How to Save Money on E-Commerce Fulfillment

How to save money on E-Commerce Fulfillment?

Do you know the #1 reason why many business owners are wasting tons of money on fulfillment?

Everyone knows that the costs of fulfillment can be extremely high. The cost to package and send out orders is sometimes considered a necessary evil when it comes to running your business but at the same time, it can also be a chance to generate extra goodwill with the customer and to turn a one-time purchaser into a loyal, brand advocate.

Making this happen doesn’t have to cost a fortune either. There are ways to offer quality fulfillment at an affordable cost that doesn’t eat into your profit margins. So how can you save money on e-commerce fulfillment? Here are some suggestions.

1. Buy Your Packaging Materials In Bulk

It is no secret that when you buy anything in bulk you can save money as the cost per unit is normally lower. So why can’t you implement that same strategy with your packaging materials? Purchase any packaging materials in large quantity and store them at your distribution centre for use at any time. Even better, when you use a fulfillment center like Floship, there are many custom packaging options and we even have some free packaging tiers as an added bonus.

Don’t just think about storing mailing boxes or packages. Think about the labels, shipping forms, rubber stamps, scales, postage, envelopes and any protection you use in the orders. As an entrepreneur, for maximum growth and to leverage your skills to their highest value activity, the best e-commerce stores automate or outsource the major components of the fulfillment process to, often in the U.S.A. Fulfillment by Amazon or, especially when dealing with customer ordering form all corners of the globe, the world’s #1 global logistics service Floship and avoid all the tedious tasks below:

2. Print Your Own Postage

While you may think it looks more professional to buy in postage and shipping labels from a supplier – the same results can be achieved very easily from your own office or home computer. There are several online options that help you design or download a ready-made form that can be printed on any printer.

Another alternative is to buy a printing machine like Postage Meters that will print labels and shipping forms for you from your office.

3. Control Your Weight

If there is one thing that will cost you more it is the weight of the parcel. To control this you need to invest in parcel scales, but this is only an issue when you are not integrated into a fulfillment house like Floship . By measuring your packages before they go to the courier or postage team, you can ensure that they are light enough to incur a smaller fee but are also prepared for the bumpy trip to the buyer.

This could save you thousands every month, depending on your order level, so really consider investing in scales that can cost as little as $50. Not to mention all the time going to the post office.

4. Recycle Packaging Materials

You are bound to receive packages yourself; either from your own online purchases or from stock that is sent to you. Instead of throwing away the packaging materials that come with the delivery, keep them aside and use them within your own packaging process.

The only time this isn’t recommended is when the materials are dirty or branded with another logo. However, the chance of this is rare. Besides, packaging is one  of the smartest opportunities in the market where innovation can spread quickly but, since most of the movers in world today have long held traditions of how things are done, a disruptive packaging breakthrough in conjunction with the meteoric rise in logistics sophistication globally will have an impact that changes the whole way goods are shipped, shopped and consumed in the future.

5. Find Alternatives

While bubble wrap and foam peanuts work and are often expected, they aren’t the only materials that can be used as packaging. There are numerous other materials that can help protect your product and are far cheaper. Consider using materials from your own processes that have been used and no longer needed, like cloth off cuts or wood shavings.

This makes your product’s arrival all the more attractive to the audience, while also saving you time and money.

If you struggle for materials, consider recycling old catalogues, newspapers or magazines. These will do just as well and cost a fraction of what bubble wrap and foam peanuts cost.

6. Pack Sensibly

This is the most obvious but even the big e-commerce companies get this wrong. Ensure that every package that leaves your business is in the right box and has enough material to protect it but is not overloaded. This can reduce costs in weight, size and packaging material – making it the most important way to save on fulfillment costs.

Conclusion

There are many ways your e-commerce company can save money while completing fulfillment. From buying in bulk to ensuring packages are the right size. The effort has to come from you to implement these and educate those completing fulfillment to receive the benefits of lower costs.

Are you ready to start saving on our global fulfillment cost? Find out how much money could you save or, even better, how much more money you can earn by expanding to markets in high growth countries that have a thirst for internet shopping.

 

  • July 13, 2018