Why Use A 3rd Party Order Fulfillment Company Rather Than Amazon Fulfillment
Most companies do not want to handle logistics. They are already involved in creating products, marketing those goods or services, and dealing with the day-to-day customer and business operations.
Instead, what many companies do, particularly where there are an involved production process and storage needs prior to shipping is outsourcing. They put the onus of shipping and handling onto a company that specializes in what is known as fulfillment.
Amazon: An Expensive Solution
Amazon is perhaps one of the world’s biggest drop shippers of books. The company is also a fulfillment organization. If you are a merchant, you may send inventory for Amazon to ship out when your company makes sales on its site.
The fees to use Amazon can be hefty. The percentage paid out on sold items is 20 percent. Add to that fees to store merchandise and to send it from fulfillment, and it means a chunk of the profit is going to Amazon.
If you are a wise seller, then you are looking for multiple outlets through which to make sales. Perhaps your own web site finally took off and you no longer rely exclusively on Amazon for your sales.
If that is the case, then by nature of the bet you will need to find a new fulfillment company, Amazon Fulfillment deals only in merchandise that will sell through its portal. It is costly and limits how you sell your products and how much money you lose turning to Amazon.
There are alternatives to Amazon Fulfillment for CBD Oil. In particular, you may be dealing with several warehouses and vendors, and using Amazon is no longer beneficial.
It might seem counterintuitive, though if you are a smaller business just starting out, Amazon might make some sense. If you are a larger company, it becomes too pricey and eats at the profit margin.
Make Organizational Adjustments
Creating good habits that are well-organized may make for a better organization. It creates solid paperwork trails, good flow, and builds up the efficiency of the company.
It means overall that there is a reduction in the amount of time that is spent taking inventory. Being cognizant of the inventory prevents lags between ordering and shipping items. It also ensures that orders are not lost to the competition.
Streamlining inventory through a supply chain means that there will be stock available as needed, wherever it is needed. The idea is to have more than one of every SKU available and in stock.
While it is great to be able to rely upon supply chain solutions to move the one SKU from one location to another, it is better to have them available at every fulfillment center. Always have an integrated inventory that tells you how many of each SKU are available among the many warehouses.
Moving stock requires keeping track of the transfers. Keep a log to maintain accuracy and provide insight. Figure out what is causing the need to make transfers. Is it having too little merchandise available at one particular location?
The other aspect is determining how often to perform regular stock maintenance. For instance, you need to know how often to count inventory and to check for opportunities to move merchandise or make purchases.
There are different ways to handle inventory checkups. It depends upon the volume of product movements. Check the high-volume sellers first and most often. Some people group the products by similar function or physical location within a warehouse.
The main idea is that for the counts to be successful, they need to be regularly occurring. In addition to performing them regularly, consider performing them in the same manner every time. This creates a pattern that will make for a more efficient process all together.
Dealing with stock imbalances is a huge issue. For a CBD fulfillment company, it is not an issue. The main idea is that Amazon is certainly not the only game in the world.
Let them count, recount, move merchandise around, and alert you when you need to make purchasing decisions.
CBD Order Fulfillment provides the know-how that keeps up with quickly growing businesses. A solid company will maintain accurate records about inventory and shipments.
In addition, running a tight ship that is economical should be second-nature to a fulfillment company. This will all help in maintaining a competitive edge. In addition, look for web order fulfillment capabilities.
These days records should be updated quickly and be accurate. This all makes for the ideal for distribution to customers.
A knowledgeable fulfillment company is not to be overlooked. They make accurate records always while providing efficiency and economical solutions that actually support a healthy bottom line.
When looking for the right fulfillment center, look for experience, a solid track record among its customers, and the ability to receive real-time reports on the movement of merchandise.
Becoming a more efficient company starts with recognizing that everything evolves. At one time you could handle it all yourself. Now, you need help. And, you needed it yesterday.
The only thing you can do is acknowledge the growth and then turn to a fulfillment company to help with maintaining inventory levels while handling quick and accurate packaging, handling, and shipping on your company’s behalf.
Choose wisely, because the company will represent your company just by how well it performs the duties of fulfillment. Investments made in fulfillment is money well spent.