Two of the most important factors that customers will consider before purchasing from an ecommerce brand are shipping costs and delivery speed. Amazon has set the industry standard with free 2-day shipping. If the best your business can do is $14.99 for shipping — that takes a week to arrive — then (unsurprisingly) shoppers will be less likely to purchase from you.
Critical metrics like average order value (AOV) and cart abandonment track pretty closely with shipping speed and costs. If shipping costs are too high, potential customers will look someplace else for what they need.
Fortunately, if you partner with a 3PL like ShipBob, you can reduce your shipping rates and store inventory in one or multiple locations across the US. This way, you can attract more customers and improve AOV.
ShipBob accomplishes this for thousands of direct-to-consumer brands through our distributed inventory system. With a network of fulfillment centers scattered across all corners of the US, brands can store their inventory at any of them.
If your customers live primarily on the East Coast, then shipping from a single Colorado-based fulfillment center isn’t optimal. With ShipBob, you have the opportunity to ship from our East Coast fulfillment center, which means shorter shipping distances and better rates.
Hear from Colorado brands that use ShipBob order fulfillment centers
Colorado-based Fulfillment & Retail Manager Lindsay Louise of Synchro now saves a lot of money and ships faster by shipping out of 2 of ShipBob’s fulfillment centers. They use the locations that optimize and reduce the distance traveled to get their products into their customers’ hands faster. They now offer 2-day shipping via ground to a majority of their customer base.
“We definitely see benefits with ShipBob’s 2-day shipping capabilities. With Amazon Prime and shoppers expecting 2-day shipping at this point, it’s definitely being chosen when it’s offered on our store.”
Lindsay Louise, Fulfillment & Retail Manager at Synchro
Outsourced fulfillment services in Colorado
Instead of choosing a fulfillment center that only operates out of Colorado, ShipBob offers multiple fulfillment center locations across the US. This allows you to ship more efficiently and expand strategically as you grow. Here’s how it works.
- Use your data to see where your customers live. We can provide a time in transit analysis and do the leg work for you.
- Go through a dedicated implementation process to configure settings for your business.
- Easily connect your store to ShipBob’s platform using our easy-to-use dashboard.
- Send your inventory to whichever ShipBob fulfillment center(s) correlate strongly with your customer base. For example, if half of your customers live in California and half live in New York, you could ship from our Moreno Valley, CA and Bethlehem, Pennsylvania fulfillment centers.
- With your store connected, ShipBob automatically receives a notification each time an order is placed, sending it to the fulfillment center closest to your customer, and our team picks, packs, and ships the order.
- You can monitor the entire process and the shipment’s status from your dashboard, and tracking info is forwarded to the customer as well.
- View detailed distribution metrics on transit times, optimal inventory locations, and customer trends so you can make the best decisions for your business.
Full visibility into your orders
ShipBob handles every part of the fulfillment process, from the moment an order is placed to when it arrives at the customer’s door, but we also provide complete visibility into the entire process. You can view outstanding orders and track them in real-time. We also have best-in-class support if you need help resolving any issues.
Monitor and replenish stock levels with ease
No more mismatched ecommerce inventory levels or stockouts! With ShipBob, your inventory is kept safe and secure, inventory counts are updated in real-time, and you can prevent stockouts by setting reorder points and getting automatic notification when it’s time to restock a product. This will ensure you always have the right amount of the right product, seasonal or year-round.
Integrate with your current ecommerce stack
ShipBob is a technology-first 3PL order fulfillment provider. Our proprietary software easily integrates with a host of top ecommerce solutions. From ecommerce platforms and online stores like BigCommerce, Shopify, Amazon, WooCommerce, and Squarespace to crowdfunding platforms, packaging solutions, and more.
ShipBob is a 3PL built specifically for ecommerce. Our distribution system, integrations, and platform are all geared towards ecommerce vendors. We also bring a track record of success: we have helped thousands of clients ship millions of products all over the world. Here are a few success stories:
Order volume grows faster
There’s typically only so many orders that you can fulfill in-house before your process gets overburdened, but with a 3PL you instantly adopt the infrastructure and resources to ship as much as you can (and many businesses grow faster as a result).
For example, hiking company Kula Cloth was devoting huge resources to in-house fulfillment, and once they switched over to ShipBob they quickly tripled their order volume, all while spending much less time on fulfillment.
Customers abandon fewer carts
One of the biggest drivers of shopping cart abandonment is shipping costs. When you bring down your shipping costs, there’s a good chance that you’ll see an uptick in sales conversions. Take the example of weighted blanket company My Calm Blanket, who saw their cart abandonment rate drop by 18% after partnering with ShipBob.
Shipping turnarounds are sped up
Due to lack of expertise, manpower, and infrastructure, in-house fulfillment can move slowly and inefficiently. With ShipBob, the entire process is automated and expedited, and your order turnaround time will be shorter than ever.
After outsourcing ecommerce fulfillment to ShipBob, luxury pillow brand Doris Sleep now ships 99.7% of orders the same day that they’re placed — all while maintaining their brand integrity.
How do I know if it’s time to outsource fulfillment to a 3PL
Ecommerce businesses grow at different rates, so what’s the sweet spot for when to outsource fulfillment to a 3PL? Wait too long and you may miss out on potential revenue. Do it too soon and you’ll devote significant money to fulfillment without having the underlying order volume to make it worthwhile.
The right time for most businesses is when they start encountering problems with fulfillment that a 3PL can solve. Here are some examples:
- You want faster delivery times, but your Colorado-based fulfillment center is located too far from your customer base to offer fast shipping at a decent margin.
- You and your team spend a ton of time on fulfillment, and it takes away from your ability to devote energy to other aspects of your business.
- Your orders are quickly increasing and your fulfillment team can’t scale fast enough.
- You want to offer two-day shipping for all or most ecommerce orders.
- Your orders rapidly increase during certain parts of the year and you need help handling the influx.
If the above fulfillment needs match your ecommerce business, a fulfillment company such as ShipBob can help. Whether you need better ecommerce warehousing, a new inventory management system, or just want to lower fulfillment costs and storage fees, ShipBob has fulfillment services for you.
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