- Plans & Pricing
Order fulfillment is the proverbial business end of an eCommerce enterprise. It is the sum total of everything involved with putting your wares into the hands of your customers.
One of many developments in the information age is that, for nearly every facet of the business, a merchant has options. Service providers can screen potential employees, manage payroll, write code, design websites, and run your social media, et al.
Naturally, they can also now execute your fulfillment, and within this option are ever more options to consider.
For any service, a business must frequently assess the value of outsourcing vs. keeping it in-house. Costs are involved regardless of which route you choose and order fulfillment is no different.
Bear in mind, too, that cost and price are not the same thing. Multiple factors on top of the price of a provided service combine to form the actual total cost to your business.
Here, we will take a look at the costs, both monetary and otherwise, of various fulfillment models. Then, we will discuss the value of a powerful order management system (OMS) like SkuNexus. SkuNexus can not only lower fulfillment cost per order (CPO), but also eliminate fulfillment errors through automation.
Performing all fulfillment tasks internally, and manually, is the very definition of old-school. Long-standing methods of doing things continue to work well in some fields (wine & cheese making come to mind). But, manual self-fulfillment in eCommerce can quickly become a very costly endeavor for a number of reasons.
Outsourcing fulfillment to a 3PL involves many costs for any eCommerce merchant to take into account. Several services factor into this fulfillment strategy and the costs involved can vary considerably.
General services provided are:
Fees for these services often depend on the order volume of your online store. Higher volume means a lower per unit price. Any special requirements (refrigeration, oversized items, custom packing needs) will also be taken into account and priced accordingly.
Within these general services, a host of costs are possible. For eCommerce companies to determine their cost per order, it is crucial to include everything from receiving forward.
Many merchants looking at fulfillment options may also have needs beyond the basic services listed above.
Because it eliminates the need to manage inventory, dropshipping appeals to many eCommerce merchants. However, costs are still involved.
The costs associated with eCommerce fulfillment can be greatly impacted through the implementation of management software.
Above, we went through a variety of costs associated with manual self-fulfillment. Automating processes with software like SkuNexus changes the entire cost (and operational) structure of performing fulfillment in-house.
For merchants outsourcing to a 3PL, SkuNexus can enhance and facilitate fulfillment in a number of cost-effective ways.
SkuNexus can also help significantly with dropshipping costs through the deep functionalities provided within our Vendor Management System (VMS).
Fulfillment operations comprise a broad range of activities and each one has a cost attached. Finding ways to lower those costs must be a priority for any eCommerce merchant and management software is often the solution.
To explore how SkuNexus can help your business both conquer costs and optimize its entire backend, please contact us.
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