Fulfillment costs
Fulfillment companies typically charge fees per order and per item
shipped. However, there may exist hidden fees associated with
fulfillment duties which could outweigh these costs including the
following:
Receive merchandise
Receive orders via mail order
Manage continuity (auto-ship) programs
Process credit cards, including multi-pays
Coordinate and insert all bounce back materials (returns)
Prepare documentation for international shipments
Provide all reports as required by client
Inspect returned merchandise
Update customer database for returns
Issue customer credits
Restock undamaged return merchandise
Respond to charge backs
Make bank deposits
Answer customer service phone calls
Respond to all customer e-mail correspondence
Storage
"Account processing fees" for invoice payments made via credit card.
Firms looking to outsource their fulfillment may be able to receive
bundled pricing, whereby all fulfillment activities are bundled into a
set price per order fulfilled, often this is associated with orders that
are consistently the same number of items, and the same weight.
Alternatively, may third party fulfillment companies will provide simple
per order, and per item fee structures. In these ways, companies
electing to outsource fulfillment services can more accurately forecast
their costs.
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Corporate Fulfillment Svc
340 Bryant St, San Francisco, CA
415-227-4882
Fulfillment Center
690 Airpark Rd, Napa, CA
707-224-6161
Northbay Fulfillment
3343 Industrial Dr, Santa Rosa, CA
707-579-4249 |
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E-Commerce
Fulfillment houses develop intelligent e-Commerce systems to help manage
the many elements within the business. The e-commerce system is
adaptable and is able to integrate into clients ordering system – or
even host the ordering system themselves. They also enable integration
into their respective couriers system – to enable the fulfillment houses
clients live information upon package deliveries.
Disadvantage
Indirect control
Fulfillment companies act as the shipping center for their clients'
companies. Should there be errors in shipping process or poor handling
procedures, it will be the client company that receives the bad
reputation, not the fulfillment center.
Product damage or shrinkage
Fulfillment companies will typically not take full responsibility for
product damage unless they are directly responsible, nor will they take
full responsibility for product shrinkage unless it can be proven that
they are directly responsible. This practice will vary depending on the
receiving procedures utilized by the fulfillment house. Typically if a
fulfillment house verifies counts, they will accept a larger
responsibility for the items in their care, however, if they accept
packing lists for supplied inventory as accurate, they will likely not
be as responsible for shrinkage. |
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