Choosing an order fulfillment location is just like looking for a house. But instead of searching for one with security and good schools around, you are more concerned about delivery time to customers and transport costs.
How to Choose an Order Fulfillment Location?
Where Does Your Product Come From?
One of the most important concerns regarding order fulfillment location should be inbound transportation costs. Most warehouses are located in prominent geographical locations. Some companies require them to be close to ports; others need them right next to the manufacturing facility. Ultimately, it depends on where your product is coming from.
Look for an order fulfillment company that actually lessens the distance between where your product is coming from and where it is stored. You can also go for multiple inbound transportation methods to minimize costs.
Is Your Shipping Free Or Not?
According to a research study conducted by UPS, online shoppers who pay for shipping are willing to wait for a maximum of six days for their orders. If the delivery time is more than that, they expect the shipping to be free.
An important factor here is centralized shipping. It allows you to serve your customers while observing strict deadlines and also cut down costs of shipping. You can also consider working with order fulfillment services that offer multiple shipping options for the most competitive costs.
Are You Looking For Multiple Locations Or Just One?
This is among the most common questions order fulfillment companies hear, however, it all comes down to your specific preferences. Some companies adopt a simple approach by sticking to a single location, while others spread out their inventory across multiple locations. A cost-effective and sound strategy is to choose a central location that allows you access to the closest markets.
At the same time, dividing inventory across multiple locations allows you to put contingency plans in place and at times, deliver products to customers faster.
Shipfusion sets your business on autopilot and combines flexible, reliable fulfillment with powerful, real-time technology. Shipfusion has multiple fulfillment centers across the US and Canada– making it easy to manage your eCommerce business. For more information on how to set your business on autopilot, contact one of our fulfillment specialists today.