Contract Assembly Services Can Fit a Wide Range of Business Models

Perhaps the most attractive aspect of contract assembly services is that they have the knack for fitting seamlessly into a variety of business models. When that happens, resources are conserved and profits are multiplied. Heres how an assembly service can augment the fulfillment strategies of direct marketing, e-commerce, and auction-based companies

In the study E-Commerce Trends for 1010, FFP Global says Web retailers are more likely to ship from regional fulfillment centers. This trend should follow an increasing expectation among shoppers for fast deliveries. In fact, the contract assembly services industry as a whole is predicted to flourish because the concept fits so well with a variety of business models.

Contract Assembly for Direct Mail Firms

Despite the emergence of online business models, direct mail is still flourishing. There is an entire population of consumers that prefer to fill out paper order forms and mail in checks ads opposed to their electronic counterparts. Recognizing this oft-forgotten market is precisely where a versatile assembly service can offer the biggest benefits. According to Chris Rebholz, president and co-founder of Christopher Morgan, a New Berlin, Wisconsin-based fulfillment, distribution and marketing company, direct marketers should look for these characteristics in assembly services:

• A 360-degree Approach. Includes inbound marketing, the order process, scripting, return processing, retail distribution and inventory management
• True Profit and Loss Projections. Based on true cost of goods, back-end expenses and revenues
• Information Sharing. Data exchange on costs, processes, timelines, seasonality, etc.

Assembly Service for e-Commerce Businesses

Theres little doubt that information products are the hot ticket items for e-commerce businesses, with profits hitting up to 400 percent of carefully-priced packages. Contract assembly vendors that specialize in manuals, CDs and DVDs understand a few principles that make selling information on the Internet even more profitable. Ellen, blogger for MarketingQi.com and Blue Crow Studio Inc., reveals some of these techniques:

• Product Proofing. Examining an actual fulfilled order to know what the customer will be receiving
• Production Cost Log. Absolutely essential in setting the right price point for the product
• Expansion Strategy. Moving up to higher production tiers when sales reach a certain level

Assembly Services for Auction Companies

Auctions are quickly gaining a respectable share of the online sales market. While eBay may be the defining company for this model, there are a host of smaller, specialized auction companies that are paving the way for new success stories. Contract assembly can work in this online niche as well, drop-shipping products for immediate ship once the auction has ended. As might be expected, auction-based assembly services are extremely time-sensitive. And because customer ratings are on the line, vendors must be ready to act at an emails notice.

The bottom line is that contract assembly services can make virtually any existing business model more responsive and more profitable. The trick is to find the vendor with that unique specialization that blurs the line between order and fulfillment, bringing the two together in lucrative harmony.

Sources:

• http://marketingqi.com/blog/2009/01/information-product-fulfillment-7-steps-to-success/
• http://www.internetretailer.com/dailyNews.asp?id=32224
• http://chiefmarketer.com/marketing-roi/0604-business-model-insight-fulfillment/