5 Ways to Cut Ecommerce Order Fulfillment Costs

Logistics management solutions

It is no secret that ecommerce means big business. More than 80% of the people who use the internet have made at least one online purchase and more than half have done this multiple times. Ecommerce sales are expected to reach $500 billion by the end of 2018. All of these online sales have to be shipped somewhere. If you sell your merchandise online, you may be looking for ways to cut the costs associated withandnbsp;ecommerce order fulfillment.

Ways to Cut Your Ecommerce Order Fulfillment Costs:

  1. Pay less for packaging supplies. It is important to spend some time evaluating how you package the items you sell and ship. If you do analysis of what and how you ship your products you may find room for savings. If, for example, most of the items you ship are a particular size, or several sizes, buying boxes in bulk for those sizes might end up saving you a lot of money. Some companues use as little packaging as they can possibly get away with. Apple products, for instance, are not shipped with a lot of extra packaging. This can also sabe you some money and is something many consumers appreciate as it is also better for the environment to limit the amount of packaging materials are being used to ship various products.
  2. Look into kitting for your products.What is kitting? This is the process by which companies bundle certain items together. Often items can be bundled togethger and then sold that way for a real savings for you and your customers. This workd whether you do all of your own shipping or outsource it to another company. Whatever you cna do to streamline your shipping process will result in lower costs. Addting this to your ecommerce order fulfillment process can go a long way in saving you some money.
  3. Be diligent about your inventory management.andnbsp;Storing a lot of your products costs a lot of money. Optimizing your inventory records and process is something that does take a decent amount of time and is a process that will never be perfected, only improved. In terms of ecommerce order fulfillment, keeping your inventory where it needs to be does make a big difference in the costs associated with storage. Knowing which products spend the most and the least amount of time in your warehouse can make s big difference in how much you spend in this area. Accordoing to a recent Peerless Research Survey, 91% of all companies rank optimizing warehouse space as one of their biggest concerns.
  4. Make the process by which you receive your inventory smoother. The process of receiving your inventory and cateloguing it to make sure you have exactly what you need and ordered can be a huge undertaking but is a neccessary part of doing business. Anything you can do to make it faster and more efficient will save you money in the long run. If you have not doen this in a while, spending some time and egergy on an internal audit on the way you manage your incoming inventory can make a big difference. Having everything properly labeled and ready to be stored is past of warehousing logistics 101 but you need to make sure your policies and procedures are sufficient.
  5. Reevaluate your shipping options. Have you been with the same shipping carrier for a long time? Do you know if they are giving you the best rate? Talk to companies who have similar shipping needs to your own and look in to what they are payign for their shipping. If you have not talked to your carrier about getting the best possible rates, give them a call and see what they say. Most shipping companies have special rates for small businesses and also have a person or department tasked with helping small businesses get the most from their shipping carrier. Talk to them about the rates other carriers charge and remember they cannot say “yes, we can lower your costs” if you do not ask.

When looking over your ecommerce fulfillment process, you can find ways to reduce your costs while still providing your customers with the service they have come to expect.

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Sarah Todd

Sarah Todd

Sarah Todd, an investment banker, is a reporter and researcher for one of London’s leading media outlets. Formerly a trader and market maker at FTSE, she turned to media during the global recession. This website features some of her best and favourite articles, from all parts of the business world. Please let her guide you and your enterprise along the path to prosperity.