Fulfillment centers are one of the best ways to increase sales and grow your business. It’s easy to get started, and you can utilize them in many different ways with an array of products. However, few small businesses are taking advantage of this fantastic resource due to a lack of knowledge on how it works or simply because they don’t know that fulfillment centers exist. In this article, we will go over why setting up a fulfillment center is essential for any small business wanting to grow its sales and make more money.
Better Customer Experience
A fulfillment center offers your customers several benefits. First, it improves the customer experience. Customers are happier with faster shipping, more personalized service, accurate shipping prices, delivery times, and tracking information.
Second, fulfillment centers enhance your brand as an innovative company that values its customers’ needs above all else. It can help you to attract new customers and retain old ones who may be interested in your products but were turned off by slow or inaccurate shipping options. It also allows for improved logistics management because everything is streamlined into one location instead of spreading across multiple locations across town or even throughout different states or countries.
Faster Order Processing
Around 61% of customers say that after a bad experience with a brand, they are more likely to switch to a new brand. This can be avoided through great customer service and better order processing.
When you have a fulfillment center, you can process more orders. It is because you’re not doing all the work yourself, allowing you to focus on other areas of your business. The more orders you can process, the lower your shipping costs will be, ultimately leading to a higher profit margin.
The faster an order gets shipped out, the more likely customers will be satisfied with their purchases and keep coming back for more. If customers wait too long for their products or receive them damaged or not in proper condition, they might take their business elsewhere next time.
Reduced Shipping Costs
In the world of eCommerce, shipping costs can be very high. Shipping is one of the most expensive aspects of doing business online. It can get even more costly if your business is located in one country while your customers are from another.
If you’re a small business that uses a fulfillment center instead of shipping products yourself, then there’s no need to worry about these costs. Fulfillment centers already have warehouses set up worldwide for efficient shipping purposes. They can send out orders quickly and easily without charging exorbitant rates from suppliers like UPS or FedEx.
Faster Fulfillment Time
Fulfillment centers allow you to ship from multiple locations, which means that you can ship from a fulfillment center closest to your customer. It will result in faster fulfillment times because the product is being sent locally instead of having to go across town or state lines.
Fulfillment centers also allow for different shipping options. Suppose your company has multiple business locations or warehouses. In that case, a fulfillment center will enable you to choose which one best fits each order and whether or not shipping should be done through ground or air transportation.
Additionally, suppose the demand for one product is higher than another at any given time of year (for example, toys during Christmas). In that case, a fulfillment center means that orders will go out faster without extra effort.
Less Employee Turnover
Employee turnover is expensive. According to a report, employee turnover will jump by 20% this year from 31.9 million employees quitting in the pre-pandemic era to 37.4 million resigning in 2022.
Hiring and training new employees can be prohibitive to a small business, especially if it happens often. But with a fulfillment center, you won’t have to deal with turnover. Because the fulfillment center employs your workers, they don’t need to move from one location to another upon shifting roles within your organization.
Also, because employees aren’t required to handle physical products or mailings anymore (instead doing so under strict supervision), they’re able to focus more on their actual jobs than having endless piles of boxes on their desks which could easily distract them throughout the day. And this makes both parties happier overall.
Increased Product Protection
There are many reasons you should have a Fulfillment Center, but one of the most important is that it will help protect your products from damage or theft. It can happen anywhere along the supply chain, from when you manufacture them to when they’re delivered to their final destination.
Fulfillment Centers can also be beneficial because they protect against product returns and contamination. You’ll save money on shipping costs and time by having a centralized location for all returns, which means your customers won’t need to spend as much on their end.
Fulfillment Centers Aren’t Just for Large Businesses
If recent data is to be believed, US eCommerce sales is likely to touch the $1 trillion milestone in 2022. For a small business, setting up fulfillment centers is a great way to scale your operation and offer products that might not otherwise be available in your area.
A fulfillment center allows you to sell products online without having to deal with storing and shipping those items yourself. It means you can focus on creating new products while someone else handles your shipping process.
Many small businesses have already taken advantage of this opportunity by partnering with third-party fulfillment centers like Amazon FBA or Shopify Shipping. By selling their products through these platforms, they’re able to reach customers worldwide without worrying about inventory management or logistics issues such as returns or lost shipments.
