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Shopify has become a tremendous resource for small businesses that need a robust e-commerce shopping cart solution. In fact, over 600,000 merchants use Shopify totaling over $72 billion dollars in sales! Selling your product, of course, is only half of the battle – making sure it gets to your customers on-time and accurately is just as vital to long-term success. That’s why it’s important to work out your shipping logistics right from the start.
Most small businesses use a method called “outsourced fulfillment.” These warehouses can handle a variety of tasks for e-commerce organizations. From storing your product, to shipping and tracking it, they can be a useful resource instead of shipping orders yourself. But how do you know who you can trust with your business? There are several places you can look for good reviews.
Of course, one option is to use Shopify itself for fulfillment. In June 2019, Shopify announced that it will be offering its own fulfillment network to compete with Amazon. This may be a very good option for some companies, as Shopify has a lot of data on the inventory and order histories of its customers. However, some believe that this may not be the best thing for Shopify to do in the long run. First and foremost, Shopify hasn’t recorded a profit in its main line of business, which is quite troubling for many investors. Second, launching into another altogether different business segment is very risky, especially when the business they’re jumping into is not only highly competitive but also very low margin business. With all of these factors, it may not be the best option to partner with Shopify for fulfillment. Luckily, there are a number of alternatives.
One place to search for fulfillment companies that integrate with Shopify is on the Shopify site itself. They currently have 29 different apps dedicated to helping small businesses with fulfillment. Each app is reviewed on the 5-star system and when you click on the icon, you get a brief run-down of what they’re about.
Not every app will be appropriate for every industry. That’s why it’s critical you do your homework prior to taking the leap with any individual option.
Another great spot to look for information on fulfillment companies is the shopify discussion forums. There are pages and pages on fulfillment. This is a powerful way to search for the best companies because you’ll get opinions and ideas from other “fellow” Shopify merchants, which could potentially be worth its weight in gold.
If you can’t find what you are looking for, you can always start your own thread and check it periodically for comments – but be careful. Sometimes professional fulfillment companies will create or answer posts, so you have to be a discerning judge of the comments. In order to view the forum, you have to create an account and log in.
Shopify also recommends three major fulfillment companies on your shipping settings page: Amazon, Rakuten Super Logistics and Shipwire. These are three of the largest fulfillment companies out there today, but they may not be the best fit for your company even though they’re recommended by Shopify. First and foremost, while all three of these companies offer multiple locations for a wide network of shipping options, they also prefer working with larger customers that ship higher volumes of orders (generally over 1,000 orders per month). Amazon is more lenient and doesn’t have the strict minimums of the three, however Amazon’s pricing structure is higher than most fulfillment providers. Be careful of the other two recommended solutions, as Shipwire garnered a 2.6 out of 5 stars and Rakuten earned a 3.7 (on only 6 total reviews though).
Thankfully, Shopify allows you to work with the fulfillment provider of your choice. As long as the warehouse you are using can process orders by email, Shopify will allow you to use anybody. However, if your business is more technologically savvy, you can also develop a custom app through an expert Shopify API developer.
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