Ecommerce Fulfillment: Three Vital Strategy Brands Use to Win Loyal Customers

The digital age has made us all more impatient, and we expect technology to speed up processes. Customers who shop online demand speed in everything- from online searches and checkout processes to customer service responses. Smart shoppers also look for value for their money and want the shortest delivery times and the cheapest shipping prices. Customer expectations about shipping costs and speeds are continuously changing due to Amazon Prime and other retail corporations adopting the method of free 2-day shipping.

Did you know: 

  • If shipping, taxes, and other expenses are too high, 61% of customers will abandon their purchase.
  • 53% of consumers indicate that delivery time is a key consideration when examining their online orders.
  • If they had a bad delivery experience, 38% of customers said they would never purchase with that retailer again.
  • 25% of customers have changed their minds about an order due to slow delivery times.

What is Ecommerce Fulfillment?

Ecommerce order fulfillment is the procedure that ensures customer orders can be fulfilled. This involves managing the supply chain, storing your inventory, “picking and packaging” the products, and shipping the orders to the consumer, just like managing a small business.

Business-to-business (B2B) orders and business-to-consumer (B2C) orders are covered by ecommerce order fulfillment. The e-commerce corporation itself may conduct the process internally or outsourced to a third-party logistics.

Creating a Strategy for Order Fulfillment

A solid strategy must be behind Ecommerce order fulfillment, especially if you want to expand your company. Good planning is essential to ensure the infrastructure, systems, processes, and personnel you’ll need for success.

1. Location is significant.

The location of your order fulfillment center, and the size of your storage area, are one of the most crucial aspects of satisfying client expectations for delivery costs and times.

Customers value both economical and quick shipping alternatives, so tailoring your fulfillment strategy to your customers’ locations will enable you to serve the greatest number of customers at the lowest possible cost.

For instance, unless buyers are ready to pay much extra for expedited delivery, it may take some time for orders to be shipped from abroad to US customers and that is a downside.

2. Integration of technology

Software that connects easily with ecommerce platforms and online marketplaces may help manage orders across sales channels without the need for manual uploads or duplicate data entry.

Thus, as soon as a customer places an order online, fulfillment personnel can be instantly informed and begin to pick, pack, and ship the requested items to the customer. The platform or marketplace can send tracking information back and share it with the customer.

3. Free 2-day shipping

Free 2-day delivery encourages customers to complete their purchases, helps lessen the cart-abandonment rate and increases the number of people who visit your checkout page.

If your product is inexpensive, covering the delivery cost will cost you money, but raising the price may drive customers away.

A free 2-day shipping strategy is frequently the most effective for more expensive items or companies with customers who typically spend more money on an average.

Making a Decision Regarding the Ecommerce Order Fulfillment Model

Making the best decision for order fulfillment will depend on a number of elements, such as the volume of orders, the products you offer, the level of self-management you desire, and more.

In order to meet client expectations, you must understand:

  • The overall process for filling online orders.
  • The fulfillment model which is most appropriate for your company.
  • How to run your organization strategically.

With this, you should be able to manage any challenges you face along the way. 

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