Creating An e-Fulfillment Strategy For eCommerce Growth
By: Lev Markelov
Tags: Growth, Strategy, Fulfillment, Ecommerce, Shipping

Creating An e-Fulfillment Strategy For eCommerce Growth

Plant the seeds today, and watch them grow tomorrow

Photo by Markus Spiske on Unsplash

We live in a time of NOW; people want their products and services delivered to them in the fastest and most efficient way.

This desire for the convenience of now is directly correlated to the rise of eCommerce — and the impact it had on the habits and behaviours of the modern-day shopper.

However, this also puts pressure on eCommerce businesses to fulfill and ship orders at scale to accommodate the ever-increasing demand.

This is why having a solid e-fulfillment strategy in place will be one of the driving reasons for your long-term eCommerce business’ growth and success.

So what is e-fulfillment?

Simply put, it is the process of storing inventory, packaging products, and then shipping them over to customers — while maintaining an unforgettable customer experience.

Typically, such a job is allocated to in-house systems or outsourced to a third-party logistics (3PL) shipping and fulfillment partner.

The process starts the second an order is placed between a buyer and a seller, and a transaction is finalized.

So what does the process look like?

Outlined below is a surface level overview of what sort of cogs turn inside the e-fulfilment machine.

It goes in this order:

Receiving

Before you can start selling, you need to get your hands on the actual product. If you’re selling in-house this means having it as inventory somewhere close by, if you’re reselling, then it means having a system in place to quickly send out the necessary products to your customers.

2. Storage

Knowing your numbers is key.

How much of this product is left? How much of this one? Are the items stored correctly? Are they protected from damage/external weather?

Storage, or warehousing, is a crucial element in keeping your eCommerce business organized, transparent and protected.

3. Order Processing

Once the order is received, and the item is available, the next step is to ship it.

This step involves packaging the order using the appropriate packaging, securing it for safe transportation, and printing an accurate shipping label to deliver the product quickly and hassle-free to your waiting customers.

4. Return Management

Sometimes things happen, and orders need to be returned, that’s just life.

Ensuring a proper return strategy is in place to accommodate those rare cases will be key in maintaining customer satisfaction with your brand.

How can an e-fulfillment strategy save you time and money?

Having read the above-mentioned process, you can see that the steps required to fulfill an order, once it’s been placed, are complex and nuanced.

However, by partnering with a 3PL, you can expect to save time and money on the following:

Automating your business operations so you never have to stop production, even when you’re on a holiday. Save money on employee ground-level operations. Save the cost of independent storage rental (you can use the space provided by the 3PL). Receive benefits of cutting edge technology for all packing, shipping, and tracking of orders. Have a solid return policy in place to ensure easy and fast returns for optimal customer satisfaction.

…and many other logistical elements that go into shipping and fulfillment.

These benefits are crucial for the long-term growth of your business, as every business, once big enough, will require a proper e-fulfillment strategy to keep scaling and not fall off once demand begins increasing.

Self-fulfillment is not sustainable

At the beginning of your business, self-fulfillment is the only option that makes sense. You won’t be handling a ton of orders, and probably won’t have the capital in place to afford outsourcing to 3PLs or marketplace providers.

However, once the orders begin rolling in, and the volume grows to a point where managing inventory, packing orders, and individually shipping them becomes too much to handle (not to mention dealing with customer inquiries, lost packages, returns, and anything else that might come your way), it’s time to think about scaling.

Of course, as mentioned in the above process, you can independently scale your operations to match demand, but there are some hidden fees and nuances that must be taken into consideration. Nuances such as:

Sourcing packaging material

Handling customer inquiries

Dealing with shipping label details, and customer information

Negotiating with couriers for the best rates

Finding optimal package dimensions and weight to save on shipping costs

Never having time to grow your business

That last point is the most important one.

If you’re constantly stuck working in your business, you will never get the chance to grow it. Rather, by focusing on working for your business, you can invest in saving yourself time, which in turn, will allow you to evolve and grow the business and not worry as much about the day-to-day logistics.

How to choose the right e-fulfillment partner for your eCommerce business

Deciding this is never easy, especially with the plethora of options in today's market.

However, there are certain questions that you should ask yourself when researching, those being:

How much industry experience does this company have? What are their problem-solving capabilities? How modernized are they by today's standards? Do they have dedicated support in place? Do they support your brand vision?

These questions will provide you the foundation for helping you determine the right e-fulfillment partner for your eCommerce business.

Conclusion

The key to long-term growth for your eCommerce business lies in how well you are prepared to scale your operations, while maintaining unforgettable customer experience and satisfaction.

Having a solid e-fulfillment strategy in place will allow you to focus on that aspect, while simultaneously keep the cogs turning so not a single day goes by that your business isn’t fully operational and making you money.