Ecommerce Newbie: How Does Order Fulfillment Work?

The eCommerce industry was worth over USD 10 trillion in 2020 and is expected to grow exponentially over the coming years. Therefore, online businesses need to be at the top of their game to ensure they can compete with their rivals, and one of the most important elements for an eCommerce company is order fulfillment.

But, what is order fulfillment and how does it work? In essence, this term refers to several processes that begin when a customer places an order, through to when they receive their package. However, if a buyer chooses to return an item, this aspect also falls under the umbrella of order fulfillment.

While this may sound straightforward, each stage has its own crucial requirements to reduce the risk of delivery disruptions.

Let’s dive in and learn more about fulfilling customer orders.

Receiving Inventory

The first step in order fulfillment is taking possession of your merchandise. You can opt to receive the goods yourself, or to outsource this aspect to a third party. While hiring an outside firm can save hassle, it can also increase costs and negatively impact your profitability.

Inventory Storage

Having a well-organized and secure order fulfillment center is vital. If you lose track of goods, this can delay your shipping times, resulting in frustrated clients. You also need to ensure your premises are safe from opportunistic thieves who may try and steal your stock.

Order Processing

This part of the eCommerce order fulfillment process requires taking items from shelves and moving them to a shipping station. You then need to ensure the packages are ready for transportation. It’s crucial to make sure your goods can withstand the bumps and falls that can happen in transit. Therefore, using high-quality packing materials is a priority.

If you’d like to learn more about the advantages of using corrugated cardboard boxes, you can read this blog.

Shipping Goods

While third-party carriers generally handle this part of the process, you still need to select the best courier. This can depend on the size, weight, and dimensions of the product, and also its destination.

Finding the most cost-effective option is critical for boosting your bottom line.

Handling Returns

An often overlooked part of the order fulfillment process is handling returns. However, this is an important factor, as you don’t want customers to think you stopped caring about their order after they paid their money. Ensure you can provide replacement items or process refunds in the shortest possible timeframes.

Have a Robust Order Fulfillment Process

When you perfect the order fulfillment process, you can streamline your shipping procedures and improve your customer service standards. It’s essential to have a safe storage area, use the correct packaging materials, and ship your goods promptly. Don’t forget to pay attention to any returns to ensure you gain a reputation as a company that looks after the needs of its clients.

For more useful hints and tips, be sure to browse our Business section before you go.