Guidelines for Outsourcing
If you want to outsource your warehousing, shipping, and returns processing, the following guidelines could help you to make a better decision in your search for a vendor with a fulfillment service.
Gather Your Facts And Figures - Collect the following data: monthly order volume, your average SKU (stock-keeping unit) an order, average number of items an order, typical package weights and the number of first class mail vs. priority mail packages.
Draw up Your Request-for-proposals List - Armed with data, begin your search. The Yahoo! directory of fulfillment service providers is a good place to start, with listing of different types of fulfillment services. Shortlist some companies and request for quotations based on your requirements.
Compile Results - Once you have received the quotations, put the figures onto a spreadsheet and compare the prices, terms with your
usages factors. Shortlist some vendors from the spreadsheet and interview their sales reps or even tour their facilities.
Location - To reduce zone-based shipping charges, make sure that your provider is close to your customers.
Apart from these guidelines, there are some tips you should keep in mind:
1. Analyze the contract
2. Watch storage fees
3. Consider the size of the Jiffy mailers/ cartons
4. Avoid split orders
5. Get specialized cartons
6. Options for Returned Goods
7. Consider the shipping account; sellers might be able to give you a better rate.
8. Check the terms of service
9. Allow gift wrapping by prewrapping the product.
By starting on a small-scale and following these guidelines, you can find a seller and improve your business intelligently.