What is an E-commerce Fulfillment Centre?
Speed is crucial in online shopping where buyers expect their orders to be delivered quickly, with 41% hoping to receive their purchases within 24 hours. To achieve customer satisfaction, you need efficient logistics and optimized operations. This is where e-commerce fulfillment helps your e-commerce business scale by streamlining the process of order management.
What is E-commerce Fulfillment?
Ecommerce fulfillment is the process of storing inventory, processing orders, and handling the shipping and returns for eCommerce businesses. Think of it as the beating heart of your operations, supporting you to keep up with growing demand and maintain excellent customer service.
What is an E-commerce Fulfillment Centre?
An e-commerce fulfillment centre is the facility where the fulfillment process takes place. It differs from a warehouse as the latter is for storing goods and products while the former is designed for speed and efficiency. A professional fulfillment centre uses advanced technology such as robotic picking systems and real-time inventory tracking to ensure efficient order fulfillment.
How Do E-commerce Fulfillment Centres Work?
Ecommerce fulfillment centres follow a systematic process to handle orders efficiently. Here’s how it works:
Step 1: Stock arrives at the fulfillment centre
The Ecommerce fulfillment process begins when your inventory arrives at the centre. Products are unloaded, checked for quality, labeled, and then stored in designated areas within the centre, generally using a barcode scanner. The items are always moved and processed with their serial numbers, and you can track all these processes through an integrated system. Here is a screen from OPLOG ONE, a real-time tracking application used by OPLOG, where customers can see details of their stored products with useful filtering features:
Step 2: Customer makes a purchase
When a customer makes a purchase on your eCommerce website or a marketplace, the order is immediately placed into the centre’s system. It is called a warehouse management system (WMS) and it integrates with your online platform to automatically receive order details, such as product type, size, and shipping address. Ecommerce fulfillment centres that offer seamless integration with leading e-commerce platforms and marketplaces should be your first options. This capability is built into the core of OPLOG’s operations, as its WMS is developed entirely in-house, and ensures efficiency and reliability at every step.
Step 3: Order is picked and packed
Once the order is received, the centre’s system locates the product’s exact place (such as: floor 3, aisle C5, shelf X) and creates a well-structured chaotic storage cycle.
Contrary to what the name suggests, it is a dynamic and random form of warehousing where space is always used efficiently. In chaotic storage, products are placed into an empty shelf rather than a designated area and it helps fulfillment centres save time and space. This system works best with automated picking solutions such as a robot.
Then the product is picked by the staff or preferably a picking robot, like OPLOG's very own TARQAN, which accelerates the process up to 400%.
Next, the product is taken to the packing area where it is carefully packaged. A professional e-commerce fulfillment centre offers secure and tailored packaging options that reflect your brand identity, such as branded packaging, bundling, and adding special notes to your orders.
Step 4: Order is shipped to customer
The packaged order then is handed over to a fast and affordable shipping carrier, chosen by your e-commerce fulfillment provider based on certain criteria. Remember to ask any fulfillment centre if they offer a real-time tracking application integrated to your systems. Watching every step of the fulfillment process will ensure transparency and fast decision making, keeping your customers happy and with you all the way. Here is an example of what real-time tracking looks like:
Step 5: Returns are handled if any
The fulfillment process does not end with your customer receiving their order. A preferable e-commerce fulfillment centre must offer return management, including inspections, restocking, and refund coordination. Since some of the fulfillment centres do not handle returns, make sure you ask them before partnering up. This is an important step because return management takes time and effort, and is determinant in your service quality.
How to Choose an E-commerce Fulfillment Centre
Choosing the right e-commerce fulfillment centre is a game-changer, helping you save time and money, ensure customer satisfaction, focus on growth, and scale seamlessly.
Here are a few key factors to consider for a successful partnership:
Fulfillment Centre Location
The location of the centre will directly impact the order delivery speed. Fulfilment centres located near your target customer base should be your first options. Let's say you sell fly fishing accessories and most of your online orders come from Scotland. To ensure fast delivery of your orders, search for a fulfillment centre that has hubs in or near Scotland.
If you have a global customer base, consider working with an e-commerce fulfillment centre that has multiple warehouses strategically located around the world. This can help reduce shipping times and costs for international orders. Partnering with a fulfillment provider that has a global network can significantly enhance your delivery efficiency.
Multi-channel Integration
A trusted e-commerce fulfillment centre works well with your sales channels. This includes your website, Amazon, eBay, and other marketplaces. Seamless integration makes sure that orders from all your channels are processed quickly and updates inventory levels in real time, helping prevent overselling and stockouts.
Technology
When choosing an e-commerce fulfillment centre, look for advanced technology that enhances efficiency and accuracy. Key features include a robust warehouse management system (WMS) that tracks inventory in real time and integrates seamlessly with your sales platforms. Also, ask your fulfillment centre candidates if they use automation tools or robotic support for picking and packing processes, as they speed up operations and reduce errors.
A proactive fulfillment approach also plays a key role in e-commerce fulfillment. Your fulfillment center should provide advanced analytics to offer insights into order trends and performance. These insights help you make informed decisions and optimize your logistics strategy.
Specialization
Whether you are a B2B or B2C e-commerce business should be a contributing factor when choosing a fulfillment centre. For B2B businesses, fulfillment centres should be capable of handling larger order volumes and more complex logistics, such as bulk shipping and custom packaging. They must also manage detailed inventory tracking and provide reliable delivery schedules to meet business clients' needs.
For B2C businesses, fulfillment centres should focus on processing a high volume of smaller orders quickly and accurately. They should manage picking and packing processes efficiently and handle returns smoothly. Fast and reliable shipping options are also essential to meet customer expectations for timely deliveries.
Some e-commerce fulfillment centres are capable of addressing both B2B and B2C needs. These centres offer flexible services that can adapt to different order types and volumes. Partnering with a versatile, omnichannel fulfillment centre can be a good idea if your business serves both markets or plans to expand in the future.
Customer Support
The e-commerce fulfillment centre you choose should offer excellent support to both you and your customers. Dedicated account managers can help with any operational issues and ensure smooth communication. You should also be offered real-time tracking and reporting so you can monitor your inventory and order status at any time.
Customer support of an e-commerce fulfillment centre includes timely updates on order status, accurate tracking information, and easy handling of returns. This will ensure that your customers have a positive shopping experience, resulting in loyalty and better reviews on marketplaces.
OPLOG: Your E-commerce Fulfillment Centre
At OPLOG, we specialize in offering e-commerce fulfillment services tailored to your business needs. Our fulfillment centres are strategically located to ensure fast and efficient order delivery across the UK and beyond. With our advanced technology and automation, we streamline order processing, ensuring accuracy and speed at every step.
We provide seamless multi-channel integration, keeping your inventory synchronized across all sales platforms. Our exceptional customer support team is always ready to assist, ensuring smooth operations and high customer satisfaction. Whether you’re in B2B or B2C, we can handle large volumes of orders with impeccable accuracy and speed.
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