Is Fulfillment Right For You?
Use this checklist to determine if using Verde’s order fulfillment services are the right choice for you and your brand.
You’re Busy Shipping: You spend most of your work day shipping orders and not growing your brand through marketing efforts. If this is you, then yes, it’s worth your time exploring Verde’s order fulfillment services. If you do not spend most of your time shipping orders, then you should consider increasing marketing efforts until shipping your orders becomes a pain-point for you and your team.
Low-Costs, Low-Margins: The items you sell are low-cost low-margin. Let’s say you sell an item online for $10 retail with a sales margin of 40%. This means that your cost of goods is $6. Unless you package and ship that item yourself, you’ll lose money with fulfillment due to costs. Now, what if you sell an item for $100 retail with a sales margin of 40%? Your cost of goods is $60, giving you plenty of room to pay for fulfillment services and still maintain a good margin.
No Website: Let’s face reality here. If you do not have your website up and running with good traction on your traffic with unique visitors throughout the day, you’re not ready yet. We would love to help you, but not until you have sales and are just trying to keep up with them. Until that time, you’re best doing it yourself or you stand a chance of going into debt too quickly and that’s not good for anyone.
Too Many Touches: If your products require many touches in order to assemble, etc., that can be costly from a fulfillment point of view. Sure Verde can do this work for you, but unless you have margins built into your products to absorb that assembly or kitting cost, you’re better off doing it yourself. Many clients with assembly requirements have it completed at the factory level to keep costs down on the fulfillment side.
Cost of Goods: Do you know what the landed cost for your products are? Did you build in fulfillment costs and inland transportation costs? If you did not, you have margin erosion that could potentially sink your brand ship. If you have a product that is price sensitive in a competitive market, you may have to hit certain price points, and without knowing your cost of goods and true margins, you’re better off doing your own shipping until you can scale your business.
Knowing all of this, if you feel your brand is in a place where your business model can handle Verde’s order fulfillment services, then we would love to chat with you further. We consult with brands all the time to help them determine the cost of fulfillment impact on their business, so feel free to ask.