What does e-fulfillment mean?
E stands for electronic, and means computer-assisted fulfillment, which runs automatically and makes the logistics of web shops in the e-commerce sector, for example, fast and effective. The term fulfillment refers to the "fulfillment" of a customer's order and covers all processes that take place after an order has been placed: from receiving the order, to packaging, to delivery to the end client’s doorstep.
E-fulfillment providers store companies' products in their warehouses - often referred to as ‘fulfillment centres’ - link webshops or ERP systems to their logistics management software, in our case the Logsta Connector, and automatically take care of every order that comes in.
What are the 6 steps of e-fulfillment?
The breadth of the offering varies depending on the provider, but e-fulfillment typically includes the following steps:
- Connection to webshops or ERP systems (if available)
- Receipt or collection of goods
- Professional storage of the products
- Picking and packaging
- Dispatch processing and tracking
- Returns management
Logsta also offers additional logistics services:
- Worldwide transport for companies
- Send it yourself service
How much do e-fulfillment services cost?
Prices depend heavily on the e-fulfillment service provider. There are seldom all-inclusive prices for an all-round service, as the costs depend on the amount of work involved, the volume, size and weight of the parcels, as well as additional requests such as special packaging materials and special shipping conditions.
There are a few things you should additionally be aware of:
1. Include storage costs in your calculation
2. Pay attention to whether a minimum volume of orders is required
3. Different monthly fees
4. Read the small print very carefully.
The best thing to do is to ask the company directly and have them send you a customised offer.
You can also do this with Logsta, without any obligation: Logsta places great value on complete transparency, has no minimum volume, hidden costs or anything in the small print. All this without any commitment or monthly fees.
Our newest e-fulfillment center in Austria, in Enzersdorf an der Fischa.
At what point is e-fulfilment worthwhile?
It all depends.
Let's say you run an online shop that is becoming more and more successful. At a certain point, you will probably reach the limits of your internal logistics processes, or the sheer volume of orders may become too much to deliver to your customers as usual. You might consider contacting an e-fulfilment provider and getting a thorough consultation first. Together, you can then put together a package that best fits your business goals and allows both your business and the e-fulfilment centre to grow together.
Smaller companies and start-ups can also benefit from the extensive experience and automated processes of an e-fulfillment provider. Here you can find a suitable solution that will benefit any size of company, and help it gain a foothold in the e-commerce business! This is exactly why we founded Logsta - to give businesses of all sizes access to fair and affordable logistics.
For larger companies with high volumes of orders or requests, it is definitely worthwhile to outsource the logistics services, as the costs of e-fulfillment can be better offset with increasing order volume. In addition, outsourcing increases customer satisfaction by ensuring the quality of each individual process - even with a large order volume.
A simple calculation, for example:
Take your worst-case order and offset it against the costs of the e-fulfillment provider: you should not get less than 0.
What is not part of e-fulfillment?
The administration of online shops is usually taken care of by the company's own specialists or agencies in the areas of web development and content management. E-fulfillment providers are not specialised in this; the distribution and marketing of products also does not fall within their area of responsibility.
Page: E-Fulfillment Definition
Page: Was ist E-Commerce Fulfillment: Definition, Anbieter, Vorteile & mehr
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