E Commerce Fulfilment Archives - AGOL Worldwide Inc

E Commerce Fulfilment

Ecommerce Fulfillment & Different Fulfillment Models

“I want it now” Does this expression sound familiar? It increasingly fits the expectations of online shoppers, who follow the premise: “Why wait? If I can buy it from another store that can send it to me faster”. The delivery time users are willing to accept is getting shorter and shorter, which puts eCommerce in a frantic race against the clock, seeking to be competitive in their delivery times, while protecting their long-term profitability. If you have an online store, you may have noticed that customer expectations about the speed and cost of shipping are increasingly demanding, but it was not always so, the needs of consumers have been changing over time. When we were children, shipments that our grandparents requested letters or other products, took weeks or even months to arrive, because there was no infrastructure or technology to do it faster, therefore, it was common for people were willing to wait quietly to receive their messages or orders. Would an end consumer expect so much today? The answer is no. The internet changed not only our way of producing and relating, it accustomed us to a culture of immediacy where most processes are carried out in an accelerated manner, a pace that we have taken to different aspects of our lives, where we want everything to be faster and more efficient, such as the delivery of a product purchased online. What Is Fulfillment & Why Is It So Important? How About These Figures! 53% of eCommerce users consider the speed of delivery of their product to be an influential factor in their purchasing decision. 38% will not purchase products again from a company with which they had a bad delivery experience. 61% will not even finish the purchase and abandon the cart if the shipping rates are too high. What Is Fulfillment In Ecommerce? Fulfillment is known as the process that includes: the reception, storage, assortment, packaging, and delivery of orders within an eCommerce, stages that are generated from the purchase are registered until the product is delivered to the customer, and the efficiency of each phase depends on the success of the delivery, now we will see why. Fulfillment Process Step By Step Step 0 Inventory up to date. Who knows what he has, knows what he can sell. Knowing with certainty how many pieces of a product you have and in which warehouse, that is, having proper inventory control and management is essential. The worst thing that can happen is to sell something you don’t have. The inventory must be updated in real-time to never fall into “out of stock” sales unless it is a pre-sale business strategy. Order Generation Once the customer enters your eCommerce and makes the purchase, an order is generated, from this moment the race against the clock begins, and the time you defined in your delivery promise starts to elapse. Step 2 Efficient processing. The less the order is in the warehouse, the more value is added to the final customer because the delivery time is reduced. This stage plays a decisive role, the efficiency with which the preparation of the order is generated, depends on not generating assortment errors and how fast you can start transporting to the customer’s destination. Step 3 On-time shipping. From your eCommerce to the customer’s door. Once the order has been processed and dispatched with the courier/parcel, the last mile process begins, this is where the customer receives their purchase and if there are no incidents, the delivery process culminates.During this stage the issue of traceability is essential. Has it ever happened to you that you make a purchase and you don’t know where your order is or when it will arrive? Communication with the end customer is one of the most important sales features of eCommerce, it is part of the shopping experience that the user has. Remember that you must be clear and transparent with the customer throughout the process, both in delivery times and in everything that happens after the transaction in your store. As we can see, the 3 previous phases influence your fulfillment levels, your efficiency in each one will determine if you make your deliveries at a snail’s pace, or if, on the contrary, you are a fast and efficient roadrunner. To give you an idea of how the sector moves, the following graph shows how fast the deliveries of Mexican eCommerce are, where according to the study, 73% do it in a range of 48 to 72 hours. In a smaller percentage, there are same-day deliveries, which, although they can be an attractive sales hook, are highly impossible for many eCommerce, due to the operational efforts they represent. Step 4 Customer Service: the service does not end with the sale, after generating the e-commerce must be prepared to provide excellent after-sales service, where the customer is given traceability on their shipment, and their questions and needs are addressed. Step 5 Timely returns: the ugly duckling of the sale! What eCommerce wants a product that has gone through the entire delivery process to be returned? Unfortunately, dissatisfied customers or certain conditions mean that returns can occur in any of your purchases, the important thing is to find the best way to deal with them, generating the least possible impact on your business. Along with long delivery times, complicated return processes, are part of the criteria by which buyers qualify as negative their online shopping experience, have a procedure and always seek to generate “hero moments” to your end customer, always positively impact your level of sales. Fulfillment Models: Which One Is The Best For Your Ecommerce? Each eCommerce is different, both in its sales volume and in its growth projection and internal management, of these factors depend largely on the type of fulfillment that best suits your needs, among them we have: In-House Fulfillment It is when eCommerce assumes all the preparation functions on its own, that is, without hiring external services. The last mile, depending on the

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E-commerce Fulfillment Cost and Management

E-commerce fulfillment is commonly the aspect where don’t see many online shop owners with positive feedback. A general perception about logistics is that it is only a cost factor, but in actuality, it can become a conversion driver if used efficiently. That is why all successful e-commerce companies have one thing in common- exceptional order fulfillment with or without a third-party logistics provider.So far we see that fulfillment is highly underrated when it comes to corporate success. Many experts also argue that there is no point in offering the best available product if the fulfillment process is not up to the mark. In a recent study, it was observed that 50% of the people abandon the shopping cart just by looking at the shipping cost, and 30% of people abandon the cart due to longer delivery time. That is why we want to give you an insight into this important aspect so that you can get answers to the following questions: What is E-Commerce Fulfillment? The term order fulfillment or e-commerce fulfillment is commonly described as the process involving the physical processing of a customer`s order. From booking to the last mile delivery it involves all the associated processes like shipping, storage, and last-mile delivery. A typical e-commerce fulfillment starts from order acceptance and ends with the last-mile delivery. The process also includes return management. What are the Costs Associated with Fulfillment? E-commerce fulfillment comes with a cost and it entirely depends on online shop owners, whether they do it themselves or outsource the process to a third party. Online shop owners try to keep the shipping costs as low as possible to keep the customers less bothered by the shipping costs. Shipping orders locally can be handled and the costs are very reasonable if the qualities are less. International shipping brings in more shipping costs. So the online shop owners should come up with a good balance to keep the business rolling and customers attracted. Outsourcing or In-house Processing? To give you a better understanding of what is a better option, we should first see what is in-house processing or self-fulfillment? What costs are associated with managing the in-house fulfillment process? • Warehousing• Digital infrastructure• Insurance• Shipping Service• Packing• Workforce Warehousing and Storage According to AGOL worldwide experts both for national and international business owners, storage costs take a bigger chunk of expanses. The warehouse should be affordable and it should be located within accessible reach. If it is too expensive it will cost you more, and if it is situated in a remote location you will ultimately end up paying more transportation costs. Shipping cost and delivery to the final customer are to be taken into consideration when selecting the warehouse. Digital Infrastructure A good warehouse with all the good characteristics is not just enough to bring you success. You need software along with the corresponding hardware to keep a record of all your transactions. The more you are digitally updated the more your warehouse is efficient. Usually, the expenses are directly related to the efficiency of the warehouse. A good mix of choices should be made, considering the business volume and needs. From using general software like MS Excel to tailor-made software and hardware you can choose what fits your business needs. Insurance To avoid unnecessary troubles just in case you end up in an accident or damage to your warehouse. Here the cost also depends on the type of package you are buying and the coverage you need. Packing You can save a good amount of money when it comes to packing. Buying the packing material in bulk quantities can save you good money. You should always buy a moderate quantity of packing material to avoid engaging too much storage space. Good planning and finding an absolute balance are crucial in every aspect. Workforce The workforce is very important and without it, you cannot effectively manage your warehouse operations. As advised earlier you should think of an ideal solution depending on your business volume and requirement. For instance, if you get fewer orders in summers and orders increase dramatically during winters, you need to come up with a flexible solution.Keeping in view all these aspects we can only come up with a good solution if we think and take a wise decision on every aspect of our business. There is no universal rule that fits all, e-commerce businesses vary in volume and there are many factors influencing them, like product type, customer base, and geographical location. That is why you need to dig deep and come up with your sweet spot where everything is managed efficiently and affordably.

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