For entrepreneurs, the internet is a gold mine. There are numerous opportunities that people seeking self-employment can take advantage of. One of the most common and popular ways of making business is through ecommerce the practice of vending items on an online store.
This entails listing and promoting the items you are selling on an ecommerce website, and fulfilling the arising orders. Although the activities related to marketing, traffic conversions, and customer retentions from the most interesting bits of such ventures, fulfillment of the order is downright the most important aspect of ecommerce businesses. Herein we are going to explore three of the most popular ecommerce fulfilment options that ecommerce entrepreneurs can opt for.
#1. In-House eCommerce Fulfillment This is probably the most popular fulfillment methods that budding ecommerce entrepreneurs opt for. It involves stocking the items that you want to sell in your fulfillment center. When a customer makes an order, all you have to do is take the item off the shelf, prepare it for shipping and thereafter ship the order. 3
This fulfillment method is a simple and straight forward method. It accords entrepreneurs full control on matters of quality which goes a long way in providing premium services. Additionally, entrepreneurs using this fulfillment method also have full control over their inventory. They can easily keep track of a number of products that they have and act accordingly.
However, there are demerits to using this method. For starters, entrepreneurs have to invest in warehousing and logistics, which can be very expensive. They also have to invest a lot of money in purchasing products that they will vend, further requiring increased investments.
#2. Drop Shipping Fulfillment Drop shipping is increasingly becoming very popular among ecommerce vendors. Ideally, drop shipping has the potential to simplify things for ecommerce vendors, thus giving them the headroom required to fully focus on marketing their websites and the products that they eventually sell.
Drop shipping involves setting a website, where customers can view and review the items on sale. Once they make an order, the order is sent to the manufacturer or wholesaler of the item to fulfill the order. As such, at no given time does the ecommerce vendor come into contact with the items he or she sells, thus simplifying the tasks.
#3. Outsourced Fulfillment This option is a cross between in-house fulfillment and drop shipping fulfillment. Outsourced fulfillment is the option where ecommerce vendors contract third party logistics provider to fulfill the order on your behalf. Thus, you purchase all the items you sell and ship them to the logistics firm you have contracted for storage, much the same as drop shipping.
However, when it comes to keeping tabs on the stocks available, outsourced fulfillment borrows a leaf from in-house fulfillment. You have to do things on your own.