shopify fulfillment solutions

The Ultimate Guide To Shopify Fulfillment Solutions 2022

Shopify is a powerful marketplace. With its robust functionalities and affordable pricing, it brings entrepreneurs a lot of opportunities. 

We’re confident that as soon as you can optimize it to its full potential, you can set your business for success in no time.

Today, we bring you the ultimate guide to selling on Shopify. We’ll talk about fulfillment strategies, dropshipping, and other concepts about Shopify we believe you must stay knowledgeable. Our team at Clarity believes that with the right information, you can scale your eCommerce business.

The Power Of Shopify

To understand the power of Shopify, you must first dive deep and understand what it is.

Shopify is an application that provides ecommerce entrepreneurs like you the opportunity to build stores online. You’re provided with an unlimited number of functionalities to help you work through your business processes within the tool, dependent on the plan you select.

And the cool part? You can even design your online store about your brand’s theme!

One vital thing about your business will always be your fulfillment strategy. Shopify gives you the freedom to choose between:

  • Self-fulfillment
  • Contactless delivery
  • Dropshipping
  • Third-party logistics providers

You need to understand that going for the right fulfillment strategy will tremendously affect your logistics operations. You always need to choose wisely. We’re going to understand more about those details shortly. 

Shopify Fees

Here’s what we love about Shopify – it offers a variety of plans for your budget, needs, and unique situation.

For starters, we suggest that you begin with the lite plan. This will give you a good foundation of the ins and outs of the platform before you scale into Shopify Plus. It’s all about getting your feet wet. 

Here’s a list of Shopify plans and their cost:

  • Shopify Lite ($9/month):  recommended for starting businesses
  • Basic Shopify ($29/month): recommended for ecommerce businesses with small scale needs
  • Standard Shopify ($79/month): recommended for ecommerce businesseses that are starting to grow
  • Advanced Shopify ($299/month): recommended for ecommerce businesses that require advanced features to scale
  • Shopify Plus (quote-based): recommended for enterprise-level ecommerce businesses

Shopify Fulfillment Network

Ecommerce fulfillment is a crucial aspect of your business. No entrepreneur likes to worry about shipping and warehousing issues. We believe you feel the same way too.

If you’re scaling fast and looking for fulfillment strategies to optimize your business, Shopify might be a good place for you to explore. They have a full service to complete your fulfillment needs.

Doing your fulfillment on Shopify provides you with a central view of your data and inventory allocation. As the command center that operates your business, you can guarantee that all storing, picking, packing, and shipping items for your customers are done right.

With the fulfillment method that fits your business, you can avoid feeling stuck from spending too much time on the cycle of money packing and shipping orders.

What Is A Fulfillment Service?

Before we hop into a quick overview of Shopify fulfillment, let’s first understand what a fulfillment service is.

A fulfillment service refers to an outsourced warehouse that handles both preparation and shipping for your business. All of these actions are done inside a fulfillment center. Hopping into a fulfillment service is a good choice for business owners who want to skip dealing with the intricate details of shipping products, to focus on scaling one’s business. 

Every fulfillment center operates differently as it has its own set of unique policies and processes. But all have one common goal – to serve as a command center for fulfilling orders for customers.

How Does A Shopify Fulfillment Service Work?

Here’s a quick run-through of how fulfillment service works at Shopify:

  • Step 1: Your customer places an order through your Shopify website
  • Step 2: The order is located by the fulfillment center
  • Step 3: Shopify’s fulfillment center picks the item from your warehouse to prepare it for shipping.
  • Step 4: Your item is shipped to your customer.

Shopify gives you the freedom to optimize your supply chain to the best of its ability. You can do this by choosing which fulfillment strategy you wish to operate. 

Shopify Fulfillment Options

As a Shopify business store owner, here are the 3 fulfillment options you can choose from

  • In-house fulfillment
  • Dropshipping
  • Third-party logistics

In-house fulfillment option is the best route to take if you’re just starting in the ecommerce business race. At this point, most of the clients you’re servicing are probably your local customers. 

The best thing about this fulfillment option is that it brings you full control over your supply chain. You’re free to hire a staff and even rent a warehouse to help you with a more seamless process.

Although here’s the disadvantage: An in-house fulfillment option might be too costly if you’re in the middle of expanding your business.

Let’s discover more about Dropshipping and Third-Party Logistics in the next sections.

Dropshipping Fulfillment With Shopify

As your brand grows, your fulfillment options should too. This is where dropshipping can come into the picture.

Dropshipping is a hands-off option that allows your business to invest in a fulfillment infrastructure that has a full-proof warehouse, labor, equipment, and a lot more!

In this process, the manufacturer of the products that you sell manages your order fulfillment. The only thing is, this fulfillment process gives you much less control over your fulfillment process.

Dropshipping allows you to sell your products by having your supplier as the one responsible to handle your inventory and ship items to your customers. 

Here’s how dropshipping works:

Once your customer places their order on your Shopify store, you’ll need to purchase your products directly from your manufacturer. You will also need to decide how you would like to go about your shipping. The best thing about this process is that there’s no need for you to worry about the hassle of holding your inventory.

Without a doubt, Shopify is a top ecommerce platform choice for anyone who wants to take the path of dropshipping. The platform gives you big opportunities to connect with multiple vendors who can handle your items for you, with very affordable upfront costs.

3PL Fulfillment With Shopify

Quite a lot of fast-growing Shopify stores partner with 3PL to save time and cost for their business. 

A 3PL fulfillment process offers your business:

  • Multiple fulfillment centers and locations
  • Technology to automate and streamline your inventory process
  • Data analytics to help you make more informed decisions across your supply chain

3PL fulfillment centers are designed to optimize your labor flow, and utilize technology to increase your business accuracy.

Third-party logistics serve as a valuable partner and a key component to an ecommerce store’s supply chain. Instead of business owners like you worrying about doing your distribution and managing your warehouse, 3PL providers can automatically ship your products from your warehouses to your customer.

Aside from fulfillment services, 3PL can also manage your retail distribution and returns for you. With its simple and seamless process, 3PL’s give business owners the capacity to focus on selling products. 

The Bottomline

Getting into the world of Shopify is a big opportunity. Its abundance of features and fulfillment options can not only help you build your brand but also seamlessly deliver orders to your customers.

Now that you understand the many fulfillment options available for your unique business, what are your thoughts? Which one do you think will fit best with your business processes? If you have any questions, our team at Clearinity is here to help. We want to bring you clarity on your inventory management. We’re here to help push you to scale your business.