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10.31.05
Evaluating
Vendors Of Ecommerce Fulfillment Services
 By
Bruce Zhang
Once your website has secured an order, you have to fulfill it. While the fulfillment
of digital goods is usually handled online, the delivery of physical goods is
handled in a "brick-and-mortar" world.
When choosing a fulfillment
company for your ecommerce operation, you need to evaluate both fulfillment
services and ecommerce services for order processing.
Evaluating
Fulfillment Services
Fulfillment services includes receiving, inventorying, warehousing, delivery,
record-keeping and customer inquiries. You have options to outsource part of or
all of fulfillment services to a third party.
Receiving - This is the process that fulfillment vendors
acquire goods from suppliers and the accuracy of services starts at the receiving.
Inventorying - The skills of inventory management directly
impact the quality and cost of fulfillment. If inventory is out of stock, you
may lose customers. If inventory level is too high, it may increase the cost of
inventory.
Warehousing - Physical goods are stored
in a warehouse and valuable items are usually stored in secure storage. While
fulfillment companies have their warehouses and distribution centers, small businesses
can store goods in their garages or basements.
Shipping - For order fulfillment, goods are delivered to
customers in various shipping methods - ground, overnight, etc. at fulfillment
centers. Customers specify shipping methods when they place their orders and the
fulfillment companies may adjust the shipping methods of the delivery.
Return and Order Inquiry - Customer Service Reps at fulfillment
companies can handle return and refund for their clients. Most ecommerce sites
allow customers to view their orders and status of fulfillment online.
Record Keeping and Reporting - The ability to track all information
pertinent to the order fulfillment (from inventory items, customers, orders to
shipping) will help businesses to gain insights into the behaviors of their customers.
Fulfillment companies and large organizations usually install inventory and fulfillment
management software to automate the processes. Small business owners can find
shareware for less than $100.
Evaluating Ecommerce Services
E-commerce fulfillment vendors are usually fulfillment vendors that provide ecommerce
services related to fulfillment.
Online Catalog - Ecommerce fulfillment vendors can either
develop online storefronts for you or integrate your online storefronts into their
backend fulfillment system.
Online Payment Processing
- Online storefronts from ecommerce fulfillment providers should have the ability
to process payments online in credit card, electronic check, and purchase order.
Using a fulfillment company, you can accept credit card online without a online
merchant account.
Copyright © 2005, Bruce Zhang
About the Author:
Bruce Zhang had worked a few years in distribution and fulfillment industry. He
contributes to Order Fulfillment ( http://www.4th-media.net/order_fulfillment/
) section of an ecommerce ( http://www.4th-media.net/
) website. |
