Online stores and ecommerce businesses have taken off in the past decade and there are no signs of this industry slowing down. As easy as it is to order a product online, it’s a completely different story being the fulfillment provider on the other end. As more and more investors and business people flock to ecommerce, here are 4 essential fulfillment tips you need to keep in mind.
Cost Per Order
Having a firm understanding of your cost per order is essential in analyzing your ecommerce fulfillment expenses. Freight cost typically exceeds the sum of most of an order’s components. Management and labor are usually 50% of non-freight expenses.
Reduce Freight Costs
Using a fulfillment provider that also offers freight services not only can save your company money, but gives you more control over your fulfillment and logistics process altogether. For your ecommerce business, look for partners that provide warehousing, distribution and transportation, and fulfillment services.
Improve Picking and Slotting
Approximately 60-75% of a picker’s time
Pickers spend approximately 60-75% of their time traveling from fulfillment centers. With efficient slotting, travel time and cost-per-unit can be decreased tremendously.
Strengthen Your Team
Turnover can cost a company $3,000-$10,000 per employee lost. Put in as much effort as possible to reduce turnover. These efforts can include employee incentives such as advancement in career, leadership training, management paths, and college tuition reimbursement.
Outsourcing 3PL
Outsourcing third party logistics always proves to be a smart idea for both small and medium-sized Phoenix companies. 3PL providers like American Western Distribution offer competitive prices for companies in need of fulfillment services and also provide warehousing and freight services. Contact us to today, and speak with one of our experts about your fulfillment for your ecommerce store.
