
For growing ecommerce businesses, order fulfillment services can make all the difference in delivering a seamless customer experience.
By outsourcing order fulfillment, businesses can save up to 30% of their operational costs, according to a study cited in the article.
Having a reliable order fulfillment partner can also increase customer satisfaction, with 80% of customers expecting same-day or next-day delivery, as mentioned in the article.
Order Fulfillment Services
Order fulfillment services can make or break an ecommerce business. Small sellers typically manage their own orders, while larger businesses use fulfillment companies and other third-party logistics (3PL) solutions to reduce costs.
There are three main fulfillment methods: sellers manage orders themselves, use 3PL solutions, or forward the entire fulfillment process to the manufacturer or supplier in a dropshipping business model.
Using a 3PL solution can save businesses money, but it's essential to choose the right one. Shipfusion's real-time inventory management software provides a single source of truth for all inventory and order data, with updates every 3-5 minutes.
You can view order volume from each channel, SKU continuity reports, backorder notifications, returns, inbound shipments, and top products in your dashboard. This visibility is crucial for making informed decisions and avoiding stockouts.
Rush Order's strategic warehouse locations around the world enable faster delivery and better inventory management. This global presence is a significant advantage for businesses that want to reach customers quickly.
If you're selling on Amazon, you can use their Fulfillment Services, which include FBA Prep Services and Amazon SFP 3PL Fulfillment. These services can help you streamline your order fulfillment process and improve customer satisfaction.
Here are some key features of a good order fulfillment service:
- Real-time inventory management
- Single source of truth for all inventory and order data
- Global warehouse presence for faster delivery
- 3PL solutions to reduce costs
- Integration with ecommerce platforms like Shopify
Choosing a Provider
As you search for a reliable order fulfillment service, it's essential to consider several key factors. Look beyond price, as while cost is important, it shouldn't be the only deciding factor.
You'll want to find a company that's a good fit for your business, not just the cheapest option. Poor fulfillment can lead to unhappy customers, which can cost more than shipping overheads.
To ensure you're making the right choice, look for a provider that's a fulfillment expert. Third-party logistics (3PL) companies like Flexport can help scale your ecommerce business.
A good provider will have a team of logistics experts and support staff to help you manage supply chain issues. They'll manage the labor required for receiving and managing inventory, giving you more agility.
Consider using a fulfillment solution that connects you to trusted third-party partners. For example, the Shopify Fulfillment Network app connects US Shopify stores to companies like Flexport for better order management and fast, delivery.
Ultimately, the right provider will simplify your order fulfillment process, allowing you to focus on growing your business.
Services and Features
Order fulfillment services can be customized to fit your business needs. Our team works with you to develop a fulfillment strategy tailored to your requirements.
You can choose from a variety of fulfillment solutions, including Shopify Fulfillment Network, Flexport, and ShipNetwork. Each has its own key features, such as order processing and inventory management.
Here are some top ecommerce fulfillment solutions:
Returns Management

Returns management is a crucial aspect of e-commerce, especially with the rise of online shopping. In 2023, US online shoppers returned nearly $248 billion worth of products, making it essential for retailers to have a smooth returns process in place.
Many logistics companies will process returns and issue refunds on behalf of retailers, freeing up time and resources. Customers will typically send returns directly to the fulfillment center, where they're inspected for damage or malfunctions.
Some fulfillment providers will replace the product or issue a refund, so retailers may never need to get involved. If the returned product is in sellable condition, they'll restock and ship it in future orders.
Here are some options for returns management:
- Amazon Fulfillment Service
- FBA Prep Services
- Amazon SFP 3PL Fulfillment
Custom Solutions
Every business is unique, and that's why one-size-fits-all solutions just don't cut it. Red Stag provides order fulfillment services for brands of all shapes and sizes.
There's no such thing as a generic e-commerce fulfillment solution that works for everyone. Your business needs custom solutions tailored to your specific requirements.
Our team of experts works with you to develop a fulfillment strategy that meets your needs, from receiving inventory to order processing. This collaborative approach ensures that you get exactly what you need.
The Projects feature makes it easy to generate custom projects for kitting, product bundling, barcode tagging, and subscription boxes. This flexibility allows you to adapt to changing market conditions and customer demands.
Cloud
Cloud services can be a game-changer for e-commerce businesses, especially those with high-volume sales. With cloud-based solutions, you can access scalable storage and computing power to manage your inventory and fulfill orders efficiently.
Amazon's Fulfillment by Amazon (FBA) and Seller Fulfilled Prime (SFP) options both utilize cloud-like infrastructure to manage inventory and shipping, but they come with different trade-offs. FBA stores your products in Amazon's warehouses, while SFP lets you fulfill Prime orders from your own facilities.
Cloud-like scalability is also a key benefit of Third-Party Logistics (3PL), which can help you manage high-volume sales and provide flexible scaling options. This approach can be especially useful for businesses that need to rapidly adjust to changing sales patterns.
Effective communication with your 3PL provider is crucial to ensure smooth operations and high service quality. This can be achieved through regular check-ins and clear documentation of your fulfillment requirements.
Benefits and Results

Using order fulfillment services can be a game-changer for your business, especially when it comes to managing seasonal sales fluctuations. This is because order fulfillment services let you effortlessly ramp up for sales surges and scale back when needed.
Order fulfillment services also keep payroll costs down by eliminating the need to hire, train, and manage workers. This means you don't have to worry about laying off employees when sales decline.
With an order fulfillment service, you can take advantage of bulk delivery discounts, resulting in lower shipping costs for your customers. Free shipping is an excellent marketing tool, and with the right partner, you can make it a reality.
An order fulfillment company can extend your reach without undue capital investment, helping you grow into new markets without breaking the bank. This is especially useful if a new market doesn't work out, as you haven't spent money and resources to expand your infrastructure.

By contracting with an order fulfillment service, you can lower your fixed costs, which means you only pay for what you need when you need it. This can be a huge relief for businesses with fluctuating sales.
Here are some key benefits of using order fulfillment services at a glance:
- Manage seasonal sales fluctuations with ease
- Keep payroll costs down by eliminating the need to hire and manage workers
- Lower shipping costs with bulk delivery discounts
- Grow into new markets without undue capital investment
- Lower fixed costs by only paying for what you need
- Focus on your core competencies and let the experts handle logistics
Who Benefits
Order fulfillment services are perfect for businesses that need to manage their logistics efficiently. E-commerce retailers benefit significantly from these services, as they can help manage seasonal sales fluctuations.
E-commerce retailers can scale up or down with ease, without having to hire or lay off employees. This flexibility is particularly useful for businesses with online stores and no warehouse and distribution facilities.
Subscription box businesses and sellers of heavy or specialized items also benefit from order fulfillment services. These types of businesses can take advantage of bulk delivery discounts and lower shipping costs for their customers.
Here are some types of businesses that benefit from order fulfillment services:
- E-commerce retailers
- Subscription box businesses
- Sellers of heavy or specialized items
Businesses with Limited Cash

Amazon's early days show that even with limited resources, you can still achieve growth. Employees spent their evenings hand-picking and packing book orders to fulfill customer needs.
This approach requires dedication and hard work, but it can be an effective way to bootstrap business growth.
Running your own fulfillment process can be time-consuming, but it can also give you more control over the process.
Amazon's employees didn't let limited cash flow hold them back from delivering great customer service.
Highly Specialized Businesses
Highly specialized businesses often struggle to find the right fulfillment center for their unique needs. Fulfillment centers may be unable to accommodate customizable products, highly fragile objects, or sensitive materials.
For example, subscription box businesses require a high level of customization and care when handling their products. These businesses often have a wide variety of items, including health and beauty products and clothing, that need to be stored and shipped carefully.

If you're an e-commerce retailer or a seller of heavy or specialized items, you may also find it challenging to find a fulfillment center that meets your needs. Sellers of heavy or specialized items, such as machinery or equipment, require a fulfillment center with the capability to handle large and heavy items.
A fulfillment center that already works with e-commerce businesses can be a good option. Prior e-commerce fulfillment experience means your provider can offer strategic guidance as you grow.
Industries We Serve
We serve a variety of industries that benefit from order fulfillment services. Businesses with limited cash flow often have to get creative to grow, like Amazon did by having employees hand-pick and pack orders in the evenings.
E-commerce retailers are a perfect fit for order fulfillment services. They handle a constant stream of varied orders, which can be a challenge to track and ship.
Subscription box businesses also thrive with order fulfillment services. They require a high level of organization and efficiency to manage multiple orders and shipments.
Sellers of heavy or specialized items benefit greatly from order fulfillment services. These items often require special handling and storage, which can be a hassle for businesses to manage on their own.
Here are some of the industries we serve:
- E-commerce retailers
- Subscription box businesses
- Sellers of heavy or specialized items
Why Choose a Provider

Choosing the right provider for your order fulfillment services is crucial for the success of your business. With so many options available, it can be overwhelming to decide which one to choose.
One key factor to consider is the provider's ability to handle high volumes of orders, as seen in the "Scalability" section where it's mentioned that some providers can handle up to 100,000 orders per day.
A provider with a strong track record of reliability is essential, as mentioned in the "Reliability" section where it's stated that a provider should have a success rate of at least 99.9%.
Look for a provider that offers flexible storage options, such as the "Storage" section which highlights the importance of having a provider that can accommodate different types of storage needs.
A provider's ability to integrate with your existing systems is also crucial, as mentioned in the "Integration" section where it's noted that a provider should be able to integrate with your e-commerce platform and other systems.
By considering these factors, you can ensure that you choose a provider that meets your business needs and helps you achieve your goals.
How It Works
Our order fulfillment services are designed to be seamless and efficient, from start to finish. Orders are automatically routed to our fulfillment centers as soon as they're placed on Amazon.
We use a real-time inventory management system to track stock levels and movements, preventing stockouts and overstock situations. This means you'll never have to worry about running out of stock or being stuck with too much inventory.
Our team picks items from your inventory with precision and packs them securely according to Amazon's guidelines. We also offer options for custom packaging and branded inserts to enhance your brand presence.
Orders are shipped using trusted carriers, ensuring fast and reliable delivery to your customers. Our system updates inventory in real-time to reflect returns and restock items as needed.
We manage returns efficiently, processing exchanges and automating refunds as per your policies.
Comparison and Options
Order fulfillment services come in various forms, each with its own set of benefits and drawbacks.
You can choose from drop shipping, where you don't hold any inventory, and third-party logistics, which offers more control over the shipping process.
Drop shipping can be a cost-effective option, with some services offering free setup and no upfront costs, but it may also result in longer shipping times and lower profit margins.
Third-party logistics, on the other hand, can provide faster shipping times and more control over the shipping process, but it often requires a higher upfront investment and ongoing fees.
Some order fulfillment services, like those that offer managed services, can also provide additional benefits such as inventory management and customer service support.
These services can be especially helpful for small businesses or those just starting out, as they can provide a more comprehensive solution and take some of the burden off of the owner.
Some order fulfillment services also offer scalability, allowing businesses to grow and adapt their shipping needs as they expand.
Frequently Asked Questions
How much does order fulfillment cost?
Fulfillment fees typically range from $0.25 to $3 per item, depending on the service or percentage of the item's retail value. Learn more about our fulfillment pricing and how it can work for your business.
Who handles order fulfillment?
Order fulfillment is typically handled by a fulfillment center, which is responsible for receiving, storing, and shipping products to customers. These centers manage the entire order fulfillment process from start to finish.
Sources
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