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The Underappreciated but Critical Strategy Brands Use to Gain Loyalty

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Customer expectations about shipping speed and cost are continuously evolving due to Amazon Prime and other retail behemoths that have followed suit to provide free 2-day shipping.

When we want something as consumers, we want it now. Fulfilling such needs is easier said than done for vendors. While order fulfillment may not be the most glamorous component of running an e-commerce business, it is a function that directly influences an online retailer’s bottom line.

Did you know that:

  • If shipping, taxes, and other costs are too high, 61 percent of customers will decide not to buy the item.
  • When it comes to their online purchases, 53% of customers consider delivery time to be a key factor.
  • If they have a negative delivery experience, 38% of customers say they won’t do business with that merchant again.
  • Twenty-five percent of consumers have cancelled orders as a result of slow delivery periods.

But, before you can master order fulfillment, you must first grasp how it works.

What Exactly Is Order Fulfillment Ecommerce?

The process of holding inventory, choosing and packing items, and sending online orders to clients is known as order fulfillment.

Ecommerce order fulfillment includes business-to-business (B2B) orders, which send vast quantities of merchandise to big-box shops, and business-to-consumer (B2C) purchases, which ship directly to a single shopper’s house.

The end-user may place a B2C order on the merchant’s website or through an online marketplace. The fulfillment process begins once the buyer completes the transaction.

Recognizing The Order Fulfillment Ecommerce Process

If you are new to the fulfillment industry, you may not have considered how an online order arrives at your door.

However, the fulfillment process comprises several moving parts, ranging from inventory routing and management to selecting the appropriate packing for the lowest practicable dimensional weight.

1.    Receiving

Inventory is required before you can fulfill orders from your online sales channels. If you wish to fulfill orders in-house, you must have inventory on hand. If you outsource fulfillment, you must provide a list to the vendor that will perform on your behalf.

2.    Inventory Storage

Inventory storage, often known as warehousing, is the process of organizing and storing your items. Proper inventory storage will keep your things safe and secure while allowing you to see what is available to dispatch to your clients.

3.    Order Processing

An order will be handled after it has been submitted. These procedures include selecting or retrieving products from storage and packing or making the order ready to send. This may also contain directions on the packing materials to use — boxes, bubble mailers, poly bags, packing tape, bubble wrap, air-fill, and so on — as well as any special packaging and inserts required to provide the desired unwrapping experience for the final consumer. Finally, the box must be labeled with a shipping label.

4.    Shipping

The merchant must dispatch the order after it has been processed and is ready to ship. This might entail a trip to the post office or UPS Store or having a carrier pick up the orders at the fulfillment site.

5.    Returns processing

You must be prepared to process a customer’s returned order. They may return it immediately to you or the fulfillment supplier for evaluation. However, depending on the item’s quality, the reason for the return, and your return policy, the product might be replenished as available inventory or discarded due to malfunction.

Strategies for Ecommerce Order Fulfillment for Profitable Shipping Options

Use the typical delivery cost to bake the shipping cost into the product price.

  • Increase the average order value by requiring a minimum expenditure requirement for free shipment.

Offering free delivery has a significant influence on customer behavior.

Offering rapid and low-cost delivery choices to your consumers helps to avoid unpleasant surprises at the checkout. However, e-commerce firms cannot deliver on their promise without a vital order fulfillment procedure – and keeping clients waiting may be costly.

To exceed consumer expectations, you must first comprehend:

The complete order fulfillment procedure in ecommerce.

  • Which fulfillment model is most suited to your company?
  • How to Be Strategic in Your Business.
  • Then you should be able to conquer any obstacles that arise along the route.

And as your company expands, your ecommerce order fulfillment approach will evolve. If you want to compete with Amazon-level logistics, you’re in luck: there are contemporary, tech-enabled 3PLs that can assist.

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