back
May 16, 2023
Reading time: 9 minutes

The Ultimate Guide to Ecommerce Automated Order Fulfillment

By reading this post, you will gain insight into:

  • Improving organization and accuracy throughout the automated order fulfillment process
  • Maximizing your automated order fulfillment strategy to meet your business’s unique needs
  • Delivering orders quickly and efficiently
  • And much more!

Don’t miss out on the opportunity to improve your margins and customer satisfaction. Start streamlining your eCommerce order fulfillment process today!

Streamlining Your Ecommerce Automated Order Fulfillment with Trackmage

IMG-1 -Ecommerce Automated Order Fulfillment

What is eCommerce fulfillment?

Ecommerce fulfillment is a complex process consisting of receiving online orders from customers, picking purchased products from a warehouse or storage facility, packing and labeling, and shipping to customers. Ecommerce fulfillment involves managing inventory, processing orders, coordinating transportation, and ensuring a smooth buying experience.

What is Ecommerce Fulfillment Service?

Ecommerce fulfillment services are solutions that help online businesses manage their orders, inventory, and shipping processes. These services generally include the following:

  • Receiving
  • Processing
  • Packaging orders
  • Shipping
  • Order tracking
  • Handling returns

Ecommerce fulfillment services can help businesses streamline their operations and reduce the time and resources they need to dedicate to order fulfillment.

With the growing popularity of eCommerce, these services have become increasingly important. That’s because you need to meet customer expectations to remain competitive in the marketplace.

How eCommerce fulfillment services work

The service provider receives, processes, packages, and ships orders on behalf of the eCommerce store owner. Here is how it works (click to enlarge):

Infographic Ecommerce Automated Order Fulfillment

Types of Ecommerce Fulfillment Services

These services come in various shapes and sizes, catering to different business needs. Here are some of the most common types of eCommerce fulfillment services:

Third-Party Logistics (3PL)

This service utilizes the resources of a third-party organization to manage the fulfillment process. 3PL providers can offer an array of services, including storage, picking, packing, shipping, and even handling returns. Examples include: UPS, FedEx, USPS, and DHL.

Dropshipping

Dropshipping lets businesses sell products without holding inventory. In this case, the seller collaborates with a supplier who fulfills the orders of the customer on their behalf.

In-House Fulfillment

This fulfillment service involves managing everything involved with the fulfillment process on your own. This option gives businesses complete control but requires a significant investment in infrastructure, resources, and expertise. Walmart, Target, and Best Buy use a similar model.

Subscription-based Fulfillment

This type of service is popular among businesses that specialize in subscription models. This service focuses on regularly sending out boxes or packages based on the preferences of subscribers.

Fast Shipping Services

Businesses looking to offer customers fast delivery times can avail themselves of fast shipping services from fulfillment providers. Many companies offer same-day or two-day shipping through partnerships with logistics companies.

No matter what type of eCommerce fulfillment service you choose, assess your goals and customer needs before deciding.

Benefits of using eCommerce fulfillment services

  1. Efficient Order Fulfillment

Outsourcing your order fulfillment process to a third-party provider can relieve you of logistics responsibilities, allowing you to focus on core business functions. This leads to faster and more efficient order fulfillment, ensuring happier customers.


  1. Reduced Shipping Costs

Ecommerce fulfillment services have existing partnerships with shipping carriers, which means they can get discounted shipping rates. They can also use optimization strategies to lower your shipping costs, freeing up your budget for other important business expenses.


  1. Improved Inventory Management

Ecommerce fulfillment services provide a centralized location for managing your inventory, keeping you informed about stock levels so you can prevent overselling and stockouts. This leads to better inventory management and more satisfied customers.


  1. Scalability

As your business grows, it can become challenging to handle order fulfillment in-house. With eCommerce fulfillment services, you can easily scale up and down according to your business needs.


  1. Access to Expertise

Ecommerce fulfillment service providers specialize in order fulfillment, which means they have the expertise required to handle logistics efficiently. This expertise can translate into improved shipping times, better order accuracy, and ultimately, happier customers!


  1. Streamlined Returns Process

Handling returns can be a complicated and time-consuming process. Ecommerce fulfillment services can simplify return management and ensure customers remain satisfied, all while freeing you up to focus on the rest of your business.


  1. Enhanced Customer Satisfaction

Ecommerce fulfillment services offer faster shipping times, accurate order fulfillment, and efficient return management, leading to an improved customer experience. This can help increase customer loyalty, and turn your customers into your biggest advocates yet.

What is Automated Order Fulfillment?

IMG-2 -Ecommerce Automated Order Fulfillment

Automated order fulfillment is the process of using technology and automated systems to manage and execute the entire order fulfillment process, from receiving orders to shipping products to customers. Automated systems for fulfilling orders include warehouse management systems (WMS), order management systems (OMS), and automated storage and retrieval systems (ASRS).

An automated system can integrate order information with inventory data, allowing for real-time tracking and efficient order fulfillment. Using robotics and automation in the order fulfillment process can help improve accuracy, speed up the fulfillment process, and reduce human error.

Additionally, automated order fulfillment reduces labor costs, minimizes the risk of order backlog, and increases customer satisfaction through timely and accurate delivery.

How Will Automated Fulfillment Help You?

Below are listed some of the most significant benefits that automatic order fulfillment provides.

Increased Efficiency

One of the most notable benefits of order fulfillment automation is that it vastly improves efficiency. By automating tasks such as receiving, processing, packaging, and shipping, businesses can reduce the amount of time and resources required for order fulfillment.


Reduced Errors

Automated fulfillment means fewer opportunities for human error, resulting in improved order accuracy and customer satisfaction.


Better Scalability

The technology scales to accommodate increasing order volumes effortlessly.


Improved Speed

Ecommerce order automation streamlines processes and reduces the time between receiving a purchase and shipping it. This leads to faster delivery times and ultimately elevated customer satisfaction.


Saves Time and Money

By automating fulfillment processes, businesses can reduce the expenses and time required to fulfill orders manually, ultimately helping drive revenue growth.

Order Fulfillment Automation Options

There are several order fulfillment automation options that eCommerce businesses can consider:

  1. Warehouse Management Systems (WMS): WMS software streamlines fulfillment operations by automating inventory management, order picking, and shipping processes.
  1. Order Management Systems (OMS): OMS software allows eCommerce businesses to manage all aspects of their online orders, from initial placement to delivery and returns.
  1. Automated Storage and Retrieval Systems (ASRS): ASRS technology utilizes automated robots to manage and retrieve inventory from storage and transport it to the appropriate picking and packing stations.
  1. Pick-to-Light Systems: Pick-to-Light systems use light indicators to guide workers throughout the picking process, eliminating the need for manual tracking and recording of inventory.
  1. Automated Guided Vehicles (AGVs): AGVs are mobile robots that transport items throughout the fulfillment center, freeing workers to focus on other tasks.
  1. Robotics and Automation: Robotic automation systems can automate several tasks, including order picking, sorting, and packing, reducing human error and increasing speed and accuracy.

By integrating these automation options into their order fulfillment process, eCommerce businesses can improve efficiency, reduce labor costs, and increase accuracy and customer satisfaction.

Choosing the Best Ecommerce Fulfillment Services

IMG-3 -Ecommerce Automated Order Fulfillment

In this section, we’ll show you how to partner with the right people. They will make your order fulfillment process a lot more effective.

Factors to consider when choosing an eCommerce fulfillment provider

Choosing the right eCommerce fulfillment provider is crucial for the success of your business. Here are some important factors you should consider before selecting one:

Location and Shipping Costs

Consider the location of the fulfillment center and whether or not it’s near your customer base. This can impact shipping costs and delivery times, leading to enhanced customer satisfaction.


Pricing

Make sure to get an accurate quote for all the different services required. Compare the pricing and features of various fulfillment providers to select a solution that offers the best value for your budget.


Technology and Integration

Consider the technology and software that are integrated with the fulfillment provider, such as order management systems, inventory tracking, and reporting tools. Ensure it provides an easy-to-use and efficient method for tracking orders, inventory management, and customer support.


Customer Service

Evaluate a provider’s customer service policies, including hours of operation, communication channels, and protocols for addressing problems or inquiries. Ensure they have a knowledgeable and helpful support team to assist with any problems that may arise.


Flexibility

Different eCommerce businesses have unique needs. Ensure the fulfillment provider offers a flexible solution that suits your business requirements, whether it be long-term or short-term contracts, seasonal inventory fluctuations, or custom packaging requirements.


Experience and Reputation

Research a provider’s experience in the industry and verify their reputation. Check reviews from existing and past clients to understand their level of satisfaction with the services provided.


Specialized Services

Some providers offer specialized services, such as reverse logistics or kitting services. Evaluate whether these services are necessary to drive your business’s success.

Top eCommerce fulfillment companies in the market

  1. ShipBob

ShipBob offers a comprehensive fulfillment solution for eCommerce businesses of all sizes. Their services include inventory management, order fulfillment, and shipping, as well as a robust eCommerce software platform.


  1. Red Stag Fulfillment

Red Stag Fulfillment provides order fulfillment services for ecommerce businesses. They have a unique focus on handling large, bulky, and high-value products such as furniture or electronics.


  1. ShipMonk

ShipMonk offers a scalable eCommerce fulfillment solution, powering the logistics for eCommerce businesses of all sizes. They provide eCommerce fulfillment, inventory management, and shipping solutions.


  1. Fulfillment by Amazon (FBA)

FBA is Amazon’s eCommerce fulfillment solution, enabling eCommerce sellers to benefit from Amazon’s global logistics and fulfillment network.


  1. Rakuten Super Logistics

Rakuten Super Logistics (RSL) provides complete eCommerce fulfillment services, including warehouse management, pick and pack, and shipping, with a 100% accuracy guarantee.


  1. Deliverr

Deliverr offers fast and low-cost fulfillment services for eCommerce businesses. They are focused on fast delivery and low costs, utilizing a logistics network to cater to the needs of the modern eCommerce market.


  1. EchoData Group

EchoData Group is a leading provider of fulfillment services designed for eCommerce businesses of all sizes. They offer customized solutions, including kitting and assembly services, providing a comprehensive fulfillment solution.

Each eCommerce fulfillment company offers a unique service, and as such, ecommerce store owners need to choose a solution that best suits their business’s requirements.

Comparison of eCommerce fulfillment providers

Ecommerce Fulfillment ProvidersServices OfferedPricing ModelTechnology and IntegrationLocationCustomer ServiceFlexibility
ShipBobOrder fulfillment, inventory management, shipping, and software platformSubscription-based, pay-per-orderAdvanced technology for order tracking, inventory management and software integrationsUnited States, Canada and International Locations24/7 Support via email, phone and chatFlexible fulfillment services
Fulfillment by Amazon (FBA)Storage, packing and shipping, customer service and return processingPay-per-use, commission-basedSeamless integration with Amazon Seller Central for managing inventory and ordersUnited States, Europe, Japan, and AustraliaEmail, Phone and chat support during specific hoursOffers scalable solutions for businesses of all sizes
Rakuten Super LogisticsFulfillment, storage, kitting, customized orders and shipping servicesPay-per-use, subscription-basedEasy integration with various marketplaces and shopping cartsUnited States24/7 Support via phone, email, and chatA flexible solution that caters to businesses of all sizes
ShipMonkFulfillment, inventory management, and shipping servicesSubscription-based, pay-per-orderIntegrates with popular platforms including Shopify, WooCommerce, and moreUnited StatesOnline support or phone and email supportA flexible solution that can accommodate seasonal fluctuations
Red Stag FulfillmentOrder fulfillment, storage, pick and pack, and shipping servicesSubscription-based, pay-per-orderProprietary order fulfillment software that integrates with eCommerce platformsUnited States24/7 Support via phone, email, and chatOffers specialized services for high-value products
FedEx FulfillmentOrder fulfillment, inventory management, and shipping servicesPay-per-use, monthly feeIntegrates with eCommerce platforms including Shopify, Magento, and moreUnited StatesEmail support, phone support during specific hoursOffers scalable solutions tailored to the needs of each business

Trackmage and Ecommerce Fulfillment

TrackMage is a cloud-based shipment-tracking platform designed to simplify the post-purchase experience for e-commerce businesses. It helps provide customers with a branded experience from the point of purchase through delivery. 

IMG-4 -Ecommerce Automated Order Fulfillment

TrackMage’s features include automated delivery notifications, real-time tracking of shipments, and review collection.

How TrackMage can help Shopify store owners and Ecommerce business owners

TrackMage is designed to help e-commerce businesses streamline their post-purchase experience. Here are some benefits of using TrackMage:

Real-time tracking of shipments

IMG-5 -Ecommerce Automated Order Fulfillment

TrackMage provides real-time tracking of shipments with automatic updates, allowing customers to know the status of their purchase at every step of the way. By providing customers with access to tracking information, e-commerce businesses can reduce support requests and enhance customer satisfaction.

Delivery notifications to customers

IMG-6 -Ecommerce Automated Order Fulfillment

TrackMage enables automated delivery notifications to be sent to customers, reducing the need for manual communication between the business and its customers. This feature saves time and resources while ensuring that customers are always informed about their purchases.

Collecting 5-star Reviews

IMG-7 -Ecommerce Automated Order Fulfillment

TrackMage prompts customers to leave a review after their purchase is delivered. You can analyze and share reviews with 5-star ratings and positive comments as social proof on product pages. This will drive additional traffic and increase brand credibility.

Integration of TrackMage with eCommerce fulfillment providers

TrackMage integrates with popular shipment carriers such as FedEx, DHL, and USPS. Use these integrations to streamline order fulfillment and enhance the post-purchase experience.


Conclusion

Choosing the best eCommerce fulfillment provider:

  • ensures timely delivery,
  • reduces shipping errors,
  • and enhances customer satisfaction.

As the integral part of your automated order fulfillment, use TrackMage to streamline the post-purchase experience and integrate with popular eCommerce fulfillment providers. This will also greatly optimize shipping processes.

Back to top