Online Seller Bristol Meetup - Vdepot 29th Jul, 2015
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Transcript of Online Seller Bristol Meetup - Vdepot 29th Jul, 2015
Agenda - 4 Parts
1. My experience as an ecommerce seller
3. Ecommerce: A few market trends
4. Outsourcing fulfilment: When, Why, Who?
2. Fulfilment challenges
Expe
rienc
e
Your Fulfilment Experience?
1. Not quite started yet2. I do it all myself (from home)3. I do it all myself with (additional storage)4. I own a warehouse and have a team5. I outsource my fulfilment
What is your biggest fulfilment challenge?
Seasonality Space Stock Locations
Staff/HR Flexibility Packaging
Courier Reliability Ugly Freight Returns
1m
30kg
1m
30kg
Staff/HR Flexibility Packaging
Courier Reliability Ugly Freight Returns
Seasonality Space Stock Locations• Plan ahead• Multi skill staff• Delivery options• additional resource• pickable stock• 3PL
• Sku location• Logical layout• Workable space• Appropriate needs
• Risk assessments• Fork lift truck• Holiday/Sickness• Motivated staff
• Time management• Post office • Cut-off time• Customer service
• Packaging• Backup plan• Product compatibility• Damages• Service levels• Communication
• Over 1m• Over 30kg• Supply & demand• additional surcharges• Historically subsidised
• 3% Average return• Return policy• Return envelope• Attract customers• Order qualifier
• Cost• Branding• Packaging rules• Add ons/up sell
• Space is final• Restricts growth• Paying not using• Increases overheads• Shelving/Racking
Ecommerce
Lockers3rd Party Shop
Carriers
Outsourced warehouse
Suppliers / Shops / Manufacturers
Own warehouse
Own Haulage
Shop
Fulfilment
Outsourced Haulage
Business
Retail
£107 Billion
/ Fulfilment
Ecommerce
Outsourced warehouse
Outsourced Haulage
Duplication, Duplication, Duplication, The importance of integration
Ecommerce Multichannelsoftware
CRMsystem
Courier system
Accountspackage
Fulfilment System
Seasonality Space Stock Locations
Staff/HR Flexibility Packaging
Courier Reliability Ugly Freight Returns
1m
30kgFulfilment System
• Increased competition • Pressure on prices/margins• System integration is key• Small Co competing alongside Big Co
3 Conclusions
Part 3: Ecommerce: A few market trends
Part
4Outsourcing Fulfilment
• When to consider outsourcing• Pros• Cons• What to look for • Common pitfalls
When to Consider OutsourcingO
rder
s
Time
Self Fulfilment House Own Warehouse
Garage/Spare room
Self Fulfilment
Sales growth
Investment in core business rather than
fulfilment
Big enough Money to have own
investment
Pros to Outsourcing
• Reduced overhead• Reduced carrier cost• Saves time• Increased flexibility• Access to IT systems (+reports)• Eradicates seasonality issues• Import/Export advice• Returns• Scaleable
Pros
Disa
Disadvantages to Outsourcing
• Control • Costs• Low volumes• Personalisation
• Existing facilities (e.g showroom)• Not applicable for highly technical products
“Maybe”
“Certainly”
Couriers
Hauliers
Warehouse
Amazon
MultichannelStorage Pick & Pack
Rework
Cloud
System integration Pa
llet
Parc
el
Post Real-Time
reports Stock
management
Fulfilment co
Fulfilment Systems Multi
Gen
erali
stSp
ecial
ist £
Fulfilment Houses: What to Look for
• System• Integration• Management information, Reporting• Contracts• Minimum order/monthly management/software licences fees• Ecommerce fulfilment specialists: Yes or No?• Do you own your own centre
• Implementation Plan…
Look
Moving to a Fulfilment House
• Implementation period• Integration• Packaging, new products not suitable just to be sent on• Barcoding
Mov
ing
Common Pitfalls
• High storage footprint• Have got into bad habits• Low orders, low margin• Keeping out of date stock• Stock records being incorrect
Pitf
alls
How can Fulfilment increase sales
• Feedback• Packaging • Increased Sales (time)• Management reports• Product innovation• Offering best services
Incr
ease
sales
Part 4: Outsource fulfilment: When, Why, Who
• If yes… Do it early • Time to grow your business• Specialist Vs Generalist • Compatible
4 Conclusions
1 2
3 4
Part 1: My experience as an ecommerce seller
• Ecommerce: Time & Commitment
Part 2: Fulfilment Challenges
• Many• Various• Different by product or market
Part 3: Ecommerce: A few market trends
• Increased competition • Pressure on prices/margins• System integration is key• Small Co competing alongside Big Co
Part 4: Outsource fulfilment: When, Why, Who
• If yes… Do it early • Time to grow your business• Specialist Vs Generalist • Compatible
Conclusions