What is fulfilment?

Learn what is a fulfilment and everything about the service.

Whether you are thinking of starting an e-commerce business and you are new to this endeavor, or have been selling products for some time, you have probably thought about storing your products, delivering and executing orders. Of course, making money is the exciting part, but what happens after a customer places an order in your online store? Somehow your product must be in the hands of customers. There are three main ways to do this:

  • You send the products to a company that will fulfill the orders for you.
  • You fulfill your own orders, whether you are alone or with a team.
  • You work with a logistics company that will handle your warehousing and order fulfillment. 

E-commerce has become even more popular in the last few years. For 2019, 14.1% of all sales were made online, which is equivalent to a turnover of $ 3.5 trillion. The trend is that by 2023 online sales will reach a share of 22% of all sales. In the times we live in, many people have reoriented themselves to online commerce so that their business can survive. The successful process of an electronic sale goes through choosing the right product, its adequate market positioning, reaching the desired audience of customers, the sale of the product and the final, preparation of the shipment and delivery to the customer. Larger industries have the resources to use the services of third parties, but smaller companies may not have this opportunity. 

There are clear benefits to packaging and delivering your own orders yourself: the most flexible and inexpensive method. For these reasons, start-ups and those that are already established and have a large number of packages for packaging and delivery often choose to handle their own logistics on their own. 

But if your business is growing fast and you have the money for this service, you may be interested in our fulfillment service for warehousing and order fulfillment . There are many logistics companies that will store your product and take care of the packaging and delivery of your products. Working with logistics companies can be daunting if you've never done it before. In this line of thought, we will introduce you through each step of the process. 

What is the Fulfillment service ?

The Fulfillment service is a warehouse of third parties who prepare and send your orders for you. The work is performed by the fulfillment center for implementation. The services they offer are ideal for companies that do not want to deal with foreign deliveries or have outgrown their existing warehousing capabilities to the point where they can no longer send orders.

In other words, the fulfillment service represents the whole process of servicing an e-shop. It includes all stages from the acceptance of orders, through their processing, storage, packaging and delivery to the end user.

What are the main activities included in the fulfillment service?

Although each execution center works a little differently, they all achieve the same thing: they act as a command center for all your shipment preparation and delivery needs. Fulfillment service centers are also used as warehouses for storing goods, which allows you to hold larger stocks of the product.

Some service providers have multiple execution centers, which allows them to serve different geographic locations faster than if they had only one. This allows e-commerce companies to offer fast and affordable delivery to a diverse customer base. But the services include not only that, but also:

  • Accepting orders 
  • Preparation of a list of items from the order
  • Packaging of all elements according to the standards of the e-shop
  • Inspection and processing of returned shipments
  • Collect all items from the warehouse 
  • Sorting / sending shipments in Bulgaria and abroad
  • Preparation of bills of lading, issuance of other accompanying documents to each individual shipment
  • Request and delivery by courier

Or the activities can be described in 3 steps: 

  • Storage

Fulfillment companies start from the same point - the logical storage of products. This is a real sign of reliability for the name of online stores, if the ordered products are received within the promised time. 

  • Order processing

There are many ways to receive a customer order. Order information can be recorded by a sales agent, collected in the web store or obtained through a publication. Next is finding the items ordered in the warehouse. With the e-commerce model, this is facilitated if the company maintains its online inventories as well as offers active accounts to its customers.

Then the ordered items must be packed for delivery to the correct address and customers must be notified when orders are on the way.

  • Return and exchange policies

Once a satisfied customer receives the ordered product, this order can be considered "fulfilled", but what happens when the customer is not satisfied? Return and exchange policies are becoming important at this point. The filling companies fulfilling the order continue to solve the problems for the benefit of both the customer and the seller. When customers want to return or exchange items, the ordering company takes care of that as well. The order fulfillment process is really the basis of customer satisfaction and business growth. 

 Fulfillment Price?

Services are usually charged per hour or per shipment / pallet. Providers add costs for receipt, storage, selection and packaging, delivery, return, custom packaging, gift services and more. Most companies then apply transactional (eg, receive, deliver) and recurring (eg, storage fees) fees. But each fee is different, according to which shipment will be delivered and which company will perform the delivery. 

3 reasons / benefits why should you choose Fulfilment for your online store?

1. Seasonal flexibility

According to the National Retail Federation, nearly 20 percent of all annual retail sales take place between November 1 and December 31. 

With so much seasonal trading, even e-commerce retailers with years of experience often find that they need to attract temporary workers or invest in new capital equipment to be quick with their orders.

Fulfillment order fulfillment allows retailers to avoid the need to hire and train interns or buy new machines or the like. Instead, the retailer simply needs to ensure that the product is in stock and trust the service provider. In this way, the trader has full seasonal flexibility. When holiday sales pile up, the performance service drives the drastic jump. 

2. Lower delivery costs

Free shipping is an extremely popular marketing tool. Whether traders bear the cost of transport to offer free delivery or pass these costs on to consumers, it makes sense to do everything possible to reduce delivery costs.

With this in mind, using Fulfillment 's performance service company with warehouses spread across the country can help reduce the number of deliveries. Most parcel delivery services offer prices based - at least in part - on where the shipments travel. By placing inventory in several regional warehouses, retailers can reduce costs, which in turn can become a competitive advantage.

3. You reach new markets

Online retailers can also use delivery services to expand their business to new markets without having to invest in infrastructure or many additional employees. And so over time you can sell your products in new foreign countries! 

For more information about our service, visit our Fulfillment page from BigArena or contact us.