Are Budget eCommerce Fulfillment Services Costing You?

Posted April 16, 2016

When shopping for eCommerce order fulfillment services, making your choice based on price alone can actually end up costing you more in the long run. While most business owners want a bargain, when it comes to choosing your third party logistics (3PL) warehouse, choosing based on price alone could actually have a negative effect on your bottom line. Here’s how:

Loss of Customers

An online retailer is able to measure success by their ability to retain customers as well as marketing to new ones. If you are doing business well, customers will continue to purchase their favorite products from your site, and may even tell their friends. But, when you start getting orders wrong, things can go downhill quickly. While mistakes do happen, if they happen consistently, it can ruin your brand reputation. Taking time when selecting your 3PL warehouse service and selecting a company that has demonstrated the ability to get it right will save you from these embarrassing incidents.

Low Conversions

Studies have proven that today’s online consumers want their products fast, and they want them free. The presence on online retail giants like Amazon have made this even more true, which puts pressure on smaller eCommerce sites to deliver. Some consumers even abandon shopping carts that are full when they arrive at the checkout only to discover that shipping will take longer than they want to wait. To be able to compete in this digital age, you must choose eCommerce order fulfillment services that will allow you to get your product into the hands of the consumer both the fastest and the cheapest way.

Loss of Revenue

If you are constantly making up for mistakes, the loss of revenue could be a burden to your business. To retain customer relationships, many businesses will offer incentives to customers when a mistake has been made. These customer service and shipping blunders have been estimated to cost US businesses over $83 billion in annual losses. When you choose a budget based fulfillment service, oftentimes your business will be one of the those included in this statistic.

When it comes to choosing eCommerce order fulfillment services, choosing based on budget alone is not your best bet. For accurate and affordable 3PL warehouse services, contact Elite OPS.

Contact Us to find out how we can help you Save Time and Money on Holiday Shipping as well as eCommerce Order Fulfillment, Kitting and Assembly.