Our own Nicholas Daniel-Richards recently teamed up with Andreea Matei at Launch Grow Joy to explain the different order fulfillment models that ecommerce businesses can utilize.
Option 1: In-house
Storing the inventory, picking, packing, shipping, all done by your company.
To DIY, you’ll need space to house your inventory, and efficient processes to handle orders and ship in a timely manner, not to mention a process for handling returns. Overhead costs are high to house inventory yourself, but this rewards your business full autonomy.
Option 2: Outsource to a third party
Hand your inventory over to 3PL and smart fulfillment companies like ShipHero who invest heavily in infrastructure and software to create global networks of warehouses and to provide a wide array of cutting-edge fulfillment capabilities.
Option 3: Dropshipping (goods ship directly from the manufacturer)
Dropshipping is when the manufacturer ships directly to the consumer, completely bypassing the retailer. This is typically used by businesses that are just starting that don’t have the capital for inventory, so the price to start a business is low.
When it comes to each option, there are pros and cons that store owners must consider.
Read the full article to learn more about choosing the right fulfillment model for your business.
A big shoutout to Andreea and her team! She is an expert at increasing publicity and helping ecommerce store owners grow their sales. You can learn more about Launch Grow Joy here.