Guide to Online Fulfillment

Stay in control of online fulfillment with do-it-yourself solutions

If your volume is low and your need for giving good customer service high, do-it-yourself product fulfillment is a good option, particularly when you're just starting out.

I recommend: If you're a do-it-yourselfer, you'll need to turn your garage, basement or office into a mock warehouse. Simple consumer-grade shelving from stores like The Container Store should be adequate in organizing your inventory. Be sure to also develop a relationship with your local FedEx Kinko's or UPS Store, as you'll be making lots of trips for packing supplies and drop-offs in your quest for successful product fulfillment. Finally, consider an online solution, such as one offered by UPS and its affiliates, to help you manage and track orders.

Cut online fulfillment costs by partnering with local suppliers

If you don't want to tie up your money, or fill your office, with massive amounts of inventory, consider entering into a partnership with local suppliers or bricks-and-mortar retailers. You can call in orders, and your partners can ship them locally for you, saving on shipping costs, eliminating storage needs and providing business to both of you.

I recommend: If you can't locate locally based partners, consider partnering instead with web-based partners via affiliate programs. When you partner with companies like Bravisa, you can sell their merchandise with your own mark-ups on your own ecommerce website; when a customer makes a purchase, they provide complete order fulfillment services for you. Another option: License products directly from their inventors or manufacturers, and arrange to have the licensor handle product fulfillment; you can network with licensors online via the International Licensing Industry Merchandisers' Association.

Use drop shipping for product fulfillment, putting shipping in wholesalers' hands

For a fee, you can send orders for pre-specified products directly to your wholesalers, who will handle ecommerce fulfillment services for you. And because you only pay for products that you sell, you avoid spending money on overstock.

I recommend: Popular drop shipping companies like CommerceHub and Doba offer supply-on-demand services that virtually automate ecommerce fulfillment.  Find more drop-shipping services at Business.com.

For full-service online fulfillment solutions, turn to fulfillment houses

While they tend to be more expensive than other online fulfillment solutions, fulfillment companies offer complete turnkey ecommerce fulfillment services. They'll keep your inventory in stock, they'll ship it in your boxes and with your labels, and most will even offer extra services, such as back-end integration with your online store.

I recommend: Fulfillment houses like Webgistix, Fulfillment Works, EchoData and ProLog Logistics offer complete order fulfillment services and solutions.