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Introduction to fulfillment: key aspects and role in e-commerce - In: all, last published

An introduction to XXL logistics

Kategoria : all, last published Komentarze : 0 Autor : KMMF Data : 14 May 2024

E-commerce has grown significantly in importance. Global trade no longer takes place only at the corporate level, but also among end customers purchasing goods

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Kategoria : all, last published Komentarze : 0 Autor : KMMF Data : 17 May 2023

Fulfillment in e-commerce is the process of order fulfillment, which includes all steps from accepting goods to the warehouse, through placing an order by the customer, to delivering the product to him and possible handling of returns. Its characteristic feature is that it can be separated as a separate area related to logistics and outsourced to a logistics company that specializes in such activities.

Key aspects of online store service in the fulfillment model

The key aspects of fulfillment in stores operating in the e-commerce model are primarily activities related to the order processing process. This process includes the following steps:

1. Storage of goods in the logistics center

This stage begins with the acceptance of the delivery, during which the goods must be checked and properly distributed in the warehouse. Proper storage of products is crucial for effective fulfillment.

Adequate stock levels must be maintained in the warehouse so that orders can be filled quickly. This, of course, remains on the side of sales managers. Fulfillment is the outsourcing of logistics services related to the shipment of orders to the end recipient. It is also necessary to ensure adequate security and organization in the warehouse, and this is already the responsibility of the warehouse service of the logistics company that performs the fulfillment of the online store. Any company can introduce its regulations here. At EUROCOMMERCE, we distinguish 2 types of goods receipt into the warehouse - the customer chooses which model is suitable for him:

a) Acceptance to the warehouse on the basis of a notification - we verify the number of collective packages delivered to the warehouse and on this basis we accept the delivery in full. In a situation where, over time, it turns out that the actual quantities and stock levels do not match, the customer assumes responsibility for these discrepancies. Acceptance of delivery takes less time than the second option.

b) admission to the warehouse after full quantitative verification - the delivery is counted in full and any quantity discrepancies that occur later are the responsibility of the logistics center. Acceptance of delivery takes longer than in the first variant.

2. Completing and packing orders

After receiving an order in the system, employees must quickly find products in the warehouse and pack them in such a way that, on the one hand, it is economical, and on the other hand, it allows to protect the products against damage during transport. Packing online orders takes place under time pressure, because the so-called. cut off, i.e. the time of collection of parcels by courier companies, is fixed, and it is in the interest of the stores to send them as soon as possible.

3. Shipment of the order to the customer

Fast and reliable shipping is key to buyer satisfaction. It can be said that this is such a logistic customer service. Formally, it is part of the purchase process, but the client often evaluates it as a way to take care of the subject after the transaction itself. E-shops should offer various delivery options, such as courier, parcel locker or personal collection, so that customers can choose what best suits their needs. Working with a logistics center that provides fulfillment services, you often have more choice and much more flexibility in choosing the method of delivery of goods to your customers. Customers expect up-to-date information on the status of their order. That is why tracking and current information on the status of the order are very important. In EUROCOMMERCE, which also works with foreign carriers, the store does not have to communicate with carriers on its own. If disturbing or incomprehensible information appears in the tracking, the EUROCOMMERCE customer service department clarifies it directly at the source.

4. Returns handling

Dissatisfied customers can return the products. In practice, some industries struggle with high order return rates. Their service in the logistics center does not absorb the team as much as in their own warehouse.

E-commerce operates on the basis of an ecosystem of cooperating tools that allow for a quick exchange of information between individual systems. When considering a solution such as external logistics service, you should first of all verify whether the company offering fulfillment allows you to integrate the online store with the warehouse and the warehouse with other systems, such as baselinker.

The number of systems is growing along with the development of the store, when more and more extensive sales processes are implemented in the online store and new markets are served. It is crucial that various systems, such as the WMS warehouse system, the store system through which orders are received, as well as solutions that integrate sales from various channels, e.g. marketplace platforms, work coherently to ensure a fast and effective fulfillment process and not to let errors occur and inventory discrepancies.

What is important here is not only the correct operation of the system and providing the right data, although this is of course the most important issue from the point of view of the shipment. Proper processing and protection of personal data is also important here. The customers of the logistics center providing fulfillment are companies, i.e. online stores, but the customers of online stores are natural persons. This generates very large amounts of personal data, and their protection is an important element of the operation of any company.

The role of fulfillment in the online sales process

All the discussed aspects are crucial for effective fulfillment. And what is his role? Very important!

Fulfillment has a big impact on the final level of customer satisfaction. The owner of the online store outsources logistics processes to an external company, thus losing a direct impact on the customer experience resulting from the way the order is packed and the delivery time. All processes are carried out by employees of the logistics company responsible for the fulfillment of store orders.

Logistic support for online stores plays a key role in the modern e-commerce model, because it is a process that connects sellers and customers. Sellers - on their own or with the use of an external company, when running an online store, must effectively perform the processes described above as crucial for fulfillment in order to meet customer expectations and build their loyalty. This can contribute to success in e-commerce. A partner who removes this obligation from the seller and approaches the logistics of orders in a professional manner is an undoubted advantage of any business.

Are you looking for a proven partner in e-commerce logistics?

EUROCOMMERCE has been operating on the market since 2016. Get to know our processes ->>

 

EUROCOMMERCE działa na rynku od 2016 roku. Poznaj nasze procesy ->>

 

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