E-commerce is getting easier for new entrants every year. Shop systems like Shopify make it quick and easy to set up an online shop without any special technical knowledge. This is nothing new, but one of the most exciting aspects is still: how do companies manage to ship their products quickly and reliably to customers all over the world? What are the challenges, what are the dangers, and is it all worth it?
In this article, we take a look at the topic of international fulfilment in combination with Shopify Plus as a solution to ensure scalability in ecommerce.
What is fulfilment and what does it mean in the e-commerce environment?
A quick summary: Fulfilment is the process of storing, picking, packing and shipping products to your customers. In e-commerce, this means that as an online retailer, you outsource your inventory to an external third party, such as a fulfilment centre. The fulfilment centre handles the entire shipping process. For online merchants, this means a reduction in their own resources and an increase in the efficiency of the shipping process.
3 key steps for international shipping
But before you try to sell goods to South America or stir up the North American market, there are at least 3 important steps to consider.
#1 An analysis of needs
One of the first things you should consider is whether there is a need for your product in your new target market. Although it almost always sounds extremely tempting to simply open up new markets, one possible hurdle that can make entry more difficult is an existing supplier of your product niche.
To help you analyse your needs, there are comprehensive analysis tools such as Helium 10. Other factors relevant to your success include the need for advice on your products and, of course, regulatory requirements.
#2 Check the regulations of your destination country
For example, you may have done a needs analysis and found that the UK is an excellent opportunity for you to sell your products. But wait, not so fast. Many countries - and especially areas of the UK since Brexit - have high regulatory barriers that make it difficult to get permission to sell.
The food market is a good example of this. The CE mark is sufficient to sell food throughout the EU, but it is completely irrelevant in the rest of the world. Each economic area now has its own certificates. This is where a high level of expertise is required, as legal protection can be quite complex.
#3 Taxes and customs
Finally, it is important to address the issue of duties and taxes, as these charges can quickly wipe out a product's entire margin.
Although there are no import duties in the Schengen area, the European One-Stop Shop (OSS) means that VAT on the consumption of goods must always be paid in the country where the consumption takes place. Beyond Europe's borders, the situation becomes even more complex.
In summary, a needs analysis can be easily carried out by any online retailer. But when it comes to international approvals or tax and customs issues, global trade quickly becomes complex. Fulfilment experts become essential - and it's not 'just' about shipping your product.
Scalability through e-commerce fulfilment
Fulfilment is a critical issue at the enterprise level of online retailing. Once you have successfully launched your product in an international market, it is important to set standards of service and quality to ensure customer satisfaction and differentiate your business from the competition.
While this may be possible on its own for smaller order volumes, it is hardly possible on its own for large order volumes and international deliveries.
Shipping and logistics can quickly become a bottleneck that ultimately affects your customers' shopping experience. Optimised fulfilment logistics is therefore not only an important sales argument, but also a clear competitive advantage.
How can you further optimise your fulfilment logistics?
For those who already rely on fulfilment in e-commerce, the question is how to optimise it further. This makes sense, because small improvements can have a big impact on larger sales and order volumes. In terms of customer satisfaction and, ultimately, your bottom line. So how do you go about it?
Which KPIs are useful?
To measure and improve the performance of your logistics processes, you need to be able to evaluate them. This requires measurability and the introduction and collection of certain KPIs. You should therefore keep an eye on the following indicators in order to identify potential for further optimisation measures.
- Turnaround time
- Error rates
- Delivery times
These metrics can be further broken down to measure, for example, lead times between order entry and picking, and between shipping and delivery. Each metric should represent a target that you can optimise. Error rates can also be defined in more detail. How often is the wrong product packed? How often is the wrong product shipped? How often are packages damaged?
Remember to include customer feedback in the evaluation, this can give you some more important insights.
Choosing the right fulfilment partner
However, to save time and your own nerves, professional fulfilment services are almost essential. Not only can they store your products, but they can also process orders quickly and reliably, and help you with needs analysis, legal issues and complex taxation.
It gets particularly interesting when you consider the connection between Shopify and professional fulfilment. As one of the leading e-commerce platforms, Shopify also offers a wide range of features and extensions to simplify, automate and optimise the shipping process.
Shopify Plus, in combination with a professional fulfilment partner, allows you to holistically develop your logistics on an international scale. This is particularly suitable for enterprise-level businesses, as fulfilment partners can communicate directly with your Shopify store via a software interface. You can track shipping status and manage orders centrally through the Shopify dashboard.
When choosing a fulfilment partner, it is also important to find out about the terms and conditions. What experience and expertise does the fulfilment partner have, are there references and customer feedback, and does the partner meet your specific requirements? Terms and conditions and pricing should be clear and transparent, as should quality criteria, minimum standards and acceptable error rates.
The benefits of this solution are obvious: You save time and resources by automating the entire shipping process. At the same time, you benefit from greater efficiency and improved customer satisfaction, as orders are shipped faster and more reliably. International fulfilment specialists are particularly familiar with national circumstances and challenges in logistics. Relying on their experience can save you a lot of resources, energy and money, which you can use to focus on your core business and drive your growth strategy.
Shopify Plus and fulfilment
One of the biggest advantages of using Shopify Plus with an international fulfilment partner is the flexibility. In contrast, Amazon FBA has very strict rules and branding is rather limited, but with Shopify Plus you can stand out from the crowd. The interface connection gives you a free choice of fulfilment partners. This is an absolute advantage, but it is even more important to choose carefully.
Experience, reputation, geographical coverage and ability to meet your specific requirements should be at the heart of your decision.
International fulfilment - a key success factor in e-commerce
Especially at the enterprise level, international fulfilment is a key aspect of scaling an already established business. Shopify Plus offers a relatively flexible way to find the right strategic partners and integrate them seamlessly without overshadowing your brand. The biggest benefits are in optimising your own logistics, from warehousing to picking to shipping, in terms of cost, efficiency and quality, and in finding strong and reliable fulfilment partners where needed.
However, it is important to be careful in your search. Depending on the markets you want to serve, the products you offer, and your branding and error-tolerance requirements, you should discuss each fulfilment provider in detail. If you are happy with the terms and conditions, then you are ready to embark on a strategy to grow your online business.