Running an ecommerce business requires efficient order fulfillment processes to get products to customers quickly and cost-effectively. Streamlining your fulfillment workflows can help you ship orders faster, reduce costs, and provide better customer service.
Here are 7 tips for optimizing your ecommerce order fulfillment:
1. Offer Free Shipping
Providing free shipping incentivizes customers to place larger orders and improves conversion rates. Set a free shipping threshold of something like $50 to encourage bigger basket sizes. Just ensure your margins can absorb the shipping costs or increase prices slightly. Free shipping removes friction during checkout and makes customers more satisfied.
2. Integrate Inventory, Ordering, and Shipping Systems
Linking your ecommerce platform to your order management and shipping software streamlines order processing. When systems are integrated, order information flows seamlessly between platforms. Orders can be automatically fulfilled, packed, and shipped faster with fewer manual touchpoints. Integrations also provide visibility into inventory availability.
3. Utilize Automation
Automating repetitive fulfillment tasks like order processing, packing, and addressing shipments speeds up your workflows. Automation tools like barcode scanners, integration scripts, and fulfillment robots reduce manual labor so orders ship faster. There are software options that can automate order importing, customer communications, carrier compliance, and delivery tracking.
4. Offer Multiple Shipping Options
Provide customers with affordable shipping choices like 2-day, next-day, and expedited delivery. Fast shipping methods allow customers to choose the speed they need and are willing to pay for. Also, consider offering in-store pickup and local delivery, which are growing in popularity. Just be sure to integrate new shipping services across your platforms.
5. Right-Size Packaging
Carefully measuring packaging lowers shipping costs because customers are charged by dimensional weight. Use snug-fitting boxes, mailers, and envelopes that closely match the size of products. Avoid using overly large boxes that raise charges. Invest in a scale and variety of box sizes to optimize packaging.
6. Print Shipping Labels Online
Certified Mail Label postal rates are a lot cheaper than taking a trip to the post office. This service allows you to print USPS shipping labels online. For example, a 1-ounce Certified Mail letter with a Return Receipt costs $9.64 at the post office but just $6.49 online. That’s over 30% savings by skipping the post office line. Online vendors are USPS-approved, provide bulk discounts, and make printing fast. Additional services like Return Receipt Electronic Signatures are also cheaper online. So, eliminate post office trips and print labels efficiently in batches to optimize fulfillment.
7. Analyze Shipping Performance
Leverage data to identify fulfillment bottlenecks and cost issues. Look at metrics like average order processing time, shipping errors, delivery times by carrier, and packing/handling costs. Use analytics to fine-tune your operations and control expenses. Tweak processes to run more efficiently. Consider leveraging shipping management software to automatically track key metrics and identify areas for improvement. Regularly reviewing performance data allows you to optimize systems and reduce operational costs over time.
Following these ecommerce fulfillment best practices will allow you to ship customer orders quickly, cut fulfillment costs, and keep shoppers satisfied. Optimizing your fulfillment process improves reliability and allows your business to scale.
