Choosing fulfillment and warehousing services is a huge decision that no company takes lightly. Deciding to outsource a complete aspect of operations is a difficult choice to make, and it's an impossible one without the proper research. Keep up on the latest fulfillment guide news and trends by following industry publications, utilizing fulfillment organization resources and weighing your options.

Utilizing complete third party logistics fulfillment companies leaves you more time to concentrate on enhancing your business, so while the costs may seem extreme, the benefits may far out weigh them. Use the information you get to come up with a cost and benefit worksheet to break down the benefits and if they are significant enough for your needs.

1. Get advice from fulfillment industry organizations.

2. Stay informed about the latest trends in fulfillment solutions.

3. Find out the latest industry news by reading business publications.

Action Steps
The best contacts and resources to help you get it done

Get informed about the latest trends in order fulfillment services

Find out the opinions of industry leaders and organizations. Seek advice about what types of companies have good reputations when it comes to order processing and fulfillment. Review company quality control, management practices and more with the help of industry reviews.

I recommend: Use information through the Mailing and Fulfillment Service Association to compare companies about which you want more information. Find information at the Material Handling Industry of America's Order Fulfillment Council, and review a list of fulfillment companies approved by the council.

Do thorough research on order fullfillment services

Find out what options are available for your size business by researching different company options and fulfillment service providers. Choose to create your own fulfillment department, drop ship items, or use complete fulfillment centers. Research which third party logistics companies work with what size business, and find a company that will ship directly to your customer, handle returns and manage all other customer service aspects.

I recommend: Review research done by the Zaragoza Logistics Center when deciding what type of fulfillment services are right for your business. Read advice from Web Marketing Today about how to choose a fulfillment company. Once you're ready to narrow down your options, get quotes from fulfillment houses outsourcing options through VendorSeek or Fulfillment Bid.

Read national fulfillment and warehousing services publications

Find out trends in fulfillment by keeping up with the latest industry events. Scan business publications for reviews of well-established logistics companies that guarantee fast shipping and accurate order processing.

I recommend: Read Industry Week for the latest in logistics and fulfillment news, or scan Ecommerce Times for their latest company reviews and fulfillment information.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  With all the e-commerce opportunities, there have been many new fullfillment and distribution service providers popping up as well. Make sure you research the companies and get references. Not all are legit or trustworthy.

When it comes to shipping and fulfillment solutions for small business, it is definitely NOT one size fits all. Key variables include the type, weight, size and destination of the items you ship, along with customer needs and expectations.

Don't take fulfillment lightly. It is often the final touch-point with your customer, and poorly packaged items, slow, botched or overly pricy shipping can be a real turnoff. Don't make a bad final impression and risk losing future sales to the same customer.

Outsourcing fulfillment can be a big time saver. Here's how it works:

1. Your products, labels, barcodes and other unique packaging are stored in the fulfillment company's facilities.
2. Then, when orders are placed — either through you and your Web site, or perhaps direct to the service — the fulfillment firm can pack and ship the items.
3. A fulfillment firm can also handle customer service and returns, if you wish.

Action Steps
The best contacts and resources to help you get it done

Discover what to look for in a fulfillment service

Different businesses have vastly different fulfillment needs, and service choices also vary tremendously. Choose a service that handles volume similar to yours, has good support and is Web-savvy.

I recommend: Check this list of What to Look for in a Mailing or Fulfillment Service Company.

Find a fulfillment service to fit your precise criteria

The Mailing and Fulfillment Service Association, a professional organization for mailing and fulfillment companies, offers a search feature on its Web site that can help you locate a fulfillment house that's right for you.

I recommend: Select your criteria and search the online directory of fulfillment services.

Get help designing your own fulfillment documents

To handle fulfillment properly, you'll want to integrate it with email notices, invoicing and reports that keep you informed on what's happening.

I recommend: ShipWorks includes a number of royalty-free invoice, email, and report templates that you can customize to fit your specific needs. Editing templates is simple using the built in editor included with ShipWorks.

See what 'Brown' and its affiliates can offer

For many small businesses, fulfillment services available through UPS or its affiliates may be the smart and convenient choice – especially if you already use this carrier.

I recommend: Discover the full range of UPS fulfillment solutions.

Integrated fulfillment solutions for eBay sellers, Miva merchants and others

Specialized fulfillment solutions are available for eBay businesses and other Web merchants.

I recommend: ShipWorks, from Interapptive, provides eBay sellers and Miva Merchant users with a complete software solution for managing checkout and shipping. CoLinear Systems has integrated UPS OnLine Tools into its Response for Windows customer/order management software. Infotech Systems, Inc. developed Order Manager as a complete order fulfillment system. It provides complete order tracking from inception to completion. Stone Edge, Order Manager can help you create and manage a small-to-medium e-commerce business.

Fulfillment that's fast, easy and guaranteed

While there are hundreds of shipping and fulfillment services nationwide, these have offerings that set them apart.

I recommend: iFulfill warehouses, packages and ships your inventory and offers a full guarantee. InterShipper offers exceptionally fast Web-based service and can help reduce shopping cart abandonment rates. Turnaround prides itself on high-speed turnaround (hence the name).

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Keep a close eye on costs. Using outside fulfillment adds an expense you may not have factored into your budget.
• •  But you should also consider the costs you are avoiding by using them, such as storage space, payroll and your own time.
• •  If you charge customers for shipping and handling, you may be able to recover all or a portion of it.
• •  Aim to break even on the shipping cost side. Some small companies try to make a profit on shipping, but risk alienating customers who are savvy about shipping costs.
• •  List shipping and handling costs separately from the cost of the goods, and calculate the charge by weight, not the cost of the merchandise. Both steps will garner greater appreciation from customers.

Order fulfillment services should be chosen to meet the needs of the company and the consumer. While the bottom line is very important, customer satisfaction is equally important. Small businesses must work with a distribution and fulfillment company to ensure their products get delivered accurately and on time.

Processing orders, picking, packing, shipping and customer service are all costly services that add up. Hiring one part-time employee for customer service tasks such as processing returns and complaints can get very costly. Begin your fulfillment strategy by asking for service quotes, and decide which will save you money now and in the long haul. Begin by:

1. Making the most of order fulfillment options by customizing your service agreement.

2. Starting your e-commerce business off on the right foot with complete fulfillment services.

3. Keeping your focus on the customer so the profits will follow.

Action Steps
The best contacts and resources to help you get it done

Choose fulfillment companies with options to customize to meet your needs

Look for a logistics company that offers a wide-range of services that you can customize to meet your company's needs and budget. Not all logistics companies are willing to work with small businesses. Find out if your business meets the criteria of the company as one of your first steps. A good logistics fulfillment operation can offer customizable choices with price options to work with all size companies.

I recommend: AMS Fulfillment will work with your company to customize a distribution plan. They offer options for business to business or business to consumer delivery services. Look to Marlin Logistics for a customizable logistics package that includes real time web tracking of orders.

Structure your entire e-commerce business around a fullfillment and distribution provider

Small businesses, or larger ones, that are just starting out may find it easier to work with a fulfillment company that offers complete web-to-customer service. With the growing popularity of online shopping, fulfillment services are jumping on the bandwagon and offering complete packages. They will help you create a great online storefront, keep track of orders, pick, pack, ship and handle customer service. Meanwhile, you have more time to concentrate on increasing sales and productivity.

I recommend: Progressive Distribution will make it easy for you to create a cyber store. With options like in-house design and marketing, the company offers web set-up along with their complete distribution services. Hire Fulfillment Works to set up your e-commerce business, manage online shopping carts or telephone orders.

Concentrate on pleasing the customer when working with fulfillment houses

Find fulfillment service providers that have the same business focus as yours -- pleasing the customer. Customers appreciate full disclosure of upfront costs, fast shipping and not being overcharged for that shipping. Look for a fulfillment provider that charges exact shipping costs without tagging on outlandishly high handling charges. A happy customer is one that comes back and spreads the word.

I recommend: MDF Systems offers fulfillment services with reasonable costs to you and your customer. Fulfillment Solutions can give you more time to focus on business while they handle the distribution and order fulfillment. With fast shipping and major carrier delivery options, the company promises to keep costs down.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Small businesses looking for good fullfillment services may need to do a little shopping around. Many larger fulfillment and distribution companies only work with companies that need large scale distribution.

Fulfillment is the broad area of service that starts at product manufacturing and generally ends when the product is in the hands of the consumer. There are many steps in the process, including storage and shipping of the product, either individually or in bulk. With today's computer technology, fulfillment can also cover online orders, returns, refunds, rebates and order tracking. In some cases, different companies may take an active role in supply chain management, while in other cases, one firm will handle all areas.

Action Steps
The best contacts and resources to help you get it done

Pick-and-pack fulfillment

Pick-and-pack fulfillment refers to the part of supply chain management where an employee or machine locates the items in an order, picks it out from the collection of warehoused items and packs it for shipping.

I recommend: Find out more about the features and benefits of pick-and-pack fulfillment at Webgistix.

Kitting

You can use kitting to refer to the process of pick-and-pack fulfillment, but generally kitting has one or more differences from pick-and-pack-kitting can involve some form of light assembly of a product. Some manufacturers use the term to refer to assembling a group of items that, together, form a unit that typically sells in that form, rather than random or isolated items.

I recommend: Understand more about kitting options by reading a description at Archway.

Literature fulfillment

Literature fulfillment may differ from that of other products because the company providing the fulfillment may print documents on demand as needed, rather than stock products in a warehouse. Of course, you can apply the traditional method of fulfillment to literature, whereby the fulfillment company has a quantity of preprinted literature products on hand, but today's computer technology often makes print-on-demand fulfillment more cost effective for literature products.

I recommend: Find an explanation of why literature fulfillment may benefit your business at Midpoint National.

Order taking

Some fulfillment companies actually take orders for their customers. These orders can arrive in many forms: an order from a web page, a call to a toll-free phone number, faxed orders or orders mailed using the postal service. Fulfillment services can process orders that arrive in all of these ways, so you have many options for how your orders can arrive from your customers.

I recommend: Find out more about different forms of order taking at CrossCountry.

Returns

When a customer decides to return an item, it can go directly back to the manufacturing company, or it can go to a fulfillment company. The details of this process can be tedious, so companies can opt to have a fulfillment company handle this part of the process. In some cases, you can re-package and re-sell returned items under a refurbished or discounted title.

I recommend: Find out more about returns processing and returns refurbishment at Advantage Media Services.

Refunds and rebates

Companies generally issue a refund when a consumer returns a product, especially if the product was defective. You can give rebates as an incentive to purchasing, usually during a specific time period or under specific conditions, such as buying two items together. Fulfillment companies can provide services of processing requests for refunds or rebates, making sure they qualify for the offer and handling all of the paperwork or electronic transactions required.

I recommend: See how refund and rebate fulfillment can save you time and aggravation at Promotion Fulfillment Center.