What Is Fulfillment - DSers eCommerce Basics


Fulfillment is the process of receiving a new order, preparing it, and delivering it to the customer.

What Is Fulfillment

Fulfillment is the process of receiving a new order, preparing it, and delivering it to the customer. While larger firms are normally able to manage order fulfillment on their own, eCommerce companies and smaller businesses frequently outsource that function to fulfillment specialists. The fulfillment process includes the following steps:

Step 1- Warehousing/storing the product or its components.

Step 2 - Producing or assembling the product.

Step 3 - Packing the order in a box or an envelope.

Step 4 - Labeling the order for shipment.

Step 5 - Shipping the order using express delivery.

Step 6 - Notifying the customer about the shipping details via email.

Step 7 - Processing payments, and transferring funds to the company.

Why Is Fulfillment Important to Your Business

You may not only please your customers but also prevent returns, damage, and other order-related problems if you create an effective and adaptable order fulfillment procedure. Here are some reasons why fulfillment is vital to your business:

  • Encourage customers to purchase your products

To draw in new consumers and keep them satisfied with your product offers, you must make sure that the order fulfillment process runs smoothly. The more you meet their expectations, the more you encourage them to buy your products over those of your competitors. 

  • Affect your company's reputation

If you cannot meet your customers’ needs, they will leave you. When this occurs, the reputation of your company will be negatively impacted, which may result in more unhappy clients and a negative perception of your company.

  • Contribute to generating more sales

Having efficient order fulfillment can help your company generate more sales. Typically, when customers are aware of the steps involved in packing and shipping their products, they are more likely to click the "place order" button as they feel their money is being well spent and their orders are being processed properly.

How to Improve Fulfillment

Below are some useful tips for you to improve order fulfillment:

  • Choose the best fulfillment ERP system

A fully-featured ERP (Enterprise Resource Planning) can help businesses track orders, inventory, etc. Modern ERP systems also enable you to directly connect with your suppliers and vendors and handle a lot of things without extensive human intervention.

  • Set clear customer expectations

When you receive an order, establish clear expectations and then make efforts to fulfill them. If anything seems to be taking longer than expected, let your customer know as soon as possible so they won't be dissatisfied.

  • Optimize your inventory management

When you store too little stock, you run the danger of running out and then not having enough for client orders. Additionally, working capital and storage costs might spiral out of control if you store an excessive amount of inventory.

  • Keep good communication with your shipper

Take the time and make the effort to negotiate the best price and delivery schedule for your fulfillment requirements, and be proactive in your communication with shippers to prevent delays.

  • Prepare for customer service and returns

Sometimes mistakes and delays occur, so it is best to be ready to fix them.

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