Outsourced direct-to-consumer fulfilment agreements

The cut-off is the service, so define it precisely

A same-day despatch promise needs a stated time, a stated time zone, a stated definition of a clean order, and a stated exclusion list. Orders held for payment screening, address problems, out-of-stock lines or fraud checks are not ordinarily the provider's failure, but only a written exclusion makes that clear. Equally, the client should agree how quickly it releases held orders, because a promise measured from order placement penalises the provider for the client's own review queue.

Peak is negotiated long before it arrives

The busiest trading period is when capacity is scarcest and every client wants priority. Practical protections include a forecast obligation on the client well ahead of the season, a capacity commitment from the provider expressed in daily order volume, agreed rules for what happens when volumes exceed it, and a joint plan covering labour, carrier collections and cut-off changes. Providers that decline to commit to anything in writing for peak are telling you something about the queue you will join.

Carrier allocation and whose account is used

Whether parcels move on the provider's carrier contracts or the client's changes cost, service options and who owns the claim when a parcel goes missing. Providers buying carriage in volume can offer attractive rates but decide the allocation between services, which affects delivery experience. Clients using their own accounts keep control and visibility but forfeit that buying power. Either way, agree the rules for choosing a service, the treatment of surcharges, and who lodges claims for loss and damage.

Service recovery and the brand the shopper sees

When an order goes wrong, someone has to speak to the customer, and the provider usually cannot. Agree the information the provider supplies to the client's service team, the timescales for supplying it, the authority the provider has to resend or refund, and the evidence needed to close a case. The return address, packing note and carrier notification also carry a name, and the shopper will attribute the whole experience to whoever it says.

Frequently asked questions

How should a despatch commitment be measured?

As the proportion of clean orders received before the cut-off that leave the site the same working day, calculated over a stated period, with exclusions listed. Measuring against all orders received drags in the client's own payment and stock issues and makes the figure unusable for managing the provider.

Is it wise to hold stock with more than one provider?

Splitting stock adds resilience and can shorten delivery distance, at the cost of duplicated safety stock, more complex allocation and a harder reconciliation. It tends to pay once volume is large enough that the duplicated stock is a small part of the total.

Who owns the customer data held by the provider?

Commercially the client, but the arrangement needs to be written down, along with the provider's obligations on retention, access, security and deletion. Data protection duties depend on jurisdiction, so confirm the position with the relevant supervisory authority and your own advisers.