MJ Fulfillment BV

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Happy to provide you with lucrative fulfillment and warehouse possibilities. We ship worldwide!u

Geschiedenis

Choosing our fulfillment service gives merchants the opportunity to covert some of their fixed costs, like rent, heating , space and shipping, and similar, into variable costs — expenses that go up and down in relationship to sales — which in turn can do very good things for cash flow.

Using our fulfillment service for many retailer business owners is an opportunity to outsource many unfamiliar tasks and focus on what they do best.

Ecommerce fulfillment services have a lot to offer retailers in terms of seasonal flexibility, cost reductions, growth, and focus.

When you outsource your fulfillment, you only pay for the space you use. Space requirements tend to fluctuate, so maybe this month you need 50 pallets worth of storage. Next month you may need 300, then the following month 250. By outsourcing fulfillment, you pay only for what you need. On the other hand, maintaining your own space means there are fixed costs regardless of how much space is used at a given point. With a building capacity of 250 pallets, the space would be fully utilized only during certain months, but you’re paying for the full capacity every month. Even if the fixed costs seem acceptable, what happens when you need to store 300 pallets? Those extra 50 pallets have to go somewhere, and the labor to move product temporarily to an alternate location adds up quickly.

Additionally, lease agreements usually entail a fairly lengthy time commitment. Since it isn't always easy to forecast what you'll need that far down the road, the tendency may be to overestimate capacity needs, negatively impacting the bottom line. When you outsource fulfillment, you’re not locked in for any length of time. You pay for what you need when you need it. Outsourcing moves the storage risk from you to the fulfillment provider.

Fulfillment companies usually operate on a fixed per-transaction model when it comes to pick/pack/ship orders, so if you have 1,000 orders a day, multiplying the transaction fee by 1,000 gives you an accurate fulfillment cost. It gives you the freedom to pay only for what you use. Sound familiar?

Now compare that to maintaining an in house fulfillment workforce, or even if YOU personally are doing the work. What is your fulfillment cost to handle 1,000 orders? If volumes are steady at 1,000 orders per day it may still be possible to come up with a close estimate, but you'll have to add in the loaded employee cost, including salary, benefits, and all manner of fixed overhead costs. If volume drops, those salary and overhead costs remain constant, translating into a significantly higher fulfillment cost. And if volume spikes, the additional overtime costs to get those orders out the same day can quickly diminish profit margins.

Of course, you could wait until the next day to catch up, but that only makes the phones ring with customers disappointed that their rush order didn't ship on time. Either way it causes your fulfillment costs to eat into the bottom line, and can result in negative online reviews that harm your reputation. But with a solid fulfillment partner behind you, these same order fluctuations are expected and your service levels remain constant.

Maybe you’re thinking you’ll just ship the orders personally. That's a great way to begin, and if you're doing that right now you are in great company. It translates into a decision either to get into the fulfillment business, or to focus on core competencies. If you are not actively trying to market your product and sell it to retail stores. How could you be out selling if you was always having to ship what you had already sold?

A great fulfillment company will have employees who specialize in specific aspects of the fulfillment process. Different teams are trained to receive inventory, pull orders, etc. so that you have experts guiding your order throughout the process. Companies that handle fulfillment in house find it difficult to be experts on all of it, leading to inefficiencies and higher error rates. Going back to the example of having to get 1,000 orders out in a day when your capacity is 1,000, can your workforce still spend time to accurately receive and put away the new inventory needed to fulfill those orders? Better yet, what if it’s a live container that is floor loaded and has to be unloaded within a certain timeframe? Add in a fluctuating number of product returns and all of a sudden the true labor cost for pick/pack/ship orders just went up another notch.