Get inspired and learn to win on our blog | Cart.com

How value-added services drive brand success in fulfillment | Cart.com

Written by Doug Shaffer | Nov 21, 2024 3:58:14 PM

 

As competition has significantly increased, fulfillment is no longer just about getting products from point A to point B. Consumers expect more – they want speed, personalization and seamless experiences that reflect the brand they're buying from. Since many retail businesses don't have the internal capabilities to meet these demands, many are turning to value-added services (VAS).

VAS includes offerings like custom packaging, kitting and assembly that go beyond standard logistics. These services help businesses differentiate themselves by providing memorable customer experiences.

Brands looking to stand out often look for 3PL companies that offer comprehensive fulfillment solutions that elevate the post-purchase experience and turn fulfillment into a strategic advantage. By exceeding customer expectations at every touchpoint, businesses can foster loyalty and encourage repeat purchases. 

The following sections will offer a closer look at value-added services and their impact on driving brand success.

Understanding value-added services in fulfillment

Value-added services (VAS) are the elements that take fulfillment beyond the basic task of shipping products. These "extras," like custom packaging, product assembly or specialized kitting, help transform a simple transaction into a memorable experience that connects customers to a brand on a deeper level.

As consumer expectations shift, personalized experiences have become a key driver of loyalty. The impact of VAS extends beyond operational improvements – it directly influences how customers perceive the brand. Thoughtful touches like personalized packaging or curated kits signal quality and care, strengthening customer trust and boosting positive sentiment.

Common value-added services include:

  • Custom packaging: Enhance brand identity with personalized packaging that creates a memorable unboxing experience.
  • Kitting and assembly: Combine multiple items into a single package for streamlined shipping and improved efficiency.
  • Product personalization: Add custom touches like engraving, gift notes or tailored kits to boost customer satisfaction.
  • Labeling and tagging: Ensure compliance with retail standards and improve inventory management with accurate labeling.
  • Reverse logistics: Simplify returns management with streamlined processes for inspections, repairs and restocking.
  • Quality inspections: Verify product accuracy and condition before shipping to reduce returns and boost customer trust.
  • Bundling services: Package related items together to encourage upselling and improve order convenience.
  • Shrink wrapping and palletizing: Protect products during transit and optimize storage for bulk shipments.
  • Eco-friendly packaging: Offer sustainable packaging options to meet growing customer demand for environmentally friendly solutions.
  • Subscription box fulfillment: Assemble and ship subscription boxes efficiently to maintain recurring revenue streams.

Enhancing brand identity through VAS

Building a strong, recognizable brand identity goes beyond logo design and marketing campaigns. Value-added services (VAS) provide unique opportunities for businesses to deepen their connection with customers through every touchpoint, especially throughout the fulfillment process. 

Custom packaging and personalized products are integral in crafting memorable experiences that resonate with consumers long after their initial purchase. 

Custom packaging and unboxing experiences

According to a customer survey, 72% of Americans admit that packaging design and materials influence what items and companies they purchase from. A beautifully branded package creates a sense of anticipation and excitement for the consumer.

Custom packaging can also serve as a powerful marketing tool. A cohesive unboxing experience extends a brand’s presence into customers’ homes, encouraging them to share their excitement online. This kind of organic promotion can drive new customer acquisition and deepen existing customer relationships.

Product personalization

Personalization adds a powerful emotional connection to the customer experience. Whether through custom engraving, personalized gift notes or tailored product kits, these unique touches make a product feel one-of-a-kind. 

This added layer of customization enhances the CX and builds brand loyalty, encouraging repeat purchases and long-term relationships. As consumer expectations continue to rise, brands that offer personalized experiences can stand out in crowded markets and leave a lasting impression on buyers, making customers feel valued and connected to the organization on a deeper level.

Operational benefits of value-added services

Value-added services (VAS) enhance the customer experience and provide significant operational benefits for brands. By integrating tasks such as kitting, labeling and product assembly into the fulfillment process, businesses can:

  • Streamline operations
  • Reduce overhead costs
  • Improve overall efficiency

Streamlining processes

One of the biggest benefits of integrating VAS into fulfillment operations is simplifying workflows. Instead of outsourcing tasks like kitting or labeling to multiple vendors, businesses can consolidate everything under one roof. This streamlined approach minimizes errors and improves turnaround times.

Streamlined processes can also significantly improve overall efficiency during peak seasons, allowing them to handle increased order volumes without compromising quality or speed, making VAS a critical tool for scalability.

Cost management

While VAS can seem like an additional expense, these services often lead to cost savings in the long run. Consolidated kitting reduces shipping costs, while accurate labeling minimizes returns due to errors.

Meeting evolving customer expectations with VAS

Today’s consumers expect more from the brands they choose to support. Speed, personalization and sustainability are no longer just attractive perks – they’re table stakes. To meet these demands, organizations must adopt agile and innovative fulfillment strategies.

Omnichannel fulfillment services play a key role in addressing these evolving consumer needs. With a focus on sustainability, brands can offer eco-friendly packaging options and tailored delivery methods that align with customer preferences. This adaptability allows businesses to stay competitive in an increasingly crowded marketplace.

Future trends in value-added service

While technology has played a significant role in shaping the fulfillment industry, advancements in AI and automation are poised to drastically shape the landscape further. Over the next couple of years, we'll see a rise in smart fulfillment centers that rely on automated processes to reduce manual errors and improve processing time speeds. 

Further automation in areas like inventory management, order processing and packaging will also allow organizations to streamline operational processes quickly. 

Discover how Cart.com can help your organization through value-added services

Value-added services are no longer just an extra perk – they’re a critical driver of brand success in today’s competitive fulfillment landscape. By enhancing the customer experience and streamlining operations, these services allow businesses to stand out while meeting the growing demands of their audiences.

With the right 3PL fulfillment partner and a forward-thinking strategy, businesses can go beyond the box to build meaningful connections and sustain success for the long haul. Contact our team today to learn how value-added services can drive your brand’s success.