
Online company store providers often turn to fulfillment outsourcing online to streamline operations and provide cost-effective solutions for their clients. This approach is common among retail outsourcing providers, as it allows them to focus on other key aspects of the business while reducing the overhead costs tied to warehousing, technology, and labor.
Many outsourced fulfillment companies even specialize in specific niches, such as outsourced fulfillment for home goods retailers, bringing valuable expertise in managing diverse and bulky inventory.
For businesses with complex needs—like those requiring corporate fulfillment outsourcing for personalized products or subscription boxes—this can seem like an ideal solution.
But there’s a catch.
When your online company store provider outsources fulfillment to a 4th party warehouse, it can introduce several challenges:
Indirect Control
When a third party handles your fulfillment, you give up some direct control over the process. This can sometimes result in communication breakdowns and potential delays.
Separate Software Systems
The company you hired to operate your company store almost certainly uses a different software system than the fulfillment center. This leads to inefficient silos of data and information making accurate and timely reporting more difficult.
Quality Control
It will be difficult for a 4th party to accurately inspect merchandise for quality.
Customer Service
It will be difficult to get an answer or make urgent requests. You will need to call the company you hired, and they will then have to call the 4th party warehouse to get an answer for you.
The Nature of Company Store Fulfillment
Online company stores often handle a variety of SKUs, sizes, and color options. Orders are typically picked by piece from a master carton. This level of complexity can be challenging for 4th party fulfillment providers who might not fully understand your unique needs.
By taking these factors into account and choosing the right online company store, you can streamline your operations and provide an exceptional experience for your customers.
At Coggins Promo, we specialize in simplifying company store operations while enhancing your brand experience. With our all-in-one platform and dedicated support team, we’ll help you efficiently manage and distribute your branded merchandise and promotional products.
Ready to take the next step? Request a demo today and see how we can create a solution tailored to your business needs.
