Podcast 008 – Wasting Time With Fulfilment
The timing of this Podcast is perfect, I’m betting this week has been the busiest week you have ever had in your business and a by-product of that is an obscene amount of orders that need to be picked, packed & despatched.
Both Dave & myself personally see absolutely no value for the average small business to be sticking items into boxes and we need to get you, the entrepreneur away from wasting time on menial tasks and promoting you to a director and working on your business, rather than in your business.
This is a must-listen too Podcast for you if you’ve considered or even not yet considered using fulfilment services for your business.
In this Podcast, we have two very special guests, Sam Phillips from EasiLogic.com who runs a fulfilment company for small businesses and also Jason Hawkins from AristaComputers who recently moved his entire business to a fulfilment company to look at fulfilment for small businesses.
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Massive Growth This Week?
I know numerous businesses that have seen 8, 9, 10 and in one case a 18% year-on-year growth compared to last year, eCommerce is not holding back, it’s currently getting bigger by the day. However a side effect of all the extra sales volume is the sheer amount of orders you’ve got to get through.
I’ll be blunt, I see absolutely no value in you sticking items into boxes.
Your time can be better spent on other key business tasks and this may hurt, but the reality is, there are people (just like Sam) that care about your products and can pack them just as well and dare I say it, probably better too.
Basic Steps for Processes in a New Business
As you go through the basic steps of starting up a business, making sure there is actually a demand for what you’re selling, learning the sales channels, supply chain etc… this is what I call the proof of concept stage. Assuming we get through that stage and we have a model that works, it’s common place for the same processes that you started with, to be carried through as the business grows, I know I did and we’re going to focus on one process, fulfilment in this Podcast.
Some Processes Just Don’t Scale
The issue is, that some processes (and businesses for that matter) just don’t scale and that’s why I’m so grateful for both Sam and also Jason in this Podcast who give us an insight from both running their own businesses and having a need of fulfilment, Sam now running his own fulfilment company and Jason who moved his entire business to a fulfilment company.
Jason likened given away the despatch side of his business to giving a child away when the van arrived to collect his stock, but he knew it was the right thing to do and was at odds for several days follow as he had been so caught up in spending such a large amount of time fulfilling products and this had now been completely removed.
If you’re a one or maybe a two person team, you may think you can do it better, ”that’s nice”, but the reality is it can be done outside of your business for pretty much the same cost as it costs you right now.
Just imagine what would happen if you did that, how many hours per day would you save? And what would you do with that extra time? More products & more sales channels perhaps? Because we both know you won’t be putting your feet up on the sofa.
The Perfect Pick, Pack & Despatch Process.
There is only one perfect pick & pack process and that is a process that is time & cost effective for your business. I know several companies that are in the hunt for the perfect pick & pack process and the irony is, they have the best processes going for their business right now and for plenty of room for growth too.
This is just a myth.
We were looking at fulfilment companies a short while ago with a client and in the middle of their warehouse, the question was asked “Do you use the same process for all the businesses that have their orders fulfilled here?” I though that the answer was a no-brainer, that they would all be in the same process, but the reality is, that there is no perfect process for all businesses and in that fulfilment centre of over 40 businesses, each had their own process.
RHD. Receive, Handle & Distribute AKA Charge, Charge & Charge
Fulfilment companies generally use a standard process as your stock goes through “Receive, Handle & Distribute” and you get charged at every point. Most of them charge you small fees, for each action.
But in Sam’s case as it’s aimed at small to medium businesses then this is just plain confusing and has opted for a simple percentage on the shipping cost. Sam is also using the discounts that he receives by using PPI as a selling point to small business owners, so infact for many of his clients, there is little extra costs and he’s doing the fulfilment for them. How sweet is that?!
Good & Bad Amazon
We can’t cover fulfilment without at least mentioning Fulfilment by Amazon (FBA), it’s a topic I’ve been putting off as I’d like to cover as a complete overview in one go, however Amazon really has been taking a beating over the past few months, recently in at least two forums posts from the WholesaleForums that are horrific. The first called “Amazon have destroyed my business and put two people out of work” & the second “Amazon shut down another business”. They’re both worth a read and also going back through the comments here on the LastDropofInk around Price Parity on Amazon, Amazon when she wants to be, can very bullish.
Another more positive example (not without Amazon having a stab at themselves I hasten to add) is in the LastDropofInk forums called “Amazon Vendor Invite” and is worth a read, as Amazon take on a 3rd parties products into their own catalogue and it works out quite nicely in the end for both parties.
Traffic Statistics for Shopping Sites in the USA
Those estimated 12-13 million Amazon Prime buyers are so lucrative, in some cases it’s worth the risks of selling on Amazon with FBA, just to get a tiny slice of the pie and we cannot overlook that Amazon draws more traffic that eBay.
Did you know that?
You do now! Look at the chart above, there is a massive difference between eBay & Amazon in the USA.
About Sam & EasiLogic.com
Sam is the prime example of an entrepreneur, Sam, is just like you & me, we are wired differently and you do what comes naturally to you, adapt.
If you listened into the Podcast, then you’ll know that Sam cares about your products as much as you do and is perfectly capable of representing the despatch process of your business.
Sam is just like you, he cares and he understands, he’s been there himself and can help you remove the one of the most time intensive and least value processes (as keeping you as the entrepreneur is paramount) from your business.
You can find out more about Sam & EasiLogic here EasiLogic.com.
About Jason Hawkins
Jason a successful entrepreneur, holding down a multi channel business using eBay, Amazon & his website at Aristacomputers.com and doing what entrepreneur’s do best, working on a darn cool new project.
Jason’s been there and put his entire business into an fulfilment company, that happened several months ago and now looking back, when you free up an entrepreneur, sparks fly and I’d like to thank Jason for his invaluable input in this Podcast, thank you Jason.
And a Special Thanks to Dave Furness
I feel don’t credit enough back to Dave for his help, support & input in creating these Podcasts.
I’m sure you’ll agree, Dave is a vital part of each Podcast we’ve created and I’d like to say thank you Dave, I really appreciate your help.
You can too, by leaving a comment at the bottom of this article.