Four Types Of Fulfillment Explained

Order fulfillment is an essential component of any ecommerce business. With the ever demanding expectations of customers, online businesses always have to stay on edge in fulfilling their customers demands and meet expectations. To gauge the success of any business, it is important to consider the cost of order fulfillment and choose the right model for ensuring your business model supports it thoroughly. Read further to know about the different types of fulfillment models and determine the most suitable for your business.

In-House Order Fulfillment

Also known as a self-fulfillment model, in this model the seller fulfills the entire process without the involvement of third party help. These businesses have an inhouse warehouse and required staff to carry out the order fulfillment process. They also arrange shipping to their customers. An in-house model is either suitable for small businesses which operate from homes or massive corporations who have unlimited resources in terms of capital. This is a low cost, fully administrative and doable model by every business owner, given the right allocation of resources. However, this model can be time and effort consuming. It is also complex to handle all overheads at once and requires additional space for your inventory.

Third Party Fulfillment

Many ecommerce businesses have moved towards contracting help from third party fulfillment centers. This is a form of outsourced help of third party vendors which handle the process of order fulfillment from start to end. This includes picking, packing, shipping and delivering your product to your customers in time. There are many benefits to secure help from professional vendors as they provide efficient and streamlined solutions for all kinds of product types. They partner with multiple courier option giving you competitive shipping rates to choose from. However, if the service is not at par – it can severely affect your business reputation. It is important to do your research before finalizing on third party fulfillment centers.

Drop shipping

It is a type of model where your business does not keep the product in stock. It is where you purchase an item from a third party on an order and have it shipped directly to the customer. You don’t need to manufacture, store or ship products yourself. For example, you run a graphic tees business on ebay, but drop ship through any other company can be called dropshipping.

Hybrid Order Fulfillment

This model is a mix of self fulfillment and outsourcing. You can map out your needs and customize a plan accordingly. Let’s say if you have a small business operating on Amazon and your own website, a hybrid model can work best for you!

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Determine The Right Fulfillment Help For Your Business

If your business model requires third party involvement as an outsourced help, SparkHive provides efficient, transparent and hassle-free fulfillment services in Houston, TX. Call us at (346) 508-4237 for more information!