Did you know that around 38% of online shoppers cancel their order if their order takes a week or longer to arrive? 

Did you know that online shoppers track their tracking page an average of 3.5 times per order? 

What do you make of these statistics? 

These statistics reveal that making your customers happy without timely and properly delivering their orders is the only way to success for your online business. The final package that your customers get is the initial impression of your brand, which is paramount to your success. Better the delivery, better the sales, and better the marketing. Therefore, eCommerce fulfillment is a major element of the entire process. 

Your eCommerce fulfillment services decide whether your customers will return and repeat or it was their last time shopping with you. To ensure the return, a streamlined and optimized fulfillment chain can “deliver” and “sell.” Now the main question is what Is eCommerce fulfillment & how does it work? Let’s delve deep into it. 

What is eCommerce Fulfillment

In the simplest words, e-commerce fulfillment means the process of completing online orders. If your customer places an order online from your online retail store, you must deliver the order within a limited timeframe. It comprises activities like inventory management, order processing, picking and packing, shipping, and return management. 

For the success of any online retail business, e-commerce fulfillment services play a crucial role. A professionally planned fulfillment strategy saves time, resources, and money and streamlines your online market by widening your market reach. A great eCommerce system is very important to make your business robust and build amazing customer loyalty. 

Ecommerce Fulfillment Process

The entire fulfillment process is very important for the success of any e-commerce operation because it covers every stage of a product’s journey. The process is as follows:

1. Receiving

The first process in e-commerce fulfillment is receiving. It means accepting and storing the inventory that comes to the fulfillment center. It starts with delivering the pallets that have your product to your fulfillment warehouse. These pallets are stocked and stored to complete the orders. 

2. Inventory Management

Another very critical step in the fulfillment process is inventory management. It means keeping a systematic record of all the products you have so you can stock and restock and never run out of products to successfully complete the order. This step enables seamless planning so you can meet your client’s demand and supply. 

3. Order Fulfillment

Once an order is received, the next step in the fulfillment process involves picking the items, transporting them to the packaging center, conducting a damage inspection, and moving the packed items to the shipping station. This process requires critical attention and steps like providing packing slip instructions and determining the dimensional weight (DIM weight) to speed up the order transportation and reduce the shipment costs. 

4. Shipping

Once the entire processing is done, the next step is handling the order with a third-party carrier for the final delivery to the customer. The shipping company decides how to send the package based on its actual weight or size, whichever is larger, and any other instructions provided by the shipping station.

5. Returns

Since online buyers expect convenient exchange and returns, the final leg of order fulfillment incorporates customer service and support for handling complaints, returns, and product exchanges. 

Types Of eCommerce Fulfillment Services

To begin with, there’s no single eCommerce fulfillment model to carry out the services. Depending on the order numbers, inventory levels, and other requirements, there are several models that this service has. Based on so many parameters, you come down to one method that best suits your business needs. Definitely, each one has its advantages and disadvantages, but customization as per your needs can bring the cons down. 

1. Self Fulfillment

The first type of eCommerce fulfillment model is self-fulfillment. As the name suggests, this type of fulfillment model has all the operations—storage, inventory, order management, packaging, shipping, and returns—managed by a single entity. What does this mean? 

This means that you have a storage center all to yourself where you carry out and manage processing activities alone. Though this model is perfect for small businesses, it’s not recommended or sustainable. With a growth mindset, when your orders increase, you will need more space and resources to carry out the services. If you are unable to do that, you might face difficult days, late deliveries, and even wrong orders. 

2. 3PL Fulfillment

Third-party logistics (3PL) fulfillment is the model where you outsource your fulfillment operations to a third party, along with your warehouse, inventory management system, shipping, and return management shipping access. Once you collaborate with a 3PL fulfillment provider, that company takes over your process. 3PL companies collaborate with multiple merchants and provide a training resource that supports all operational tasks and fulfillment centers, enabling quicker order processing. 

Based on the type of business you have, you can partner for your eCommerce store. Every third-party logistics will have some unique solutions to offer bespoked to your needs like B2B processing, B2C order processing, temperature-controlled storage, etc. 

3PL fulfillment is a sustainable option as it allows you to fulfill more orders and scale your business. The advantage lies in its flexibility, requiring no upfront investment for expansion. You get trained people to handle all operations, enabling faster order processing.

3. Dropshipping

Dropshipping is one model where your wholesaler or manufacturer directly ships the product to your customer. This means that the seller doesn’t have physical products in stock. When a customer buys something from the seller’s website, the order is either sent to the supplier by the seller manually or automatically. The supplier then takes care of processing and delivering the order to the customer.

This process is apt for businesses who have just started and looking for storage and processing ways. For the long run, this model cannot be fruitful as it won’t allow you to control inventory. If you want to grow your business in the long run, it can be difficult because you may need to partner with several drop shippers and work with many of them to ensure everything runs smoothly.

4. Hybrid Fulfillment Model

A combination of all of the above stated models is known as Hybrid Fulfillment model. As an example, a business can handle specific orders internally, such as custom products or items requiring assembly, while also leveraging dropshipping services for non-custom items. Some businesses choose dropshipping for items they don’t sell often or don’t want to keep in their own inventory, like expensive or large products. This is helpful for companies that need more flexibility or are growing rapidly.

Benefits of eCommerce Fulfillment Services

Among the endless benefits of eCommerce services, we are mentioning some of the major ones that make a greater impact. 

Fast Deliver: eCommerce fulfillment services from the 3rd party ensures faster turnaround times to meet customer satisfaction criteria and quick delivery expectations. 

Lower Overhead Costs: Collaborating with a 3PL fulfillment provider means reduced cost in terms of in-house operating activities. It ultimately saves time and money.  

Reduced Shipping Costs: Outsourcing fulfillment allows online merchants to benefit from better shipping rates negotiated by the fulfillment partner, resulting in cost savings compared to individual shipping arrangements.

Revenue Boost and Growth: Good eCommerce fulfillment boosts sales, which ultimately results in a boosted revenue leading to expansion and growth. 

The Future of eCommerce Fulfillment

The future of eCommerce fulfillment in 2023 and beyond holds immense possibilities in terms of technology and advancement. Have a look at some of the trends that might mold and shape eCommerce fulfillment entirely in the coming years. 

Drone and Autonomous Vehicle Delivery

As the tech-part is becoming more advanced for a lot of businesses, eCommerce fulfillment is no exception. Drones and autonomous vehicles for last-mile delivery will grow. Such delivery methods can totally revolutionize eCommerce fulfillment by enabling faster deliveries. However, regulatory challenges and technical hurdles can be a problem. 

Robotics and Automation

The adoption of robotics and automation in eCommerce fulfillment in 2023 and beyond will be a key trend. Robotic systems will automate tasks such as picking, sorting, and packing that’s repetitive. It will increase operational efficiency and will reduce errors. Robots can work alongside human workers

Data-Driven Decision-Making

Data-driven eCommerce fulfillment will flare up in the near future. Data availability and analytics advancements will enable smart decision-making, leading to more upgraded and optimized inventory management, an accurately anticipated demand pattern, and resource allocation in the right way. Real-time data analysis can also identify issues in the fulfillment process, which will allow seamless problem-solving and great scope for improvement.

Augmented Reality & Virtual Reality

AR and VR have great potential to enhance the online shopping experience like never before. In terms of eCommerce fulfillment, these technologies can be useful to improve order picking and packing processes, reducing errors and increasing efficiency.

Blockchain for Supply Chain Transparency

Blockchain technology has the potential to revolutionize supply chain management by providing transparency and security. In eCommerce fulfillment, blockchain can be used to create an immutable record of each transaction, ensuring the authenticity and traceability of products. This technology can enhance trust between buyers and sellers, mitigate counterfeiting issues, and improve overall supply chain efficiency.

Integration of Voice Assistants

Voice assistants like Alexa and Google Assistant are becoming popular. In eCommerce fulfillment realm, this technology in warehouses will allow workers to receive picking instructions and interact with inventory systems using voice commands. This hands-free approach can boost productivity.

Micro-Fulfillment Centers

We all know the growing demand for fast delivery. Keeping the same in mind, These compact warehouses can store and process inventory close to customers, enabling same-day or even on-demand delivery. Micro-fulfillment centers can help businesses reduce transportation costs, improve order fulfillment speed, and enhance the overall customer experience.

To Conclude

In conclusion, eCommerce fulfillment is a crucial aspect of running a successful online business. It includes the entire process of completing online orders, from inventory management to order processing, picking and packing, shipping, and handling returns. Timely and proper delivery of orders is essential for customer satisfaction and business growth. Different fulfillment models, such as self-fulfillment, 3PL fulfillment, dropshipping, and hybrid models, offer varying advantages and suitability based on business needs. 
The future of eCommerce fulfillment holds exciting prospects, including advancements in drone and autonomous vehicle delivery, robotics and automation, data-driven decision-making, augmented reality, blockchain integration, voice assistants, and micro-fulfillment centers. Understanding what eCommerce fulfillment is and how it works is paramount for businesses to optimize their operations and provide exceptional customer experiences.