Outsourcing delivers the goods

Fulfilling your customers' orders takes more work than you might think. Here's what you should know before you outsource your package delivery needs.

You redesigned your Web site, expanded your product catalog, and snared more customers. Now all you have to do is deliver the goods.

Fulfillment--the process of putting products in your customers' hands--is the critical factor that's at the root of most e-business failures. According to Jupiter Research, 44 percent of online retailers lose money on shipping and handling.

In an e-commerce environment, orders are submitted electronically, so you can tie the ordering process in with the rest of the operation. When an order goes to the warehouse for fulfillment, that information can also be sent to the inventory system, which automatically updates the stock on record. When the stock drops to a preset level, this can trigger a purchase order to buy more.

You can set up a fulfillment infrastructure yourself or choose another alternative: contract the service. Here's what's involved with the fulfillment process and what to consider before you contract the service.

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