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Home How to Use Product Fulfillment to Increase Customer Loyalty Pt. 1

How to Use Product Fulfillment to Increase Customer Loyalty Pt. 1

19Sep, 2022

How to Use Product Fulfillment to Increase Customer Loyalty Pt. 1

Amazon Prime has shaped the way product ecommerce fulfillment happens and at what speed. Other retail giants who have followed suit to offer free 2-day shipping, customer expectations around the speed and cost of shipping are increasingly demanding. While order fulfillment may not be the most glamorous part of running your ecommerce business, it is a function that directly impacts your bottom line. It requires a complete understanding of how it works and how to use I to increase customer loyalty.

What is Order Fulfillment?

Order fulfillment is the process of storing inventory, picking and packing products, and shipping online orders to customers. Fulfillment can be completed in-house by an ecommerce company or outsourced to a third-party logistics (3PL) provider.

Ecommerce order fulfillment applies to both business-to-business (B2B) orders that usually have large quantities of product are shipped to big-box retailers, as well as business-to-consumer (B2C) orders that are shipped directly to a single shopper’s home from orders places on the merchant’s website or through an online marketplace.

The Order Fulfillment Process

As customer demands for fast shipping increases, getting ecommerce order fulfillment right has never been more important. After the customer completes their purchase, the fulfillment process begins. But before your online store can master order fulfillment, you need to understand how it works. Here are some stats of related to shopping car abandonment by shoppers:

  • 55% will abandon their cart if shipping, taxes, and other fees are too high. [1]
  • 24% say that speed of delivery is an important factor when it comes to evaluating their online orders. [2]
  • 38% will never shop with a retailer again if they had a poor delivery experience.[3]

Based on these figures, you can see how important it is to understand the ecommerce fulfillment process. There are many parts that make up the entire fulfillment process, from routing and managing inventory to choosing the correct packaging for the lowest practical dimensional weight. The fulfillment workflow has several steps including receiving inventory, warehousing products, picking and packing items and shipping orders.

As you can see, ecommerce order fulfillment requires a solid strategy behind it if you plan to grow your online business. Good planning is essential to secure the infrastructure, systems, processes, and team you’ll need for success.

In part two of this article series, we will dive into some important considerations to think through before scaling your fulfillment operations such as location and technology integrations and other factors to make your fulfillment successful.

[1] baymard.com/lists/cart-abandonment-rate

[2] www.prnewswire.com/news-releases/retailers-must-deliver-on-fulfillment-to-drive-conversions-a-new-study-by-arvato-reveals-668024593.html

[3] www.metapack.com/state-of-ecommerce-delivery

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