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Launching an online store is easier than ever, but achieving long-term growth in a competitive e-commerce market is a whole different challenge. Gaining visibility early on is crucial; in the first part of this article, boomerank shared expert strategies on how to increase website traffic and generate more sales (available in German).
In this second part, we’ll go deeper, focusing on the essentials for scaling an e-commerce business as order volumes increase and logistics grow more complex. From fulfillment to customer expectations, we’ll cover the strategies and tools you need to keep your operations running smoothly and efficiently as your business grows.
Meeting High Customer Expectations for Shipping
Logistics is often underestimated, but it’s a critical success factor for online stores. Today’s customers expect fast, reliable, and flexible delivery options, and many will abandon their carts if these expectations aren’t met. For instance:
- 50% of online shoppers have reported abandoning a purchase because they found the delivery options unsatisfactory.
- In 2023, around 50% of European online shoppers reported abandoning their carts due to high delivery fees.
Without optimized fulfillment, these potential customers may leave your site without buying. Here’s how to meet growing demand without compromising on service.
When your order volume is still low, you may be able to handle shipping yourself using apps to generate shipping labels and manage parcel drop-offs. But as your business grows, logistics can quickly become overwhelming. Increasing orders means managing more packaging, stock checks, returns, and complaints. At this stage, it's often more effective to outsource fulfillment to a professional logistics provider, also known as a 3PL (third-party logistics) service.
Many e-commerce businesses choose to outsource fulfillment to handle the demands of scaling. 3PL partners can reduce fixed costs, handle fluctuations in demand, and keep customers happy by meeting their delivery expectations.
Five Key Factors for Choosing a Fulfillment Service Provider
Selecting a reliable fulfillment partner is a significant decision that can impact your business’s ability to scale smoothly. Here are key factors to consider when choosing a fulfillment provider:
1. Technical Integration with E-Commerce Systems
The ability to seamlessly integrate your online store with a 3PL system is essential for efficient order processing. Most fulfillment providers today offer technology solutions that connect directly to the leading e-commerce platforms, enabling automated order processing and faster delivery.
These features streamline logistics and ensure smooth, hands-free order fulfillment, which is key as you scale.
2. Flexible Packaging and Branding
The packaging not only ensures that sold products arrive safely to the customer, but they can also further be used as a powerful marketing tool. Through a unique unboxing experience, e-commerce merchants can successfully strengthen their international branding and add a touch of personalization, which will boost customer satisfaction. This increases the probability of repeat purchases as the first step towards customer loyalty which has become key to successful e-commerce brands.
In addition, many eco-friendly materials, like recycled paper or compostable bioplastics, can also lower packaging costs, especially with advances in sustainable fulfillment and technology. Plus, flexible packaging often uses less material overall, leading to reduced shipping and handling costs.
3. Managing Seasonal Peaks
Order volumes can surge dramatically during holidays and seasonal events like Singles’ Day, Ciber Monday, or Black Friday. A 3PL partner capable of managing these peaks seamlessly, without compromising delivery times, is essential for maintaining customer satisfaction.
These high-demand periods put pressure on logistics operations, and any delay or disruption can lead to unsatisfied customers and potentially negative brand impact.
4. Strategic Fulfillment Locations
A common mistake many online retailers make early on is choosing logistics providers nearby so they can keep a close eye on the warehouse. However, this approach is often misguided. Instead, online retailers should focus on finding a logistics partner with a fulfillment center in their target market, ideally close to where most shipments will be sent.
By strategically locating fulfillment centers near end customers, retailers can significantly reduce shipping distances, lowering costs and speeding up delivery times. This results in faster delivery and reduced shipping costs, which, in turn, positively impacts the conversion rate.
5. Cost Transparency
Costs for 3PL services are a significant investment, and understanding their structure is crucial. Be sure to account for potential hidden fees, like additional charges for packaging, returns, and peak season handling. Many e-commerce companies find that unexpected surcharges turn what seemed like a good deal into a costly decision.
Taking the Next Step
Selecting a 3PL provider involves many factors beyond the basics. Just as choosing an e-commerce platform requires alignment with your business needs, so does choosing a fulfillment partner that matches your unique requirements. Fulfillment for scaling businesses and 3PL services for large enterprises have different fulfillment priorities, so each retailer will look for the provider best suited to their specific demands.
