Want to know what exactly is order fulfillment, and how does it work?
Here’s the answer – When an order is received, an organization’s or e-commerce order fulfillment process begins and ends with the delivery of the product or service to the customer. An automated email is sent to the customer to inform them that their order is on its way after the product has been picked up, packed, and shipped.
What is the Order Fulfillment Method?
E-Commerce order fulfillment is a simple process. However, in order to better understand how a company processes orders, it is possible to break them down into smaller steps in chronological order:
- Receiving an order
- Requests for orders are entered into inventory management systems.
- The customer is notified of the order.
- Sending an order request to the warehouse
- A warehouse employee locates and picks up the item that was ordered.
- Preparation for shipping has been completed.
- The package containing your order has been dispatched.
- The customer receives a notification that their order has been shipped.
- Delivery of the order has taken place.
- Orders can be returned for a refund if necessary.
It’s time to update the inventory.
Steps Involved In E-Commerce Order Fulfillment
> Receiving Goods
An E-Commerce business can manage inventory in one of two ways. Alternatively, it can use an E-commerce order fulfillment outsourcer to handle its inventory and all associated tasks. If the company chooses the first option, it will be responsible for stocking, inspecting, labeling, and managing the inventory system. If the company decides to outsource or dropship, the order fulfillment partner or supplier will take care of these tasks.
> Keep Track
Another set of tasks awaits you once you’ve completed the inventory receiving portion of your job. If you want to get your orders out as quickly as possible, you’ll need to organize your inventory and keep an eye on what’s coming in and going out. Also, if your company is dealing with dtc fulfillment or D2C fulfillment.
> Processing Details
Instead of getting bogged down in all the details of order processing, companies that outsource order fulfillment leave it up to their partner to take care of it all from that point onward. Orders are pulled from a shelf, transported to a packing station, checked for damage, boxed, and then moved to the shipping station by companies that manage their own inventory. This is the part where the order is shipped.
> The Order Has Been Shipped
The best shipping method is determined based on the order’s size, weight, and specific requirements. This step is frequently contracted out to a third-party carrier.
> Returning customers
Having the ability to return unwanted items is a major selling point for online buyers from e-commerce order fulfillment. Designing a returns policy that is easily accessible to both your customers and your employees is essential to ensuring that the return process is as efficient as possible. You can avoid unnecessary commotion and errors by automating this step of the process.
The Fulfillment Model for E-commerce
A variety of order fulfillment models are available for you to choose from for your ecommerce store.
Dropshipping: Dropshipping is the simplest way to fulfill orders. As long as you include your customer’s address when you place an order with a supplier, they will receive the goods directly from you.
Fulfillment in House: This model requires you to perform all of the fulfillment tasks in-house, and to invest in software or automation to make the operation more efficient, as necessary.
Outsourcing: Outsourcing order fulfillment may be a viable option for you if you lack the capacity to package and store your products in-house. You can spend more time promoting your brand and business if you outsource this task to a reputable third party.