Ecommerce fulfilment is the entire process that occurs from the point a customer makes a purchase on your ecommerce site, up until they receive their goods. Ecommerce fulfilment can be facilitated by the ecommerce retailer or outsourced to a logistics provider just like ourselves.
As an ecommerce retailer, your customers should be the main focus of your business which means having an experienced, flexible and efficient fulfilment process is important.
The order fulfilment process also includes roles that you may not be prepared for such as; communicating with providers that will transport your products, and handling returns or refunds. The end goal of having an efficient fulfilment process is to keep your customers satisfied by making sure their orders are fulfilled accurately, quickly, and efficiently.
Order fulfilment is a holistic and customer-centric approach that demands careful orchestration of various elements. By investing in a reliable order fulfilment strategy, ecommerce retailers can create a positive shopping experience for their customers, ultimately contributing to the long-term success of the business.
What is the order fulfilment process?
The order fulfilment process involves a series of well-coordinated steps to ensure that customer orders are processed accurately and efficiently. Here is a detailed breakdown of the order fulfilment process:
Inbound
Upon arrival at one of our numerous fulfilment centres, incoming stock is collected and transported to the inbound zone. The stock is inputted to our WMS and Fulfilment System, allowing for easy stock inventory, storage, and processing.
Receiving Stock
After registration and processing within our system stock is allocated to a designated pick bin and added to our ecommerce system, all set for dispatch to your customers. We use stock bar codes on the sides of our pick bins showing where product is located to allow an efficient and accurate pick and pack process.
Picking and packing the order
When an order is received, we pick the requested item from our pick bins and take it to packing bench. The item is then carefully prepared for delivery, ensuring that it meets our quality standards and is securely packed ready for the journey to the customer.
Collection
The packed order is handed over to the chosen delivery provider who collects the items from our fulfilment centre. The delivery provider then transports the items to a designated delivery depot.
Delivery
After the item reaches the delivery depot, a chosen delivery driver will take charge of transporting the products to the end consumer. This step is crucial for ensuring timely and secure delivery.
Returns
If your customers want to return a product they will send it back to our fulfilment centre. Once we receive the item, we will assess the validity of the return, this includes checking for damage and making sure it’s the correct item that was sent out. When the return is confirmed as valid, we then decide the path of the process. This could be either store credit, an exchange or even a repair. Here at Kammac we are committed to working closely with you to implement the specific standards and processes you desire, ensuring that the returns process is both efficient and tailored to your preferences.
Potential Challenges in order fulfilment:
Having inefficient fulfilment processes can lead to unhappy customers which could potentially damage your businesses reputation. Here are some challenges you could face when fufilling orders yourself.
Lack of Business Growth
Spending too much time and resources on inefficient order fulfilment could lead to less time focusing on parts of the business that bring in more sales. If you want your ecommerce business to be successful and have substantial growth, you should consider outsourcing to a 3PL which will save you vital time to focus on increasing sales and much more.
Mismanaged peak demand
Peak seasons and flash sales occur more than ever in the modern world and are a great way to take your sales to the next level, they also have the ability to make or break your business.
If handled correctly, a shopper has the potential to become a returning customer if they enjoy your product and receive their order quickly and in good condition however if handled incorrectly this could lead to angry customers, bad revenue and even worse, a loss of revenue.
It is vital that you plan ahead for peak seasons and make sure you are prepared for big peak seasons such as Christmas and Black Friday as they have a high chance of being your business’ busiest times of the year.
Unsatisfied customers and negative reviews
Inaccurate planning, low stock and slow delivery times all have the ability to damage the reputation of your business as well as upset your customers.
Customer expectations are higher than ever with industry giants such as Amazon having the ability to offer guaranteed next day delivery. This means that most people now expect to receive their parcel in about 2 days maximum!
Unhappy customers are more than likely to leave bad reviews after a poor shopping experience which means it is vital to keep an efficient order fulfilment process to create returning customers.
Quality Control Issues
Operational inefficiencies can compromise the crucial aspect of quality control in the order fulfilment process. Incorrect inspection of products before dispatch may lead to incorrect items being sent out. In the long run, this increases the likelihood of returns and refunds. Ensuring a robust quality control system is in place is vital. Not only for meeting customer expectations but for minimising the struggle of being associated with returns and refunds.
How can you improve your fulfilment process?
Every ecommerce business wants a smooth and efficient fulfilment process however it’s not always a simple task to find one that works for your business. There are multiple things to consider if things aren’t going your way:
Choose the right Delivery provider: Prioritise a delivery provider that offers a balance between cost-effectiveness and speedy delivery. Customers expect quick shipping at reasonable rates, so selecting a reliable and efficient courier service is vital. Kammac has long term relationships with many carriers which allows us to offer cheaper rates than most small businesses will be able to negotiate. This makes delivery cheaper for you and allows you to lower delivery costs for your customers.
Implement Analytics and reporting: Keeping track of analytics and reporting data is very important as it allows you to identify both good and bad factors in your work flow. This is important as it allows you to improve from your mistakes and learn to avoid them
Consider outsourcing to a fulfilment provider: If you want to make sure your fulfilment process is perfect and give yourself more time to focus on building your business, outsourcing to a 3PL like Kammac is definitely something you should consider. Kammac has years of expertise in the ecommerce sector with a huge focus on creating partnerships and caring for our clients. We also have a highly experienced operations team that have worked with global brands. We put our customers first and will always find a solution that suits your business to ensure a seamless order fulfilment process.
Inventory management system (IMS): Keeping track of stock using inventory and warehouse management systems is the key to ecommerce success. A company like Kammac will already have a WMS system for you to use with over 70 ecommerce platforms.
Customer communication: Keep customers informed at every stage of the fulfilment process. Proactive communication about order status, shipping updates and potential delays can enhance customer satisfaction and manage expectations effectively.
Continuous improvement is key to achieving and maintaining an efficient fulfilment process. Regularly reassess your strategies, embrace new technologies and be responsive to customer feedback to adapt and refine your fulfilment operations for long-term success.
Different types of order fulfilment
There are a variety of different models and order fulfilment strategies which is why it’s important to explore each different strategy and pick one that suits your business model and the needs of your customers.
In-house fulfilment
In-house fulfilment also known as merchant fulfilment is the process of fulfilling an order yourself. This is the most popular type of fulfilment and is used by small ecommerce startups who are receiving a small amount of orders. When your order volume gets too high to continue fulfiling your orders from home you have two choices. Expand your fulfilment operations by investing in logistics infrastructure such as warehouses, labour, equipment and more or outsource to a 3PL like ourselves.
Dropshipping
Dropshipping fulfilment involves forwarding orders to a manufacturer as a request. They will then be responsible for shipping that item on your behalf. Dropshipping removes a number of risks from your business as you physically don’t hold any of the stock which means there is low risk on investment. Low barriers to entry and minimal risk make dropshipping an attractive option to many ecommerce businesses. Sounds good right? However the downside is that manufacturers are usually located overseas which means shipping takes longer and is more expensive.
Third-party fulfilment
Third-party fulfilment is when you outsource a 3PL like ourselves to handle your full order fulfilment process. This is a great option for ecommerce companies who are quickly expanding and need a bigger storage space or small start-ups that have little to no experience in the logistics sector. If you no longer have the time or simply don’t have the space to fulfil orders your self working with a 3PL like Kammac can help remove time-consuming tasks from your business.
Hybrid fulfilment
Hybrid fulfilment is when a business will use more than one fulfillment model to fulfill and ship orders to the end customer. This includes any combination of in-house fulfillment, third-party logistics and dropshipping. However hybrid fulfilment is very complex as you are working with different partners who will be using different systems. It is a lot easier to track fulfilment when it’s all in one place, with multiple methods in place you will end up spending too much time on coordinating and planning rather than getting the process right.
Why is the order fulfilment process important for ecommerce?
Order fulfilment is one of the most important aspects of any sale. Attracting website visitors and converting them to customers is one of the hardest parts but the fulfilment stage is the most important.
It also impacts the customer experience massively, even though the customer cannot physically see the order fulfilment process occurring, how they are carried out will affect the customers experience. For example if your inventory management is wrong and a customer orders a product that is out of stock this will lead to longer delivery times than expected. Another problem that could occur is damaged products. If an order is packed in the wrong size box without protective materials to cushion the product, the item has a high chance of getting damaged during transit.
Customer experience impact
When you fail to meet customer expectations they probably won’t even consider buying from your company again. This will cost your brand money in the short term and make it difficult for you to build up a loyal customer base.
Order fulfilment also has the ability to impact many other areas of your business including inventory management and control. When demand increases during peak periods you will need to make sure you are have a healthy amount of stock to make sure every order can be fulfilled. You may need to consider hiring more staff or renting a larger warehouse to store your stock. Once your fulfilment strategy starts to break down, the other parts of your business will struggle too.
Loyalty building
As an ecommerce retailer it’s great to build customer loyalty. However to gain customer loyalty will require a seamless order fulfilment process, from the moment a purchase is made up until the timely arrival of the package. All of these things change a customer’s perception of a brand. Efficient and reliable fulfilment not only enhances the overall shopping experience but also increases trust and satisfaction. The ability to consistently meet or exceed expectations through order fulfilment is a strong tool for long lasting loyalty. Providing a good fulfilment process could also pave the way for positive word-of-mouth, and repeat business. Order fulfilment becomes crucial for shaping a brand’s narrative of reliability and customer satisfaction.
What is the order fulfilment rate?
The order fulfilment rate measures the percentage of orders successfully fulfilled and delivered to customers. You can calculate this rate by dividing the number of orders successfully fulfilled by the total number of orders received. It is also known as the order fill rate and indicates how well the fulfilment service providers handle the shipping process.
Why is it important to have a order fulfilment rate:
Having an order fulfilment rate is definitely something worth considering as an ecommerce business as it gives you the visibility to see whether your order fulfilment is going well. It also allows you to get an idea of were things are going wrong and identify mistakes and potential ways to Improve in your fulfilment process.
What is inventory management?
Inventory management helps businesses identify which and how much stock to order at what time. It tracks inventory from the sale of goods. The system responds to trends to ensure there’s always enough stock to fulfil customer orders and proper warning of a shortage. The goal of inventory management is to have the right products in the right place at the right time.
Why is inventory management important?
Inventory management is so important as it allows you to know what you have in stock and what you don’t allowing you to keep customers updated. Knowing your stock levels are accurate is crucial and keeps customers happy and revenue high.
When a business fails to practice proper inventory management, a domino effect of negative actions will occur within the business.
How to choose the best fulfilment provider
When choosing a fulfilment partner its very important to consider the different attributes a good partner should require. As a small ecommerce store you would you be looking for a provider that has expertise in the logistics industry and has the knowledge to make sure your fulfilment strategy is efficient and strong.
Here at Kammac our fulfilment service makes us the ultimate logistics partner for online stores, our solutions are all designed to optimise your ecommerce operations and ensure a seamless customer experience. To learn more about our services and how can we help you, view our ecommerce page.
What sectors can we provide ecommerce fulfillment for?
- Fashion and apparel fulfilment
- Baby and child care product fulfillment
- Toys and games fulfillment
- Pet product fulfillment
- And so much more!
Why should you choose to work with a 3PL?
There is a high chance you started your ecommerce business because you have a passion for the product you are selling, not because you wanted to get involved with logistics. Brands choose to work with 3PLs like Kammac because they want their logistics to be as smooth and efficient as possible.
Here are some benefits of working with Kammac:
Great customer support
If you choose to work with Kammac we will dedicate an account manager to you who will offer you expert ecommerce advice and answer any questions that have anything to do with logistics.
Cost-Effective Fulfilment Strategy
As an industry leader in logistics, we understand the complexities and challenges that ecommerce businesses face.
We are able to offer the highest standard of storage facilities, real time inventory management in our warehouse space and a dedicated team to efficiently fulfil your orders.
Fulfilment services with a track record
We have a proud track record of on-time, in-full deliveries and a deep commitment to customer service, we will empower your business, improve your operations, and drive growth.
Choose us for your order fulfilment needs, and let our expertise take your ecommerce business to new heights.
We work with small businesses and all kinds of online businesses and online sellers to provide great customer satisfaction.
Our goal is to provide inventory management and fulfilment services, so you can focus on making sales, and keeping all costs down.
Find a solution that suits you
There is no single fulfilment process that works for every ecommerce business. Whether you choose to outsource to a 3PL or use a warehouse, what matters is finding the correct process that meets your company’s needs.
The goal is to streamline your fulfilment processes so your customers stay happy and your bottom line doesn’t suffer.
Let’s find a solution that works for you, contact us today and receive expert advice from our ecommerce team.
How you fulfil orders is just as important for your brand as how you sell,market, and communicate with your customers. The ecommerce sector is rapidly becoming more competitive, customers have more choice than ever before, and if they come across a problem throughout their shopping experience, they will simply choose to buy from a competitor.
As an ecommerce retailer, your end goal is to maintain high customer satisfaction levels as these drive customer loyalty and retention, as well as attracting new customers to your business.
Your order fulfilment process is crucial in reaching the desired levels of satisfaction which is why outsourcing a 3PL like Kammac is one of the best decisions you could make for your ecommerce business
Order fulfilment FAQS
What is order picking?
Order picking is the process of retrieving items from the warehouse to fulfil customer orders. Efficient order picking methods, such as batch picking and zone picking can significantly improve fulfilment speed
How can I optimise my ecommerce fulfilment process for peak seasons?
Planning ahead, increasing warehouse staff temporarily, optimising inventory levels, and collaborating closely with fulfilment partners can help businesses handle increased order volumes during peak seasons.
Why is efficient ecommerce fulfilment important for online businesses?
Efficient ecommerce fulfilment ensures timely and accurate delivery, leading to satisfied customers. It also helps in maintaining a positive brand image, reducing shipping costs and overall customer experience.
How do you increase order fulfilment accuracy?
The first step to improve order accuracy is to improve your inventory management methods. It is also important to review the picking and packing processes and track orders.
What is logistics fulfilment?
Logistics fulfilment is often referred to as order fulfilment or parcel fulfilment, meaning to complete the logistical process from checkout to delivery of the item.
What does it mean when an order is in fulfilment?
If your order is in ‘fulfilment’ this probably means it is being processed and packaged ready for collection. Once the fulfilment is completed, an order has been delivered to the customer and the process is complete
What role does order tracking play in customer satisfaction?
Order tracking provides customers with real-time information about the status and location of their orders, enhancing transparency and customer satisfaction.
What is the role of packaging in order fulfilment?
Packaging is crucial for protecting items during transit and creating a positive unboxing experience for customers. It also affects shipping costs and sustainability efforts.