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Fulfillment of orders in e-commerce

The order fulfillment process is what makes the wheels of e-commerce turn and bring profit to the business owner. It is also a central part of retail logistics networks and services in general. Working in the field of sales, it is very important to understand all the principles and processes of the functioning of an online store and how important it is to adhere to all deadlines for order fulfillment.

What is Order Fulfillment

Order Fulfillment is a professional service that includes all the steps required to deliver goods ordered online to customers. Every e-commerce platform depends on fast and efficient order fulfillment solutions.
Receiving purchased goods by customers may seem like a simple matter, but in fact, there are many moving segments in this process that solve several business tasks at the same time. Consider the main stages of the order execution process.
It starts with an online purchase. This item must be located, packaged and shipped to the customer. Execution strategies may differ slightly from one organization to another, but they all include the following elements:
  • Order management. IT solutions typically process a steady stream of orders and turn them into a priority list for the next step in the process. Without an order management tool, any e-commerce operation would quickly get lost in the chaos of tracking a large number of packages at the same time.
  • Inventory management (warehouse). Employees must know the available quantity of each product item that is present in the database. Again, technological solutions are needed here even for small online stores. Constantly providing real-time information about how many products are on hand for sale is an important part of doing e-commerce.
  • Fulfillment center. It is also called a distribution center, or a warehouse where sold goods are stored. Here the orders are packed and handed over to the transport agency for delivery.
  • Complete set (packing). Traditionally a labor-intensive process in order fulfillment that involves the physical removal of goods from their designated storage area and shipment to packing stations where orders are processed and routed to the shipping department.
  • Transport logistics. When the package is ready for delivery, it is transferred to the courier service for direct delivery to the customer. Each fulfillment service model ends with this step.
It is important that all stages of order fulfillment function smoothly and without interruption. The level of professionalism and, accordingly, the reputation of the company will depend on this.

Top Benefits of Order Fulfillment for Ecommerce Businesses

Fulfillment for online stores is not only a bridge between companies and their customers, but a significant e-commerce facilitation, success and profit growth.
For most online stores, the setup, staffing, and logistics support for their business is not worth the cost. Outsourcing order fulfillment makes financial sense because firms can offer customers a high level of service with fast, reliable deliveries at a lower cost than if they did everything themselves.
This is not only about efficiency in expansion-fulfillment service operations. Due to their size and the volume of packages handled, logistics services can offer much better shipping rates than the company itself. These savings also affect customers, so shipping costs can drop significantly when a business works with a logistics partner to complete e-commerce.
There are other benefits to using third party logistics services. Most businesses that become successful online do so through a combination of factors such as a great product, a compelling sales notice, a conversion-optimized website, and so on. When they are relatively small, companies are mostly able to manage internal operations themselves. But when it comes to delivering orders, there will be performance issues as orders grow.
Working with a fulfillment specialist means entrusting him with the management of a very important part of the business, which is usually outside the remit of the firm. Most e-commerce operations are not started and developed with the goal of building a logistics infrastructure to meet order fulfillment needs. It would simply be a waste of resources that are better used to develop other areas of the business.
Working with third party logistics providers is suitable for most businesses, but each case will differ depending on the specifics regarding the size and nature of the transaction.