9 min read

Issue 9 : CRO, insourcing vs. outsourcing fulfillment, and SFP

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Simple, actionable conversion rate optimization

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On a recent episode of Limited Supply, Nik Sharma shared 20 tips to optimize your conversion rates. Here are my three favorites:

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Design mobile-first. Unless you sell B2B products, most of your buyers probably shop with their phones. Don’t be tricked because you work on a computer.

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Lean into social proof. Your visitors should never be more than one thumb scroll away from reviews, guarantees, # of customers bought x product, etc.

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Use heatmaps, scroll-depth maps, and screen recordings … together. Heatmaps show you what’s important. Scroll-depth Maps give you a reality check on how (not) far people scroll down your landing page. Screen recordings bring your visitors to life (better with popcorn). Use Microsoft Clarity (this from a guy who can’t stand Microsoft products but has used Clarity on multiple sites). It’s free, it barely impacts site speed, it’s awesome.

GO DEEPER: Listen to all 20 of Nik’s CRO tips, they start around the 13 minute mark of Season 7, Episode 9. Here are the links to Apple PodcastsSpotify, & YouTube.

Insource or Outsource Fulfillment?

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Taking fulfillment back in house
Brock Mammoser of Frost Buddy, bringing fulfillment in-house from a 3PL he actually liked:
 
“Turn delayed shipments into opportunities with free accessories. Add a personal touch with handwritten notes for more personal touch. Southern IL offers a cost-effective haven. A 30K sq ft warehouse is a steal. Lower salaries and living costs mean substantial savings. No more split shipments w/ custom orders.”
 
Outsourcing fulfillment after 10 years
Bill DAlessandro of Natural Dog Company, after 10 years of running in-house fulfillment:
 
“And if you think doing your own logistics is cheaper – you’re probably wrong. Add up all your warehouse payroll, your rent, your utilities, your capex, your cardboard, your dunnage, your workers comp insurance, and even the salary of the HR person you need to manage all those extra employees. Divide by the number of orders you ship each year, and compare to what a 3PL would charge. I think you’ll find it’s not close. It’s the same reason people don’t run their own datacenters anymore and use AWS instead – scale and focus.”

GO DEEPER: Here’s Brock’s X thread about bringing fulfillment in-house, and here’s Bill’s LinkedIn post about outsourcing.

Is Seller Fulfilled Prime worth it?

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That coveted Prime Badge can be yours without FBA … but only IF you can meet the requirements of Seller Fulfilled Prime. Logistics industry veteran Chad Carleton breaks down why that’s easier said than done. Two of the big requirements?

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97% on-time delivery

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Offer 1-day shipping to at least 30% of people in the U.S. who view your page and 2-day shipping to at least 74% (these percentages are lower for oversized items)

So, is SFP worth it? Here’s Chad: “Maybe … This is all just freaking hard. Most of the time the juice isn’t worth the squeeze. … the exceptions? 1) you have a strong sku with the ability to distribute inventory to at least 2, but probably 3 metro locations. 2) your product is in demand but oversized (according to Amazon), and FBA fees are too high. 3) your product is hazardous. 4) you live on the edge and want to lose sleep”

Thanks for reading, and see you in 2 weeks.

-Paul

Red Stag Fulfillment is a 3PL founded by ecommerce operators, and built for scaling businesses.

A team of fulfillment fanatics who care about our clients’ businesses like their own. We see things from our customers’ perspective, and have the guarantees to prove it.

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