How to fix 3 common e-commerce fulfillment mistakes
How to fix 3 common e-commerce fulfillment mistakes
Here’s what you’ll find on this page
Learn why fulfillment issues happen
Is your e-commerce business prepared to serve customers? While e-commerce offers great opportunities for growth, it also comes with challenges in order fulfillment, logistics, and customer service. Let's uncover why they happen and how you can overcome them.
What is e-commerce fulfillment?
E-commerce fulfillment handles the process of online orders, from purchase to delivery or returns. It involves managing inventory, storing items at a fulfillment center, processing orders, packing, and shipping, and managing returns.
But even the best e-commerce fulfillment experiences can encounter difficulties. How can you make the process more seamless? As a start, let’s take some time to understand how you can assess your whole process.
Essential questions for your fulfillment evaluation
During lull periods, review and analyze your warehouse to identify areas for improvement in procedures, facilities, workflows, staff, and software. Here are some questions to guide your assessment:
How well do you handle orders?
Gather data on order accuracy, service issues, ordering levels, processing time, and inventory planning. And if possible, ask customers for improvement suggestions.
Have you sought input from your team on improvements?
Your team is at the heart of the action. So, their ideas can help your fulfillment process be more efficient and productive.
Have you given your team time to adapt to the changes?
It's important to allow your team time to adjust to changes and avoid any disruptions that may arise. Remember, adapting to change takes time and patience.
3 common issues to tackle head-on
Now that you've completed the assessment, it's time to prioritize and address the top 3 common issues that occur during the e-commerce fulfillment process.
#1: Stockouts due to poor warehouse inventory management
Out-of-stock information not updated? That is usually because of problems with your order process and incompatible technological systems. For example, if your warehouse and shipping software don't work together, you might miscount inventory levels and have less stock than expected.
With no indication on your site, this can confuse customers into thinking the product is available when it is not.
Unfortunately, it's likely that some customers will be disappointed when the product they want to buy is not available. Even if you try to fulfill their order, the average lead time might cause delays in shipping, leading to customer frustration and loss of trust in your business.
What you can do: Regular inventory counts
If you have a warehouse, regularly count inventory based on your business needs - daily, weekly, or monthly - for reliable data. You could also look at your web traffic and sales to predict inventory needs and identify popular products, anticipating customer demand and preferences.
Pro-tip: Use dropshipping for no inventory hassles
Sell products on your website without keeping them in stock with dropshipping. When a customer places an order, you pay for the item and the supplier ships it directly. This saves you money on storage and inventory costs.
Just be sure to stay up to date with your supplier’s safety stock levels and calculations status. That way when the order comes in, they’ll be able to take care of quickly shipping it to the customer. It's an easy and worry-free way to run your online business.
#2: Human errors in manual order management processes
When relying on manual order fulfillment processes, the likelihood of error increases. These mistakes can lead to incorrect shipping items, delays, or even duplicate shipments, resulting in additional costs for your business. Even the most skilled employees are susceptible to errors when manually entering item details and quantities for each order.
What you can do: Simplify the entire process with advanced technologies like APIs and third-party software
By using advanced technologies like APIs and third-party software, you can efficiently manage your orders without data errors. These tools are designed to seamlessly integrate shipping, tracking, rating, and returns directly into your website or web-enabled application, making your business run smoothly and efficiently.
This way, you get access to shipping and other services without switching between different programs.
#3: Little/no communication with customers
Customers rely on customer service to help with tracking shipments and reporting missing or damaged items. That's why it is vital to have engaged and well-trained customer service team. If your representatives are not able to handle issues quickly and confidently, customers will be unhappy and may not return.
What you can do: Communicate clearly through notifications
Why use notifications? They allow your business to send automatic push notifications via SMS and/or email to update your customers about their tracked shipment's status. This means you can keep your customers informed in real-time, whether their shipment is on the way, experiencing delays, or has any other relevant updates.
With such proactive communication, your customers will be able to have a transparent communication channel with your brand.
Additionally, notifications give them peace of mind by knowing where their packages are and when they will arrive. By offering a more convenient user experience, you can minimize the need for customers to call your customer service and give them simple self-service options.
Mistakes happen - what matters is being prepared
Though mistakes may occur, being prepared is what truly matters. With the right tools and mindset, you can consistently deliver exceptional e-commerce experiences to your customers.
Remember, proper prepration and seeking support are key to overcoming e-commerce fulfillment challenges and maintaining top-notch customer service.
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