Friday, 20 Aug 2021

4 Fulfillment Models in E-commerce Businesses Usually Do by Businesses

Apparently, the existence of this pandemic did not dampen developments in the e-commerce business world. The skyrocketing e-commerce business also certainly brings fresh air to third party services such as Medan fulfillment services. Speaking of fulfillment, do you know what business models are usually used by e-commerce players? Let’s see more!

E-commerce at a glance

The existence of digital services in various sectors or joints of human life has proven to make things easier. The process that was initially complicated also became easier. Not only consumers, but business owners can do everything more practically. Even the retail business is currently not spared from the internet and is starting to develop its wings with e-commerce. It’s no wonder that in the end, third parties such as fulfillment services in Indonesia are growing rapidly. In the end, people who hear the word e-commerce are always associated with fulfillment services. The types of e-commerce businesses are also very diverse, they are B2B, B2C, C3C, C3B, and e-commerce public administration. The types of revenue are also very diverse, namely dropshipping, wholesaling, private label and manufacturing, white labeling, and e-commerce subscriptions. Apparently, each type of revenue can be helped by the existence of warehousing and fulfillment services. They become the party who has the duty to handle as part of the ongoing supply chain process.

Fulfillment Model in E-Commerce

1. Dropshipping

Dropshipping started to boom after the existence of a business that can be done with just a cellphone or gadget. Moreover, the presence of fulfillment Medan makes everything easier. Dropshipping allows you as a seller not to process stock items. This model is very simple because the entire inventory is managed by the supplier.

You as a dropshipper only need to place an order with the supplier if there are orders that come in from consumers. After that, the goods will be sent directly from the warehouse that is the supplier partner. If the process is like that, then you as a seller do not need to store anything in the house. Just market the product vigorously and everything will be right away.

Despite the many advantages, but you also need to know that this system has some drawbacks. Most importantly, you have no control or delivery and fulfillment. It is possible if the supplier makes a mistake and disappoints your customer. In fact, you are struggling to maintain their trust

In addition, those of you who do not have any stock or inventory, also cannot know for sure how the availability of goods from the supplier is. It will be very unfortunate if you are diligent in marketing products whose stock is running low. In the end, there were a lot of incoming orders but the capacity from the supplier was lacking.

2. Wholesaling and Warehousing

Other business systems that Medan fulfillment services can also assist are Wholesaling and warehousing. This system requires a lot of initial investment. The business people must also be smart in managing stock so that the goods in the warehouse are well-stocked. They can also arrange delivery of orders to completion.

Compared with selling products to consumers who buy them in retail or individually. Business wholesalers more often get orders from other business people. This order is of course in large quantities and provides high profits. It’s just that wholesalers can’t freely give prices because there must be a margin with retail.

If you have an interest in opening this kind of business, there are many things to think about. One of the most important is the warehouse or storage of goods. Unfortunately, buying a warehouse independently is complicated and requires a lot of money. Therefore, many wholesale business people use warehousing services.

They also usually take part in taking full service from Surabaya’s fulfillment service, until the final stage, which is product delivery. That way, businesses only need to think about how to market their products better. Fulfillment Medan will also carry out stock management reporting in real time.

3. Private Label and White Label

Those of you who are new to the world of e-commerce may feel confused about what private label and white label mean. These two terms are used as a designation that refers to products rebranded by retailers. White label itself is a product made by a factory that is distributed to several retailers.

An example of a white label scheme, for example, is that there is a factory that produces a shampoo. Then this shampoo is sold at 10 different retailers. Later, the retailers added a little touch of their own and gave their own branding. After that, the products that have been rebranded will be marketed as retail products on the market.

This differentiated product is then called private label. This means that the product has become the exclusive right of the retailer who sells it. They are free to modify this product according to the standards and branding strategies they use. No wonder if in the end this product was given another label, name, and brand identity.

There are times when retailers use warehousing and fulfillment services to store goods that are marketable. Fulfillment Medan can save costs because building a warehouse requires a larger budget. Especially if the retailer is still in the beginner stage, it will definitely be very difficult to bear.

Subscription E-Commerce

Subscription e-commerce is used to refer to businesses with a subscription model. Business people who take this path will offer consumers to subscribe to the products they sell. Most customers who take this service are satisfied because they don’t have to make repeated orders.

Consumers only need to order once, and later the product will be directly sent regularly to the outlets or stores that the client has. These items can also be taken from the warehouse provided by fulfillment services. This is natural, because most businesses engaged in this field use fulfillment warehouses and delivery services to make it more practical.

Business owners who use Medan’s fulfillment service only need to provide a delivery schedule. Later, they will be the ones who will help the process to completion. In the end, business owners can focus on handling various other problems that exist in the upstream supply chain. Some examples of these problems are related to the production process.

However, in choosing Medan fulfillment services, business people should not be careless. There are many things that must be considered in order to get excellent service and according to your budget and needs. This is important to do, because errors in fulfillment services will adversely affect the business being run.

That’s some information related to the fulfillment method that is usually done by entrepreneurs. Everything can run smoothly and continue to grow through the existence of e-commerce. It is proper for entrepreneurs to keep abreast of the times so that the products they market are not less competitive with other products.