Fulfillment for the store: what is it and what are the benefits for the entrepreneur?

Are you still thinking about how to ensure that your products are delivered to your customers in a timely manner? Are you choosing between drop-shipping, a third-party organization, and a courier service? There is already a ready-made solution - a model of stores with an outsourced delivery program or fulfillment.

What is fulfillment?

Fulfillment is a service that allows a store to entrust the processes of managing the flow of goods, financial and information to another operator. That is, your goods are stored, shipped, accepted for payment, and returned, for example, by Nova Poshta. The main task of such an operator is to ensure that the customer receives their order on time. The store signs a contract with the operator and no longer thinks about delivering the goods to the customer.

What schemes do fulfillment operators use?

There are dozens of schemes that the fulfillment system operates under. Depending on the initial data about the company, fulfillment operators can offer a convenient scheme or come up with a new one that will suit the store.

Methods robots:

1. All the goods are in your warehouse. Fulfillment employees pick up what the customer has ordered from the warehouse and take it to the delivery address. The operator's staff independently assembles the parcel according to the order, packs it, and provides temporary storage.
2. The company can transport part of its goods to the warehouse of fulfillment operators: either for each individual order several times a day or for a large batch several times a week. The goods are stored at the operator's warehouse for some time. As soon as the order is placed, the fulfillment service staff packs it and sends it to the delivery address.
3. You can conclude a contract not for all goods, but for a special category. Operators take goods of this category to their warehouse directly from the manufacturer without cluttering up the online store's warehouse. As soon as an order for this product is received, the fulfillment employees are engaged in its picking and delivery to the customer.
4. Fulfillment is not only about the delivery of goods, but also about returns. The operator's staff considers return requests and ensures that the goods are returned in proper condition to their warehouse or online store.
5. You can use the services of a courier service. The courier will bring the goods from the online store to the company's branch, which will deliver them to the buyer.
6. Fulfillment employees can deliver goods not only to the customer's home, but also to post offices and pickup points.
7. Through fulfillment, an order can be delivered to the customer's home by a courier. It's convenient, and the customer doesn't have to waste time going to the post office to pick up their order.

And there are many more such schemes of the fulfillment system. It all depends on the wishes of the company or online store and the capabilities of the fulfillment operator. Fulfillment schemes can be used in a combined form, separately, or as hybrids.

Capabilities of a fulfillment operator

• Delivery to the product.
• Accepting payments from customers. The service receives money for the order and transfers it to the bank account of the store.
• Working with customers. When the order is paid for, support staff will help resolve disputes, communicate with customers, and help them understand the product.
• Storage of goods. Even if the online store itself ships orders, it is possible to temporarily store goods in the warehouse of a fulfillment operator.
• Insurance of goods against damage, loss or theft. There are fulfillment operators who are liable even if the goods are lost on the way to the customer.

Why you should work with fulfillment

The main advantage is that the online store does not deliver goods to the customer, and therefore there is no need to maintain a large warehouse, security guards, storekeepers, or couriers.

Fulfillment is suitable for those who make more than 100 shipments per day.

When not to work with fulfillment

Fulfillment services are most often used by online stores with low turnover. For companies with a high turnover, fulfillment can be costly, and it is more profitable to create your own delivery service.

Disadvantages of fulfillment:

• Each service in the fulfillment system is paid for, and you have to pay for good service.
• Fulfillment is convenient if the delivery operator is close to your store.
• If payment for goods goes through fulfillment, operators transfer money to the store 2 times a month.
• There is no full control over the work of the fulfillment operator's staff. If they respond rudely to a customer or lose goods, you will bear the reputational losses.

How to choose a fulfillment operator
There are many fulfillment operators. You should focus on:

• Delivery time: the faster the order gets to the customer, the better.
• Price for services: if they offer the same services, you can give preference to the one who asks for less.
• Flexible terms of cooperation. If you need only a few simple services, then it is easier to choose an operator.
• Comprehensive services: assembly, assembly and beautiful packaging of the order.
• The location of warehouses and operator's offices so that the goods can be brought to the warehouse quickly.
• Reputation of the fulfillment operator: read reviews on websites and social networks.

4 fulfillment operators in Ukraine

Nova Poshta

It is one of the main companies in the Ukrainian fulfillment market. The major online retailers Rozetka, Prom, and OLX cooperate with Nova Poshta.

Nova Poshta offers fulfillment services to its customers:

• storage of goods in the warehouse,
• sending the goods to the client,
• storage of goods in the post office for up to 17 days,
• robot call service,
• completion of the order,
• returning an order from a customer,
• printing and labeling of goods with barcodes and labels,
• accepting payments for orders from customers.

All terms and conditions are published on the Nova Poshta website. The operator offers an individual selection of services for each store.

UPD. On July 6, 2021, the company announced that it was discontinuing the service for new customers. "Yes, it is true. The company is currently servicing existing contracts. The rest of the resources are used to serve the group's internal needs, which continue to grow," the press service of NP Logistic replied.

Zammler

This operator is well-known in the Ukrainian market and offers comprehensive solutions for online stores of various sizes:

• organizing and receiving goods from the store,
• storage of goods in the operator's warehouse,
• packaging and order picking,
• delivery of orders via courier service to the customer's door,
• reporting,
• accepting and processing returns,
• acceptance of payment for the order.

On the company's official website, you can learn more about all of its services and additional terms and conditions.

Denka Logistics

A Ukrainian operator that offers fulfillment services to online store owners at the European level:

• accepting orders from customers,
• collecting and shipping orders,
• receiving and transporting goods to its warehouse from the supplier's warehouse,
• delivery of orders throughout Ukraine.

The company's official website offers a range of additional services and information about various options for cooperation with Denka Logistics.

Raben

This operator provides services not only to the Ukrainian market but also works with European companies.

Raben offers partners:

• unloading and storage of goods,
• packaging and labeling of goods, preparation of promotional kits,
• placing goods in several warehouses,
• creation of special seasonal sets,
• ensuring the integrity of the goods and protecting them from damage during transportation,
• preparing cargo for shipment,
• accepting product returns from customers.

On the official website, you can read about the company's work, its clients, and special working conditions.

You can use the services of several fulfillment operators at the same time.