The booming e-commerce industry, with global sales reaching $6.3 trillion last year and projected to grow to $8.1 trillion by 2026, makes efficient logistics essential for any brand selling online.
In this context, getting your products from the warehouse to customers around the country and around the world requires automated and streamlined processes that’ll keep you ahead of the competition.
Welcome to the intricate world of ecommerce fulfillment.
Ecommerce fulfillment (or eFulfillment) is the entire process of getting an order delivered to a customer after they order it online. It encompasses various activities, including receiving and storing inventory, processing orders, picking and packing items, and shipping them to the customer’s doorstep. The way you manage eFulfillment shapes the customer experience and boosts your bottom line.
While brands, especially large-scale retailers, can handle such logistics in-house, many opt to outsource the entire operation to an ecommerce fulfillment provider and, as a result, take advantage of their infrastructure, partner network, and expertise.
Who is it for? Outsourcing e-commerce fulfillment is an ideal option for businesses looking to expand into new channels, markets, or locations. Also, for brands without their own physical storage facilities, as well as those who want to focus on sales and growth and have logistics scale with them smoothly.
In fact, outsourcing is quite a popular option, with the global e-commerce fulfillment services market estimated at $123.68 billion last year and projected to reach $140.07 billion by the end of 2025, demonstrating an impressive CAGR of +13%.
Fulfillment in ecommerce is a multi-faceted journey with several distinct steps, each tailored to seamless customer experiences. Here’s a quick overview:
It all starts when products arrive at the ecommerce fulfillment warehouse in bulk shipments. Once there, they are logged into the Warehouse Management System (WMS) and placed into inventory as fast as possible to prevent missed sales.
Storing and managing inventory within a dedicated ecommerce fulfillment center differs from ‘traditional’ long-term storage. An e-fulfillment warehouse is a dynamic environment organized and managed in a way that allows goods to move in and out rapidly.
Once a customer places an order, the system generates a pick list or packing slip. Pickers retrieve the correct items, which are then brought to packing stations. Here, packers select the appropriate box size, add dunnage to protect items, seal the package, and apply the shipping label.
For recurring orders like subscription boxes or bundled offerings that combine several standard items or SKUs into a single package, kitting helps expedite the process and achieve fast shipping with same-day order processing.
To streamline this step further, assembly services add polish and a personalized touch with neatly boxed items, branded packaging, and inserts.
Once prepared, the packaged orders are handed off to shipping carriers. Shipping from strategically located e-commerce fulfillment centers can significantly reduce costs and improve delivery times to the end customer.
Returns are an unavoidable part of online retail. Streamlining this step starts with a very clear return policy prominently placed on your website. Once an item is returned, it undergoes receiving, assessment, and processing before being reintroduced into available stock. Returns management integrates technology and specialized procedures to maximize customer satisfaction and potential revenue recovery.
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When it comes to ecommerce shipping, businesses must consider several factors, including the distance to the customer (shipping zones), the type of products (e.g., heavy, fragile, or valuable), and the desired delivery speeds.
Naturally, the end customer is unaware of all these variables and complexities. What they see is merely the shipping options displayed under the ‘Buy’ button. Here are the most common:
A powerful incentive, with the majority of shoppers reporting they are more willing to purchase items that arrive at their doorstep at no extra cost. Free shipping can be offered for orders above a certain value, as a limited-time promotion, or as standard service for Amazon Prime Sellers, etc.
This is typically the lowest-cost option, though it may come with longer delivery times, i.e., more than 3 days. However, today, a significant number of online retailers in the U.S. offer next-day delivery as their standard service across the country.
Especially popular in international ecommerce shipping, it aims for faster-than-standard delivery, often within 2-3 days.
This might seem like a hard-to-reach option, but it’s becoming increasingly popular. To succeed, fast and accurate fulfillment is the key to keeping those discerning shoppers happy.
Expanding into global markets presents unique challenges that don’t only stem from distance but also from all the different regulations, tariffs, duties, and taxes in each country.
In global fulfillment, inventory is often stored within the destination country, offering lower costs and faster delivery while doing away with import taxes and duties.
However, when shipping from locations outside the destination country, international shipping options typically include Delivered Duty Unpaid (DDU) along with the higher-cost Delivered Duty Paid (DDP), offering the end customer options and flexibility.
In e-commerce, seamless fulfillment is your competitive edge, The Fulfillment Lab is your forward-looking partner, helping you elevate your brand and optimize your operations end-to-end.
Leverage our extensive network of global fulfillment centers for same-day order processing and expedited delivery to customers worldwide, often in three days or less.
Plus, take advantage of our pioneering Fulfillment Marketing services that transform every order into a customized, brand-building experience.
Unburden your business and focus on growth. Connect with The Fulfillment Lab today!