What is Ecommerce Fulfilment?

Ecommerce fulfilment is the essential process of delivering products to customers who have placed orders online. It encompasses several key steps: storing inventory, picking and packing orders, shipping, and managing returns.

Each stage must seamlessly integrate with the others, from the moment a customer completes their order to when they receive and unpack their product. Delays or errors in this process can lead to dissatisfied customers and potentially damaged goods. Frequent issues can result in negative online reviews and returns which can significantly impact a business, given that 73% of online shoppers consider reviews when deciding where to shop.

A reliable ecommerce fulfilment process can also enhance customer loyalty by ensuring prompt delivery, often faster than competitors.

5 Steps of Ecommerce Fulfilment

1. Receiving Inventory: The first step involves ordering products to your chosen distribution location, whether it's a stockroom, an ecommerce warehouse, or a distribution centre. Effective inventory storage is crucial.

2. Inventory Storage: The method of storing products varies with the size of the business. Larger businesses may need warehousing, while smaller ones might store products at their business location or home.

3. Order Processing: Once a transaction is completed, the order is processed. The right packaging is vital to prevent damage during transit.

4. Shipping: Products are then shipped to customers. Smaller businesses might handle shipping themselves, while larger ones may use a fulfilment service or ship directly from their storage location.

5. Returns Processing: Efficiently handling returns is crucial, especially for industries with high return rates, like fashion.

Ecommerce Fulfilment Options

In-house Fulfilment: Handling the entire process internally, suitable for smaller or start-up businesses to reduce costs. As the business grows, this method may become impractical.

Third-party Logistics (3PL): Outsourcing some or all of the fulfilment process to a third party. This allows businesses to focus on selling while the logistics are handled by experts.

Fulfilment by Amazon (FBA): Amazon picks, packs, and ships your orders. Products sent to Amazon fulfilment centres are delivered through Amazon's logistics network, enhancing delivery speed and customer satisfaction.

Dropshipping: Businesses never hold stock, instead purchasing inventory from suppliers who then ship directly to customers. This reduces overheads and allows businesses to focus on other operations.

Choosing the Best Ecommerce Fulfilment Option

The right fulfilment approach for your business can impact customer satisfaction and repeat business. Consider your business size, order volume, and product type.

In-house Fulfilment is ideal for start-ups, businesses needing custom orders, or those with highly seasonal products.

Third-party Logistics is suitable for businesses experiencing high product demand, facing negative customer feedback due to in-house limitations, or running out of storage space.

Blue30 is a UK based Fulfilment Service UK offering a number of services to ecommerce sellers and brands. We support Shopify sellers of all sizes and offer D2C and B2B solutions. You can also book in a free call to discuss your requirements and what we have to offer here. Alternatively get a free quote here.