Top Tips on Choosing the Right Fulfillment Company for Your eCommerce Store

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StrategyDriven Managing Your Business Article |Fulfillment Company|Top Tips on Choosing the Right Fulfillment Company for Your eCommerce StoreWhether you are new to the eCommerce world or are a keen investor with some extra money for a new business venture, eCommerce fulfillment is a great business to get involved with. eCommerce is only evolving and growing, and in 2021 alone, it is estimated there could be up to 24 million eCommerce stores around the world.

It is extremely easy to set up an eCommerce store, and much cheaper and more practical than setting up a physical store. And there’s no wonder, with over 2.14 billion people browsing and shopping online in 2021.

However, there are some key strategies that you need to know if you want them to be successful.

You can have a great store, a great marketing plan, and a great offering, however, if you do not have your fulfillments in order, then you cannot serve your customers. Without a good fulfillment company, and strategy, you will ruin your reputation and your business is likely to fail. With giants such as Amazon Prime offering quick next day deliveries, and some are even available on the same day, the expectations of customers are the highest they have ever been. Fulfillment is key to your bottom line and a successful eCommerce store.

Here are some top tips to help you get started with your new eCommerce business, and everything you need to know about fulfillment.

What is fulfillment?

Fulfillment can be done in-house or can be contracted out to a third party, but it involves the storing, picking, packing, and shipping of inventory from the warehouse to your customers. There is a lot involved in the fulfillment process before a product can be shipped to a customer. Some of these things include the sourcing of high-quality materials and products, managing the warehouse and the inventory, choosing the right packaging for your product, communication between contractors and staff, and keeping the costs down throughout.

Inventory is the first and most important thing to think about in business. Without an inventory, you cannot fulfill orders for your customers. Some businesses choose to keep the fulfillment process in-house, which means sourcing a warehouse to store all of the inventory, as well as staff members to fulfill the orders. Other businesses choose to outsource the fulfillment process, which is usually with a third party logistics (3PL) provider. This option is not just for large corporations, there are plenty of 3PL for small business contracts.

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Why is it important to pick the best fulfillment company to work with?

Outsourcing this part of your business comes with many benefits, such as allowing you to focus on other areas of your business, broaden your reach and grow into new markets, cheaper operating and shipping costs, and much more. If you choose to fulfill your goods with a third party, then you must pick the best one for your company if you want to reap these benefits. You can have the best product in the world, but if you cannot get it to your customers, it doesn’t matter. The right company can positively contribute to your brand success. It is therefore important to conduct thorough research before signing up with a fulfillment company, to ensure they are the right ones for you. Here are some things to look out for.

Shipping speeds

Modern consumers are expecting fast deliveries, and you have a lot of competition with companies such as Amazon. Make sure you work with a fulfillment company that can offer good delivery times and will stick to its promises. Good shipping speeds are key to the success of the future of your online store. Without good shipping speeds, you risk losing customers as they are more likely to opt to purchase the product with a competitor instead.

Location of the fulfillment company

You will need to know where the location of the fulfillment company is, and ensure that it is in a location whereby the products do not have to travel far. This will help with quicker delivery times, as well as costs. Ideally, they should be located near your target customer base. It can also be helpful to ensure the warehouse is located near ports and main transport routes to more efficiently receive materials and send goods. Depending on the goals of your company, now and in the future, you may also wish to consider if they have warehouses in different locations, and offer a quick and easy global shipping solution. It is also a good idea to visit the warehouse so you can see for yourself how they work to ensure they are a good fit.

Order fulfillment processes and software

When you start and run a business, it is likely that you already have numerous rules, best practices, spreadsheets, software, and processes in place. You will therefore need to ensure that the processes and the software offered by the fulfillment company can easily integrate into your company and values. This is vital because you need full transparency and visibility from the company, so you can keep up-to-date with fulfillments and what is going on with deliveries. This way you can manage customer expectations and trust much better.

Management

The staff and management of the fulfillment company are also key to the success of the partnership. You need to ensure that you get along, the communication is clear and regular, and that your business can get personal attention from them.

When you start or run an eCommerce store, building your brand and trust with customers is vital to the success, and future growth of your business. The fulfillment process is going to play a key role in building trust with your customers, and your reputation. This is because not only do customers expect deliveries quickly, but they also want to be able to track them, and their promise of delivery day and time is kept. If the delivery date offered at checkout is too long, if the delivery is delayed, or if the fulfillment is wrong, then your trust and reputation can quickly be shattered. It is therefore crucial that you conduct your research, speak to different companies and find the best fulfillment company that will work well with your business and keep your interests a priority.

A Guide to Preventing Your Online Business From Losing Money

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StrategyDriven Managing Your Business Article |Online Business|A Guide to Preventing Your Online Business From Losing MoneyEven successful businesses start to lose money from time to time, and this can send the entire company into panic mode.

Although financial difficulties are a challenge that you might face occasionally, in order to reduce their frequency and to prevent your online business from losing money frequently, here are some of the top steps that you can take.

Increase Operational Efficiency

Increasing the operational efficiency of your business is paramount if you are going to prevent your company from losing money, as a lot of human errors can lead to customer upset, which can reduce the likelihood of them buying from your company again, or recommending you to others. Therefore, you should do all that you can to increase the operational efficiency of your business, including employing the use of metrics, technology, and particular actions that can increase employee motivation.

Increase Pricing

If you are beginning to notice that your online business is losing momentum, this could be due to the fact that your pricing structure is not correct. For instance, inflation could mean that you are not now covering your supply costs within your pricing, or other companies might be offering better prices than you, which can make shoppers more reluctant to buy any products from your brand. Therefore, you should constantly review your pricing structure to ensure that it still works for your company and that it is in line with other companies within your industry.

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Reduce Costs

It is also important that you look at reducing your costs and expenditure, even if you are not currently losing money, as this will enable you to get larger profit margins and to ensure that you are financially secure if your sales begin to slide. For instance, you should look at cutting your utility bills and even the cost of your office or warehouse space. You might consider using a shared office space, or encouraging your employees to work at home. You might also look for different suppliers who can provide you with the same products for much less, and consider cutting down on the amount of software that your brand uses.

Decrease Waste

You should also find ways to decrease the amount of waste that your company produces. For instance, you might decide to reuse excess materials, or only invest in the stock that you need. In terms of paper waste, you might decide to make your company fully digital, especially in terms of documentation, as this will prevent you from having to store vast amounts of paper documents. This will then prevent you from leaking profits, and can prevent you from having to spend excessive amounts on waste disposal.

Preventing your online business from losing money can be difficult. However, there are many steps that you can take to reduce your expenditure and ensure that your company does not get into financial stress before too long, and this will ensure that your business is able to go from success to success in the future.

On-Demand Manufacturing: The Perfect Way to Minimize Your Risk

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StrategyDriven Managing Your Business Article |On-Demand Manufacturing|On-Demand Manufacturing: The Perfect Way to Minimize Your RiskCountless businesses benefit from traditional manufacturing techniques. These companies find they can have products produced in large quantities so they are always on hand when customers want and need them. When a company wants a custom product produced, however, obtaining a quote becomes a challenge. The buyer or engineer spends time contacting various suppliers to get quotes and answers to various production questions. Furthermore, they must negotiate the price with each manufacturer.

This process takes time and manpower. Furthermore, the manufacturing process lacks the transparency companies want and need. When a startup or small and medium enterprise moves through this process, they often find they detour from the innovation path. Fortunately, they don’t need to take this route. With the help of on-demand manufacturing, often referred to as cloud manufacturing, companies find they have the items they need and stay on track with their business goals.

What is On-Demand Manufacturing?

With on-demand manufacturing, a company only produces the goods it needs at any given time. They can request one copy of the product or 1,000. This process allows companies of any size to provide their customers with the desired product in a reasonable time frame. Startups and SMEs find this is the solution they need to build their business and expand it.

Why Choose On-Demand Manufacturing Over Traditional Options?

Companies want to know the benefits of cloud manufacturing to ensure it meets their needs. They find the process is scalable and allows them to manufacture only those items they know will sell. They no longer need to sit on inventory and pay for storage space for the products or markdown items that didn’t sell as expected. Furthermore, customers love getting a product they need promptly while paying an affordable price for it. There is also no need for the company to produce parts that will sit around waiting to be used, as they can be manufactured only when they are required to fulfill a sale.

The company can expand its product line and create unique, one-of-a-kind items. In addition, they find the need to forecast new product volumes decreases, and they can dedicate staff resources to those tasks designed to grow the business. Customer service improves as a result.

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Less Risk

Companies take on less risk thanks to on-demand manufacturing. In addition, 3D printing costs continue to decrease, manufacturing industries are modernizing, and consumers love personalized products. Startups and small to medium size enterprises benefit from on-demand manufacturing, as they employ a risk reduction strategy. What are some benefits associated with this option?

Customization

Customization options increase with cloud manufacturing, as the business finds it can make small production runs. Customization options boost a company’s sales conversions. Furthermore, companies find they can make prototypes without incurring the high cost of doing so. Prototypes often become cost-prohibitive when traditional manufacturing methods are used, but on-demand manufacturing allows a company to make a prototype at an affordable cost. The company can then determine its market acceptance and determine whether to proceed with manufacturing the item.

Time to Market

Traditional manufacturing methods lead to a lag time between obtaining the initial quote to producing the item. By the time a product makes it to market, the demand for the item could significantly decrease. Startup and small to medium enterprise businesses often find this to be a major issue. They forecast major sales for a product only to find large sums of money are tied up in products that don’t move. Faster production methods enable a business to help more customers and generate more revenue without this risk.

Decreased Costs

The cost assessment takes less time and the estimation process is simplified. The fast production times result in a rapid lead time. Businesses find this reduces their sales risk significantly. Business owners find they no longer need to place a minimum order to work with suppliers. This saves them time and money as well.

Inventory and storage costs drop drastically when a company makes use of on-demand manufacturing. Companies just starting out and small businesses need to maximize their cash flow, and on-demand manufacturing allows them to do so. They reduce the capital spent on storage, as they pay less in warehouse fees and the labor required to manage the storage. The funds saved in this area may be used for marketing, customer service, research and development, and more. All help to grow the business further.

Furthermore, the funds saved in this area may be kept in reserve. Many business owners find they have little in reserve when disaster strikes. The global pandemic of 2020 showed how important it is to prepare for anything and have funds set aside for when a problem arises. Reduced inventory requirements free up funds that become valuable in times such as those.

Transformation

Cloud manufacturing makes use of a platform-based approach. This approach continues to transform the manufacturing industry in ways people couldn’t have imagined a few short years ago. It finds ways to reduce the frustration experienced by designers and engineers in a variety of areas.

The platform provides an interface that is automated and centralized. This platform allows for simplified communication between the engineers and suppliers while eliminating delays and inefficiencies. The streamlined communication process offers countless benefits and eases the production process at every step.

Companies find they can produce products in the U.S. today that previously weren’t possible. In the past, electronic part production runs were handled offshore for a range of reasons. Today, companies in the United States take on PCB assembly and device manufacturing, among other things, thanks to on-demand manufacturing. This allows for cost savings without the worry of delays associated with international business today. The company can feel confident it will be able to deliver on promises to consumers when on-demand manufacturing methods are used.

If you have yet to consider the use of on-demand manufacturing, now is the time to do so. Companies that employ this manufacturing method find they save money while better meeting the needs of their customers. This allows them to compete against major businesses in crowded industries while boosting their bottom lines.

What Not To Do When Running A Retail Business

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StrategyDriven Managing Your Business Article |Running a Retail Business|What Not To Do When Running A Retail BusinessBeing a retailer comes with many perks. For instance, there is less liability risk as you don’t get to bear the loss of replacing a defective product. It doesn’t require significant space and initial capital, making it an ideal business for budding entrepreneurs. As of 2020, there were over 1 million retail establishments in the US, reiterating its popularity.

However, your retail business can crash if you don’t know the right steps to take. Here are costly errors to avoid when running a retail business.

1. Picking the wrong location

Except you’re running an online store, your retail business needs a good location. You may be doing your venture a huge disservice if you don’t get the right place to set up your store. For instance, it’s not prudent to open a high-end fashion retail store close to a college campus. Likewise, opening a meat shop in a predominantly vegetarian area may not get the required sales. Poor location will affect your sales, but you can also reduce employee morale, leading to high turnover rates.

Therefore, it’s best to consider certain factors before opening your store in certain locations. First, you need to determine your target market and where they are located to determine where to set up your shop. While at it, you can leverage creative design in retail to make your store more appealing to your clients. As a tip, choose a closer place to public transportation systems, easy parking spaces to improve accessibility.

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2. Undermining good customer service

Good customer service is instrumental to your retail business growth. A Salesforce research revealed that 91% of customers would patronize a business if they enjoy positive customer service. Likewise, happy and satisfied customers are more likely to promote your business to others. In other words, you get to welcome new customers without spending a dime. What’s more, good customer service can result in increased profits and improved brand image. Considering the benefits of good customer service, you may be doing your business a huge disadvantage by not prioritizing it.

Being friendly and welcoming is a good way to attract customers to your retail store, so keep this in mind. It’s also best to listen to your customers’ feedback and opinions to tailor your products to suit their needs. Also, offer personalized services to your clients, and consider sending them personalized gift cards on their birthdays and anniversaries. These seemingly small acts will make your clients feel valued.

3. Hiring the wrong employees

Although your products are great, you may still lose customers if your staff are not fit for the job. While it may be easy to hire just anyone for your retail store, you’d want to avoid that at all costs. Besides, an employee who doesn’t love to work at retail stores may not treat your customers right, leading to reduced sales. Therefore, it’s best to work with people who align with your work culture. When hiring, place the candidates in real-life situations to determine how they work under pressure.

Accelerate Your Small Business Growth With These Simple Tips

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StrategyDriven Managing Your Business Article |Small Business Growth|Accelerate Your Small Business Growth With These Simple TipsStarting a small business has become less challenging in recent years. By March 2021, the number of small businesses in the US shot up to over 31.7 million compared to about 30.7 million the previous year. Small business owners now make up about half of the private sector’s workforce. The rapid growth of this private industry presents a huge challenge in terms of competition, as business owners clamor for clients in the same market. So, how can you position your small business to accelerate growth and stand out? These tips should help.

1. Invest in marketing like your business depends on it (because it does)

Research shows that nearly half of all small business owners expect to increase their marketing budgets in the near future. From ads placements to various promotions, the sole aim of these increased marketing efforts will be to attract new customers. Although customer retention appears to be one of the prime goals of many business owners, an ability to attract new clients can quickly accelerate your small business. Investing in marketing does not necessarily mean spending huge amounts on above-the-line marketing strategies like large businesses do, as various digital marketing techniques, for example, are just as good enough.

2. Stay up-to-date with industry trends

To flourish in your industry, you must stay in your A-game. That requires having access to important industry knowledge through thorough market research, reading industry news, following market trends, and other advancements. You can also take advantage of social media platforms to showcase your expertise in your industry and build customer confidence.

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3. Branding

Another way to encourage customer confidence is by creating a brand that resonates with your target audience while setting your business apart from your competitors. You want your ideal customer to see your business as something more than an entity trying to reach for their pockets at any given opportunity.

4. Reduce your risks

A vital part of growing a small business or managing any successful business involves finding ways to minimize risks. Because cash flow and finances are the fuel that keeps businesses running, you need to ensure you prevent any form of financial disruption that might stall your business or collapse it. It’s also important to prevent risks like data theft and cybercrime, as they also have grave financial consequences.

5. Work with the right people

Your workforce is one of your main engines of growth, capable of either accelerating your business growth or slowing down business progress. Hiring a solid workforce means putting together a team that is dedicated to helping you achieve your business objectives. In addition, a good team allows you to delegate tasks to trusted hands, freeing you to focus on other important areas of your business.

Working with the right people isn’t always about hiring a team. Sometimes, the better option is to outsource tasks to an experienced team. For example, you can rely on outsourced accountants for small business instead of spending countless hours on various bookkeeping tasks.