Ecommerce Fulfillment Guide: How To Win at Order Fulfillment (2024) - Shopify

When buying products online, people expect their orders to lớn be packaged and shipped as soon as possible. In fact, most customers say that convenience is the main reason they choose to lớn cửa hàng online versus in-store.

To efficiently store, pack, and ship products, you need an ecommerce fulfillment strategy. Some businesses choose to lớn fulfill customer orders in house. Others use a fulfillment partner to lớn manage inventory, package orders, and organize delivery.

Bạn đang xem: Ecommerce Fulfillment Guide: How To Win at Order Fulfillment (2024) - Shopify

The best fulfillment solution for you depends on the size of your business and the type of products you sell. This guide covers the basics of ecommerce fulfillment, popular methods, and how to lớn select a fulfillment provider.

What is ecommerce fulfillment?

Ecommerce fulfillment is the process of picking, packing, and shipping online orders to lớn customers. It includes managing inventory, packaging products, and delivery logistics.

Fulfillment companies process orders for multiple online stores. They operate fulfillment centers in strategic locations, storing inventory near cities and transport hubs to lớn reduce delivery times.

How bởi you fulfill an ecommerce order?

Small sellers typically manage their own orders, while larger businesses use fulfillment companies and other third-party logistics (3PL) solutions to lớn reduce costs. Ecommerce merchants using a dropshipping business model forward the entire fulfillment process to lớn the manufacturer or supplier.

Let’s look at these three fulfillment methods in more detail.

Self-fulfillment

New businesses and those with unique shipping needs often handle their own fulfillment. Using an ecommerce platform lượt thích Shopify, shipping orders to lớn customers is a straightforward and accessible task. Small businesses can track orders, handle returns and exchanges, and provide the same delivery service as larger retailers.

In-house order fulfillment may mean managing your own inventory, providing customer tư vấn, and employing staff to lớn process orders.

Third-party fulfillment

As order volume increases, most ecommerce businesses can no longer store, pack, and ship their products in house. So, they switch to lớn third-party warehousing or fulfillment solutions. These companies work with merchants to lớn process orders and negotiate lower shipping costs from carriers.

With outsourced fulfillment, the process for ecommerce businesses becomes simpler. In many cases, orders can be sent directly to lớn a fulfillment partner, which will handle packing and shipping. All the retailer needs to lớn bởi is ensure their fulfillment provider has enough inventory to lớn meet order demands.

The Shopify Fulfillment Network tiện ích connects US Shopify stores to lớn trusted third-party fulfillment partners lượt thích Flexport for better order management and fast, affordable nationwide delivery.

Dropshipping

Dropshipping is an ecommerce model where merchants aren’t responsible for fulfillment. Instead of producing or storing inventory, a store forwards orders to lớn a manufacturer or distributor, who dropships the product directly to lớn the customer.

This fulfillment method helps online stores establish themselves and avoid upfront costs. But, it can reduce merchants’ control over shipping and customer service, and mean longer delivery times.

8 best ecommerce fulfillment solutions

If you’re looking to lớn work with a fulfillment company, figuring out where to lớn start can be daunting. To help, we’ve compiled a list of seven top ecommerce fulfillment solutions, with the key features you can expect from each.

1. Shopify Fulfillment Network
2. Flexport
3. ShipNetwork
4. Fulfillment by Amazon (FBA)
5. ShipBob
6. Red Stag Fulfillment
7. ShipHero
8. ShipMonk

1. Shopify Fulfillment Network

Shopify Fulfillment Network (SFN) connects your Shopify store to lớn our trusted logistics partner. When you mix up an tài khoản, Flexport, our launch partner, will handle packing and delivery, sending orders faster and more reliably kêu ca you can bởi alone.

Here’s how SFN works

• Install the miễn phí SFN tiện ích.
• Once installed, mix up your tài khoản with Flexport.
• Send inventory to lớn a single Flexport location for distribution across the fulfillment center network.
• When a customer places an order, Flexport will pack it and manage delivery.

With no minimum inventory requirement, it’s easy to lớn test Flexport with a limited number of products. Estimate your fulfillment and storage costs with this calculator.

Key benefits of SFN

• Monitor everything from your Shopify admin
• Fulfill orders for eligible products from all your connected sales channels, including Amazon, Walmart, and eBay
• Hassle-free inventory shipping to lớn a single location
• Sync Flexport data with your store at no extra cost

2. Flexport

For most Shopify merchants not using SFN, Flexport will provide a great solution.

Flexport coordinates global logistics from factory to lớn the customer’s door—empowering businesses to lớn sell everywhere, ship anywhere and grow. It offers affordable and competitive pricing, and flexible delivery tốc độ options, ensuring you only pay for what your business needs.

Key features

• Two- and three-day delivery
• Ecommerce, DTC and B2B fulfillment
• Demand-based planning brings inventory closer to lớn customers
• International fulfillment with straightforward pricing
• Customs and insurance
• Supply chain financing

Visit Flexport.com to lớn learn more and request a quote.

3. ShipNetwork

For US brands, ShipNetwork boasts 100% next-day shipping across more kêu ca 10 fulfillment centers nationwide, ensuring delivery within two days.

Request a quote to lớn learn more about ShipNetwork’s pricing.

Key features

• Order accuracy guarantee
• Subscription fulfillment for selling and distributing subscription boxes
• Return management services for unwanted products

4. Fulfillment by Amazon (FBA)

Brands that bởi most of their selling on Amazon may decide that the most straightforward process is to lớn have Amazon handle their fulfillment needs.

With Fulfillment by Amazon (FBA), new sellers can access promotions lượt thích miễn phí shipping to lớn fulfillment centers, storage, liquidations, and return processing.

By sending products to lớn Amazon’s fulfillment centers, you’ll also give your customers the option to lớn ship packages via Amazon Prime two-day shipping.

Amazon’s fulfillment costs are based on the product’s size and weight.

Key features

• 24/7 customer tư vấn from the Amazon FBA team
• Inventory performance dashboard to lớn monitor and understand purchase behavior
• Returns management

5. ShipBob

ShipBob is another popular fulfillment solution that’s available as a Shopify integration. It works with both DTC and B2B companies across the globe.

Connect your store to lớn ShipBob’s software, import your product catalog, then send ShipBob your inventory.

Generate a quote to lớn get specific pricing for ShipBob.

Key features

• Omni-fulfillment for customers purchasing across marketplaces (Amazon, eBay, Shopify stores)
• Customizable shipping materials
• Wholesale and dropshipping order fulfillment

6. Red Stag Fulfillment

With its 30-day miễn phí trial, Red Stag is a good option for businesses new to lớn third-party ecommerce fulfillment. Red Stag also commits to lớn 100% customer order accuracy and offers same-day fulfillment, ensuring products get on their way to lớn customers as soon as possible.

Key features

Xem thêm: Mã bưu chính 63 tỉnh thành Việt Nam (Zip Postal Code) 2020

• Shopify shopping cart integration
• Warehouse and inventory monitoring

7. ShipHero

ShipHero also has a Shopify tiện ích integration. With nine warehouses across the US and Canada, products are distributed throughout fulfillment centers depending on the most common customer locations.

Orders are shipped from the warehouse closest to lớn each customer for faster delivery.

Costs are dependent on package size and shipping method. They range from $5.60 to lớn $87.78 per product. Storage pricing starts at 65¢ per cubic foot.

Key features

• Inventory management system suggests promotions for products that aren’t selling
• In-package snapshots
• PostHero integration tracks packages from warehouse to lớn destination

8. ShipMonk

For international fulfillment, ShipMonk is the only solution on this list with European warehouse locations (in the UK and Czech Republic). There are also warehouses in Canada and Mexico.

Like ShipHero and ShipBob, ShipMonk has a Shopify tiện ích integration, sánh Shopify merchants can links the fulfillment solution directly to lớn their stores.

ShipMonk’s pricing page includes a calculator to lớn estimate your fees.

Key features

• More kêu ca 100 integrations let ShipMonk fit into existing business processes
• Transparent billing and reports
• Fulfillment for ecommerce, retail, subscription boxes, crowdfunding, and more

How to lớn choose a fulfillment solutions provider

Here’s what to lớn look for when choosing an ecommerce fulfillment provider for your business.

Similar industry experience

Every fulfillment company functions differently. Many providers package their services for niche businesses or specialist industries. If your business has unique needs, look for a fulfillment partner with experience handling your products and customer base.

Ecommerce specialization

Try to lớn find a logistics company that already works with ecommerce businesses. Prior ecommerce fulfillment experience means your provider can offer strategic guidance as you grow.

Before committing to lớn an agreement, chat with your potential fulfillment partner about the needs of your business. Don’t be afraid to lớn ask questions or request references.

Look beyond price

One of the most common shipping problems is cost. While choosing a fulfillment solution based on budget is tempting, finding a company that’s a good fit is just as important.

Poor fulfillment creates unhappy customers, which can cost more kêu ca shipping overheads. As a result, pricing should be one of the factors in your decision-making, but not the only one.

Other factors to lớn consider when choosing an ecommerce fulfillment provider

• Data and analytics: Harnessed correctly, data is a powerful tool in ecommerce. Look for solutions with real-time analytics tracking sánh you can make informed decisions about inventory allocation.
• Fulfillment center locations: Placing your stock closer to lớn customers will reduce shipping times and costs. You may be able to lớn offer same-day delivery in some circumstances.
• Inventory shrinkage allowance: Some 3PLs charge fees for inventory shrinkage—the term for damaged, stolen, or lost products. Others offer zero shrinkage policies.

Ecommerce fulfillment stages

Every fulfillment company operates differently, but they share the same goal: to lớn prepare and ship orders as efficiently as possible. Many fulfillment centers also double as warehouses for inventory storage, sánh you can keep more product.

From storing items to lớn packaging products, the ecommerce fulfillment process has many moving parts. Here are the basic stages:

1. Receiving orders and inventory storage

After receiving a customer order, fulfillment centers need quick access to lớn your inventory. To bởi this, they store products in highly organized warehouses.

Every product is assigned a stock keeping unit (SKU) and has a specific storage location in the warehouse. Fulfillment centers also track inventory levels and work with merchants to lớn keep products in stock.

2. Packing and shipping

Submitted orders are picked and packed for shipping. Many fulfillment centers have agreements with shipping carriers to lớn manage packages in bulk and reduce shipping costs.

The centers then share shipping confirmation and tracking information with merchants or directly with customers.

Most online retailers consider delivery tốc độ to lớn be the most important fulfillment factor for customers. To help packages reach their destinations quickly, some fulfillment providers have centers in multiple locations, allowing them to lớn pre-distribute stock.

If you’re scaling fast and looking to lớn optimize your fulfillment strategy, work with a provider that offers a central view of your data and smart inventory allocation across multiple warehouses.

3. Returns management

In 2023, US online shoppers returned nearly $248 billion worth of products. As more customers expect stores to lớn offer generous return policies, many logistics companies will process returns and issue refunds on your behalf.

Typically, customers will send a return directly to lớn the fulfillment center, where it’s inspected for damage or malfunctions. Some fulfillment providers will replace the product or issue a refund, sánh retailers may never need to lớn get involved. If the returned product is in sellable condition, they’ll restock and ship it in future orders.

The benefits of using third-party logistics

The advantages of switching to lớn a third-party logistics (3PL) provider go deeper kêu ca time and cost savings. These companies are fulfillment experts that can help scale your ecommerce business.

Increased warehouse flexibility

Instead of committing to lớn fixed contracts for warehouse space, many logistics companies offer flexible pricing, adapting to lớn your needs as you grow or go through a slow sales period.

Expert advice

All ecommerce businesses will face supply chain issues at some point. Each 3PL has a team of logistics experts and tư vấn staff to lớn help you. They manage the labor required for receiving and managing inventory—giving you a level of agility you might not achieve as easily alone.

Time savings

Chances are you didn’t start a business because you’re good at packing boxes. Your time is better spent on managing your company kêu ca the logistics of order fulfillment. When you let someone else take care of logistical details, you can focus on areas where you can have a greater impact on your bottom line.

When is the right time to lớn switch to lớn outsourced fulfillment?

Most companies start by fulfilling their own orders and add a third-party solution as they scale. But when you’re bootstrapping your business, making the decision to lớn partner with another company is hard.

The important thing to lớn remember is that your business doesn’t need to lớn reach a specific size to lớn use a fulfillment solution. If you find yourself in one of the situations below, it could be time to lớn start chatting with a logistics company.

Cyclical or uneven sales

If the number of orders you process fluctuates throughout the year, it may not make sense to lớn commit to lớn running and staffing a warehouse. A fulfillment company will be able to lớn adapt to lớn your needs.

Likewise, unexpected spikes in sales can compromise your delivery promise. An expert can handle times when your daily order volume peaks, sánh you can maintain a consistent customer experience.

You’re too busy

If you’re sánh busy dealing with order fulfillment that you don’t have time to lớn focus on growth, it’s probably time to lớn start outsourcing. As a business owner, you need to lớn devote time to lớn marketing, expanding your sales channels, sourcing new products, and otherwise improving your offering.

Lack of infrastructure

Logistical hurdles lượt thích increased costs and longer shipping times can limit your ability to lớn expand into new markets. When you outsource to lớn a global fulfillment partner, they can leverage their multiple locations to lớn keep up with customer demand.

Ecommerce fulfillment challenges

No single solution is perfect for every business. There are times when using an ecommerce fulfillment provider doesn’t make sense, no matter the size of your business.

A third-party logistics company may not be the best option for the following types of business:

Businesses with limited cash flow

If extra funds aren’t available, you may need to lớn bootstrap business growth and run rẩy your own fulfillment process. For example, during Amazon’s early days, employees would spend their evenings hand-picking and packing customers’ book orders.

Highly specialized businesses

Fulfillment centers may be unable to lớn accommodate customizable products, highly fragile objects, or sensitive materials.

Businesses with limited daily order volume

If you’re only receiving a handful of orders per day, it’s likely too soon to lớn consider outsourcing fulfillment. At this stage, it’s still manageable in-house by yourself or an employee.

When you hit five to lớn 10 shipments per day, it might be time to lớn begin your tìm kiếm for a 3PL.

Moving forward with your ecommerce fulfillment partner

Outsourced ecommerce order fulfillment makes sense for businesses with big goals and fluctuating sales. If you don’t have the time or resources to lớn pack and ship orders in-house, an expert third tiệc nhỏ can help you optimize your fulfillment process and offer premium customer service.