Tips to Move to Direct-To-Consumer Fulfillment and E-Commerce Quickly and More Profitably

Retailers are following the lead of Amazon and realizing the potential of e-commerce on the bottom line. E-commerce growth was accelerated by the pandemic alongside the changes in customer behavior, forcing brands to adjust their business models. The expectations are high, with even B2B customers expecting delivery next-day or even same-day. A few tips from those who have experience are below:

Profitable fulfillment boils down to a balancing of customer acquisition cost, conversion rate, and average order value to avoid shipping costs from eating up your margins. Bundling products is a great way to keep your average order value higher.

The last-mile custoamer experience should be five-star. Improve your delivery strategy by improving order visibility, communication, and inventory management.

Use the best resources available to develop your online capabilities and the acquisition of customer data such as a robust social media presence and order management system.

Understand the requirements – regulations, packaging, labeling, transportation mode.

Setting up a fulfillment process such as a pick area or a packing area dedicated to single unit vs. multi-unit orders will result in higher accuracy and production.

Choose the right software to automate the processes along with the needed hardware such as barcode label printers.

Placing product closer to the end consumer can help to differentiate the product along with an easy returns process resulting in higher customer satisfaction.

Partner with a 3PL to leverage their technology which allows for the management of the last mile and extending the brand to the customer’s front door.

KTI LTD is a 3PL headquartered in Pulaski, VA with several warehouses in VA, NC, and SC. If you’re seeking a partner to move into the e-commerce space, we are glad to review your needs and provide a custom solution. (540) 750-0081

Source: Inbound Logistics, August 2022