The Ultimate Guide to Shopify Order Fulfillment Service

Time: Nov 24,2023 Author: SFC Source: www.sendfromchina.com

For Shopify sellers, Shopify has built a Shopify Fulfillment Network (SFN), which offers warehousing, inventory management, picking & packing, and door-to-door shipping services, to help them streamline the process of order fulfillment in 2019. This network is a crucial tool for online retailers who use the Shopify platform, offering a comprehensive and integrated approach to managing the logistics of their business. But there are still some who ask what Shopify Fulfillment Network is.

Here is a detailed blog article about Shopify Fulfillment Network.

1. What Is Shopify Fulfillment Network Service

Shopify Fulfillment Network (SFN) streamlines order fulfillment by storing inventory and then picking, packing, and shipping products upon order receipt. Most US orders are delivered within two days.

SFN's centralized system allows you to track shipments, manage customer data, and monitor inventory in one place. Key features include centralized inventory shipping to one fulfillment center, distribution across SFN's network for proximity to customers, fast and cost-effective shipping options, and efficient returns management with quick restocking for future sales.

Shopify cooperates with USPS, DHL, UPS, Canada Post, and various local postal carriers to deliver orders.

2. How Shopify Fulfillment Network Works

The first thing you need to do is to make sure your products are eligible for Shopify Fulfillment Network and your Shopify store is ready to receive orders. And then here is what the Shopify Fulfillment Network will do below:

Before diving into using the Shopify Fulfillment Network (SFN), it's crucial to assess your existing fulfillment operations. Start by reviewing your current inventory, including the total number of products, SKUs, and existing stock levels. This will give you a clear picture of your inventory and ensure a smooth transition to SFN.

Next, begin integrating your product catalogue into the SFN system. This involves adding your products to the SFN app and assigning unique SKUs and barcodes to each item.

Once your products are set up in the SFN app, you can start organizing the logistics of order fulfillment. This step includes selecting which fulfillment centers within the SFN will handle your orders. This is an important decision, as it can influence shipping efficiency and cost.

The final step involves preparing your products for shipment to the SFN fulfillment center. This includes packing and labelling your items correctly. Based on the volume of your inventory, SFN may distribute your products across its network to optimize proximity to your end customers, improving delivery times. You’ll receive specific instructions and a designated location within the SFN app for sending your inventory.

3. Pros and Cons of Shopify Fulfillment Network

The Shopify Fulfillment Network (SFN) offers several advantages and disadvantages for e-commerce businesses:

Pros:
1. Streamlined Fulfillment: SFN simplifies the fulfillment process by handling picking, packing, and shipping. This can significantly reduce the workload for store owners.

2. Fast Shipping: With most shipments within the US delivered in two days, SFN offers quick delivery times, enhancing customer satisfaction.

3. Inventory Management: Integrated inventory management allows for real-time tracking of stock levels, shipment status, and customer data, all from one platform.

4. Customed packaging: Shopify also offers customed packaging service, which provides a unique shopping experience for customers. You will have multiple options, including branding inserts, flyers, business cards, stickers, and more.

5. Returns Management: Handling returns efficiently is a significant advantage, as it improves customer experience and ensures rapid restocking of returned items.

Cons:
1. Outsourced Fulfillment: Shopify has outsourced its fulfillment business to different 3PL (Third-Party Logistics) companies.

2. Geographic Limitations: While SFN is effective within the US, international shipping might not be as efficient or cost-effective.

3. Costs and Fees: Depending on the business size and order volume, the costs and fees associated with SFN might not be the most economical choice for all businesses, especially smaller ones. The costs can be more expensive than partnering with a 3PL order fulfillment company.

4. Integration Challenges: Some businesses might face challenges integrating their existing systems and processes with SFN.

5. Dependence on Shopify: Using SFN ties a business closely to the Shopify ecosystem, which might be a drawback for those seeking platform diversification.

4. The Main Shopify Fulfillment Types for Shopify Online Sellers

4.1 In-house Fulfillment

This approach is ideal if your sales are primarily local and you rely on offering in-store pickup for your customers.

For those new to business or lacking resources for a team and warehouse, in-house fulfillment is a viable option. It offers complete supply chain control but can become time-consuming and costly as your business grows. Many growing online brands shift from in-house fulfillment to outsourced solutions early on. This switch enables access to established fulfillment services, avoiding the need to invest in warehouses, staff, equipment, and software.

4.2 3PL (Third-Party Logistics) Fulfillment

To optimize both time and costs, rapidly expanding Shopify stores often collaborate with a Third-Party Logistics (3PL) provider. 3PLs bring several advantages, including a network of fulfillment centers, cutting-edge technology for inventory management, and valuable supply chain insights.

Their fulfillment centers are crafted for peak efficiency and accuracy, utilizing advanced equipment and space optimization. Furthermore, 3PLs secure lower shipping rates through carrier partnerships, enhancing shipping options for your store. By partnering with a 3PL, you gain access to their technological resources, distribution expertise, and logistics network, freeing you from the hands-on task of order packing.

4.3 Dropshipping

Dropshipping offers a hands-off approach to fulfillment, significantly reducing your control over the process. In dropshipping, the manufacturer entirely manages order fulfillment.

While this method has its advantages, it often involves longer transit times, especially for products sourced from Asia, and poses higher quality control risks, as customers directly receive the product without your preliminary inspection.

5. Get Start with SFC Order Fulfillment Service

Whether you have or do not have a board game fulfillment partner, particularly your board games manufactured in China, you should take SFC into consideration. Click the button below and get help from SFC logistics experts.