We work, breathe, and eat order fulfillment here at stockkonnect (okay, maybe not the food part but you get the idea). Given the fact that order fulfillment is an important part of eCommerce, very few people are completely conscious of just what it is and how it functions … and we do not blame them! It’s not just a familiar trend for the daily shopper, after all.
We’re going to be highlighting the distribution business in this article — and no, gnomes and elves aren’t liable for getting the orders delivered on time. We’ll walk you to the ins and outs, from what to the why to the how. You will quickly become a specialist in fulfillment yourself!
What Is Order Fulfillment & Why Is It Important?
In the simplest of terminology, the method from order checkout to order distribution is eCommerce order fulfillment. The second you finish an online ordering, the shop from which you ordered now has the responsibility of materializing your order right at your doorstep. There will be several twists and turns along the way, which is why finding the best delivery plan for any profitable company is non-negotiable.
Generally, order fulfillment encompasses:
- Receiving inventory
- Inventory storage and forecasting
- Picking and packing (also known as order processing)
- Kitting and bundling products (if applicable)
- Shipping orders
- Handling returns
Order delivery is so critical that eCommerce does not work without it-after all, consumers buy products with the hope of getting what they have ordered. Completion is the second step in a two-phase process, the “taking” after the “get.”
How Does Order Fulfillment Work?
We are pleased that you have asked! All begins with a push. You may name the button “Check Out,” “Buy Now,” “Place Order” or some combination thereof. Regardless of the label, it still has the same meaning — to make a transaction and to bring the transaction into the actual world. If this fatal button is pushed, the execution gears are set in motion.
Firstly, there has to be a way to track down the particulars of an order, such as consumer and product records, for fulfillment to function. This can be achieved manually, or better still, by the combination of the shopping cart and the program used for delivery. Integration is basically a convergence of two separate structures, implying, in the software universe, that everybody (and every system!) is on the same page.
When specifics of the order have been issued, it is time to select and carry. Selection can be somewhat difficult with bigger activities. For eg, assume a company 1) sells t-shirts and 2) have several SKUs, or exclusive t-shirt designs. In this situation, each SKU must be kept separately such that misspeaks or erroneous instructions are not present.
Choose the Necessary Packaging
Pack occurs after choosing, something that we both did at one time or another! But instead of wrapping gifts hurriedly on Christmas Eve, the order delivery process is much more organized. At a packing station, the selected order products are dropped off, where a packer can then choose the necessary packaging which may vary from boxes and mailers to bubble wrap and crinkle paper. Also, the packaging stage is a perfect opportunity to focus on branding, for example by personalized tape and advertising inserts.
When a shipment is wrapped safely, a mailing sticker is written and applied to the packaging’s exterior. Now it’s time for sailing!
Though delivery is typically done by freight companies (like UPS and FedEx), it is also part of the fulfillment of the order. This is because it is the duty of someone who fulfills the orders to determine delivery prices, arrange shipments, and deliver orders to carriers.
And when an item is shipped to your new home in a secure way, order delivery is far from done. In reality, it plays a major role in the experience of post-purchase — returns, swaps, mispicks, and delivery issues will all come under the umbrella of order fulfillment.
What Are the Different Options?
There are three key methods of having customers’ orders selected, packaged, and delivered for eCommerce company owners.
In-House Fulfillment
In-house fulfillment, as you can imagine, is handling order fulfillment right from home. Or, alternatively, from a rented warehouse space. Point is, there is no outsourcing — the fulfillment process is handled internally every step of the way.
Drop-Shipping
dropshipping applies to a completely different style eCommerce is “going.” Explaining this one with an illustration is easiest.
Let’s say Janice is selling backpacks. She makes some of them herself, and orders wholesalers from others. No matter if she acquires her products, she’s legally the owner of it. Often she’s the one in charge of sending goods out (or getting a 3PL to support her).
Janice’s got one mate, Kelly. Kelly is still involved in marketing backpacks and has noticed an unidentified store offering inexpensive trendy backpacks. But instead of consuming inventories and keeping them,
Kelly publishes details of the store on their website. If a consumer makes a transaction, she then places the same order with the aforementioned manufacturer, which is liable on her side for storing and delivering the items.
Unlike Janice, Kelly seldom sees her merchandise or deals with its much like the “middleman” of a buy.
Outsourced Fulfillment
Oh, the Knowledge field of Stockkonnect! Externally controlled order fulfillment is outsourced fulfillment. It’s what we’ve just thought about, and that a third party firm (aka 3PL) does all of it.
As an online shopper, you’ve often ordered items online that have been delivered by a different company from the one from which you buy. You actually didn’t really realize it so it should be as easy as practicable to outsource delivery — which involves upholding business messaging to.
And that is (almost) what you need to hear regarding order fulfillment! And the reality that no gnomes or goblins are involved in the process of following your instructions, the machines, and humans who will make all this possible are amazing on their own. If you’re an online shopper, a company owner, or both, we hope we’ve helped you see the (great) order fulfillment benefit!
