Your Ideal Order Fulfilment Partner
Technological advancements like robotics and automated systems make fulfilment processes faster and more efficient.
In today’s fast-paced market, choosing the right fulfilment partner can make or break your business. The ideal partner ensures your operations run smoothly, helping you meet customer expectations effortlessly. Here, we explore the key qualities to look for in a fulfilment partner and how they can drive growth and efficiency for your business.
The Role & Types of Fulfilment Partners
With almost 3 billion online shoppers globally (33% of the world’s population), ecommerce experiences rapid growth in all areas, with sales having exceeded $4.1 trillion by the end of 2024. Fast-changing technologies and evolving customer demand drive this shift, often making it difficult for a business to keep the shipping standards up-to-date: ensuring next-day delivery, using eco-friendly packaging and offering multiple delivery options. That is where the fulfilment partners come in handy.
Speaking specifically, fulfilment partners (who act as intermediaries between business and customers) assist eshops in managing the logistics of orders, warehousing, customer service, quality control, and shipping, thereby helping the products get to the customer most efficiently.
Picking the right partner can save you the most valuable resources – time, energy, and, most importantly, money. Look at the Bigblue and Unbottled duo: less than a year after hiring a fulfilment partner, Unbottled’s sales grew from 500 to 25,000 monthly. That’s quite impressive, isn’t it?
At the end of the day, businesses need more than efficiency when it comes to shipping. Fulfilment partners make it happen by streamlining operations, ensuring timely deliveries, delighted customers, and hassle-free shopping experiences. That’s precisely how ventures can reduce operational inefficiencies, minimise errors in order handling, and expedite delivery time by outsourcing logistics to experts. So, which types of fulfilment partners are out there?
#1 Third-Party Logistics (3PL)
One way to ensure delivery efficiency is by hiring a Third-Party Logistics (3PL) service, to manage various aspects of the supply chain: receiving payment in different currencies, warehousing, packing, shipping and managing returns. 3PLs also bring many benefits. For instance, they can reduce shipping costs by dealing with many companies at once, and it has advanced technologies, such as robotics and warehouse management systems (WMS), that streamline operations faster and minimise risks.
One stand-out feature of 3PL is its international network, which allows businesses to expand into global markets seamlessly. How do they do it? 3PLs typically have experienced customs specialists who know international trade regulations, ensuring your shipments meet all compliance requirements for smooth cross-border operations.
Also, global trade is often impacted by geopolitical tensions, natural disasters, and abrupt market changes. 3PLs collaborate with clients to identify potential risks and create comprehensive plans to safeguard business continuity. Their proactive risk management strategies help clients to overcome challenges and sustain a resilient supply chain.
Additionally, organisations can respond to shifting consumer demands and preferences with greater speed and agility by leveraging 3PL services. 3PLs offer scalable storage solutions, same — or next-day shipping, and tailored services, such as special handling for seasonal products or temperature-sensitive items. They also make it easier to enter new markets and reach a broader international audience without delay.
However, one must be aware of the issues that may come alongside, such as difficulty following the orders’ journey. It may be time-consuming for a business to monitor 3PL quality regularly and ensure that the provider meets its service standards. To overcome this issue, businesses can establish key performance indicators (KPIs) to monitor vendor performance regularly. Companies can monitor on-time delivery rate, order accuracy rate, shipping speed, warehouse turnover rate, customer feedback score, and many more.
#2 In-house Fulfilment
Another way of establishing a delivery chain is by introducing in-house fulfilment, which manages logistics internally. This approach offers complete control over operations and has advantages, such as full oversight of shipping processes and quality control, higher flexibility in customising business processes, and direct customer interaction.
In-house fulfilment is quite popular, with 40% of retailers using it. Amazon continues to manage a significant portion of its fulfilment in-house. This allows them to maintain control over their delivery times, optimise processes with their technology, and offer services like Amazon Prime’s fast delivery options.
Similarly, Apple operates a mix of in-house fulfilment and third-party logistics, particularly for its online store and retail locations. Managing fulfilment in-house allows them to control stock levels across different regions, optimise shipping for product launches, and maintain consistent customer service quality, which is crucial for their premium brand image.
#3 Dropshipping
There is also dropshipping, the ultimate “no inventory, no problem” solution, in which an order is shipped directly from the supplier to the customer. This model suits online retailers due to its low upfront investment, no need for keeping stock, a warehouse, and wide product range. The dropshipping service manages all logistics and delivery, shipping products directly from the manufacturer to the customer. This allows online stores to sell without investing in warehousing, storage, or last-mile logistics. Moreover, the online store is not required to purchase goods in bulk, paying manufacturers only after customers complete their orders.
There are some drawbacks to it, though. Things can quickly become overcomplicated, as different third parties have different shipping, billing, and processing conditions. You can use a unified order management system (OMS) or a logistics platform that can integrate multiple third-party systems. This can help consolidate shipping, billing, and processing.
Key Factors to Consider When Choosing a Fulfilment Partner
Choosing the right fulfilment partner might be tricky, as there are pros and cons to each of the three models. Here’s how to ensure your partner matches your business perfectly:
Select a partner that aligns with your business needs. Consider the type of products you sell, order volumes, and any specific handling requirements (e.g., temperature-sensitive items like fresh produce or pharmaceutical products). My experience shows that a partner experienced in managing similar products is more likely to deliver the best results. According to a McKinsey study, 70% of businesses report that selecting the right fulfilment partner directly impacts customer satisfaction, highlighting the importance of aligning partners with business needs.
Another thing to consider is scalability: as your business grows, so will your fulfilment needs. A scalable partner can handle fluctuations in demand, such as seasonal spikes or rapid growth, without compromising service quality. If your business expects a surge in orders, ensure your partner can seamlessly manage the increased demand.
Plus, look for a fulfilment service with enough room for customisation. Many ecommerce brands invest heavily in packaging as it is the first physical interaction between the brand and the customer. Tailored fulfilment services enhance the customer experience and strengthen your brand identity.
One example of a brand that has nailed personalisation is Glossier. A small business that turned into a billion-dollar brand because of e-commerce. They are well-known for their personalised packaging. Glossier’s packaging is simple but stylish: pink boxes, hand-written notes, and tissue paper help create a strong emotional connection with customers and reinforce the direct-to-consumer model. In fact, 41% of consumers indicate that branded packaging encourages future orders, and 52% are more likely to make repeat purchases from retailers offering premium packaging.
The Future of Fulfilment is behind AI and Automation
The ecommerce industry rapidly evolves, with online retail sales climbing steadily yearly. The upward trend is expected to continue, with sales reaching $8 trillion by 2027.
Global logistics evolve alongside two key trends: technology and sustainability. Technological advancements, for instance, make fulfilment processes faster and more efficient. Key innovations include automation, with robotics and automated systems being used for picking, packing and sorting. They help reduce costs and improve overall productivity. One example is Digit — a humanoid robot introduced to the industry in 2023 and is now used in Amazon US warehouses.
Artificial intelligence also opens up unique opportunities for logistics and supply chain management. For example, AI-driven analytics help optimise inventory, predict demand trends, and reduce errors. According to Maersk, AI technologies, such as digital twins, boost logistics performance by creating virtual models of trucks, warehouses, or other physical objects. This helps identify issues in real time and speed up responses. Companies like Amazon and FedEx already use AI for forecasting, inventory management, route planning, and operating automated equipment.
Similarly, sustainability goes hand in hand with technology. Countries declare their commitment to reducing greenhouse gases and carbon footprints. The US government has set ambitious goals to reduce greenhouse gas emissions by 61% to 66% by 2035, aiming for net-zero emissions by 2050. China is said to reach net-zero emissions by 2060, and the EU also aims for net-zero emissions by 2050. Fulfilment partners are stepping up with sustainable practices like using biodegradable packaging, optimising delivery routes, leaning towards electric and hybrid fleets, and switching to plastic-free practices.
Fulfilment partnerships are becoming more customer-focused and integrated as consumer demands evolve. Shoppers now expect faster delivery, detailed tracking, seamless returns, and same-day delivery. Businesses that embrace these trends, whether through 3PLs, in-house operations, or dropshipping, can enhance customer satisfaction and drive success.
