Why new E-Commerce companies or individuals must deal with Fulfillment Centres
Some Points why you need a fulfillment centre as new to e-commerce rather than your self.
We had made this blog as conversation between a fulfillment advise from GHS Logistics & I’m reviewing below as question and answer, so you should not stop reading to not miss the point.
Q1: New People to e-commerce thinking that Fulfillment centre’s are sharing their profit & reducing their margins rather than do it by them selves. Is that true?
A1: Yes, the reality it is true from one narrow view point. Please proceed with below see your answer out of the box.
Q2: Then why I need Fulfillment Centre?
A2: to take out the work & the load of storing, handling, arrange delivery of your orders and that will give more time to be with your clients to close/get more deals or purchases.
Q3: So only they get me more time? But I have a plenty of it at startup & I think I manage it by myself with courier companies!!!
A3: Yes, it is matter of time that related to energy, brain storming, planning, scheduling, managing inventory, stock availability, re-ordering time, returned items, updating stock, finding sold items, paper work,….etc , so you (as Entrepreneur) must invest in building more sales channels & Marketing methodology to gain customer to your website rather than thinking of how to handle your purchased stock & delivery but still you can do supervision.
And here is below a chart showing the difference between two entrepreneurs. One doing himself & other through a fulfilment centre.
As you can see the difference where doing it by your own reached over 40 in week 47 but with fulfilment centre is achieved in week 25, so you can now simply say it is time matter.
Also in week 47 seven you hired more your 3rd sales assistance in consideration of each person can handle 30 sales a week but in reality he can be different depends on so many factors.
Q4: Why there is so many drops in first chart rather than other one?
A4: The drops because of the time spent on solving /resolving issues with clients, courier, inventory & tracking proofs & documents.
Q5: Why that not happening in the other chart?
A5: In Fulfillment Centre they are more well familiar with these issues and they have a backup plan to rectify the issue 10-20times faster and it is done by them not by your sales person which will give him more chances to keep focusing on closing deals & increase your revenue.
Q6: So the more I do sells the more you charge!!! Isn’t it?
A6: We charge per transaction, so if no sells then only you bill is due for storage. Where the more you sell the more work we do for you & that qualifies you to better rates.
Q7: Do you think if I use Fulfillment centre that will increase our sales?
A7: We are supporting team for your business, we let the thinking & brain storming for entrepreneurs like you since the sales & marketing is your ball within your e-commerce court.
Q8: Another Question, why I should choose GHS Logistics rather than any other company, like Courier companies who could offer the same service?
A8: let me show you the hidden difference between Fulfillment centre & courier company GHS is specialist in fulfillment services, pick, Pack, repackaging, product quality inspection, re-branding for some products like clothes, accessories, toys & most of dry materials so far and they supervise courier company to ensure best practice for deliveries on your behalf to reduce & minimize cost might caused from client side to not secure the delivery & that will increase your chances to focus more on sales. Where courier companies are just picking the items & deliver it & other services won’t available which you’ll need it absolutely when your business grows.
Q9: what about pricing difference between courier & fulfillment service providers?
A9: We are not fully aware with different pricing with a very competitive market for delivery, but we can assure you that we well aware of problems facing courier companies & we are the best in market for how to rectify this issues to make your client happy.
Also one of our advantages with us you can choose/change any courier company would fit your needs without falling in the hassle if you are not satisfied with their services mean while your orders still running smoothly with no delay for new orders, that comes with a small fee on top of courier services USD 0.56$ per AWB.
by now we could explain most popular & repeated questions about fulfillment centre we faced here in GHS Logistics Fulfillment Centre and if you still have more questions, please feel free to contact us on the below mention details.