Questions to Ask When Hiring A Fulfillment Company

Hiring a fulfillment company for your business can seem very overwhelming.  Understanding the right questions to ask can seem even more daunting.  Here are some important questions to ask when hiring a company. 

1. Do you offer a service guarantee? 

   Companies should have a service guarantee. This guarantee should tell you how quickly items ship and also what happens if they do not. 
   

2. What happens if there is an error?

   Human error will happen.  But it is important to understand the process if there is an error.  What is the company willing to do if an item is not shipped correctly or if an item breaks in transit?  How will this affect your bottom line. 
   

3. Does your technology integrate with my website? 

   The last thing you want to have to do is change your system.  The fulfillment company should work with what website you have already built.  If they don’t, are they willing to do something differently to make it work? 
   

4. Do I have a dedicated account manager or team? 
   
   It is important to know who you are working with. If you are working with a large firm, you will want one (or two) people that you can ask questions to.  You don’t want to get lost in the general email shuffle.  If it is a small firm, you may be working with a team, but having one email to get info from is helpful.  Always know who is responsible for your account. 
   

5. What shipping companies do you use? 
   
   Some companies only work with one or two shippers.  Others will work with many.  You will want to know who is actually delivering your product.  
   

6. Do you provide shipping discounts? 
   
   Most companies are able to get a bulk discount from shippers.  It is important to know if they are passing this discount along to you or are they keeping the difference.  This will factor into your cost of fulfillment and is an important factor to understand. 
   

7. Can you accommodate my current stock? My future stock?

   
   Hopefully you are looking at your future growth, and your fulfillment center should be as well. Understanding what level of stock the company can handle is important, but also understanding if they can accommodate your future stock.  A good rule of thumb is if the company can accommodate your today and 3x your volume of today.  This gives you a good sense of their capacity to grow with you. 
   

8. Does your company insure my product? 
   
   The fulfillment company should be providing insurance coverage in the event of flood, fire, theft or accidental damage while in their custody. You should know about this coverage ahead of time and should be able to provide a copy of the policy upon request.
   

9. Do you have a minimum or maximum order volume quantities? 
   
   The fulfillment company should be able to grow with you. Some companies will require a minimum order each month, which could become problematic when you are just starting and not sure of the demand.  On the flip side, they may not be able to accommodate a large quantity of orders as well which could become a problem as you grow. 
   

10. How do I pay for your services?
    
    Understanding how and when you will be billed is important.  Some companies will invoice you weekly or monthly.  Some companies will require a pre-payment.  The best option in payment would be after the shipping has been paid (and the item has been shipped).  But you have to decide what you are most comfortable with.  

You have the right to understand how your fulfillment company works.  They should be up front and honest on all of these costs.  As you decide which company to go with, you will need to be able to compare your options. Wishing you luck as you find a place to help your business grow!