Little is more important in the world of eCommerce than fulfillment of online orders. Beyond just the shipping process, fulfillment also accounts for the storage, packaging, and returns of merchandise. Shopify, just like some other large eCommerce companies, can provide multiple fulfillment options to their clients. Outside fulfillment operations, like Shopify, will free more time for you to grow your business at the top without being bogged down by everyday logistics. Let’s explore what Shopify can provide:
Your Shopify Fulfillment Options:
Shopify provides a few different fulfillment options to help cater to you. Each option comes with their share of positive and negative attributes that need to be weighed before a selection is made.
Fulfillment by Shopify:
Shopify itself is capable of handling your fulfillment needs. They have the capacity to store your products in their warehouses and handle the packaging, shipping, and returns themselves. This option, assuming you sell primarily on Shopify and can’t handle your own fulfillment, can be a good choice. However, this option can pigeon-hole your sales to only Shopify; to sell your products on other online stores means that you will have to find different fulfillment.
Fulfillment by Amazon:
If you’re an Amazon seller with an Amazon Marketplace account, Shopify can provide integration into Fulfillment by Amazon. This option gives your company access to the vast shipping network that Amazon boasts. However, a big catch here is that if you choose Fulfillment by Amazon, you cannot stock the product in locations that you manage. Again, this option ties you directly to Amazon and can limit your ability to reach other online stores.
Custom Fulfillment Services:
Another fulfillment option that Shopify can provide is custom fulfillment services. This option is for companies that already own or have partnered with a warehouse to store their goods. Shopify provides an expert to develop a custom app to help with your fulfillment at this location. Naturally, this allows you to explore other fulfillment options alongside Shopify, but also requires you to have access to your own storage space, which can prove to be difficult for some companies.
To be more independent from large eCommerce facilities like Amazon or Shopify, third-party fulfillment may be your option. Third-party fulfillment companies can provide a host of benefits that the big names can’t, including a more personal, customized fulfillment process for your business along with genuine customer service. Furthermore, third-parties allow you to be much more flexible in where you choose to sell your products giving your business untold freedoms.
Questions to Ask Before Making a Selection:
Hidden Costs in Shopify Fulfillment:
As with many large services, the price they use to rope you in doesn’t provide the full picture. Under the surface of Shopify fulfillment lays multiple hidden fees that can be costly to your growing business.
First, selling your products through the Shopify network will bring a referral fee into play for your business. Depending on your agreement with Shopify, you can be expected to pay a recurring commission of up to 20% of your monthly subscription fee. You would be expected to pay this fee monthly as long as you’re a paying Shopify partner, which can significantly cut into your bottom line.
Another fee that can slam a business is the storage fee that Shopify has. Storage of your merchandise is free within the first 180 days of it being stored, but after that your business will be charged monthly for the space you occupy. Shopify’s storage fees are “calculated by multiplying the total volume of variants in cubic feet, the number of variants, and the storage rate of $2.25 per cubic foot divided by 30 days.” These fees can prove to be extremely costly to a business, especially if you’re struggling to move merchandise out of the warehouse.
Label and Return Fees:
Lastly, Shopify charges a fee surrounding the printing of labels and the returning of items. The price for this service is dependent on the size of the package and is charged on a per item basis. These fees can prove to be yet another costly endeavor for a growing business.
Contact NextGen3PL to Learn More!
For the best fulfillment service around, look no further than NextGen3PL! NextGen3PL provides efficient, cost-effective eCommerce fulfillment that will satisfy the needs of your business. We continue to expand because of the results we produce, which have allowed NextGen3PL to acquire over a million square-feet of strategically located facilities. We can cater to your business’s needs and devise a personalized plan that will help your growth explode. If you need fulfillment for Shopify, Amazon, or any other eCommerce player, look no further than NextGen3PL. Get started today!!