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Shopify Fulfillment Pricing, Network, Best Services, and Much More
Hey there, Shopify store owners! Are you tired of manually fulfilling all your customers’ orders? You’re in luck because we’re about to dive deep into the world of Shopify fulfillment.
Shopify is a popular e-commerce platform that allows entrepreneurs to set up and run their online businesses with ease. One of the most essential aspects of running an online business is order fulfillment and management.
In this article, we will dive into the meaning of Shopify fulfillment. You’ll learn how to fulfill orders on Shopify and the best fulfillment services for Shopify. We will also discuss pricing and provide tips on how to fulfill dropship orders on Shopify.
Keep reading to learn more about Shopify fulfillment and providing a great customer experience.
What is Shopify Fulfillment?
Shopify offers Shopify Fulfillment, a service that makes the order fulfillment process simpler for online store owners. It allows businesses to outsource tasks to third-party logistics providers. These tasks include the following:
- Other shipping operations
This service helps businesses save time and money. It also provides customers with a seamless shopping experience.
How Shopify Fulfillment Works
Here is how Shopify fulfillment works:
- Store owners sign up for the Shopify Fulfillment service and choose the products they want to fulfill.
- The products are shipped to one of the Shopify Fulfillment Network (SFN) locations. There, they are stored in a secure warehouse.
- When an order is placed in the store, the details are automatically sent to the Shopify Fulfillment center.
- The fulfillment center picks, packs, and ships the product to the customer on behalf of the store owner.
- The customer receives the product, and the Shopify Fulfillment Center updates the order status to “fulfilled” in the store’s dashboard.
- If the store owner has enabled automatic fulfillment, the order will be fulfilled automatically without any manual intervention.
Shopify Fulfillment also offers multiple fulfillment locations across the United States. This ensures faster shipping times and lower costs. Store owners can easily manage their inventory across multiple locations using the SFN.
How Shopify fulfillment affects modern eCommerce businesses
Shopify fulfillment plays a crucial role in the eCommerce ecosystem. It greatly simplifies the order fulfillment process. It also allows you to focus on growing your business while taking care of the logistics.
Shopify Fulfillment helps businesses enhance their customer experience, improve brand loyalty, and increase sales.
How to Fulfill Orders on Shopify
You can fulfill orders from your Shopify account. The process is automated, and 3PL providers handle most of the manual operations.
Steps to fulfill orders on Shopify
Step 1: Log in to your Shopify account and go to the “Orders” page.
To get started, log in to your Shopify account. Then, navigate to the “Orders” page. This page shows all the orders placed on your Shopify store. It also holds their status and details.
Step 2: Find the order you want to fulfill and click on it to open the order details.
Scroll through the list of orders until you find the one you want to fulfill. Click on the order to open the order details page. It contains all the information related to the order, including the following:
- shipping address
- payment method
- product details
Step 3: Check the product details and make sure you have the product in stock and ready for shipment.
Before fulfilling the order, check the product details. You want to ensure that you have the product available. If the product is out of stock or on backorder, you may need to contact the customer and inform them of the delay.
Step 4: Click on the “Fulfill items” button located at the top right corner of the order details page.
Once you have confirmed that the product is available, click on the “Fulfill items” button. You’ll find it at the top-right corner of the order details page. This will bring up a fulfillment modal. Next, select the fulfillment service and shipping carrier.
Step 5: Select the fulfillment service you want to use.
In the fulfillment modal, select the fulfillment service you want. You can choose between Shopify Fulfillment and any other 3PL logistics provider. However, you must have integrated them with your Shopify store.
Step 6: Choose the shipping carrier and the shipping method.
Next, select the shipping carrier and method. You can choose based on your preference and the customer’s location.
Step 7: Enter the tracking information for the shipment (if applicable).
This step works if you have chosen a shipping method that provides tracking information. Enter the tracking number in the fulfillment modal. This will allow you and the customer to track the shipment’s progress and delivery status. A Shopify app like Trackmage makes shipment tracking much easier for you and your customers.
Step 8: Review the order details and shipping information and click on the “Mark as fulfilled” button.
Before finalizing the order fulfillment, review the order details and shipping information. This is to ensure that everything is correct. After confirmation, click on the “Mark as fulfilled” button to complete the fulfillment process.
Step 9: If you have enabled automatic fulfillment, the order will be automatically fulfilled.
If you have enabled automatic fulfillment, you don’t need manual efforts. This means that as soon as an order comes in, your chosen fulfillment service will automatically fulfill it and ship it to the customer.
Tips for streamlining your Shopify order fulfillment process
Use Shopify Fulfillment Network
Shopify fulfillment is a great way to automate the logistics process. It allows you to outsource time-consuming shipping operations. Hence, you free up time and resources to focus on growing your business.
Optimize Your Inventory Management
You need to keep track of your inventory levels and restore them as needed. Use inventory management tools for more efficiency. Shopify’s built-in inventory management system is a good example. There are also third-party apps to help you manage your inventory efficiently.
Integrate with Shipping Carriers
Integrating your Shopify store with shipping carriers can help you save time and money. Carriers include UPS, FedEx, and USPS. These integrations allow you to do the following:
- Generate shipping labels
- Track shipments
- Manage returns directly from your Shopify dashboard
Automate Order Processing
Automating your order processing can save you time. It will also reduce errors in the fulfillment process. You can automate tasks like the following:
- Sending order confirmation emails
- Generating shipping labels
- Updating order status using Shopify’s automation tools or third-party apps
Use a Pick and Pack Strategy
A pick-and-pack strategy involves organizing your inventory in a way that makes it easy to select and package products for shipment. This can help reduce errors and speed up the fulfillment process. It will result in faster delivery times and happier customers.
Shopify Fulfillment Network Pricing
The SFN connects store owners with a network of fulfillment centers. These centers are located across the United States. Inventory is stored and managed there.
When an order is placed, the nearest SFN center is automatically selected to fulfill the order. This method ensures faster shipping times and lower shipping costs. This service provides a seamless shopping experience for customers.
Understanding Shopify Fulfillment Network pricing
SFN pricing is based on the number of orders you fulfill each month. The cost per order depends on the following:
- Weight of the items
- Size of the item (length, width, and height)
- Distance from the fulfillment center to your customer
Shopify offers a range of plans for businesses of all sizes. Prices start at $5.67 per order. You can also customize your plan to fit your business needs.
Calculating fulfillment costs on Shopify
To get the actual estimate for your fulfillment, visit the Shopify fulfillment calculator page. After that, follow the steps below:
- Click on the section labeled “Enter your own.”
- Fill in the details of the time (length, height, width, and weight) and click on the arrow.
- Select the location you’ll be shipping to.
- Input the number of items to fulfill and store. The fulfillment cost and extra storage cost will appear on the screen.
Comparison of Shopify Fulfillment Network pricing with other options
Let’s see where the SFN stands with four other services in terms of its pricing. The table below was created using their fulfillment service calculators.
We made sure to maintain equal parameters on all platforms. These are the specs used:
- Length – 1in
- Height -1in
- Width -1in
- Weight – 1lb
- Item units to fulfill – 1 and 5
- Item units to store – 50
- Location – United States
|Fulfillment Cost (1 item)
|Fulfillment Cost (5 Items)
|Monthly Storage Cost (50 items)
|Shopify Fulfillment Network
From the above, SFN and Deliverr are ideal for fulfilling multiple items in each order. Why? They cost less when the items are sent out in bulk.
Tips for Optimizing Fulfillment Costs on Shopify
Choose the right shipping carrier
Compare different carriers and their rates. Find the most cost-effective option for your business.
Use Shopify Shipping discounts
Take advantage of discounted shipping rates offered by Shopify. They have partnerships with many carriers, including the following:
- Canada Post
Use lightweight and cost-effective packaging materials. Also, consider custom packaging sizes to minimize shipping costs.
Offer free shipping threshold
Encourage customers to spend more by offering free shipping on orders above a certain value. This will help you cover fulfillment costs.
Negotiate with 3PL providers
If using a third-party logistics provider, negotiate for better rates and terms. Base the negotiations on your order volume and business needs.
Monitor and analyze fulfillment data
Regularly review your fulfillment costs and performance. Identify areas for improvement and make adjustments accordingly.
Reduce the number of SKUs you offer or bundle products together. This will simplify your fulfillment process and lower storage costs.
Consider using SFN only if it aligns with your business needs. That means it can potentially reduce your overall fulfillment costs.
How to Fulfill Dropship Orders on Shopify
Dropshipping on Shopify is a way to sell products without storing inventory. You add items from suppliers to your virtual store. When customers buy, the supplier ships the products directly to them.
With dropshipping on Shopify, you can create an online store showing products from various suppliers. When customers place orders, you forward those orders to the supplier. They handle packaging and shipping themselves. This business model eliminates the need for a physical inventory. Hence, it reduces storage and fulfillment costs.
As a store owner, your primary responsibilities include the following;
- Selecting products
- Setting prices
- Promoting and marketing your store
- Providing excellent customer service
Dropshipping enables you to start a low-risk online business and test new products easily. You can also scale your store as you grow without worrying about inventory management.
We recently posted a guide to Shopify dropshipping. Feel free to check it out for more information.
Integrating Dropshipping Apps with Shopify
These apps connect your store to suppliers who handle order fulfillment and shipping directly to customers. Some popular dropshipping apps include Oberlo, Spocket, and Printful.
By integrating these apps with your Shopify store, you can:
- add products to your catalog quickly
- automate order processing
- focus on marketing and customer service
This approach lowers upfront costs and reduces the risks associated with holding inventory. It also allows you to test new products or niches with ease.
Common Challenges and Solutions for Fulfilling Dropship Orders on Shopify
- Inventory management: Suppliers may run out of stock, leading to unfulfillable orders. Solution: Regularly sync inventory data with suppliers. Also, use multiple reliable suppliers for backup.
- Shipping times: Longer shipping times from suppliers can cause customer dissatisfaction.
Solution: Choose suppliers with faster shipping options. Clearly communicate shipping times to customers.
- Quality control: Products may not meet your quality standards.
Solution: Order samples to test product quality. Also, maintain a close relationship with suppliers to ensure consistency.
- Returns and refunds: Handling returns and refunds can be complex in dropshipping. Solution: Establish a clear return policy. It should outline the process and responsibilities between you and the supplier.
Factors to Consider When Choosing the Best Fulfillment Services for Shopify
Choosing the right fulfillment service for your Shopify store is crucial. It’s the best way to ensure satisfied customers. Consider the following factors when selecting the best service for your eCommerce business:
- Cost: Assess the fees charged by the fulfillment service. Common fees include storage, pick and pack, and shipping costs. Ensure they align with your budget.
- Shipping times and options: Fast and reliable shipping is crucial for customer satisfaction. Check the delivery times, shipping carriers, and tracking capabilities offered.
- Scalability: Choose a fulfillment service that can accommodate your business growth. It should be able to handle increased order volumes easily.
- Integration: Ensure the fulfillment service integrates smoothly with your Shopify store. That will allow for automated order processing and real-time inventory updates.
- Customer support: Responsive and helpful customer support allows you to handle issues and address concerns promptly.
TrackMage and Shopify Fulfillment
TrackMage helps Shopify store owners by synchronizing shipment data in real-time. It also imports orders automatically. Trackmage provides a branded tracking page integrated with your site. It’s an effective tool for keeping customers informed about their order status.
With automated notifications, TrackMage reduces support inquiries and improves the customer experience. It doesn’t handle inventory management directly. However, its tracking features ensure efficient order and shipment management for store owners.
Below are the benefits of using Trackmage on your Shopify store:
- Real-time tracking updates
TrackMage automatically syncs shipment data. This provides customers with up-to-date information on their order status.
- Branded tracking page
Enhance your brand image with a fully customizable tracking page integrated into your website.
- Automated notifications
Keep customers informed about their shipments and reduce support inquiries with automated email and SMS updates.
- Order fulfillment analytics
Gain insights into your shipping performance and identify areas for improvement using TrackMage’s analytics dashboard.
- Improved customer experience
Provide seamless post-purchase support, increasing customer satisfaction and loyalty.
- Easy integration
Connect TrackMage with your Shopify store effortlessly, streamlining your order-tracking process.
- Increased sales
Leverage positive customer experiences to boost reviews and drive repeat business.
As a Shopify store owner, it’s essential to explore various fulfillment options. That way, you can find the one that best suits your business needs. By evaluating and comparing different services, you can optimize your order fulfillment process overnight.
TrackMage is an excellent tool to consider for streamlining your order fulfillment process. It can also enhance your customers’ post-purchase experience. Give TrackMage a try and see how it can transform your Shopify store’s fulfillment process.