eCommerce Order Fulfilment Explained

Setting up an eCommerce business requires a great deal of planning and strategizing. Though profiting from an eCommerce store is the main goal, there are things going on behind the scenes that need one's full attention. Among these crucial things is order fulfilment. In simple terms, order fulfilment is a process that involves receiving products, storing them, packing them, and then shipping them to their respective customers.

The importance of order fulfilment

As seen from its meaning, many people fail to realize the complexity of order fulfilment. When an eCommerce business is just in its startup stage, the process may be simple in the beginning. However, when business picks up, so does the pressure of completing all of the orders. Success within the industry is greatly affected by customer satisfaction. Once customers are not satisfied with how their transactions are being handled, they can easily refuse to shop from those eCommerce stores. Furthermore, customers who are active in social media and other online platforms can give negative reviews to certain eCommerce stores, which is lethal in this line of business. To keep customers happy, deliveries have to be done within the agreed-upon time frame, while ensuring that they receive the correct products and that the products are in good condition. Whenever customers are unsatisfied with the products and decide to return them, there should be clear and fast processing for these cases to have the chance to at least save the company from receiving harsh reviews from unhappy customers.

Things to know about the order fulfilment process

Any eCommerce business needs to be familiar with how each stage of the fulfilment process works. By doing this, business owners can properly set their strategies on how things should be handled to maximise profit and efficiency. Below are the different stages of the order fulfilment process:

• Receiving stocks
  • When selling goods to customers, it is crucial to note that a business is updated with its inventory. For eCommerce stores that plan to purchase products and then resell them to customers, they will need to have a defined system on how they should receive them from their suppliers. One has to ensure that the product is of good quality, while also keeping count that the correct number of items are received. This stage may cause some profit losses for eCommerce businesses that are not careful and may not receive the products that they had paid for.

• Inventory management
  • Once the stocks have been received and accounted for, then the next matter to consider is how they would be stored. Unlike eCommerce stores that have already grown to a point where they have already acquired their warehouses, startup businesses should find ways to handle their inventories efficiently and securely. Without proper storage capabilities, an eCommerce store may risk losing profit from damages due to incorrect handling of its inventory.

• Processing orders
  • It is one thing to have storage for your inventory, but processing orders is another critical stage in order fulfilment. After customers send their orders through the eCommerce store website, there is a need for the employees to prepare the items that need to be delivered to their customers. For companies that opt to do the order fulfilment process in-house, there may be a need to hire additional overhead to gather all of the products and pack them. The products need to be inspected to check if there are any problems with them. In terms of the packing process, the company has to set guidelines so that there is a systemised way of accomplishing it. Not having a systematic way of processing orders can cause delays in deliveries.

• Shipping out orders to customers
  • eCommerce businesses have various options on how they wish to proceed during this stage. In most cases, startup companies would take the packages to shipping carriers to lessen their shipping costs. There is a potential risk when doing this as the packages may get damaged before they are received by the shipping couriers. Some businesses prefer to have shipping partners pick up the packages from their warehouses or storage facilities so that accountability for the products can be passed on to the paid service.

• Processing returns and complaints
  • It is normal for any business to have customers who feel that the products they purchased did not meet their expectations. If the concern of the customer is valid for a refund or replacement, then this stage needs to be done efficiently and quickly. There may be a need to have dedicated personnel to handle this stage since the process must not worsen the relationship between the business and its customer.

Outsourcing order fulfilment to a reliable 3PL

For eCommerce businesses that have limitations concerning the budget and the availability of storage, partnering with a reputable 3PL may be the best strategy to achieve success. 3PL businesses are known to be experts in handling the order fulfilment process. It allows eCommerce stores to be flexible with their budgets and personnel. Without having the need to hire more employees nor the need to purchase or rent warehouses, eCommerce businesses can put all their focus on their core businesses. So stop concerning yourself with order fulfilment and let the experts, like airWarehouse, handle it for you. For more information about airWarehouse and its services.