One question I always get from my customers as they get ready to launch their product is how do you recommend we handle the shipping of our products? Should we use a fulfillment center to ship the products or do it ourselves?

My answer is always the same, but before I share my answer with you, let's look at the pros and cons to consider when using a fulfillment center:

Pros:

1. Time and Efficiency: A fulfillment center handles order fulfillment tasks such as inventory management, packing, and shipping. This saves you time and allows you to focus on other essential aspects of your business that only you can do. 

2. Scalability: Fulfillment centers are equipped to handle large order volumes efficiently. They can accommodate your business as it grows, providing the necessary infrastructure and resources to support increased demand.

3. Storage and Inventory Management: Fulfillment centers offer warehousing services, which means you don't need to invest in your own storage facilities. They can manage your inventory, ensuring that you have the right products in stock and eliminating the need for you to handle inventory logistics. Ad, as you may know, the fashion industry has one of the highest return rates in retail. Managing returns yourself can be quite overwhelming.

4. Shipping Expertise: Fulfillment centers have established relationships with shipping carriers and can often negotiate better shipping rates. They have expertise in packaging and shipping, ensuring that your products are delivered to customers reliably and in a timely manner.

5. Geographic Reach: Using a fulfillment center with multiple distribution centers strategically located can help you reach customers in different regions more efficiently. This allows you to offer faster shipping and reduce shipping costs, potentially expanding your customer base.

Cons:

1. Cost: Fulfillment center services come with associated costs. These may include storage fees, pick and pack, and shipping, which can affect your profit margin. It's important to carefully evaluate the costs and compare them with the potential benefits.

2. Control and Brand Representation: When you outsource fulfillment, you relinquish some control over the fulfillment process. It's essential to ensure that the fulfillment center maintains quality standards and represents your brand well. Monitor customer feedback and conduct periodic quality checks to maintain brand consistency.

3. Communication and Collaboration: Working with a fulfillment center requires effective communication and collaboration. Clear communication channels and efficient coordination are crucial to avoid mistakes or delays in order fulfillment. Ensuring a good working relationship with your fulfillment center is important for a smooth operation.

4. Limited Customization: Fulfillment centers typically focus on efficient and standardized processes. If your fashion brand requires specific packaging or personalized touches, you may have limited options for customization. Some fulfillment centers may offer additional customization options, but they may come with extra costs.

On top of the above points, most fulfillment centers are not geared toward small companies, so if your production is low. You just have a couple of hundred units to sell, most fulfillment centers would not be interested in working with you and will require a minimum size of inventory.

Now, to my answer.

I'm a big believer that as the business owner, you should be familiar with every aspect of the business. You don't need to be an expert in every aspect of it, and you don't have to handle everything yourself, but you should know what goes into every action in your business, including shipping.

Considering your first production should be small to test the market, I recommend shipping the first season or two by yourself and not using a fulfillment center.

Yes, It would get overwhelming and stressful at times, but you'll learn a lot, and by the time you are ready to use a fulfillment center, you'll know what to expect, what goes into shipping your product, and how you want it handled and shipped which will then also help you find the right partner.

Need help navigating all the decisions and options when producing your products for the first time? We can help. Not sure what you need help with, contact us here.