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WHAT IS ORDER FULFILLMENT IN E-COMMERCE? ITS EFFECTS ON SMBS

 When it comes to eCommerce, you may hear your customers complaining, “I ordered this three weeks ago, and I haven’t received it yet.”, “I received the iPhone, but the screen broke.” These are statements that no marketers or sellers want to hear. When customers’ problems are not resolved, customer satisfaction would decrease, leading to low sales and dropping revenue. Nine years ago, it was acceptable for customers to wait for less than 5 days to receive the packages. However, things have changed, such things as waiting for items is reduced to 48 hours on average. Consumers nowadays are expecting to receive their items right away, and are willing to pay more for that kind of responsiveness. To do that, the order fulfillment in e-commerce must be processed quickly.

But here is the new dilemma for eCommerce firms: People expect better prices, timing solved, and customization. The question remained, how can businesses meet those requirements to better experiences for customers? In this article, let’s look at what is order fulfillment in e-commerce and tips of order fulfillment for small business.

What is order fulfillment in eCommerce?

At its simplest, order fulfillment in eCommerce is defined as a one-stop solution process that starts from a point of ordering/making a purchase to the point of the manufacturer’s pack and delivers them. This may all include: receiving, possessing, packaging and delivering products to end-users – customers. This process can be generated through the retailer itself, or outsourced to third parties (specialist order fulfillment companies). 

To many people, this job seems quite simple and leisurely. However, with the strong development in economics and eCommerce as well, these require a large number of orders. Besides, order fulfillment in e-commerce is a process that requires professional, scientific knowledge as well as high technology to be able to process orders in the fastest way while still ensuring accuracy. For many businesses thereby, they find the process of order fulfillment in e-commerce quite expensive and time-consuming. A third company that specializes in providing order fulfillment in e-commerce services comes into play. 

How can firms optimize the process to meet those needs?

Determine your firm size and orders volume

It is urgent to define the number of products you are selling and also monthly order volume then starting with the order fulfillment solution which works best for you. 

For small businesses with small scale, due to low order volume, keeping fulfillment in-house rather than outsourcing may be more cost-effective. You probably don’t need a full inventory or warehouse management system to maintain track of your inventory and operations if you sell a small assortment of products and only dispatch a few orders per week.

For big firms with large scale, as your business is growing to exceed and your order value is continually increasing, partner-shipping with third parties or maintaining track of inventory and warehouse system is a need.

Read more: https://magenest.com/en/order-fulfillment-in-e-commerce/

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