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In a nutshell, crowdfunding takes place with a "crowd" or group of people invests in a business, project, or mission. In exchange for the investment, each backer receives either a perk (some sort of reward or "perk" for contributing), a loan, or an equity stake in the enterprise.
What are the Main Crowdfunding Platforms?
Some of the major crowdfunding platforms include:
Kickstarter
Kickstarter is popular for helping entrepreneurs fund their creative and tech ideas before getting a loan or raising funds for venture capital. The company began in 2009 and has exploded in growth since then.
Indiegogo
Indiegogo is a great platform for creative works, community projects and tech innovation. It has many similarities with Kickstarter, but its fundraising model is exclusively all-or-nothing.
Patreon
Patreon is great for digital creatives such as podcasters, YouTubers and bloggers. It allows artists to build relationships with their fans and deliver content to their fans as an incentive to continue giving monetary support.
Causes
Causes focus on political, cultural, and social issues. The network aims to make a difference by offering a great platform for non-profits that wish to build a donor community without using many funds and resources networking.
CircleUp
Circle Up is a great platform for those building consumer brands. It provides equity, credit financing and a platform where you can network with retailers, experts, and entrepreneurs.

What Happens Once the Campaign is Funded?

Crowdfunding has absolutely exploded in popularity. Well over a half a million campaigns are conducted each month and growing! Fully backed rewards-based campaigns average over 300 backers per campaign, which can be an intimidating amount of work for a small business to complete alongside trying to launch a new business. Furthermore, for startups that utilize crowdfunding campaigns, the campaign itself if just the beginning, with ongoing sales kicking off after the campaign is over.

Whether your perk is a prototype of your product or some other items such as company swag, once your campaign is funded, the significant challenge of shipping begins. Fulfilling those orders is usually the last thing you wish to deal with as you work to build your prototype and business. For that reason, you are likely to turn to crowdfunding fulfillment services.

Below we explore more about crowdfunding fulfillment services, obstacles to overcome throughout the process, and what to look for in a fulfillment provider.

What is Crowdfunding Fulfillment?

Crowdfunding fulfillment services refer to the process of delivering rewards to your backers. During a crowdfunding campaign, shipping and fulfillment may not be among the things that you focus on. However, you should factor these elements into your calculations. Otherwise, your campaign may end up losing funds, starting your business off on the wrong foot.

For example, determining appropriate donor levels for each perk is contingent upon the amount of money you need to devote to ongoing business operations, versus the amount of money needed to procure and deliver the perks to backers.

One of the most undervalued costs in correctly pricing rewards is fulfillment and shipping. It's easy enough to understand how much your product costs, but correctly factoring for the cost to pick and pack the perk and ship the perk to your backer is a bit trickier. This is where crowdfunding fulfillment companies come in - they can help you understand all the costs involved in crowdfunding fulfillment so that you don't lose money. Common fulfillment and shipping costs include:

Receiving the perks into the warehouse

Storing the perks

Picking and packing the perks

Shipping the perks to the backer

Getting your costs right aren't the only challenge in the fulfillment process - equally important is quickly processing the orders once the perks arrive and shipping them to backers as fast as possible. Shipping a large batch of shipments in a very short time window without making any mistakes is what crowdfunding fulfillment companies help you perform.

The Biggest Challenge for Crowdfunding Fulfillment

Crowdfunding fulfillment has its own unique challenges, unlike traditional retail fulfillment and shipping. It often requires one to pick, pack and ship many products quickly and within a very short time window. Most crowdfunding campaigns overlook storage and reward fulfillment, yet it comprises about 20% of the total cost. Therefore, it is crucial for crowdfunding campaigns to calculate and budget for storage and shipping of rewards when the time comes.

Another challenge in crowdfunding fulfillment includes organizing large batches of orders. You must figure out the items to send to each backer, where to send them, as well as manage the overall process. Such a level of organization for a startup without sophisticated inventory management and order fulfillment systems requires you to create multiple spreadsheets or purchase complicated software to handle bulk orders and ensure you deliver the right amounts of orders to the right people.

But it does not end at getting all the right products to the right donors. Equally important is ensuring that the shipping of orders is both quick and cost effective. Furthermore, many campaigns draw backers from all over the world, which means you'll have to figure out a way to offer international shipping for backers outside of the country. Doing everything yourself would take months, but a dedicated crowd fulfillment service can guarantee a quick turnaround and ensure the rewards get into the hands of the donors fast.

For most users of crowdfunding platforms, fulfillment logistics is not an expertise. Creators are, therefore, wise in consider the use of a third-party logistics company to manage their Kickstarter fulfillment or Indiegogo fulfillment. Successful incentive distribution requires you to find a partner who can simplify and streamline the fulfillment process.

What to Look for in a Crowdfunding Fulfillment Service?

When choosing a crowdfunding fulfillment service provider, there are several factors you need to consider including.

Specialization (Types of products the company typically handles)

Platform integration

Financial minimums to manage your campaign

Add-on services the company provides

Ability to fulfill orders through other channels once the campaign has ended

Other factors you can consider include:
Time to Fill Orders
The time between receiving shipments in the fulfillment warehouse and sending orders to the backers is among the biggest bottlenecks with crowdfunding fulfillment. This "time-to-fill" should be short - ideally less than a week. You need to consider this factor since some fulfillment services take even more than two weeks.
Communication
The only assurance that your crowdfunding campaign is on the right track is looking for a provider who communicates efficiently. A lot of complicated questions arise during the packing and shipping of individual orders, which creates room for ambiguity and error. Therefore, you need a company that is prompt to answer you throughout the process.

Furthermore, most fulfillment providers specialize in fulfillment only, rather than offering customer care services. Searching out a crowdfunding fulfillment provider that also offers customer care services not only provides an additional layer of insulation from any potential issues with shipping perks, but also allows you to begin building your brand with a cohesive fulfilment and customer service approach from the beginning of your business.
Experience in Crowdfunding
Fulfillment warehouses face unique challenges when handling crowdfunding campaigns. Creators often do not have experience and have a lot of questions. Besides, orders come in bulk, with some being international that need proper handling of customs and VAT. Therefore, you need a fulfillment company that has experience in handling crowdfunding campaigns, which are distinctively different from traditional fulfillment services.

Why Choose OSW for Your Crowdfunding Campaigns?

Crowdfunding fulfillment services are a popular option among businesses and entrepreneurs for several reasons. They ensure faster shipping and at a lower cost, eliminating the need to lease warehouse equipment and space, and avoid money wasted on errors that can arise with self-fulfillment (in house fulfillment). More importantly, crowd fulfillment services improve supporters' overall experience and make them more likely to support your crowdfunding projects and ongoing business operations.

But for excellent crowdfunding fulfillment services, you must go for an experienced company such as Our Service Works (OSW). With over three decades of experience in fulfillment, you can rest assured that you are working with a partner who gives the best service and at the best price. Whether you are looking to partner for Kickstarter fulfillment or Indiegogo fulfillment, we plan the processing and shipping of your incentives to ensure your success in the crowdfunding campaign - and we supplement the fulfillment and shipping with our customer care services so that questions can be answered quickly. Contact our team today for help in warehousing, fulfillment, and shipping services.

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Crowdfunding Fulfillment Services - Our Service Works

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In a nutshell, crowdfunding takes place with a "crowd" or group of people invests in a business, project, or mission. In exchange for the investment, each backer receives either a perk (some sort of reward or "perk" for contributing), a loan, or an equity stake in the enterprise.

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As you carry out your international ecommerce trade, you will come across some common terms: DDP and DDU related to these duties or taxes. The two are among many different terms defined by the International Chamber of Commerce, an organization that plays a part in defining the rules of international trade, payments, and even the delivery modalities. Although some online merchants use DDU, DDP shipping is the most popular among both sellers and buyers.

This article explains more about delivery duty paid, what they are and how it works.
What is Delivery Duty Paid? (DDP vs. DDU)
Delivery Duty Paid (DDP) is a type of delivery whereby the sender or seller takes the responsibility of paying the duties. The seller pays for all costs of shipping goods to the destination country of a buyer. These costs include any stipulated import duties and taxes, including Goods and Services Tax (GST).

In DDP, the senders typically pay any VAT unless otherwise specified. If you wish to implement DDP shipping, you must confirm any VAT requirements before you sell your products online to calculate their full impact on shipping costs and profit margin.

DDP also includes customs clearance; that is, the sellers pay for customs clearance. Online merchants who wish to embrace DDP should also carry out thorough research early on and account for the extra cost of customs clearance and its effect on the overall delivery costs and profits.

On the other hand, an online merchant may opt for Delivery Duty Unpaid (DDU), whereby the customer gets contacted as soon as their shipment arrives and has to settle any costs themselves before the customs can release the shipment and deliver it to the customer.
Which is Better, DDP or DDU?
DDU shipping has no processing fees on top of the required duty and thus may seem to be a cheaper shipment option at checkout. But it is the sender's responsibility to inform the customers that the duties will apply when the goods arrive in customs. Any miscommunication could lead to angry customers.

Most of the time, customers are not even aware they need to pay for duties. It often becomes a surprise when they receive a call from customs requesting payment. In fact, it can negatively affect your customer experience. Even worse, it may become more expensive when customs forward the shipment to an independent customs broker who may add storage, late payment, and brokerage fees. Independent customs brokers have different fee structures; thus, it is nearly impossible to establish what the final cost will be.

DDP shipment may be more expensive upfront since express couriers charge an additional fee to process payments to customs on your behalf. However, the fee may be several times lower than DDU brokerage fees and are also fixed.

Some couriers can even pay additional fees in advance on your behalf, ensuring that the clearing at the customs and delivery happens without the customs having to reach out to your customer and directly collecting the additional fees.

Sometimes, customers may decide to abandon the shipment in customs, especially when they encounter additional fees they never expected. DDP shipping helps curb such incidences since you may lose your product, sale and even pay extra fees if you want the shipment back. Therefore, DDP shipping remains the best for a smoother delivery experience.
Why is Delivery Duty Paid Used? It ensures safe shipping by air or sea freight.
Safe shipping by sea or air can be a challenge depending on the type of shipment and the destination country. DDP shipping ensures the senders do not take customers' money and go into hiding without delivering.
It protects the buyer from scams.
DDP helps protect buyers from scammers. DPP shipping is a time-consuming and costly process that keeps away swindlers. The seller takes responsibility for all the costs and risks of delivering the shipment, thus striving to ensure the customers get the products they ordered.
It improves purchasing experience.
DPP improves the purchasing experience since the customers do not have to worry about paying the fees. If the burden remains on the buyer, chances are it may not happen since they are not aware of these international fees.
It ensures safe shipping across countries.
Countries have specific laws governing transport, import duties, and shipping fees. Considering that anything can go wrong when delivering packages, DDP ensures the seller is diligent and ships only through the best and safest routes.
How to Best Implement DDP on Your Web Store
If you wish to implement the delivery duty terms, you should actively communicate your expectations with your customers on your web store. Give an in-depth explanation of how you will handle taxes and duties on the following sections of your website:

Email confirmations

Product pages

Frequently asked question's page

Within the shipping policy

Store checkout

OSW can Assist You with DDP
DDP is among the most popular shipping options for global commerce due to its popularity with customers. Consumers feel this shipping type is in their best interest since it has less risk for the shipments until delivery. Unfortunately, DDP can be unprofitable for online merchants if there are too many issues.

If you have an eCommerce business, you need to partner with a fulfillment company such as Our Service Works (OSW) who can shoulder the responsibilities of international shipping. We understand that shipping activities can overwhelm an ecommerce business, making DDP unprofitable and, even worse, hurting the customer experience.

That is why we have been managing outsourced fulfillment and customer support services to local and national companies for over three decades. We commit to advancing your brand, providing excellent service to your clients, offering safe inventory management and cloud data analysis tools at an effective cost for your business. Contact us today for help and more information on warehousing, fulfillment, and shipping services.

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Delivery Duty Paid - What is it and How Does it Work? - Our Service Works

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As you carry out your international ecommerce trade, you will come across some common terms: DDP and DDU related to these duties or taxes. The two are among many different terms defined by the International Chamber of Commerce, an organization that plays a part in defining the rules of international trade, payments, and even the delivery modalities.

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Everything You Need to Know About Ecommerce Customer Support - Our Service Works

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One area where many online merchants fail relates to ecommerce customer support services – largely because there is a disconnect between fulfillment

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An accurate, robust, and highly functioning fulfillment strategy results in positive reviews and happy customers. On the other side of the coin, a fulfillment process filled with mis-shipments, late arrivals of product, and poor customer service will not only tarnish your online reputation but could also result in the failure of your business venture altogether. The stakes are extremely high, and customer's expectations have blossomed to a level requiring near flawless execution and lightning quick delivery times.

But what exactly is e-commerce fulfillment, and what are the steps involved? Can you do it yourself, or should you outsource it to an eCommerce fulfillment provider? Read on to learn more as this post answers all the above questions and more.
What is eCommerce Fulfillment, and What Steps are Involved?
E-commerce fulfillment refers to the entire process involved in delivering products to buyers after they order them online - whether the purchase takes place on your own website or an online marketplace. From receiving and storing inventory to processing orders, picking products, and packing boxes, to delivering items to the buyer's addresses, e-commerce fulfillment spans the entire logistics function.

The ecommerce fulfillment process has six basic components, including:

Receiving product into your warehouse

Managing inventory

Fulfilling and shipping orders

Processing returns

Supporting customers throughout the process

Integrating order platforms with inventory and fulfillment systems

Receiving and inventory management are critical steps in the e-commerce fulfillment process. Receiving involves counting all incoming product and verifying whether it matches your inbound purchase order (PO), and ensuring that inventory is safe, secure, and properly accounted for until fulfilled and shipped. If counts are incorrect at this stage in the game, inventory counts will be inaccurate and can lead to unexpected stock outs.

Inventory is safeguarded by have strict controls over receiving and fulfillment, as well as periodically performing cycle and/or yearly counts to ensure accuracy. Most e-commerce fulfillment companies will also have an inventory management system in places that allows you to always check your inventory levels.

As orders are places on your e-commerce channels, warehouse staff must then pick the orders, pack them, and ship them. Modern warehouses utilize technology to pick the orders without error, including bar code scanning and other technologies. E-commerce orders are usually smaller in nature, usually consisting of only one item or a few items total.

The process isn't complete, however, once your customer receives his or her order. E-commerce fulfillment strategies must also account for returns processing, as well as servicing customers' questions, requests, and complaints.
What Integrations are Needed?
To successfully compete in the hotly contested online sales marketplace, fulfillment warehouses must employ robust technology. Your e-commerce store must integrate flawlessly with your fulfillment center, whether it is in house or outsourced. That is, orders should reach the people who pack and ship items seamlessly and without manual intervention. Similarly, integrations should be used for all online platforms on which you sell - not just your own website.

Your fulfillment warehouse should utilize one of the following methods for sending orders from the web store (or other marketplaces online) to your warehouse staff:

In a similar fashion, shipping tracking information must be relayed back to your customers, and your stock levels and inventory must be trackable. To meet these demands, most companies utilize an inventory and order management system. Outsourced fulfillment providers have robust warehouse management systems (WMS) that they utilize, and they offer the ability to 'link' to their WMS seamlessly using a technology integration.
Different Options for Fulfilling E-commerce Orders
There are several options you can utilize for managing your fulfillment function. You can handle the e-commerce fulfillment service by yourself (commonly referred to as "in house fulfillment"), utilize a drop shipping service, or outsource the entire fulfillment service to a third-party fulfillment company. Outsourcing is a popular choice since it makes your business agile and helps reduce expense and risk. With outsourced fulfillment, you can contract or expand your warehouse space depending on your business demands.
Drop Shipping
Drop shipping is ideally suited for a pure startup company that wants to minimize risks. Under a drop shipping model, the producer of the product, or supplier, handles the fulfillment and shipping of orders from their facility, usually on an order-by-order basis. In other words, when an order is placed for your product, the order information is routed to the drop shipper (supplier) who then ships that order direct to your customer.

With the drop shipping model, you aren't required to purchase a bulk of product up front. Instead, the drop shipper simply charges you a price per unit for the product itself and for all the fulfillment and shipping related charges. With no up-front investment required for inventory, you can instead invest money in other areas of the business. Furthermore, the drop shipper handles all the fulfillment, so you don't have to. You can sit back and let the manufacturer handle the entire fulfillment process. Drop shipping is especially useful for testing out product before a full-scale launch.

Alternatively, there are some downsides to using a drop shipper. First and foremost, drop shippers are usually experts in producing products, but aren't necessarily the best at delivering high quality fulfillment and shipping services. Therefore, you may experience issues such as late shipments. Second, in exchange for the ability to purchase product on a one-off basis, you will pay a much higher cost per unit for the product. For example, your product for a single unit of the product will be much higher than if you negotiated a lower price for a larger set of goods from the supplier (commonly referred to as "bulk pricing").

Unfortunately, with drop shipping you'll lack control over the fulfillment process, shipping, and handling of the products. Other disadvantages of drop shipping include lower profit margins, shorter lead times, and lack of bulk pricing.
Self-Fulfillment
In self-fulfillment, your business conducts the order fulfillment process through its own labor, assets, and facilities and without the assistance from a third-party fulfillment company. Whether conducted out of an apartment, home, garage, or full-fledged warehouse, in house fulfillment requires a space to store and fulfill orders, at least minimal inventory and shipping software to support operations, and labor to perform the necessary tasks. In cases of bootstrapping, oftentimes founders will do all of the shipping and fulfillment until they can afford to outsource logistics operations.

The self-fulfillment strategy is easy to implement, gives you control over the whole fulfillment process, and has lower startup costs (especially since you don't necessarily have to pay yourself a wage). However, it has some major challenges and limitations.

The biggest problem with using an in-house fulfillment strategy is that it forces you to invest an enormous amount of time on fulfillment and shipping functions, rather than other potentially more important functions such as product design, sales, and marketing services. In addition, in house fulfillment carries with it the following potential problems:

Entering a leased space and the risks and fixed costs associated with taking on a long-term lease.

Managing warehouse and shipping staff

Lacking the necessary knowledge to avoid fulfillment and logistics issues

Fulfillment Center
Outsourcing your operations to a fulfillment center is a great model that needs supply chain management. A third-party logistics manages various supply chain functions on your behalf, so that you can focus on your core business functions.

Outsourced fulfillment services include:

Freight forwarding (managing incoming shipments from your supplier to the warehouse)

Receiving product into the warehouse (counting it, verifying accuracy of quantities and quality of products, loading it into their online system and physically placing it in their warehouse in racks and bins)

Inventory storage and management

Pick and packing of orders

Shipping orders

This model suits e-commerce retailers who do not have the resources to handle the inventory by themselves, or who would rather not deal with the rigors of the fulfillment process. It frees up time, resources and enables your staff to concentrate on other things such as business development and marketing. Furthermore, fulfillment centers will help you achieve cost savings by:

Changing fixed leased costs into variable costs where you only pay for what you use

Lower other fulfillment and shipping costs such as packaging and boxes, labor, and technology costs

Furthermore, you can benefit from the data insights, shipping network, value-added tools, and industry expertise of ecommerce fulfillment companies. Because fulfilling orders is the lifeblood of their business, they are experts at what they do. In short, it is like having an expert in-house fulfillment team but without the associated costs and headache of managing it yourself.

Partnering with the best e-commerce fulfillment companies has multiple advantages, including ease of scaling, increased buying power, and reduced operating costs while leveraging industry expertise.
What are the Costs of Outsourcing?
Fulfillment costs depend on the fulfillment provider you choose and their pricing model. Every fulfillment provider differs slightly in terms of how they charge, but most utilize an activity-based costs methodology where they charge a fee for every service they perform for you. Most e-commerce fulfillment companies' standard picks and packs fees start from about $2-$3 per order.

Generally, you can determine the total fulfillment costs by adding up all the expenses of a whole fulfillment process. These include:

Warehouse receiving

Storing and managing inventory

Warehouse picking and packing

Standard or custom packaging

Shipping

Return management and processing

For more information on the specifics to fulfillment pricing, read our in-depth article here.
Choosing the Best E-commerce Fulfillment Provider
There is a wealth of e-commerce fulfillment companies, so finding a suitable match can be a challenge. Below are some of the factors to consider when choosing a fulfillment partner.
Order Fulfillment Technology
As an eCommerce entrepreneur, you already have a lot on your hands. You are using different applications, platforms, and digital tools throughout your daily operations, so the last thing you would want to do is partner with a fulfillment firm that uses outdated software. Therefore, you should research the fulfillment software a company you are thinking of working with uses.
Shipping Speeds and Fulfillment & Inventory Accuracy
Customers can abandon an online purchase due to slow delivery times. For this reason, you need to choose a fulfillment company with efficient and effective processes that enable your products to reach customers quickly.

Furthermore, if a package arrives early or on-time but doesn't have the right items, all of the goodwill built with the customer can evaporate quickly. Mistakes will happen from time to time with an outsourced fulfillment provider, but the best fulfillment companies operate with a minimum accepted fulfillment and inventory error rate, and many will back up their quality with a pledge to compensate you if they do make a mistake.
Returns Management
Returns are inevitable in the e-commerce industry. In fact, the eCommerce product return rate stands at around 30% of all items. With such a rate, you don't want a partner who will be hands-off after shipping the product. Although some of the returns are unavoidable, you want to work with a fulfillment company that commits to mitigating controllable returns.
Customer Service and Reviews
When looking at outsourced fulfillment options for your e-commerce store, it is critical to search for companies that have good Google reviews. Also, obtaining references is helpful.

Finally, one of the most overlooked items in fulfillment services selection is making sure the partner has some form of customer service - both for your questions as well as an ability help answer the questions of your customers. Most fulfillment companies do not offer in house customer care divisions, which is unfortunate and could negatively impact your customer's satisfaction.
Why Choose OSW eCommerce Fulfillment?
Efficient eCommerce fulfillment sets your business up for growth, and proper packaging and fast shipment improve your customers' experience encouraging more purchases and online referrals. Luckily, that is exactly what Our Service Works (OSW) provides your business. We are an experienced fulfillment provider with over thirty years in the industry.

Our top-notch order fulfillment software transforms the handling of your fulfillment to meet the needs of today's online retail. You can rest assured of reliable shipping, unmatched flexibility, dynamic integration, full visibility of the entire fulfillment process, and customized packaging. Contact us today for all your warehousing, fulfillment, and shipping services.

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Best Ecommerce Fulfillment Services Providers: Everything You Need to Know - Our Service Works

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An accurate, robust, and highly functioning fulfillment strategy results in positive reviews and happy customers. On the other side of the coin, a fulfillment process filled with mis-shipments, late arrivals of product, and poor customer service will not only tarnish your online reputation but could also result in the failure of your business venture altogether.

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The process of shipping products to a customer on a recurring, pre-determined timeline is referred to as subscription box fulfillment. These recurring shipments can be the same product every time (such as a razor and cartridge replacement), or a newly selected product each shipment (commonly referred to as curated subscription boxes). Subscription boxes have become especially prevalent for food items, grooming, health and beauty products, and fitness products.

While the most common timeframe for delivery of subscription boxes is a monthly schedule, some companies offer other scheduled deliveries, with support for one-off orders as needed. Usually, the subscription boxes are delivered during the same time window each period (such as the last week of each month).

Subscription box fulfillment is significantly more complicated and is uniquely different as compared to traditional fulfillment and presents some distinctive challenges. Most notably, subscription box fulfillment requires the fulfillment staff to have the ability to not only process a large number of orders in a short time window, but also requires fulfillment staff to be able to accurately kit and bundle sets of orders without error.

Due to the variance in monthly staffing needed each month and because of the complexity inherent in fulfilling subscription box orders, many companies opt to use a third-party logistics (3PL) provider for shipping and distribution.

Below, we'll get to talk more about the processes involved in outsourcing subscription box fulfillment, what to look for in a subscription box fulfillment service, and when it's best to outsource this complex fulfillment function.
Subscription Box Fulfillment Steps and Processes
When utilizing a third-party logistics fulfillment company for shipping your subscription boxes, there are several steps that must be planned out to orchestrate flawless deliveries. Below we walk through the most common steps in the subscription box fulfillment process.

Before your purchases are shipped each period, adequate stock must be shipped to the fulfillment company for both immediate shipments and any overflow needed for additional purchases. Receiving inventory is such a critical step in the fulfillment process - so adequate time is required to receive the goods, verify quantities and condition of stock, enter these figures into their warehouse management system (WMS), and physically located the stock on pickable bins within the warehouse.

Each batch of orders must be sent to the fulfillment center well in advance of shipment. Usually, a fulfillment company will have a cut-off time whereby orders can be received up to that point and still be included on the subscription box batch being fulfilled. In some cases, order details will be sent over via a flat file (Excel file or CSV), and in other cases subscription box signups are automatically sent to the fulfillment center by integrating your system with their WMS.

If the company has multiple fulfillment centers, the management system will select the most appropriate warehouse site based on the delivery address and item availability. This shortens transportation times and lowers delivery expenses. For fast delivery, a single order including several goods can be fulfilled from separate warehouse locations.

A fulfillment firm develops a picking list and assigns it to its warehouse staff when it receives an order. The picking team then gathers items that have been ordered. After selecting your goods, they'll be packaged for shipment in regular or personalized packaging.

Some subscription boxes are very simple in nature, requiring only an item or two. But in other cases, kitting and assembly is required in order create a box with a multitude of items. It may be easier for the fulfillment center to produce a batch of boxes that include the same items, whereas individual picking and packing will be required if each box has uniquely different contents.

Creation of an Unboxing Experience

The commitment made by a company in making the experience memorable distinguishes its box from that of other competitors. This involves the use of custom packaging and branded boxes and appealing inserts and complimentary samples.

Unboxing has become such a point of differentiation in e-commerce and has almost become a form of entertainment for consumers. Opening an order is nearly as much about the ceremony as much as it is about the contents, recreating the joy of unwrapping presents on birthdays or Christmas morning. If you adopt this strategy into your packaging and distribution, your company can gain a significant competitive advantage.

After your purchases have been packed, the next step in the process it to ship them to customers. Orders must be delivered to the correct individual. Purchases might be supplied directly to the customer or integrated with other activities to save money and minimize shipment volume.

Bundled purchases are commonly transported by the same carrier and directed to specific locations as needed. It's vital to have a sound tracking system in place when shipping so that you and your customers can keep track of transactions.

Post Shipment Customer Care and Support

It might seem that shipping out the subscription box orders is the final step in the process - but this couldn't be further from the truth. Customer care and support is a vital step in the process that is often overlooked. Customers may have questions about shipment times and arrivals, and any issues or errors must be addressed and correctly promptly to keep customers coming back for more and avoiding the dreaded negative reviews.

Most fulfillment companies do not offer customer care services. Be careful in sourcing a subscription box fulfillment partner that doesn't have the ability to deliver on this key function.
What to Look for in The Best Subscription Box Fulfillment Service? The Right "Fit"
The first piece of advice is to select a 3PL for your subscription boxes that is appropriate in size and scope. Some companies may be just starting out or are smaller in nature, so finding a fulfillment service that is both comfortable with your order volumes and has appropriately priced services is important.

Larger volume subscription services will require more staffing and support to execute on monthly order volumes. In this case, a larger 3PL will most likely be the best fit.
Price Isn't the Only Factor to Consider
When looking for a 3PL, you should look beyond the price of their services. While you may be looking for a low-cost supplier, you should research their essential features, delivery capabilities, and customer service quality before purchasing. Because 3PLs have a significant impact on the quality of your customer service, you must select the one you can trust when you need them the most.

Discount suppliers may end up sending products late, shipping wrong orders, or experiencing various other troubles. Hence, it's critical to take the time to select a firm you can truly rely on for your shipping requirements.
Pay Close Attention to Your Requirements
While looking for a 3PL, you want to work with a firm that is laser-focused on your needs. You want a provider to investigate your unique requirements and inventory and comprehend what is most vital to you as a subscription box company.

Given the increased level of care and customer service you desire to provide your clients, you must collaborate with a firm that shares your values. To maintain a seamless and successful partnership based on accuracy, speed, and dependability, your company and your 3PL must always be on the same page.
When Should You Outsource Subscription Box Fulfillment?
Starting a subscription box service as a side business sounds like a good idea. If you are successful, though, it will quickly grow to the point where it will be too large to operate with the support of friends, family, or part-time staff.

Some analysts believe that the 500-subscriber mark is the moment at which businesses begin seeking outsourcing partners, but oftentimes no single number is a perfect signal for when to outsource. If you're having trouble finding enough personnel in a large enough region to meet your deadlines, it's probably time to think about outsourcing your fulfillment business.
Why Is OSW Best for Subscription Box Fulfillment?
In the subscription box market, the fulfillment process AND customer care follow up is critical. At first, doing everything in-house may appear to be a simple task. After processing multiple batches, however, you will most likely find that outsourcing is the only option. Working with a firm that specializes in subscription fulfillment is crucial.

Subscription fulfillment is fraught with difficulties, ranging from on-time shipment to offering a pleasant unpacking experience for your clients. Our Serviceworks has mastered the subscription box fulfillment process by employing top notch staff, sophisticated technology, and time-tested procedures. Finally, Our Serviceworks is one of the only fulfillment centers that offers fulfillment and customer care under one roof, for a synergistic fulfillment offering that will "wow" your customers.

Do you have a great subscription box idea but need help with fulfillment? Then you are looking at Our Service Works. Contact us today to help you create a service that exceeds the expectations for both your consumers and bottom line!

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Subscription Box Fulfillment Services: What You Need to Know - Our Service Works

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The process of shipping products to a customer on a recurring, pre-determined timeline is referred to as subscription box fulfillment. These recurring shipments can be the same product every time (such as a razor and cartridge replacement), or a newly selected product each shipment (commonly referred to as curated subscription boxes).

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A Guide to Retail Fulfillment Services - Our Service Works

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But a vast number of businesses have needs that extend far beyond the consumer space and into the B2B (business-to-business) ecosystem. These orders,

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Fulfillment Centers vs. Warehouses: How Do They Differ? - Our Service Works

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Fulfillment centers and outsourced warehouses serve as key components of the logistics process. But what are fulfillment centers and warehouses, what

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When you have a good product and a superb website, the next step is to offer total customer satisfaction throughout the buying process. This means an efficient order fulfillment strategy backed by excellent customer service to bolster your brand and differentiate your business. According to statistics, more than 80% of American adults order products online. They will only purchase from the same stores repeatedly if they are satisfied with the brand and the overall service they receive throughout the purchasing, fulfillment, and shipping experience.

Therefore, it's imperative to structure a flawless order fulfillment process for delivering your products to customers.

What Is Order Fulfillment?

Order fulfillment involves the entire process spanning from order placement, packing, and shipping, to delivery of the product ordered from a website by a customer. The process is only considered complete when the customer finally receives the product(s) ordered. Additionally, in some cases the client may decide (for a variety of reasons) to return the product or have questions about the brand. It's important to handle such situations expeditiously and professionally to maintain customer loyalty.

Order fulfillment isn't a one-off process. It involves a series of steps. Efficiency in the handling of these processes determines the success of a business venture. The steps involved include:

Important Steps in the Order Fulfillment Process

Receiving Inventory

The entire process of order fulfillment begins with receiving your products into storage. In fact, receiving is arguably the most important step in the fulfillment process - if you get this step wrong all subsequent steps are at risk. At this point, it's important to ascertain that the products are in excellent condition and received into inventory in the correct quantity. Products should be carefully inspected, barcodes and quantities should be recorded in a warehouse management system (WMS) and then assigned to a specific storage location for later retrieval when ordered.

Warehousing Storage

In some cases, products may be ordered and shipped relatively quickly and in others, storage many be required for an intermediate period prior to being ordered for delivery. Warehouses come in all sizes and conditions, so it's important that your products are stored in an environment most conducive to them and ready for immediately ready for shipment while awaiting orders. Warehousing storage environments range from dry to climate controlled to refrigerated and frozen.

Order Processing

Order processing begins when your customer's order is received into your web shopping cart. These orders are ideally then electronically sent to the and order management system to begin the actual fulfillment process. An efficient and effective order processing system enables instantaneous order receipt and rapid resource deployment to immediately begin the process of fulfilling your orders.

Shopping cart integration is imperative to minimize errors and maximize efficiencies between your online shop and your outsourced order fulfillment company. Integration can be conducted via:

Web service (a method of exchanging information over the Web)

API (an application programming interface which is simply another method of linking two systems together over the Web and may include a third-party integration service like Zapier)

FTP/CSV upload (a more manual method where a CSV file is uploaded for each order and this file is transferred to the fulfillment company)

Many order fulfillment companies utilize sophisticated WMS (warehouse management systems) that have pre-existing integrations with most web stores.

Picking

The picking process is the entire process whereby the warehouse staff prints, pulls, and picks the order and prepares it for shipping. Picking should ideally use a system generated picking slip to select the specific products ordered by the client. This slip identifies the location of each product in the facility and oftentimes uses a barcode scanning technology to ensure the accuracy of each item picked.

Packing

During the packing process, individuals should be trained to select the appropriate quantity and type of void fill materials to provide protection during transit while adding the least additional weight to the overall package. This keeps products well-protected during transit while helping contain overall shipping fees.

Shipping

The shipment method used depends on the destination of the product, targeted receipt time and client preferences. Most companies utilize all the major shipping companies but generally concentrating volumes between them to achieve the best rates. Warehouses located on either coast will have an extended delivery times and expense shipping to opposite end of the country.

Warehouses centrally located are generally able to provide faster, more economical options across the entire country. At this stage, you will also receive electronic shipment confirmation and shipment tracking information to provide to your customer. The order fulfillment process is complete when the customer receives and accepts the product and confirmation of receipt is provided

Returns Processing

Some customers may decide to return products received for any number of reasons. You will need to offer this service as well. Your brand will be well-served to handle returns from your customer with professional, effective, and efficient processes that leave the customer satisfied with overall process and ongoing commitment to your brand.

Customer Service Support

Some customers may have questions during the ordering process or post-sale. Quick responses and guidance will reinforce your brand and build customer loyalty through every interaction. Having great customer support is a must whether you handle this internally or rely on a professional team experienced in order fulfillment.

What Are the Different Order Fulfillment Models?

There are several different order fulfillment models and options available to you as an online merchant. You should choose what works for your individual situation. The more efficient the model, the easier it will be for your business to prosper.

In-House Order Fulfillment Model

In this case, a business employs its people to handle the order fulfillment process. In simple terms, the company receives, stores, packs, and ships the commodities using its employees. The model is ideal for a firm with the capacity to handle all these processes efficiently.

It is mainly an option for small companies that are just starting up or very large ones with sufficient financial scale and operational scope to manage varied functional costs effectively. As the scale of operation increases, most small to mid-sized companies decide to outsource order fulfillment services with a reliable third parties.

The in-house model has ongoing fixed costs and new investments irrespective of order volume or other business conditions. For example, leased costs are fixed under an in-house management, whereas they become variable (you only get charged for what you use) under an outsourced order fulfilment model.

Outsourced Order Fulfillment (3PL)

As a business owner, you may decide to handle the order fulfillment process through third-party logistics (3PL). It could be because you don't have adequate storage space, specialized personnel, and systems to handle the order fulfillment.

Costs associated with this model are almost entirely variable; as your volume increases or decreases, fulfillment expenses will correspondingly increase or decrease. Moreover, this arrangement places the responsibility and accountability for the entire order fulfillment process with your vendor partner, relieving you of fixed financial costs and daily operational responsibility. It will allow you to manage the business relationship with your provider, holding them accountable for operational performance on an ongoing basis. This will allow you to focus on brand marketing, product development and acquisition and overall supplier management.

Drop-Shipping

In drop-shipping, inventory management isn't necessary. Under the drop-shipping model, your product supplier ships orders on an as needed basis. Your cost per unit is significantly higher, but under this methodology you do not have to purchase a bulk of product. Furthermore, you are relying upon a product manufacturer/supplier to fulfill orders to your customers, which comes with risks. However, when businesses are starting up, testing the waters may best be done using this method.

Businesses that want to be hands-off in the order fulfillment process choose this model. As a business owner, your greatest challenge will be to market the goods and bring in company sales. Start-ups prefer this model because it's less costly and involves significantly lower risk.

When you choose this model, you should be aware that you aren't in control of the order fulfillment services. Inefficiency during the shipment process may hurt your brand name.

What Are the Pricing Models for Outsourced Order Fulfillment?

Order fulfillment costs aren't "cookie-cutter". Costs depend on specific factors, including the type of model you choose. If you choose 3PL, the cost includes the expenses involved in receiving the inventory, storage charges, packing costs, and shipment charges. Essentially, the order fulfillment provider charges you a fee for every service they perform for you during the month.

The Main Challenges of Order Fulfillment

The process of order fulfillment comes with its challenges. First, inventory management may become a problem. For instance, the demand for the product may be higher than the rate of production. If customers don't get the products they are looking for, you may lose them to your competitors. To attain success, you should always have adequate stock. A robust inventory management system will guide you through this process. Many 3PL's have cloud-based systems that provide detailed reporting and par-level alerts helping you always maintain the correct amount of stock.

At times, you may also experience the problem of overstocking/understocking. Conduct extensive market research and understand the demand level of the product to adequately stock your product. Alternatively, where the demand is low, a robust marketing campaign can help.

A slow shipping process can also make customers avoid your products. To increase efficiency, you should hire the best order fulfillment services. Order fulfillment companies can generally process orders on a same day basis if they are received by a certain cut-off time, and their relationship with shipping carriers put them in a better position to take advantage of shipping discounts and options and avoid potential problems that arise in the broader business environment. With proper planning, they ensure customers receive their products at the right time.

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Order Fulfillment: Everything You Need to Know for E-commerce - Our Service Works

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When you have a good product and a superb website, the next step is to offer total customer satisfaction throughout the buying process. This means an efficient order fulfillment strategy backed by excellent customer service to bolster your brand and differentiate your business. According to statistics, more than 80% of American adults order products online.

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But when a seller wants to send inventory to an Amazon fulfillment center, it is not a matter of placing it in a box and sending it to a courier. Amazon has multiple requirements that your stock must meet for the fulfillment center to accept it without penalizing you. Some of the rules apply to all stock, and others are specific to categories.

If your business utilizes Amazon's FBA program, it's extremely important to understand how to properly prepare your stock to be injected into Amazon's DC's (distribution centers). This process is commonly referred to as FBA prep and is much a much more involved process than most think.
What is FBA Prep?
FBA prep involves preparing your stock so that it is ready to send into Amazon DC's. The main elements involved in FBA Prep are packaging, labeling, and inspection. It is crucial that you get your FBA prep right; otherwise, Amazon will reject your inventory, and you will incur steep costs to remedy the stock for reinjection into Amazon.

Not only must you prepare your products to meet the rigorous standards of Amazon FBA, but you must also make sure that stock arrives at Amazon undamaged. If damaged stock is sent to Amazon, chances are it could inadvertently be sent to your customers, resulting in potential customer complaints. When such complaints pile up, they ruin your metrics, suppress your listing, and Amazon may even suspend your account.

This article explains more about FBA prep services and why you should consider outsourcing this critical service with professional fulfillment services rather than taking the risk of jeopardizing your status with Amazon.
List of FBA Prep Services
Amazon FBA prep companies aim to perform all the hefty logistics on your behalf. Generally, when using a prep service, you send shipments directly to the prep center's address instead of yours, where all the work is performed to get items ready and shipped to FBA warehouses on your behalf.

However, it is worth noting that each prep center has its own unique service offering and niches they excel in, so you need to choose one that meets your needs.

Some of the common services you can expect at an FBA Prep Center include:

Receiving

Sticker removal

Inspection of goods to ensure product is undamaged

Applying shipping labels

Storage (to help avoid Amazon's storage limitations throughout the year)

Poly bagging

Repackaging

Damaged item handling

Loose product preparation

Items forwarding

Container handling

Expiration labeling

Product tracking technology

Order fulfillment

Shipping Services

Bubble/shrink wrapping

Palletizing

Product assembly

Suffocation warning labels

Import/export management

eCommerce fulfillment

Package design/marketing

Promotional inserts

Why Outsource FBA Prep Services?
Considering the rigorous Amazon's FBA requirements, most online stores need help from experts. Outsourced FBA prep companies have extensive experience in meeting the demands of Amazon, so you can focus on other aspects of your business rather than wasting time labeling product and managing storage limits.

Outsourced FBA prep companies offer a wealth of benefits, including:

Ensuring your shipments meet Amazon FBA requirements

When you outsource FBA prep to experts, they ensure your inventory meets all Amazon's requirements. They have experience working with FBA and are aware of all the requirements involved. You can be sure that your items will be accepted, and your Amazon account does not risk suspension.

Saving your company time by avoiding tedious and laborious tasks

For any business, time remains a precious commodity. It can be a real struggle to get your online business going when receiving deliveries, checking, and prepping them all eats away at your time. There is a wealth of more valuable tasks that need your attention, such as administration, purchasing, and sourcing. Luckily, outsourcing FBA prep services ensure you spend that time elsewhere by taking most of the tedious workload off your hands. You can direct the time towards growing the business further.

Avoiding Amazon's "peak season" pricing

Standard storage pricing at Amazon is typically more expensive than third-party warehousing. Amazon's storage rates also increase significantly during the peak season. Amazon puts more emphasis on moving products than storing excess inventory, and therefore implements a punitive pricing model during peak season that favors companies that do not use the storage space in fulfillment centers much.

Outsourcing FBA prep can help sellers avoid such high costs when longer term storage services are needed by avoiding Amazon's increased storage fees. Furthermore, Amazon Prep centers offer scalability by allowing more storage and processing as the business grows in addition to the peak season.

Eliminating the need for more systems

Getting your items out in an efficient and timely manner requires you to streamline the processes. Meeting Amazon's strict demands will no doubt require the implementation of systems and processes in your shipping function. By working with FBA prep companies, you don't have to develop any systems or processes since the third party takes care of all that on your behalf. Instead, you have extra time and energy to build your business.

Optimizing spend on packaging materials.

If you have already bought, prepped, packaged, and posted an item to Amazon, you know how many different materials go into ensuring that products are properly packaged. Just imagine doing this at scale. You need boxes, labels, bubble wrap, bags, printers, and ink, and missing any of these materials could significantly impact your business. Outsourcing a prep service means all these requirements are off your hands.
How Much Does it Cost to Outsource FBA Prep Services?
For FBA prep, you have three choices, including paying Amazon, doing it yourself, or outsourcing with a third-party prep center. With Amazon, you must consider your monthly shipping and the size of your profit margins. You are eligible only when you meet the minimum threshold of 40 items per month. Even if you meet the threshold, you still must determine if their hefty fees are economical for your business, or if the fees will potentially bring your small margins to zero.

If you decide to do the prep yourself, you will have to factor in costs such as rent, employees, supplies, technology, and management time. Renting a small space will cost you quite a bit by itself ($750 per month at a bare minimum), depending on the location.

Unless your rented warehouse has dock access, you will have to incur lift gate fees when you order from suppliers who ship items on pallets since small spaces don't usually have loading docks. After renting the space, you need to hire one or more employees each at about $2500 or more per month (including benefits. In short, you can easily spend more than $3000 per month doing FBA prep yourself.

When you outsource FBA prep, you only pay for the space you use, a price that is usually lower than renting your own space. You will not encounter lift-gate fees and can enjoy additional discounts if you commit to longer terms. Furthermore, you won't need to hire employees; thus, you can rest assured of faster processing times. The cost of outsourcing FBA prep services with a prep center is significantly less expensive than other options.

FBA Prep centers usually charge the following fees:

Labeling Fees

Prep Fees

Stickering Fees

Box, Bubble Wrap and Pallets Fees

Inspection Fees

Why Choose OSW for Your FBA Prep?
Outsourcing FBA prep service is a great addition to your business. It takes a large part of the process off your hands, frees up your time to focus on other activities, and, more importantly, ensures you meet Amazon's FBA requirements. However, you can only realize these benefits when you work with an experienced partner such as Our Serviceworks (OSW).

Our Serviceworks has over three decades of experience working with local and national companies alike. We understand all the ins and outs of Amazon eCommerce. FBA prep customers take advantage of our competitive storage rates and use our industry expertise for FBA prep.

But perhaps the greatest differentiator between OSW and other Amazon Prep alternatives is our attention to superior customer care. Unlike Amazon, where you'll be lucky to get chat support that addresses your needs, OSW provides customer care services for clients, which complements our fulfillment capabilities. The stakes are high in terms of garnering 5-star reviews from Amazon customers - so you need a capable partner to deliver unparalleled service to ensure customer satisfaction.

Contact OSW today and learn more about warehousing, fulfillment, and shipping services.

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Outsourcing FBA Prep Services: Everything You Need to Know - Our Service Works

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But when a seller wants to send inventory to an Amazon fulfillment center, it is not a matter of placing it in a box and sending it to a courier. Amazon has multiple requirements that your stock must meet for the fulfillment center to accept it without penalizing you.

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Our brand dedication and extensive client knowledge coupled with our exceptional people, efficient processes, and supportive technologies deliver an extraordinary customer experience.

Our Serviceworks becomes the essential link in our client's service equation, helping them develop and sustain brand-loyal customers. This is what makes OSW the best fulfillment and customer support services for your business.

is the operating brand name of Our Data Works, Inc

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Get to Know Our Serviceworks - Branded Outsourced Customer Service

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Our brand dedication and extensive client knowledge coupled with our exceptional people, efficient processes, and supportive technologies deliver an extraordinary customer experience. Our Serviceworks becomes the essential link in our client's service equation, helping them develop and sustain brand-loyal customers. This is what makes OSW the best fulfillment and customer support services for your business.

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Are you looking for an expert partner to grow your company's sales through fulfillment services, warehouse management, commerce, e-commerce, and logistics? If so, then it's time you met Our Serviceworks (OSW), a company with three decades of experience in these areas.

OSW's Fully-integrated Fulfillment and Customer Care Solution

Fulfillment Services

We fully represent your brand. From learning about your business and products to connecting with your customers, we leave no stone unturned. In fact, we maintain 100% accuracy throughout the order fulfillment process. Let us handle all aspects of warehouse management and order fulfillment, from pick and pack to shipment, tracking and all the other logistics involved in getting your products into your customers' hands.

Customer Care

Your customers are our priority. We understand that proper customer management spells the difference between a thriving, and simply surviving in a consumer-driven world. We make sure our customer care team learn to "speak your business" before they are allowed to represent it.

The kind of integration and fulfillment services we offer are your key to the e commerce success you always hoped for. Contact OSW today to get started!

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Integrated Solutions for Fulfillment and Customer Care

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Are you looking for an expert partner to grow your company's sales through fulfillment services, warehouse management, commerce, e-commerce, and logistics? If so, then it's time you met Our Serviceworks (OSW), a company with three decades of experience in these areas. We fully represent your brand.

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Building a great customer service department can't happen overnight - unless you outsource it to experts who already have the technology, skilled staff, and years of experience handling customers just like yours. We learn your industry, products and services, becoming your front-line experts. We adopt your brand personality in all of our interactions with your customers so they feel as if they are talking to your staff. We represent your company, and the brand you built, and we take that responsibility very seriously.

Our full range of inbound call center services are designed to be flexible enough to meet the specific needs of your customers and ensure they receive the right response in a timely manner, every hour, every day! That's complete customer care solutions.

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Get Complete Customer Care Solutions for Your Online Business

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Building a great customer service department can't happen overnight - unless you outsource it to experts who already have the technology, skilled staff, and years of experience handling customers just like yours. We learn your industry, products and services, becoming your front-line experts.

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Order fulfillment is a complex operation requiring intense resources, advanced technology and expertise. Successful online businesses recognize that outsourcing fulfillment services to a expert partner can be more effective, efficient and cheaper than insourcing.

OSW becomes an extension of your brand. We learn about your business and products and connect with your customers throughout the order fulfillment process, fully representing your brand in everything we do. To your customers, we are you, performing expert pick and pack fulfillment services.

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Get complete fulfillment solutions for your business

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Order fulfillment is a complex operation requiring intense resources, advanced technology and expertise. Successful online businesses recognize that outsourcing fulfillment services to a expert partner can be more effective, efficient and cheaper than insourcing. OSW becomes an extension of your brand.

# data[].attributes.attachment_link.readable_text
Order fulfillment is a complex operation requiring intense resources, advanced technology and expertise. Successful online businesses recognize that outsourcing fulfillment services to a expert partner can be more effective, efficient and cheaper than insourcing.

OSW becomes an extension of your brand. We learn about your business and products and connect with your customers throughout the order fulfillment process, fully representing your brand in everything we do. To your customers, we are you, performing expert pick and pack fulfillment services.

# data[].attributes.attachment_link.title
Get complete fulfillment solutions for your business

# data[].attributes.attachment_link.description
Order fulfillment is a complex operation requiring intense resources, advanced technology and expertise. Successful online businesses recognize that outsourcing fulfillment services to a expert partner can be more effective, efficient and cheaper than insourcing. OSW becomes an extension of your brand.