When consumers want something, they want it now.
And when you’re a retailer, meeting those demands is easier said than done.
Ecommerce order fulfilment is not the easiest part of running a business, and it’s also the process that directly impacts your bottom line.
Consumer reports show that 48% of consumers want faster delivery times. And consequently, efficient ecommerce fulfilment can be the difference between earning loyal customers and losing sales.
Whether small or large, ecommerce businesses need to integrate order fulfilment into their operations for better efficiency, reduced operational costs, better customer satisfaction, and repeat business.
This article will walk you through how ecommerce fulfilment works, how to integrate ecommerce fulfilment into your business, and how the right approach can support your business’ growth and provide the foundation for scaling your online business successfully.
How Ecommerce Fulfilment Works
After your customers buy something from your online store, ecommerce fulfilment is the process of delivering those products to your customers’ homes. The entire process covers inventory management to shipping and even returns management.
The order fulfilment process involves:
- Receiving and managing inventory — the stage where products arrive at a warehouse or fulfilment centre to be stored and catalogued. Inventory management also ensures that stock levels are accurate and that the right products are available for orders.
- Order processing, which happens after a customer places an order. The staff gets the relevant products from inventory. Automation can also help streamline this step by reducing manual tasks and it makes sure that orders are processed quickly and accurately.
- Picking and packing — the phase when the ordered products are “picked” from the warehouse and prepared for shipping.
- Shipping is when the products are shipped to the customer. At this stage, the speed and reliability of shipping impacts customer satisfaction, so it’s important to partner with reliable shipping providers that have options like express delivery or tracking.
- Returns management is the phase where product returns are processed. A stress-free returns process is good for enhancing customer experience.
And when you’re in the process of integrating ecommerce fulfilment into your business, you need to do some research into different fulfilment methods that are available to you. You can do in-house fulfilment, where you take care of fulfilling orders by yourself, or opt for dropshipping — a fulfilment model where your business doesn’t actually hold inventory. The supplier ships it directly to your customers.
Most ecommerce businesses outsource the fulfilment process to a third-party logistics (3PL) provider instead. 3PLs are ideal for businesses that want to scale without investing in their own warehousing infrastructure.
What Does It Mean to Integrate eCommerce Fulfilment and What Are the Benefits?
Integrating order fulfilment into your ecommerce platform refers to connecting your online store with the systems that manage your inventory, order processing, shipping, and customer data. This seamless connection between the two helps streamline the flow of information between your store and your logistics operations.
The end result is less manual work and lesser potential for errors.
When you’re integrating ecommerce fulfilment with your business, it usually involves working with plug-ins, APIs (Application Programming Interfaces), or other third-party software to synchronise your ecommerce platform with the fulfilment processes.
These tools are instrumental in connecting your order management system (OMS) with warehouses, shipping carriers, and other logistics providers.
The key benefits of integrating ecommerce fulfilment into your business are:
1. Better efficiency
Order fulfilment processes make use of automation. And because of automation, orders are processed faster, shipments are prepared quicker, and inventory is updated in real-time. This means your business will be able to handle more orders without adding complexities to your workflow.
2. Order accuracy
Manually managing all the orders by yourself often has a greater margin for error. You could lose items during the entire process, overstock, or end up with incorrect shipments.
Integrating the order fulfilment process with your ecommerce business gives you access to real-time tracking and automation technology that can monitor your stock levels to make sure that everything is accurate and orders are fulfilled correctly.
3. Better scalability
As your business grows and expands, a properly integrated ecommerce fulfilment system can easily handle more orders without the need to hire additional staff or make major investments in infrastructure.
The beauty of an integrated system is that your operations can scale seamlessly alongside your business.
4. Enhanced customer experience
Faster shipping times, accurate orders, and real-time order tracking lead to better customer satisfaction down the line. Customers appreciate quick delivery times, easy tracking, and the peace of mind that comes with knowing their order is in safe hands.
5. Reduced Operational Costs
A fully integrated ecommerce fulfilment system helps you cut down on operational costs by reducing the need for manual labour, minimising shipping errors, and optimising storage and shipping methods.
Choosing the Right Ecommerce Fulfilment Solution
Part of a successful ecommerce integration process is making the right choice for how your orders are fulfilled. Deciding which ecommerce order fulfilment model to use depends on your order volume, the type of products you sell, and how much of the process you’re willing to manage yourself.
We’ve given a brief overview on the three common methods of ecommerce fulfilment above, but let’s get into the details this time.
1. In-house Fulfilment
This is the do-it-yourself approach. In-house fulfilment is most suitable for smaller businesses who have lower inventory volumes, and for those who want to have complete control over the entire operation.
It’s a good starting point for home-based businesses, and in the beginning, it can even be a low-cost option.
But as your business grows, in-house fulfilment can pose some challenges. Depending on the scale of your fulfilment process, it can involve hiring your own labour force, investing in order fulfilment software and technology, and the purchase of warehousing equipment.
| Pros | Cons |
| Easier implementation.Cost-effective startup costs.Total control over the whole ecommerce fulfilment process.In-charge of the whole customer service. | Difficult and limited scalability.Limited space for inventory and labour.Limited competitively-priced shipping options.Costs grow over time as the business grows. |
2. Drop Shipping
When you drop-ship, you’re not storing any of the inventory yourself. This is an order fulfilment method that involves forwarding all online orders directly to the product manufacturer.
As the seller, you don’t come into contact with any of the inventory throughout the whole process; instead, the product manufacturer takes care of managing the entire process from point-of-sale to delivery.
Drop shipping is an attractive option because of its low start-up costs, but you have to consider that it’s also a fulfilment method that gives you no control over the shipping process or how the products are being handled, which means you can potentially face shipping delays and negative customer service experiences.
| Pros | Cons |
| Low startup costs.Reduced risk of loss by only paying for what customers ordered. | No control over the order fulfilment process.Zero control over inventory volumes.Risk of customer service issues because the business owners’ lack of control over products and how they’re shipped. |
3. Third-party Logistics (3PL) Fulfilment
Hiring a 3PL service provider basically means outsourcing your order fulfilment process to a 3PL company, like Green Fulfilment. Third-party logistics companies take care of warehousing, picking and packing, shipping, and returns management for you.
Online sellers often opt for 3PL fulfilment because their business has outgrown their in-house order fulfilment operations.
Think of the 3PL operation as an extension of your business. 3PLs handle the logistics side of your ecommerce business, and you can focus more on brand building, business growth, and customer service.
| Pros | Cons |
| More time and resources to focus on other aspects of your ecommerce store.Better efficiency and speed in processing customers’ orders.Access to trained fulfilment centre staff, industry-leading technology, multiple parcel carriers for multiple shipping options, and warehouses on multiple locations. | Relinquished control over the shipping and returns process.Finding the right ecommerce fulfilment partner that fits your business’ unique needs. |
How Integrating Order Fulfilment with Ecommerce Platforms Works
In order to successfully integrate order fulfilment software with your business’ ecommerce platform, there’s some research to do.
Each software has its own set of strengths and weaknesses. But once you’ve picked a software to use for integrating order fulfilment with your ecommerce business, the integration process can begin.
Step 1: Research your integration options
The software you choose has to be compatible with your ecommerce platforms, because some software only works for specific platforms. The platform you choose needs to integrate seamlessly with your platform to ensure a speedy integration process with less hangups.
Step 2: Connect the software to your ecommerce platform
After ensuring that your chosen software is compatible, the next thing to do is follow the integration instructions provided by the software.
The instructions will differ from one software to the next and it also depends on the platform being used, but most of the time, you can expect certain steps like creating an API key or entering login credentials to link the two systems together.
Step 3: Configure the software
Once the software is securely connected to your ecommerce platform, it’s time to configure it, so that it meets your business’ needs and aligns properly with your order fulfilment workflows. This is also the step where you can make adjustments to shipping rates, choose carriers to work with, monitor stock levels, etc.
Step 4: Test the ecommerce platform and order fulfilment integration
Before going live, it’s crucial to test the integration thoroughly. Make sure that all of the orders are properly imported and each one is fulfilled on time. Place test orders and verify the order placement to make sure that the whole process works as expected.
Step 5: Monitor the integration
Regularly monitor the integration and make adjustments as you see fit. You’ll find that some days you need to update the workflows, modify the shipping rates, or quickly troubleshoot issues that arise.
Doing this can help you make sure that your integration is optimised and the entire order fulfilment process remains efficient and accurate.
Common Ecommerce Fulfilment Challenges and How to Deal with Them
As straightforward as ecommerce fulfilment may seem, unexpected challenges can still arise and they can prevent your business from scaling. They may even cause delays in the order fulfilment process.
So what are the common pitfalls, and how can you avoid them or mitigate them?
1. Failing to prepare for unexpected changes in volume
Q4s are a time to be wary. As an ecommerce business owner, you need to be ready for the inevitable holiday rush in the holiday season. Even when you’re used to seasonal and surges, there are times when the unprecedented demand can still take you by surprise.
As more orders are placed, more people are needed to help you ship them out.
This can be especially challenging when you’re doing things on your own, but even with the help of an experienced ecommerce fulfilment centre, there are still things that you need to do to successfully overcome the holiday rush.
Integrating order fulfilment systems and your ecommerce platform will do you a lot of good here as it lets you:
- Do demand forecasting. Historical sales data and industry trends are useful for predicting peak order periods.
- Communicate efficiently with your ecommerce fulfilment centre (if you’re working with one). Your 3PL can provide you with accurate forecasts and reports to ensure that they are properly staffed and prepared for the rise in demand during Q4.
- Develop contingency plans to successfully handle the unexpected order surge. Strategies employed include paying for staff overtime and for additional warehouse space.
2. Not using the right technology
Lots of ecommerce businesses suffer from using outdated systems and software that’s limited in technological capabilities. Systems like these can leave you stuck, using guesswork around everything from inventory planning to understanding cart abandonment.
To address this issue, you need to assess the impact of the outdated technology that you’ve been using. Pinpoint areas of ecommerce fulfilment where outdated technology is hindering your efficiency or accuracy. Evaluate costs too — including errors, lost productivity, and customer dissatisfaction.
Look at your options too. Upgrade your existing technology, and develop a long-term technology roadmap to make sure your operations remain competitive.
If you’re doing in-house fulfilment, consider partnering up with an ecommerce fulfilment centre that can do integrations seamlessly. More often than not, they have the advanced technology and warehousing systems that you need.
3. Fulfilling orders from a single location
Customers nowadays expect a fast turnaround for deliveries after they place their orders. If you’re only shipping orders from one location, you can’t give your customers affordable shipping options.
Working with a third-party ecommerce fulfilment centre can help you overcome this challenge, as most centres have warehouses across the region. This means you have the chance to give your customers more affordable shipping options and other carriers too.
Final Thoughts
Green Fulfilment understands the challenges that ecommerce businesses face when integrating their fulfilment operations. Our user-friendly software, Green Portal, was designed to simplify the integration process.
Green Portal integrates with over 70 popular shopping carts and marketplaces, and it acts as the centralised hub for all of your sales channels. This lets you automatically synchronise orders, gives you real-time updates about order status, tracking information and inventory levels, and automates data entry.
Ecommerce fulfilment integration is a powerful strategy that reduces your operational costs, boosts efficiency, and creates better customer satisfaction.
The right fulfilment model and the right technology can help pave the way towards seamless integration. A well-executed ecommerce fulfilment strategy is key to staying competitive in today’s fast-paced landscape.