Fulfilled by Shopee: What it is and when should you opt for it

The e-commerce landscape in Southeast Asia is experiencing explosive growth, with businesses witnessing skyrocketing online sales on their Shopee shop thanks to a combination of double-day sales, great value deals and amazing discounts. One of the factors that keeps the momentum of online shopping activities going on this platform is fast and efficient fulfilment. Fulfilled by Shopee (FBS) streamlines the process for sellers and allows them to focus on what truly matters: creating exceptional shopping experiences for customers on their online storefront.

This comprehensive guide delves into the world of FBS, exploring its benefits, operational steps, requirements, and associated costs. We’ll equip you with the knowledge to leverage this powerful tool, unlock smooth fulfilment, and propel your online business to new heights.

What is Fulfilled by Shopee?

Fulfilled by Shopee (FBS) is a comprehensive warehousing and fulfilment service designed to empower those selling on Shopee with inventory, packing dispatching, and delivery. This game-changing program allows you to store your products in Shopee’s dedicated warehouses, ensuring optimal inventory management and stock availability.

Once an order is placed, Shopee’s experienced logistics team takes over, meticulously picking, packing, and shipping your products directly to your customers. This eliminates the need for you to manage your own inventory, freeing up valuable time and resources to focus on other crucial aspects of your business.

Benefits of Fulfilled by Shopee

Fulfilled by Shopee (FBS) isn’t just a warehousing solution; it’s a catalyst for e-commerce success. Let’s delve into the diverse benefits FBS offers for both sellers and buyers:

For Sellers:

• Greater Efficiency: FBS significantly reduces your workload by taking care of order fulfilment, freeing up valuable time and resources to focus on strategic initiatives.
• Enhanced Visibility: Products tagged with the “Fulfilled by Shopee” badge receive increased visibility on the platform, leading to potential sales growth.
• Boosted Conversions: With faster shipping times facilitated by Shopee’s robust logistics network, you can expect higher conversion rates and happier customers.
• Improved Customer Satisfaction: Given the shopee warehouse locations, sellers can ensure reliable and secure deliveries ensure customers receive their orders in pristine condition, fostering trust and loyalty.
• Reduced Costs: FBS eliminates the need for you to manage your own storage and packaging, resulting in significant cost savings. (Free storage for 30 days for eligible sellers!)
• Focus on Core Business: By outsourcing fulfilment, you can dedicate your energy to core operations like marketing, product development, and strategic growth.
• Fulfillment Penalty Waiver: Sellers opting for FBS enjoy a waiver of fulfillment-related penalty points, further enhancing their account standing.

For Buyers:

• Faster Delivery: Enjoy rapid and reliable delivery of your orders, thanks to Shopee’s efficient logistics network.
• Secure Packaging: Products are securely packed and protected to ensure they arrive damage-free.
• Smooth Returns & Refunds: Benefit from a hassle-free return and refund process managed by Shopee.

As you can see, Fulfilled by Shopee offers a win-win situation for both sellers and buyers, paving the way for a more efficient, convenient, and successful e-commerce experience for everyone.

When should Sellers opt for Fulfilled by Shopee?

Fulfilled by Shopee (FBS) offers a plethora of advantages, but it’s not a one-size-fits-all solution. Determining whether FBS aligns with your business goals requires careful consideration of various factors. Here are some scenarios where FBS can be particularly beneficial:

1. High Order Volume

If your business experiences a high volume of orders, managing fulfilment internally can become overwhelming. FBS allows you to scale your business effortlessly without having to invest in your own warehousing and logistics infrastructure.

2. Free Storage and Reduced Fulfillment Charges

FBS offers free storage for eligible sellers for the first 30 days, further reducing your operational costs. Additionally, fulfilment charges are competitive and transparent, allowing you to plan your expenses effectively.

3. Fulfillment-Related Penalty Waiver:

Shopee sellers who join FBS benefit from a waiver of fulfilment-related penalty points, leading to a better account standing on the platform.

Steps to Operate a Shop through Fulfilled by Shopee (FBS)

Fulfilled by Shopee (FBS) streamlines the fulfilment process, enabling you to focus on what matters most: your customers and business growth. Let’s embark on a journey through the simple steps to activate FBS and operate your shop with ease:

1. Enroll in the FBS Program

Ensure your seller account meets the minimum requirements set by Shopee. Submit the necessary documents through the Seller Centre, providing details about your business and products. Wait for Shopee’s official confirmation of your enrollment in the program.

2. Prepare your Products and Ship them to the Shopee Warehouse

Create accurate and detailed product listings with clear descriptions, high-quality images, and precise product specifications. Label and pack your products according to Shopee’s packaging guidelines and securely pack your products using appropriate materials to safeguard them during transport to the Shopee distribution centre.

Requirements for Fulfilled by Shopee

Before embarking on your Fulfilled by Shopee (FBS) journey, it’s crucial to understand the essential requirements you need to fulfil. These requirements ensure a smooth and efficient experience for both sellers and Shopee, fostering a positive and productive partnership.

1. Registered Shopee Seller

First and foremost, you must be a registered Shopee seller with an active account and good track record. This includes maintaining a positive seller rating, adhering to Shopee’s policies and guidelines, and demonstrating a commitment to providing excellent customer service.

2. Minimum Product Inventory

To ensure efficient fulfilment and optimal stock availability, you must have a minimum number of products ready to be stored at the Shopee warehouse. This minimum quantity varies depending on your product category and demand.

3. Packaging and Labeling Compliance

Shopee has specific guidelines for product packaging and labelling to ensure proper handling, storage, and identification. It’s essential to ensure all your products comply with these guidelines to avoid delays or complications during processing.

4. Independent Product Shipment

While FBS takes care of picking, packing, and shipping your orders once received at the warehouse, the initial responsibility of shipping your products to the designated Shopee warehouse lies with you. Choose a reliable shipping method and ensure timely delivery to avoid delays in order fulfilment.

Costs for Fulfilled by Shopee

While Fulfilled by Shopee (FBS) offers a plethora of benefits, it’s important to understand the associated costs before making an informed decision. This section provides a comprehensive overview of the various fees you can expect to encounter:

1. Storage Fees

FBS charges fees based on the volume of your products stored in the Shopee warehouse. These fees are typically calculated per unit per day, with the total cost depending on the size and quantity of your products.

2. Fulfillment Fees

For each order processed through FBS, you will incur a fulfillment fee. This fee covers the picking, packing, and shipping of your products directly to your customers. The specific fee structure varies depending on the destination, weight, and dimensions of your products.

3. Additional fees

In addition to the standard storage and fulfilment fees, you may incur additional charges for specific services such as:

• Gift Wrapping: If you choose to offer gift wrapping for your products, an additional fee will apply per order.
• Express Shipping: Expedited FBS shipping options are available for an additional fee, allowing you to deliver orders to your customers faster.
• Return Processing: In case of returns or exchanges, additional fees may be applied for handling and restocking your products.

When should buyers seek 3PLs to fulfil Shopee orders

While Fulfilled by Shopee (FBS) offers a convenient solution for sellers, it may not be the ideal fit for everyone. Certain situations might necessitate seeking alternative fulfilment solutions, such as working with third-party logistics (3PL) providers like Locad. Here are some key scenarios where opting for a 3PL might be advantageous:

1. Diverse Inventory

Do you offer a wide range of products with varying sizes, weights, and storage requirements? Managing such a diverse inventory through FBS might be complex. 3PLs like Locad specialise in handling diverse product types, ensuring proper storage, packaging, and timely delivery.

2. Geographical Expansion

If you’re planning to expand your reach to new geographic locations, partnering with a 3PL with a network of regional warehouses can significantly enhance your shipping speeds and delivery reliability. This can lead to higher customer satisfaction and improved brand perception in new markets.

3. Cost Optimization

While FBS offers competitive pricing, 3PLs like Locad may offer customised solutions that are tailored to your specific needs and budget. This can lead to cost optimisation and improved overall profitability.

4. Specialised Needs

Does your business require specific fulfilment services like bundling or custom packaging? Or do you sell on more than one platform? 3PLs like Locad offer a range of specialised services tailored to your unique needs, ensuring your products are handled and shipped according to their specific requirements.

Closing Thoughts

Fulfilled by Shopee (FBS) has emerged as a revolutionary solution for sellers seeking streamlined fulfilment and enhanced customer satisfaction. However, Shopee ‘s warehousing and logistics network can also pose a threat to expansion for you if your business requires specialised services and you want to try your hand at multi-channel selling.

So, whether you’re a seasoned seller or an aspiring entrepreneur, make the right choice between FBS and a 3PL to scale your business, optimise operations, and deliver exceptional customer experiences. Embrace the efficiency and growth potential offered by your logistics provider, and pave the way for a thriving e-commerce journey on Shopee.