As a startup in the E-commerce sector, you might not initially consider involving a fulfillment service provider for your shipping. However, you can learn about the growth opportunities a shipping service provider can offer in this article. Discover why professional fulfillment ensures customer satisfaction and can protect against potential setbacks.
Here's What You'll Learn in This Article
Start-ups: The launch phase is crucial for the success of a new product
- Insufficient warehouse capacity?
- Shortage of personnel?
- Unable to fulfill delivery promises?
- High postage costs?
- In search of better packaging?
Even with low shipping volume, a fulfillment partner can be beneficial
Conclusion: Benefit from the expertise of your fulfillment service provider
Start-ups: The Launch Phase is Crucial for the Success of a New Product
As a startup, you've invested a lot of brainpower and financial resources into your new product and building an efficient e-commerce presence. Now, you're eagerly anticipating how your product will be received by your target audience. The initial phase of product launch is particularly crucial for this. If everything goes well, your brand will establish itself and thrive. However, if the first attempt goes wrong, things can become very challenging. Word can quickly spread within your target audience if, for example, shipping doesn't go smoothly. Prospective customers may not make a second purchase, and even important word-of-mouth marketing can suffer. In the worst cases, buyers might actively discourage others from making a purchase due to their negative experiences. Companies might even have to consider rebranding if their brand name becomes associated with a poor image. To avoid a crash landing, it's better to approach the product launch professionally right from the start, and this includes fulfillment. To help you avoid fulfillment errors, we've compiled 5 practical tips for you.
1. Insufficient Warehouse Capacity? That's Where Your Fulfillment Service Provider Comes In
Inventory management is a complex topic, applicable to all companies, but especially to startups. At the beginning, founders may find it challenging to estimate the level of demand for their offerings. When products are advertised, there often occur significant fluctuations in demand. Consequently, the demands on inventory management become complex. With a shipping service provider, you can scale your operations as needed, responding to the situation at hand. After all, it's their job to handle proper inventory storage for your items.
At INTERMAIL, for instance, we adjust our warehouse spaces according to customer needs. This means that even when your inventory levels fluctuate, you won't face any disadvantages. This is particularly advantageous for fulfillment for startups. Because:
Good to Know: INTERMAIL Keeps an Eye on Your Inventory
As a shipping service provider, we not only take care of your entire fulfillment, but we also keep an eye on your inventory. Quantities, batches, best-before dates – we manage all of this for you. We coordinate with you in advance on how to handle items that are approaching their best-before dates. You decide whether to sell them off, include them as freebies in shipments, or dispose of them according to regulations (including as hazardous waste).
Moreover, if you have items that can no longer be sold, we can implement creative solutions for you: for instance, the idea of donating the goods to charity. For Christmas, suitable items could go to a homeless shelter or another organization of your choice. It's all part of our Fulfillment-as-a-Service approach.
2. Shortage of Personnel: Getting the Family Involved? It's Better with a Shipping Service Provider
Your product unexpectedly experiences high demand, and your webshop generates significant revenue? Congratulations – your business is on a growth trajectory. Now, shipping becomes a critical aspect. In such situations, many small businesses or startups often rely on family members to pitch in for packing and shipping. While this might seem like a logical solution, it's burdensome, error-prone, and not a sustainable approach. A professional shipping service provider like INTERMAIL, on the other hand, handles your fulfillment through all the ups and downs. You won't need to rely on your family or friends for these tasks, nor will you have to factor in additional personnel costs. Of course, demand and shipping volume can fluctuate. Therefore, when choosing a shipping service provider, make sure you aren't contractually bound to a specific monthly shipment count.
3. Unable to Keep Delivery Promises? That's Less Likely with a Fulfillment Service Provider
You might have experienced this yourself: Especially new products promoted on platforms like Instagram can sometimes experience unexpectedly high demand. While this is a positive outcome for the provider, it can also lead to challenges if the backend processes aren't prepared to handle such demand peaks. The shipping processes might not be flexible enough to accommodate the surge in orders. In the worst-case scenario, a startup might struggle to fulfill its delivery promises. The provider might struggle to keep up with the shipping demands. The result: Customers are disappointed or frustrated due to delayed or undelivered orders. For the company, processing payment reversals becomes burdensome and irritating. The damage to the brand's image can be long-lasting. It's simpler with a professional shipping service provider that can adapt to sudden spikes in demand, ensuring that the ordered items reach your customers as quickly as possible.
4. Shipping Costs Too High? Benefit from Special Rates with Carriers
Shipping costs from carriers are inevitable in fulfillment, but they can make buyers hesitate and consider whether they really want to place an order. When customers can order without shipping costs, their purchase decision becomes much easier and quicker. However, companies need to calculate precisely at what order value they can waive shipping costs. It's easier when you receive support in terms of actual costs. Good fulfillment partners can offer you better prices than the carriers' standard offerings. For instance, INTERMAIL has collective agreements with all major carriers and parcel services. This allows us to offer shipping prices significantly lower than what carriers would offer you directly.
We're also happy to advise you on optimal shipping solutions or payment methods that are common in different target countries.
When you save postage costs with every shipment, it becomes particularly interesting during growth
INTERMAIL has many customers who started with a small number of packages with us. If you were to handle shipping on your own, you would pay the regular list prices, such as those of DHL in Germany, at the counter. One of our customers, for example, now handles 300,000 packages per year. If he has a price advantage of one euro per package for shipping costs, the annual scaled savings in shipping costs are already substantial.
You can either enjoy the lower shipping costs yourself or pass the advantage on to your customers. In either case, your calculation room expands: for example, you can offer free shipping more quickly - for orders above a certain value or even in general. Your customers will appreciate it, and this usually reflects in higher sales figures.
5. Looking for better packaging? INTERMAIL knows the best suppliers
Not only can carrier rates be significantly more attractive with a professional fulfillment service provider, but also in the packaging aspect, collaboration is worthwhile:
With our many customers and expertise accumulated over 70 years, we have also built up tremendous know-how in the field of packaging.
An experienced fulfillment partner can tell you the advantages of different packaging types and knows the best suppliers. Make use of this expertise because, in rapidly growing businesses, it pays off very quickly.
If you want to opt for recyclable and environmentally friendly packaging solutions, some buyers see this as an additional benefit when making a purchase. Tip: The packaging material from your returns can be repurposed as fill material for your next shipments. At INTERMAIL, we might even advise against a packaging solution if it looks good at first glance but later leads to problems, such as disposal issues.
Even with a small shipping volume, a professional fulfillment partner can be beneficial
Rapid growth isn't always the goal of every shop or brand. If you're managing a shop that ships only a few packages per month alongside your regular job, even then, choosing INTERMAIL for fulfillment can be a smart decision. Even small shops are well-equipped with a fulfillment service provider for all scenarios. You could say they are in the starting blocks and can expand whenever desired. In the meantime, you can enjoy the reassuring feeling that your shipping is in good hands, even when you're on vacation or focused on other matters.
TL;DR: Benefit from the expertise of your fulfillment service provider.
By partnering with an experienced fulfillment service provider, you tap into a wealth of expertise for your fulfillment needs. Whether on a national or international level, the service provider handles packaging, assembly, and shrink-wrapping for your E-commerce operations.
From your very first shipment, you're part of a network that benefits from industry know-how. Tip: A good service provider is proactive in offering advice, helping young companies avoid mistakes.
