What is Fulfillment?
Fulfillment refers to the process of storing inventory, receiving orders, picking, packing and shipping items to their final destination. The e-commerce fulfillment process comes after a customer places their order with a business. It is an important part of a supply chain as customers are directly involved in this stage.
Significance of Fulfillment in E-commerce
Companies having a high fulfillment rate have a strong customer base. This allows them to increase conversion rates and grow company revenue. Here are the significances of fulfillment in e-commerce:
- The order fulfillment process is also a crucial part of the shopping experience. Soon after a customer places an order, the speed and quality of shipment and delivery have great significance. Many customers convert into loyal consumers because of the swift and impeccable fulfillment process.
- Depending on the speed of order fulfillment, companies can optimize delivery options. They can offer one-day delivery or same-day delivery options to attract more customers.
Prerequisites of Fulfillment
Here are some of the prerequisites for e-commerce fulfillment:
- Order placement is the first step of fulfillment.
- After that, the right products are picked from the inventory, packed and labeled in an orderly manner.
- The orders are shipped to the customer. If the shipment and delivery are fast, it satisfies the customers further.
- Lastly, if the customer returns the products, then they need to be processed fast, and the money has to be returned to the customer quickly.
Use Case With Fulfillment
Fulfillment is a crucial part of a business regarding customer satisfaction after the products. Suppose businesses A and B sell similar products of the same quality, but business A has a faster and more efficient fulfillment process than the latter. In this way, customers are more likely to order from business A.