Table of Contents
More Order Content
Get the latest e-commerce industry news, best practices, and product updates!
Table of Contents
More Order Content
Share This
Get the latest e-commerce industry news, best practices, and product updates!
Table of Contents
Share This
More Order Content
Get the latest e-commerce industry news, best practices, and product updates!
One of the most crucial links in the supply chain for e-commerce fulfillment is shipping and delivery. It might be an essential component of the entire system. Without it, supply chain management as a whole falls apart. There are several standards to be implemented in e-commerce shipping because delivering goods to clients quickly and effectively is the primary goal of an online business.
What Is the Order Shipment?
An order is a request made by a user to make a purchase. It comprises products on the order list in various quantities. A shipment is a container housing a collection of ordered goods that businesses must transport together. It will include purchases made in a single order. Companies cannot include order items from multiple orders in the same shipment.
When inventory is allocated after an order is “made” in the system, it is processed and categorized as “processing.” The shipment package(s) are selected from shelves, packed, and then delivered to the user during this time. Before it is shipped, the purchase can be “canceled.” Additionally, the purchase status is changed to “Complete” as quickly as the delivery package is successfully delivered.
Shipping Process
From accepting a customer purchase to getting it ready for last-mile delivery, the order shipment process in e-commerce covers everything. Order processing, warehousing, and partnerships with carriers are just a few aspects of shipping an order.
Stages of the Shipping Process
The order shipment process’s three steps are fulfillment, order processing, and the order receipt. These steps impact your ability to precisely and promptly create a customer’s request and dispatch it directly to its intended location. Here is a more thorough explanation of the various shipping procedure phases.
Stage 1: Receiving the order
When you get an order, you must confirm that you have adequate inventory on hand to fulfill it.
This starts with carefully collaborating with your supplier or manufacturer to buy and receive goods at a warehouse or, if you deal with a 3rd party logistics (3PL) provider, to send goods to a distribution center.
By integrating an order management system or inventory tracking with your e-commerce platform, you can quickly streamline the process of receiving consumer orders. You can keep track of orders and inventory together, thanks to this.
Stage 2: Processing the order
Processing a client order ensures that order information is accurate (for as by double-checking the delivery address) and that the products are in inventory. You can accelerate the order processing step by using technology, which is frequently used in large portions of this process. From there, you can inform clients that their orders are being processed and the order status is changed in real-time.
Stage 3: Fulfilling the order
Order fulfillment may start after the purchase has been processed. This entails selecting the appropriate products for the transaction and getting them ready to ship.
Although dropshipping and self-fulfilling orders are two order-filling alternatives available to e-commerce enterprises, outsourcing fulfillment to a third-party logistics or 3PL is the most common choice.
A 3PL will handle every step of the e-commerce fulfillment process for you, including choosing list creation, box creation, shipping orders, and more.
Working with a third-party logistics provider can help you save time, automate delivery, and reduce logistics expenses because self-fulfillment has a lot of hidden fees, and dropshipping has a lot of drawbacks.
Who’s Involved in the Shipping Process?
The order shipment procedure is reasonably straightforward for delivering products to customers. It involves the shipper (often the manufacturer), who prepares and gets ready to send the order, and the carrier, who handles the last-mile logistics operations. A 3PL is sometimes used to mediate between an e-commerce company and the website/ (s).
The shipper
The company processing the order and preparing it for shipping is the shipper. It could be the brand directly or a third-party logistics provider that handles fulfillment and delivery on the company’s behalf.
The carrier
Once the order has been shipped, it is up to the carriers to get it to the customer safely. Carriers can still use order tracking to update customers about estimated delivery schedules for their purchases once they are in the carrier’s care.
PLs
A 3PL offers benefits for both inbound and outbound logistics. When an e-commerce platform collaborates with a 3PL, the 3PL company handles shipping orders immediately from the distribution center where e-commerce merchandise is held.
Retailers can lower shipping costs and provide various delivery options for their customers because of 3PLs’ strong relations with trade partners and the ability to negotiate rates.
Vendors may monitor and manage all orders shipped from a single dashboard after the order has shipped, keeping customers updated on their purchases.
PLs
The warehouse shipping process primarily concerns existing warehouses or fulfillment centers that hold merchandise until it needs to be delivered to the following site: a retail outlet, another distribution point, or even the end-user.
A 3PL, a merchant, an e-commerce business, or other parties may work in these warehouses. Obtaining inventory, maintaining it, compiling and packing orders when made, and having couriers pick up items from the facilities are all steps in the warehousing shipping process.
The Life Cycle of Order Shipment
The life cycle of order shipment is explained through the chart stated below:
Products Added to Cart → Order Placed → Order Transmitted → Order Fulfilled.
Strategies to Improve Order Fulfillment Process
1. Select a reputable delivery business
Even though it can appear straightforward, several factors should be considered when selecting a logistics or shipping business. You must be confident that your chosen company can successfully ship to your clientele. You might need to research and consult other business owners to find out which shipping services they use for their products.
2. Continue to communicate with your clients
Even after one has made a purchase, you should still get in touch with them until you deliver the product. The location of an item in the order fulfillment procedure is something that customers like to know. Order tracking is remarkably accurate for orders placed online. Inform your customers frequently about the status of their packages.
3. Verify the efficiency of your internal order system
Internal issues can be to blame for the difficulties you’re experiencing with order fulfillment. Ask your staff if they can think of any areas that could use improvement. Make sure to fix any issues in this procedure as soon as possible.
4. Make it easier for your warehouse staff to locate inventory
Maybe it all seems to be running smoothly in your warehouse or stockroom. There is, however, always room for development. Establishing a straightforward and transparent procedure for stocking goods will help you increase the pace of your deliveries and the effectiveness of your staff. This will shorten the time required to send an item by assisting your stockroom staff in finding it precisely. A clearly labeled stockroom aids inventory control and theft avoidance.
5. Accept orders in a variety of ways
Today’s consumer seeks comfort and ease. While some customers will choose to place their orders in person, others will instead use technology. Businesses regularly take in-person, internet, telephone, and mobile app payments. If your business doesn’t offer these ordering options, you should reevaluate your consumers’ ordering options.
When you review your company’s order fulfillment procedure, use these suggestions. Always remember how crucial it is to comprehend your customer’s wants regarding their orders and shipping. Asking your consumers what they enjoy about the purchasing and delivery process will help you to cater to their needs. Businesses notice an increase in their total revenue when they automate and optimize their delivery procedures.
6. Ensure a fair returns policy
Your order fulfillment procedure must include your e-commerce returns policy. Simply said, once your consumer receives their order, order fulfillment doesn’t finish. Instead, it terminates whenever the customer is delighted with the substance of their order from your organization.
You must have a solid returns policy to handle returned purchases and offer refunds as required.
Additionally, a return policy plays a significant role in whether or not a client fulfills a transaction with your company.
Conclusion
Regardless of what you offer, processing and order shipment takes time. It is even more challenging to meet consumer expectations by sending orders swiftly, correctly, and reasonably priced. There are numerous strategies to optimize your shipping process, all of which function best for the company. Your market, price, profits, merchandise, and many other criteria will influence the best e-commerce shipping plan for you.
Sign up today and leave the logistics to us
Sign up and we will get back to you within 24 hours to discuss what services would be best for your business needs. Or speak with us now and tell us what you need.
FAQs
Everything from receiving orders to getting items ready for last-mile shipment is part of the order shipment process.
The three steps of the order shipment process are order fulfillment, order processing, and the order receipt. These steps impact how quickly and precisely you can assemble a customer’s orders and dispatch them to their final location.
Import occurs when a company with headquarters in one country buys a good or service offered by a company with offices in another. The benefit of imports is that they enable nations to obtain goods for local consumption that wouldn’t otherwise be accessible within their boundaries.
An order is a customer’s entire purchase. A fee will be generated automatically once an order has been submitted to the system.
An order’s “shipment” proves it has been delivered. The customer will receive the bill after a delivery is made.
You must control many components simultaneously to ensure shipment efficiency, creating a dispersed warehouse network or selecting the best carrier. While it can all be done in-house, doing so requires a significant investment in personnel (staff and space). Simply use a 3PL shipping remedy to digitize the delivery process, including storage facilities, picking, packing, and delivery, so e-commerce merchants can get more done.
You have a variety of alternatives for automating the shipping process, which can help you save a ton of time. Although many larger e-commerce firms use an ERP inventory management system to streamline the process, outsourcing fulfillment to a 3PL that handles order delivery in your place is the more common choice.