lots of the WMS options are probably why your fulfillment is so expensive. Shiphero literally costs like $0.50 per order, I’ve seen some that are around $0.12 per order. Literally just ripping like a 2000% margin on their software. Props to them but it really screws the customers / brand owners who gotta pay more
Anyways, we’ve begun to develop our own to get our client’s fulfillment costs cheaper. Really excited about it.
RARELY in life will the cheapest option be the best for your business.
when we started out, the only warehouse space we could find under $1000 a month in Southern California is an upstairs office.
That sounds great on paper until you realize that one day you’re going to receive a skid that weighs 2000 pounds and you have to carry that all up the stairs.
It’s gonna take an extra hour that you have to pay employees and you are going to sweat a considerable amount because you were running upstairs with 50 pound boxes. (these boxes are not 50 pounds, that was another time)
Regardless, think about this the same when you’re choosing your 3PL, do you want a guy that buys the cheapest mailers? They look like shit they get to your customer looking like they ran through a dog’s asshole. The product inside probably gets damaged. And they’re gonna go out of business in 10 months because the only way they make money is by billing you $2.40 for a return.
cheapest does not equal best
USPS loses about 2% of everything you give them form the business side. This occurs around the 100-200 order per day mark. Scans get missed, mailers get stuck together, some packages end up in salt lake city for two weeks when they are supposed to go to Los Angeles. It happens, it’s to be expected.
Simple solutions would be resending those orders (wastes lots of $ on product) or just using UPS and spending a bit more. UPS infrastructure makes it very difficult to lose packages because each day they will fully clear out their facility. its an impressive operation honestly.
i dont think the fear of making it ever goes away.
we just ran our most successful month EVER and for the first time imposter syndrome has really hit me, I’m like questioning if i deserve the thing i worked for 5 years to build.
my parents even said “max of COURSE you do do you know what you’ve been through” they used to just tell me to go back to engineering school, crazy shift.
that being said, need to still become the $1m a month person, long way to go, not ready to quit yet.
My friend was asking me what is gonna make us different as a 3PL…
“its not a new concept, whats the USP”
I spent five days trying to come up with an answer and today i realized i was wrong the whole time.
Our product, our niche, blah blah thats doesn’t make us different.
It’s our people. The culture at FulfillmentMAX is built around loving the FUCK out of our employees. We pay them VERY well, we give them time off when they need, we treat them like friend and family, most of them literally are.
This is how Italian restaurants like the one I was raised in operate.
What are you gonna see over the next couple years internally in my business are employees that have been with us since day one and a team of people that will break their back and move planets to help your business run.
Most warehouses hire a team of degenerates for minimum wage and laugh about it, we’re building a fulfillment army that robots will never be able to replace.
People that will break their backs to fix problems at 2am.
While it will be more expensive from a price perspective, try to compete with that long term… The value will be unmatched
The WORST stage of fulfilling your own ecom orders is when you’re at like an inconsistent 300-1000 orders per day but don’t have a loading dock. The post office starts to get really mad at you. We used to literally fill 2 PO trucks per day and getting that second pickup was like pulling hairs
customs holds can royally screw your business.
15 days in production 7 days in boat shipping is what you EXPECT. so you place the order on time and then unexpectedly get a customs hold.
This takes her total delivery time from 26 days to 35 and now you’ve gone a week without sending a package out.
We notice this is one of the biggest problems that stops brands from scaling
we’re working on building something to accurately predict exactly when you need to order to your 3PL and how much you need to order to get your stuff here on time.
it’s because we wanna act as a partner not just a greedy 3PL.
You might think “we need to have every order scanned to ensure correct packing” but for some cases it really is just a time waster. Let’s say your brand has low SKU count and ships a lot of essentially the same thing every day, It’s genuinely easier to print out all the labels as a strip and rapid fire thru them. Saves the 3PL money, saves your brand money, still hits the 99% accuracy rate.
Leaving your hometown will maximize the FUCK out of your life, simply because it forces growth.
I moved to LA with about $1,500 in my pocket and a dream, not much of a plan really but i had an intuitive sense i had to be there.
before i left i was living with my parents, working at a hotdog stand, and making like $200 a week.
first month in LA i was just disgustingly locked in bc of new area, got two jobs, started re-building my 3PL business and since then its been about 8 months, everything has exploded in the best way possible.
Just quit bartending a few weeks ago, secured a huge 3PL client & an investor who is like a shadow whale in the ecom space, everything is just working.
On top of that I’ve built an incredible net of humans that I love to be around in a city that’s notorious for being fake.
Couldn’t be more blessed but it’s all because I trusted myself & God to make things work.
If you have an intuition about bigger plans for yourself you gotta chase them, it wont be easy but you won’t fail if you don’t stop