The ecommerce fulfillment process encompasses a large portion of online business activities. This stage of mid to last mile logistics pertains to the movement of products from the supplier to retailer, and to the customer. Every step requires intricate procedures to ensure precision and achieve customer satisfaction. Building a strategic approach to ecommerce logistics is necessary to prevent errors and stay consistent with product deliveries.

 

Whether you are managing an in-house logistics team or outsourcing ecommerce fulfillment services, online merchants and retailers should be aware of the basic steps. This compact guide lays out the fundamental workflow of order fulfillment.

 

7 Essential Steps of Ecommerce Fulfillment that Every Business Owner Should Know

 

• Inbound Shipping

The first step of the ecommerce fulfillment process is inbound shipping, where finished goods are procured by a retailer from an external supplier. The vendor ships the goods to a warehouse or fulfillment center by means of international or domestic shipping, depending on where they are located. 

• Inventory and Storage

Once the goods are received at a fulfillment center or warehouse, they must undergo proper inventory management. Inventory is vital for checking item conditions, monitoring stock levels, avoiding excess and stockouts, and managing costs. After inventory is updated, all goods go into its correct storage. 

 

Organizing stock should be done in a systematic manner, which enables a streamlined process of ecommerce logistics. Warehouse management systems (WMS) and strategic physical storage solutions will benefit business owners who want a more optimized warehousing scheme. To make things easier, ecommerce fulfillment services can provide advanced warehouse facilities to various enterprises.

• Order Processing

When a customer places an order through an online shopping platform, the retailer will receive the orders, customer shipping details, and their payment through a separate or integrated channel. Afterwards, these details are listed on a packing slip, which will be sent to the fulfillment center for preparation.

• Pick and Pack Items

Following each item code or stock keeping unit (SKU), goods are picked from each storage and transferred to the packing area. During the process, the team also checks to ensure accuracy of picked goods, such as the correct color, size, or variation.

 

At the packing area, items are cushioned and wrapped in sufficient packing materials. This also involves the proper sealing and labeling, an essential process for sensitive and fragile goods. Extra steps in the packaging process not only protects the item, but it also promotes brand identity (e.g. thank-you cards, inserts, handwritten notes, personalization).

• Shipping

During this stage of ecommerce logistics, items are shipped out to customers through an in-house or third-party logistics (3PL) courier. The method of shipping will can depend of various factors, such as:

 

• Shipment Destination – Shorter distances can undergo express shipment, while farther destinations may require either a standard 3-5 day lead time or a longer timeframe, which takes 7 days or more.
• Product Type – Flowers and frozen products should be shipped in temperature-controlled environments like a reefer truck. Cooked or hot meals can be transported through a same-day courier to prevent spoilage.
• Product Size and Weight – Product dimensions can heavily affect shipping rates and method of shipment. Bulky, oversized items may require special handling, and smaller items can fit into various box sizes.
• Shipping Regulations – Some items may require special permits, such as regulated products. Meanwhile, retailers shipping internationally might require customs brokerage services to ensure proper compliance. 

 

Notifying customers of their shipment status and tracking number is also a crucial step in the ecommerce fulfillment process. It improves customer trust and shows a business’ reliability.

• Delivery

Customers expect fast and accurate delivery at all times, which is why shipment tracking is an essential part of ecommerce logistics. It provides transparent, real-time shipping insights to both the retailer and customer. Efficient tracking systems also allow both parties to monitor potential delays and errors, communicate this with the courier, and perform the necessary solutions until the item successfully reaches the customer’s doorstep.

• Returns Management

Achieving customer satisfaction extends into after-sales ecommerce logistics. If a customer is discontented with their order, they can request for an exchange, return the item, or raise a small concern. Processing returns is just as important as order fulfillment. The retailer must coordinate properly with the customer, accurately routing back the product to a fulfillment center or warehouse. 

 

It also involves steps on how to manage a returned item – will this be returned back to inventory or disposed of? Will damaged items be repurposed, disposed of, or sent back to a supplier?

 

Careful coordination is the key to successful ecommerce logistics. Although unforeseen errors may surface at any stage, having an optimized system can resolve issues early on and help retailers maintain a high level of customer satisfaction.  

 

ALSO READ: A Businessman’s Complete Guide for Choosing a Logistics Company in the Philippines

 

360 Logistics provides all-around solutions for your ecommerce fulfillment process. Our dependable trucking services deliver nationwide, empowering small, medium, and large enterprises across the Philippines. We help you find the right truck to organize and distribute standard, palletized, bulk, and oversized cargo.

 

Message us here and get a quote.