Running a business is an arduous task that demands the proper distribution of responsibilities, along with strategic planning and execution. A few months into starting your own business, you must have realized that one man can’t do it all. It’s time to allocate responsibilities and let go of certain tasks to ensure a smooth workflow.
One of the crucial and yet hassle-ridden tasks you can handover is shipping responsibility. But you may be skeptical before handing over such an essential task to someone else. A lot of doubts go through the mind, whether it will be beneficial and contribute to your growth, among others. Here we will discuss the benefits of opting for fulfillment services in India and most frequently asked questions(FAQs) on it.
Benefits of a Fulfillment Center
1: Reduce the shipping costs:
As retailers on online selling sites are increasingly resorting to getting shipment delivered from fulfillment centers, these centers have created a vast network domestically as well as abroad. The fulfillment services providers offer handsome discounts on bulk orders.
Depending upon the kind of products you sell, you can save anywhere between 10%-40% for a rough estimate from your regular shipping costs. Think if you pay 100 bucks for a shipment and sell a 1000 order a month. Your shipping cost will equal to 1,00,000.
When you opt for a fulfillment service in India, you will save Rs.10000 a month this way, even if they reduce the shipping cost by just 10%. No wonder why Third-Party Logistics(3PL) fulfilled 51% of eCommerce deliveries in India as of 2019.
Additionally, 3PL companies providing warehouse fulfillment services in India only charge you for what you use. Most of these companies charge a lump sum storage fee. You will then pay the packing and shipping charges for the delivered orders only. As a result, the change in the sales graph won’t affect your base costs. You pay what you get!
2: Expand your business
Every business wants to tap into international markets, but not many have the resources to do so. If the absence of a safe and secure shipment channel is stopping you from expanding your business globally, fulfillment centers can solve your problem.
Many 3PL providers have a vast network spread across the globe. You can use their system to sell products abroad and take your business to greater heights. After choosing an excellent 3PL provider, you just need to list your products on Amazon, eBay, and other online selling sites to expand your business globally.
3: Reliable Customer Support
Being an online seller, you would have realized that customer service is as important as the product quality itself. 3PL providers can relieve you of customer service responsibilities.
They provide 24×7 support, including a prompt order confirmation, shipment tracking, and after-sales feedback to your customers. Many fulfillment centers also facilitate returns, refunds, and exchange. You can save a lot of costs incurred in hiring customer support executives too.
3PL providers also give your customers a 1-Day delivery option, which would have barely been possible for medium and small businesses otherwise. According to a recent report, nearly half the customers opt for sellers providing 1-Day delivery.
FAQs on fulfillment centers
- How long can I keep goods in fulfillment centers?
The duration of storing inventory in a warehouse fulfillment center is ranging around 90-365 days unless mutually agreed otherwise. 3PL providers send retailers their Stock and Supply reports regularly, so you can keep track of your inventory while sitting at your office.
- How big a storage do I need?
If you have just started your business or selling as low as 100 products a month, you might store your inventory in your garage or apartment itself. But for someone selling several thousand products in a month, it’s necessary to have adequate storage as well as extra stock to meet steep demands.
Renting a warehouse could be quite expensive, and it can run out of space as your business grows. 3PL providers have a vast number of storage spaces across different locations. You don’t need to care about the storage space, whether you sell hundreds or thousands of products and concentrate solely on marketing and production.
- Will my products stay safe?
Reputed 3PL providers employ an array of security measures to protect your goods and would compensate for any damage to your products. They provide computer operating tracking, security staff, safety cages, and packaging to prevent your products from loss and theft.
- Do I have to pay GST before sending the product to the 3PL provider?
Fulfillment centers only accept Duty-Paid products. You would have to pay GST on such products beforehand.
- Will I get back my unfulfilled inventory?
Yes, you can apply for a return of inventory any time you wish to.
- How do I send products to the fulfillment center?
Many fulfillment centers employ service providers who pick up the product from your retail outlet, factory, or warehouse. You won’t need to rent a carrier additionally decreasing the shipment and storage costs.