As an online merchant, you probably know how important it is to get your orders to customers quickly and efficiently. However, fulfilling orders can be a lot of work, especially if you’re growing your business. That’s where Shopify Fulfillment Network (SFN) comes in handy!
If you want to know more about Shopify Fulfillment Network, you’ve come to the right place. In this article, LitExtension – #1 Shopping Cart Migration Expert will walk you through all you need to know about Shopify fulfillment services:
- Shopify Fulfillment Network (SFN) overview
- How Shopify Fulfillment Network works
- How to start with Shopify Fulfillment Network
- A cost breakdown of Shopify Fulfillment Network
- Shopify Fulfillment Network pros and cons
Let’s dive right in!
Want to Migrate to Shopify?
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Shopify Fulfillment Network Overview
To ensure that we’re on the same page before we show you how Shopify Fulfillment Network works and how to begin, let’s explore what SFN actually is and determine whether you qualify for this Shopify fulfillment service or not.
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What is Shopify Fulfillment Network?
Shopify Fulfillment Network (SFN) is a comprehensive fulfillment service that Shopify themselves developed to simplify inventory storage and order processing for Shopify merchants. When you opt for SFN, Shopify takes charge of your inventory, fulfilling orders with efficiency and precision.
As orders come in, SFN handles the critical steps of picking, packing, and shipping your products directly to your customers. Notably, most shipments within the US are delivered within 2 days, enhancing the speed and convenience of order fulfillment.
Plus, the Shopify Fulfillment Network app provides an all-in-one dashboard where you can easily manage your fulfillment by Shopify activities, including shipment tracking, customer details, and inventory levels.
Here are the key highlights of Shopify fulfillment services:
- Automated inventory management: Effortlessly track inventory levels across all fulfillment centers to ensure product availability for timely order fulfillment.
- Real-time order tracking: Enable real-time tracking of orders, allowing merchants to monitor the progress of orders from placement to delivery.
- Custom packaging and branding: Personalize packaging and branding to create a distinct and memorable unboxing experience, fostering brand loyalty and encouraging repeat purchases.
- Returns management: Streamline the returns process with an automated system that efficiently processes returns and replenishes returned items back into your inventory, maintaining accuracy in inventory levels.
Who is valid for Shopify Fulfillment Network?
As of writing this article, Shopify Fulfillment Network is exclusively available to U.S.-based brands and online shops, and it is limited to handling non-perishable items.
Shopify has focused on attracting small and medium-sized brands to participate in its fulfillment initiative. The primary emphasis is on brands that sell anywhere from 10 to 10,000 units per day. So, you don’t need to be a big fish to become part of the program.
If you are not eligible to use Shopify fulfillment warehouse or are interested in discovering more about Shopify order fulfillment, check out our comprehensive guide on How to Fulfill Orders on Shopify.
How Does Shopify Fulfillment Network Work In A Nutshell?
If you still can’t visualize how Shopify Fulfillment Network operates, let us explain how the whole process actually works in a nutshell.
Step 1: Your customer places an order
First, when a customer places an order, you send your products to Shopify’s certified warehouses in North America. Next, your items are spread out in Shopify warehouses (aka Shopify Fulfillment Network locations), strategically placed for faster shipping.
As orders roll in, Shopify manages your inventory, and you get updated every step of the fulfillment process, from stock needs to daily sales.
When a customer buys something, the nearest warehouse gets a signal to ship it out, making sure your customers get their orders quickly.
Step 2: SFN starts picking process
When an order comes in, SFN quickly checks if it can be fulfilled by making sure the address is correct, there’s enough stuff in stock, and nothing is stopping the fulfillment process to figure out the best way to ship it.
Next, Shopify introduces an inventory robot that they refer to as “Chuck”. Chuck is no ordinary robot; it’s got smarts thanks to artificial intelligence and machine learning. Chuck can pick and sort what is needed to fill your order much faster than regular humans.
A worker follows Chuck around, and when it stops at a shelf, this staff will grab the right stuff and put it on the robot.
Once Chuck is loaded up, it goes on its own to a packing station for the next step. And that’s how Shopify fulfillment center can meet their 2-day delivery promises.
Step 3: The warehouse packs the order
After Chuck gathers the necessary inventory for your order, it moves to the packing station. Here, a dedicated fulfillment specialist carefully packs the items into the smallest suitable packaging, like a box, bag, or envelope.
Once the items are securely packed, shipping labels are swiftly generated and applied.
This entire packing process is completed within minutes, guaranteeing efficient order fulfillment and cost-effective shipping solutions for your Shopify store.
If you have ever done shipping yourself, you’re probably aware that shipping costs can be complicated, influenced by package sizes, weights, carriers, and delivery locations. And that’s another big perk of using Shopify Fulfillment Network– they leverage high-volume shipping status to secure discounted rates from carriers.
Step 4: The carrier picks up and delivers the order to your customer
After Shopify Fulfillment Network picks up and packs your order, it will pass your order along to a carrier for delivery to your customer.
What we particularly love about Shopify Fulfillment Network is that they offer both 2-day delivery and same-day fulfillment. For further explanation, if your order arrives before 2 p.m. in fulfillment Shopify warehouse’s local timezone, it will get handed to a designated carrier by the end of the same day.
This remarkable speed is achieved not only through rapid picking and packing but also thanks to Shopify’s strong partnerships with reputable shipping carriers, including USPS, DHL, UPS, and Canada Post.
These carriers will pick up your orders from SFN’s warehouses daily, ensuring your customers receive their orders ASAP.
How To Start With Shopify Fulfillment Network?
Now that you know how fantastic Shopify Fulfillment Network is, let us show you how to start for your Shopify fulfillment orders.
Step 1: Get Shopify Fulfillment Network app
1. Sign up for Shopify Fulfillment Network app by clicking Learn more on https://www.shopify.com/fulfillment
2. Click Launch the App.
Step 2: Activate your order fulfillment
1. Add your products and transfer the product data to the SFN app.
2. Assign the SKUs and barcodes to corresponding products and variants.
3. Pack and label your products.
4. Send your products to a Shopify Fulfillment Network’s location.
5. Set up your SFN’s shipping rates in the Shipping section on your Shopify admin
Step 3: Manage your products
1. Review your products’ measurements and dimensions
2. Plan when your products will get to the SFN place.
3. Review whether your products have been moved to an SFN warehouse.
Step 4: Manage your account
1. Pick your location priority because orders will be assigned based on it.
2. Set up a fulfillment delay to review your orders (for fraud or risk) before fulfilling.
3. Manage your returns settings.
4. Set up your packaging preferences.
A Cost Breakdown Of Using Shopify Fulfillment Network
So, what is Shopify Fulfillment Network pricing? From what we know, SFN doesn’t have fixed prices, so it’s tricky to figure out how much it will cost you. You can ask for a price estimate on their website, and Shopify will contact you to give you an idea.
The costs are figured out each day and depend on things like how your stuff needs to be moved, how it’s picked and packed, and if there’s any need for storage or special jobs (like putting things together or checking inventory).
Here is a recap of Shopify fulfillment pricing for your information:
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Shopify Fulfillment Network Pros And Cons
With all the information above, here is a summary of all the cool and bad things about Shopify Fulfillment Network for your consideration:
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Further Insights: SFN vs Amazon FBA
For those of you who are tip-toeing between Shopify Fulfillment Network and Amazon FBA, here’s what we sum up after using both fulfillment services of these two giants.
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FAQs
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Final Thoughts On Shopify Fulfillment Network
All in all, Shopify Fulfillment Network is a brilliant choice if you target the US market and have stable sales. This Shopify fulfillment service takes the heavy lifting of handling orders off your plate, giving you more time to grow and scale your business instead.
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