Ecommerce order fulfillment or solution basically includes the process a customer orders for goods until the parcel is delivered. The term entails the whole process, starting from ordering the product to its delivery and everything in between. Some businesses choose to oversee the whole eCommerce order fulfillment solution themselves. Yet, it can be a costly endeavor, especially if you’re short on warehousing space, don’t own one, or have few employees. Thus, many businesses tend to outsource the order fulfillment process. There are many decent companies that help businesses with order fulfillment. For instance, Sherpack provides e-commerce order fulfillment services so that businesses do not have to go out of their way and invest in this costly venture to ensure the successful delivery of their products.
The whole process of e-commerce order fulfillment involves the following steps:
Receiving Inventory:
An e-commerce business can either receive items themselves or hire an e-commerce order fulfillment service provider to take care of them. If they choose the latter, they do not have to worry about the logistics of receiving the goods. On the other hand, if they go the in-house way, the business will have to take stock, check for damage, label, and manage it. In the latter case, it becomes a time-consuming process that also requires a lot of manpower.
Storage:
These days, space, just like time, has become another valuable commodity. In cities, it is even scarcer. Thus, storing inventory becomes a costly endeavor for businesses. To store inventory, one requires a warehouse or multiple warehouses, depending on the size and volume of inventory. Those businesses that choose to store inventory in-house have to manage it properly to ensure smooth deliveries. Outsourcing absolves businesses of the managing process as well as the need for warehouse space.
Order processing:
Order processing involves getting the product off the shelf, examining it, transportation to various stations, boxing, and moving. Outsourcing, once again, saves businesses from this hassle. Businesses only need to pass the order’s details to the e-commerce order fulfillment service provider, and they take care of everything.
Shipping:
The method of shipping depends on the volume and the type of order. Third-party services are hired to carry out this step. An e-commerce order fulfillment service provider can determine the best shipping method and save costs on delivery, as these providers usually have good professional relationships with third-party delivery service companies.
Returns:
An e-commerce order fulfillment service provider can also handle any returns made by the customer. Usually, the return request details have to be passed on to the fulfillment provider, and they take care of the rest. If a business has an in-house eCommerce order fulfillment system, they have to process the return request and manage it independently.
Characteristics of a Good Ecommerce Order Fulfilment Solution Providers
If you want to choose a decent e-commerce order fulfillment service provider or figure out an order fulfillment solution by yourself, it is important to keep the following points in mind:
Eco-friendly:
It’s a harsh reality that our environment has taken severe damage due to rapid industrialization and the effects of late capitalism. Another silenced truth is that if major companies do not alter their eco-hostile operational methods, the world as we know it might never be the same again. Thus, companies must adopt eco-friendly methods of conducting their business. Even customers are aware of the environmental problem and prefer brands that have adopted eco-friendly methods.
In the context of order fulfillment, an environmental-friendly approach may involve eco-friendly and biodegradable packaging materials that can replace plastic and aluminum. And logistical methods that can minimize the carbon footprint of the whole order fulfillment process. However, adopting eco-friendly approaches to order fulfillment can be quite costly. Thus, it is advisable to opt for outsourcing to an eco-friendly company to increase your bottom line.
End-to-End Visibility:
End-to-End visibility refers to the integration of processing methods that promote transparency between you and your suppliers so that you’re never out of stock and your stock is never delayed. Moreover, end-to-end visibility can make the whole process of order fulfillment a lot more efficient.
Smart Order Management:
Smart order management refers to a process of order management that has room for handling exceptions such as delays, returns, and other logistical problems. Moreover, smart order management processes also reduce time delays and improve communication between various in-house departments.
Automation:
Warehouse automation can greatly benefit a business in terms of resources and finances. With automation, one can reduce the number of employees needed and speed up order fulfillment. Thus, it is better to go with external order fulfillment service providers who can offer automation wherever possible.
The aforementioned characteristics of an e-commerce order fulfillment service show how efficient and resource-saving it can be. Thus, when choosing an e-commerce order fulfillment service provider, ensure you work with one that helps remove the fulfillment burden and optimizes your business.
