The journey of an online order starts with the customer placing an order. Further, it goes to inventory updates, order processing, fulfillment, and finally to the delivery stage. Among all the other stages of this journey, order fulfillment is the most critical one, and it can make or break the deal. This is the step that leads to the final dispatch and the actual delivery. A failure at this stage, and there is NO SALE. A few of those mistakes and there might not be a business anymore.
This blog will outline the impact of order fulfillment on your business. Also, the hurdles on your way will be discussed along with a Master Plan to tackle all of them like a PRO! Just give it 7 minutes to make a difference in your business.
Order fulfillment is not just a process that leads to delivery; it is actually the process that makes a shopper your customer because, without fulfillment, there is no customer and sale. Hence, it is at the core of your ecommerce business. Apart from this, the following are the reasons why it holds such importance:
As a business owner, you would know a happy customer is a repeat customer. On-time and accurate order fulfillment makes it easier to deliver the right product within the promised time. This leads to customer satisfaction, and hence, loyalty towards the brand and business improves. Also, it advertises the business through reviews.
The longer it would take to process the order, the more time taken for the delivery. A streamlined order fulfillment process is the only way to cut the order processing time short for quick delivery. Again, better delivery leads to better customer experience, and you are ahead of your competition.
Profits are definitely dependent on sales, and optimized order fulfillment can bring them, but along with that, profits can be increased by cutting unnecessary costs like operational and shipping expenses. Efficient fulfillment can make that happen. Also, delays and errors can be avoided, saving a lot of money.
Once the process is streamlined and everything in the process is defined, the scope of errors is reduced. Errors can lead to a variety of problems like wrong delivery, damages, and delays. All this can be avoided at once with optimization of just one step.
Brand reputation is built on customer satisfaction. Customer satisfaction is dependent on delivery, product quality, and product accuracy as per the order. Most of these can be perfected with well-optimized order fulfillment, giving you a golden reputation amongst your customers.
Now, you should fix your order fulfillment as soon as possible. But you need to know that it might not be as easy as it sounds. There can be potholes on your way, leading to dips in your growth graph. Here's where you can face them:
What if someone finally selects your products and has made their mind to make the purchase? Then they see that it is out of stock. Are they going to wait for you to re-stock? No! They will search for something similar and buy it, and your competition will get that conversion. To avoid such a situation, you need to manage your inventory. Also, the same would help you to avoid dead inventory conditions. It will streamline your order fulfillment in the very first place.
Planning logistics is yet another challenge on your way. Delivery delays, damaged packaging, and wrong delivery can all harm the reputation of your company and drop future sales. Hence, managing logistics is essential for better order fulfillment to ensure the correctness and timeliness of the delivery for a happy customer.
The supply chain includes a lot of things now. Making the right decision in this area can cut costs, bring out the best, and deliver efficiently. Here, smart decisions need to be made based on suitability and purpose. The right partner will help you excel like a good friend. Supply chain execution will help you come out better to your customers.
Accuracy of orders can be the most recurring problem in the e-commerce business space because of the unorganized order fulfillment process. Order accuracy is a MUST and not even an option to retain customers. The effects of its failure can bring enormous problems for your business.
Technology, being all pervasive, can help you and your business in a lot of ways, even with order fulfillment. Not taking help from technology in this digital era can leave you behind your competition, leaving you armless to fight. Also, selecting the right partner is crucial so that you are not lagging.
Problem is not something you should focus on, the right strategy to overcome those problems should grab the limelight.
Warehouses store everything that your business owns in terms of inventory. A poorly organized or unorganized warehouse is the biggest reason for you to miss essential orders. It wastes time, causes mistakes, and throws down your standards. All this contributes to unsatisfied customers. All that you need to do is to understand the layout and look for areas of improvement. Then, go ahead and fill the gaps wherever required, and you will be good to go.
As mentioned earlier, you do not want a situation where you lose on a customer due to 'out of stock' condition or even stock more than required. You have to avoid such conditions, and you can do that by simply investing in inventory management software because humans are bound to make mistakes, but software can track your inventory much better with accuracy and completely updated details at all times. One task less, it will automate the process.
When one e-commerce platform is not enough for your customers, then why do you have to stick to a single fulfillment center? You should explore options and create a bunch for yourself. Multiple fulfillment centers will actually reduce your cost, shorten shipping time, and provide a fulfilling experience. Now, the choice of center can be based on location, as it gives you proximity to your customers and better service.
Automation is your way to free yourself from unnecessary burdens. Technology can streamline a considerable portion of order fulfillment. It increases accuracy and customer satisfaction with appropriate results. An automated order management system is all that you need to take care of different stages of order processing. Also, the integration of shipping carriers with order fulfillment can help you get end-to-end solutions to all your problems.
Returns are an inevitable part of the e-commerce business. They will stay as long as your company does. You can lower them by providing excellent service, but you cannot eliminate them. Since returns are such an inseparable part of e-commerce businesses, developing an effective returns management process is the only way out left. For that, you need to create a transparent return policy to eliminate any misunderstandings. Then you should make returns easy for every order, be it prepaid or paid on delivery. Also, provide your customers with an exchange option so that you do not have to lose on sales.
Data and figures can give you insights into the future and can be highly useful in the long run. Analyzing data and numbers can be difficult, but it is your only way to make decisions that actually work in favor of your business. Data analysis can help you plan out inventory, trends, and discounts. Historical data can be used to forecast inventory needs and demand. Also, by monitoring the real-time sales data, you can make quick changes to your current plan of action.
Shipping options are a must because this might leave a well 'set-for-sale' cart abandoned. Providing multiple options for shipping is a must; this way, your customers can choose from the various options according to their suitability. With numerous shipping options comes a variety of speeds, and customers get a buffet to choose from. Also, the free shipping option lures customers to buy more if there is some minimum limit. With real-time shipping rates, you can also cut your costs depending on the market prices being charged to you.
Communication should be your priority as it is something that changes a lot in your business. You should be transparent with your customers and keep them informed at all times. For this, you can get help from software that automatically sends notifications and details to the customers once the order is shipped. Also, customer support is an important part that will not just retain your customers but will also help you build a connection with them. You can also send personalized messages for better consumer response.
You have enough knowledge about Order fulfillment. Also, you are equipped with the strategies to fix it. Now, all that is there to do is implementation. Every step in order fulfillment is equally essential, and you cannot take care of everything personally. You definitely need a digital friend to take over the load. MapMyChannel can be one such friend that can automate your order fulfillment process. Also, it will help you with inventory management, order listing, delivery tracking, and a lot more. So, you will be able to focus on happy customers and be a better business.
