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Stories / How Can Order Fulfillment Services Help Cut Costs?

How Can Order Fulfillment Services Help Cut Costs?

Running a business can be a complicated affair, even at the best of time, and managing inventory shouldn't make it even more so. Especially when you’re dealing with skyrocketing warehouse fees and opaque shipping costs, that are putting a strain on your bottom line. At Ziing, we know hidden fees aren’t something you want to be surprised with. And that it’s a well known secret that there are hidden costs when it comes to “free” storage and inventory management. That's why we're here to show you how order fulfillment services can be your secret weapon for cutting costs and boosting efficiency.

We believe that transparency should be the standard in order fulfillment services, and yet there still is the game of "guess the storage cost" with some fulfillment centers. Instead of clear, separate pricing for storage and shipping, there’s a catch, and unless you’re reading all the fine print and T&Cs, you’ll be caught unawares. 

Instead, let us take you behind the myth of those enticing first-month deals and show you how they can quickly turn into hidden expenses.


The Storage vs. Shipping Showdown: Unveiling the Hidden Costs

Whether you’re just starting out in the eCommerce world, or you’re growing and tired of relying on self-fulfillment, storing your product feels like warehouse Tetris. You’re either finding ways to creatively fit inventory into a local space that just won't budge, or trying to fit all of your product into a storage/fulfillment facility without breaking the bank. If you try to shift, and/or rearrange, you end up accruing some new cost. It’s tough finding the balance between having enough product to sell, and the space to hold it, without it getting too expensive. We get it. Storage costs can be a major drain on your bottom line. 


The "Free" Storage Myth: Let's Talk About Bob

Imagine Bob, a friendly entrepreneur with a booming business. Bob's current 3PL fulfillment center offers "free" storage for the first 30 days. Sounds great, right? But what happens if Bob's amazing product doesn't fly off the shelves in a month? Suddenly, those "free" days turn into hidden storage fees, amortizing the value of the “free” days moving forward, and slowing down Bob's cash flow. Here's the secret: there's rarely such a thing as a free lunch (or free storage!).

The reality is that some fulfillment centers might be playing a sneaky game. They shroud their pricing in mystery, leaving you with a nagging suspicion that you might be overpaying. They may advertise low or “free” storage fees, but it’s based on you moving a certain amount of product per month. If it doesn’t fly off the shelves, or you’ve over-ordered, and now have too much and can’t sell it, it’s what’s referred to as dead stock. Fulfillment centres don’t mind dead stock, but you should.

The more inventory you have, the more you’ll pay to house items that won’t generate you any profit, and the less room you have for new products. So you have to offload the old stuff at a loss, and/or lease more space. Then, you start paying more to hold all of your inventory, which seemed so much more manageable a month before. That’s just from the inventory management perspective. 


Fulfillment and Shipping Bait and Switch

In terms of order fulfillment, which is another component that is included in a 3PL partnership, the price you pay isn’t entirely honest. What they don't tell you is those prices might be hiding hefty shipping costs. It's a bait-and-switch tactic that can leave you feeling frustrated and confused. Traditional order fulfillment services might bundle their shipping charges into one opaque fee. This makes it difficult to track where your money's going and optimize your shipping strategy. Imagine sending a small, lightweight item across the country – are you getting the best possible rate? Probably not. Cutting into your bottom line is what increases their profit margin.

On the other hand, your 3PL partner should rely on complete transparency. Imagine separate storage and shipping costs, so you know exactly what you're paying for, no hidden surprises. Offering a clear pricing structure allows you to make informed decisions about your inventory. By being upfront with your options,  you can decide if you want to free up some space by offering seasonal discounts or running a promotion on slower-moving items. 

But the story doesn't end there. How about offering detailed shipping reports that break down every single charge from their couriers?. This transparency empowers you to compare rates, choose the most cost-effective options, and ultimately save money on each shipment.

Every dollar saved on storage and shipping translates to more profit for your business.


Ziing: Your Cost-Cutting Partner – Slash Expenses and Boost Efficiency

When you’re tired of juggling multiple 3PL logistics providers and wrestling with opaque pricing structures, Ziing is ready to be your one-stop shop for all your order fulfillment services needs. More importantly, we want to be your partner in cost-cutting. We not only offer highly competitive fulfillment rates, but we also prioritize transparency and technology, giving you complete control over your budget and inventory. We can help you ditch the storage fee guessing game and hidden shipping charges that plague traditional fulfillment centers.

Here’s how:

  • Transparency is Key: Unveiling the Hidden Costs and Empowering Your Business

We believe in straightforward, separate pricing for storage and shipping, so you don’t need to wonder where your money goes. These reports break down costs by courier, service level, and even package dimensions. This level of detail empowers you to make informed decisions about your shipping strategy. Did you know that using a slightly smaller box for a specific item could significantly reduce your shipping costs? With Ziing's transparent reports, you'll have the data you need to optimize your packaging and choose the most cost-effective shipping options for every order.

  • Inventory Tracking and Adjustments in Real-Time

With transparent reports, we allow you to easily adjust your inventory levels based on real-time costs. Need to free up some warehouse space? Ziing's efficient storage solutions can help you optimize your inventory layout and minimize storage fees. 

But our cost-cutting advantages extend beyond just storage and shipping. Ziing's cutting-edge technology automates many tedious fulfillment tasks], freeing up your valuable resources. There’s no longer a need for manual order picking and potential data entry errors. Our automated systems ensure accuracy and efficiency, minimizing fulfillment mistakes that can lead to costly returns and customer dissatisfaction. Additionally, our real-time inventory management system provides you with constant insights into your stock levels, allowing you to optimize your purchasing decisions and avoid costly stock outs or overstocking.

  • Multi Channel Fulfillment Model

Additionally, our multi-channel fulfillment capabilities allow you to seamlessly sell across various platforms without worrying about managing separate fulfillment processes for each. This streamlined approach not only saves you time but also reduces fulfillment costs associated with managing multiple fulfillment centers. Whether you’re using Amazon, Shopify, third-party e-commerce partners, or self-hosted e-commerce, we can fulfill your on-demand orders. 

Imagine the peace of mind that comes with knowing exactly how much you're spending on 3PL fulfillment, with the added benefit of a streamlined, automated system handling the heavy lifting.  Ziing empowers you to focus on what truly matters – growing your amazing business. Stop playing the cost-cutting guessing game with traditional fulfillment centers. Partner with Ziing and unlock a world of transparent pricing, efficient processes, and significant cost savings that will help your business thrive.


Unleash Your Business Potential with Ziing

Are you ready to say goodbye to hidden fees, warehouse Tetris, and opaque shipping costs? Ziing is your key to unlocking a world of cost-saving efficiency and complete financial transparency. With our competitive rates, detailed reporting, and innovative technology, you'll gain complete control over your fulfillment expenses.

Don't let logistics, hidden fees, and the lack of order fulfillment visibility hold your business back. Partner with Ziing and focus on what you do best: building your brand and creating amazing products. Let our fulfillment experts handle the rest.

Contact us today for a free quote or consultation, and discover how Ziing can help your business soar to new heights!

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