You may wonder how to properly distribute the product that you have. Most places rely on self-fulfillment since this can help a business when starting. But the problem is, businesses outgrow this super-fast too. Having the proper distribution partner is a big step in the journey. The idea may be a little bit intimidating, but the right partner increases the revenue, sales, frees up your time and helps you get into new markets.
First, what is it?
Basically, this is a partner that gets the merchant’s products out to customers, into the hands of customers that purchased them. It’s different for everyone, so these distribution partners may offer different services depending on the channels that are utilized. In terms of retail distribution, these partners offer logistics of getting the products out, and usually, on the ecommerce side of things, this involves processing, the fulfilling of orders, and shipping out these orders. If a business utilizes these strategies, it needs someone who can function across each of these different channels.
Here are some different considerations to have when choosing the right destitution partner for your ecommerce business. First, you need international shipping including them handling the tariffs, customs, deities, and any regulations or restrictions needed. This can cost a lot of extra fees, making it hard for sellers and customers, and it can take a bit longer. Having an ecommerce distribution partner for international shipping makes it easier for many people.
You also want to consider the time it takes to ship stuff. Most shoppers expect their deliveries to get there fast, with most of them willing to wait up to a week, but not much more before complaints come in.
When customers have to wait too long, it ruins the experience, and it can impact brand loyalty, improve the sales, get more repeats, and of course reduces cart abandonment that happens. Distribution does help small businesses start off in an affordable manner, and most logistics experts and distributors will help with optimizing the supply chain in order to maintain proper order fulfillment and reducing the costs of shipping.
Usually, distributors work with a lot of carriers to ensure that the distribution is quick, and they also will be able to navigate through some of the supply chain issues to ensure that the person gets their goods fast.
You also want someone that knows the logistics of the supply chain, and you are able to trust in them not to make errors. Even a small error can impact the management of this. Miscounting of inventory is one of them, and it can lead to inventory issues with replenishment, including stockouts, and slows the velocity of the supply chain.
You also may want someone that’ll handle the quickness of making sure that the items gets out. For example, if you don’t get to the post office early enough, it’ll get sent out, and this can lead to it being late too. In most of these instances, these small mistakes get annoying for customers, causing them to have to wait for you to reply. Handing off these fulfillments to different distribution partners offer a much better way to prevent these little mistakes, and also provides proper streamline.
You finally want someone that’ll fulfill the right areas. Having different distribution centers will offer a more extensive means to ship out these items, offering a much more readied means to give you the proper shipping means, and also some good opportunities for you to not only grow as a business, but as a provider as well too.