Shopify Order Fulfillment Service: Things You Should Know

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An Article Telling Shopify Order Fulfillment Service: Things You Should Know

 

What is shopify order fulfillment

Shopify Order Fulfillment Services is essentially a series of processes and actions that occur from the time a customer places an order from the Shopify store until that item is shipped. Typical fulfillment workflows range from receiving and storing inventory for an order, processing the order, selecting items, packaging and shipping the items to the customer's shipping destination, in addition to customer support and return services. Data from studies show that free delivery and timely response times increase consumer satisfaction with orders, which is a key reason why consumers choose Shopify stores to place orders. Imagine spending a lot of time and effort designing your shopify store, setting up marketing campaigns, as well as designing the branding and packaging, but it doesn't pay off because of shipping costs and fast response, which affects your subsequent orders. So before you go live with your shopify store, be sure to choose the right order fulfillment service.

Methods of shopify order fulfillment

Depending on the needs of the seller's store, Shopify offers 3 different order fulfillment methods: Automatic order fulfillment, Manual order fulfillment, Fulfillment of partial orders.

Automatic order fulfillment: automatic order fulfillment, that is, sellers do not need to sit in front of the computer at all times to deal with orders, because the order fulfillment process is automated, but the premise is that the seller to meet the following requirements.

  • Use of "third-party" order fulfillment services.
  • The order does not require packaging and shipping, such as for digital download products.
  • There are no pre-sold products

Set up automatic order fulfillment on the checkout page, while at the same time, sellers can use the "automatic payment collection" feature.

Fulfilling orders manually: Fulfilling orders manually is suitable for most Shopify sellers, because this method allows them to control and monitor the inventory of the product, and also have greater control over the order processing and shipping process. If the seller chooses to fulfill the order manually, remember to uncheck the "Automatic fulfillment" option on the "Order Processing" page.

Shopify sellers should choose to fulfill orders manually if:

  • a. There will be a situation where inventory management is out of stock

  • b. There are regularly pre-sold products

  • c. The goods are all physical objects and require customized packaging and delivery

  • d. There is also a situation where as a shopify merchant wants to provide "automatic fulfillment of partial orders" for specific consumers

If the order is fulfilled manually, after the order package is shipped, the Shopify system will prompt the seller to send an email notification to the buyer (the system will send it directly by default after entering the logistics tracking code). Go to the "Orders" page to check the logistics status of the order, if yes For unfulfilled orders, the status is displayed as "Unfulfilled", click the order number to view the details, and then click "Start fulfilling" to open the order fulfillment page, and enter the order tracking code provided by the logistics provider.

Fulfill part of the order

There are some special cases,

  • An order is shipped multiple times: For example, a customer's order contains multiple different products, and there are pre-sold products or products that are out of stock. In this case, the shopify seller can choose to fulfill part of the order first, and other products. Fulfill in installments. 
  • Ship from different locations: The consumer's order contains multiple products, but these products are not in the same warehouse, and the seller needs to ship from multiple warehouses to fulfill the order.

Importance of shopify order fulfillment

The efficiency of order fulfillment is a huge challenge for physical-based e-commerce businesses. Product packaging and distribution and order fulfillment services are all important factors that affect order fulfillment. A professional and efficient order fulfillment process will pay off for your business in both the short and long term. The shopify order fulfillment service can optimize the inventory management of e-commerce companies, increase business revenue, and improve customer satisfaction.

  • Optimized inventory management

    1、Efficient inventory management can effectively avoid the backlog of goods, resulting in losses. Inventory management can arrange clearing in time and reduce the backlog risk that it may bring;
    2、Avoid shortage of goods and ensure the normal development of business;
    3、Help you quickly know which products are out of stock, and arrange replenishment in time to avoid commodity shortages affecting normal business development.
    4、In the shopify order fulfillment service, the flow of products at each stage can be better regulated and optimized, providing tremendous visibility into key inventory flow stages such as SKU storage and shipping.

  • Improve customer satisfaction

    Efficient order fulfillment can improve customer satisfaction. Customers can get high-quality service and efficient execution in ordering, delivery and return services, reducing consumer negative comments and complaints, and promoting repurchase and promoting new customers to place orders. have a positive effect

  • Increase revenue

    In terms of inventory management, the loss of the enterprise is reduced, the customer satisfaction is improved, and the brand image is promoted to promote purchase, which can effectively improve the income of the enterprise.

Options for shopify order fulfillment

Knowing so much about the shopify order fulfillment service, how to implement the shopify order fulfillment service?

  • Self-fulfillment

    Self-fulfillment is internal order fulfillment, which is usually suitable for a small local area, with low product cost, convenient storage, and no need to pay high warehousing and distribution fees. This means that you have complete control over the quality of your product and fulfillment, and you can efficiently handle every step of the way the product reaches the customer, ensuring that the product is in the best possible condition when it reaches the customer.

    However, self-fulfillment is difficult to realize the self-strength of the brand, which is time-consuming and labor-intensive in the development process, which is not conducive to long-term development.

  • Dropshipping

    With dropshipping strategy, every part of the fulfillment process is handled by the dropshipping supplier or manufacturer. In this way, Dropshipping simplifies a large part of the logistics value chain; there is no longer a need to worry about shipping goods from the manufacturer to another logistics center or temporary warehouse location.

    But this kind of shopify fulfillment service, you have no control over the quality, warehousing and distribution of the product, and you cannot get the customer's experience of the product in the first place, so it is not conducive to long-term development.

  • 3pl and order fulfillment service providers

    To save time and money while maintaining control over the packaging, quality, and delivery of products, many fast-growing Shopify stores partner with third parties. This is a completely outsourced shopify order fulfillment service to 3rd party 3pl and order fulfillment service providers.

    Order fulfillment service providers have powerful resources and technologies to provide enterprises with efficient and professional order fulfillment solutions.

    There are three main categories of fulfillment providers on the market today: divisions of large e-commerce or logistics companies, pure-play e-commerce fulfillment service companies, and technology-focused order fulfillment startups.

    1.Divisions of large e-commerce or logistics companies: Large e-commerce platforms like Amazon have state-of-the-art order fulfillment networks, and Amazon FBA is also the first choice for e-commerce business owners;

    2.Pure e-commerce fulfillment service company: Angetion is a pure e-commerce fulfillment service company, specializing in providing order fulfillment services and providing professional and considerate fulfillment services to small and medium-sized e-commerce business owners;

    3.Technology-focused order fulfillment startup: ShipBob is a technology-oriented fulfillment service and logistics solutions company.

    Fulfillment service companies can get discounted shipping, have multiple shopify fulfillment warehouses, and can provide a variety of customized services, such as: branded packaging marketing, free storage, adjustable delivery times, and more.

    Of the three Shopify fulfillment options, using a third party to provide order fulfillment services is the best option for most Shopify stores. It's a matter of when, not for most sellers. Many people think they need thousands of orders to get a good deal with a third-party provider, but current tech-enabled fulfillment networks are built to be easy to use for businesses of all sizes.

Difference Between Dropshipping and 3pl/Fulfillment Providers

When you hear the term "dropshopping fulfillment", you may think that this is another term for an order fulfillment company. Dropshipping does allow e-commerce businesses to have third parties ship products to customers, but the services offered by drop shippers and fulfillment centers are very different.

In the dropshipping process, the seller does not need to have inventory management, but directly transfers the inventory to the manufacturer. When a consumer places an order on the shopify store, you pass the order on to the manufacturer, who is responsible for the production, inventory, and logistics of the product. You are solely responsible for marketing and customer service, you have no control over the product.

The delivery process is relatively simple:

  • You open an online store on shopify to market your own products;
  • Consumers buy your product
  • You receive an order from a consumer, and you submit the order to a dropshipping company like Oberlo, who then ships it to the consumer.

This method completely leaves the product to the dropshipping company, but as long as the supply chain is smooth, it is the easiest and cheapest way to start an e-commerce business.

3pl/Order Fulfillment Service Providers do not simply provide logistics and distribution services, but involve all aspects of warehousing, packaging and shipping for e-commerce companies.

  • You buy products in bulk from a manufacturer or distributor.
  • Then you sell the product in the online store and physically store it in the fulfillment warehouse.
  • When a consumer places an order, you need to contact the order fulfillment company to process the order, package the product, and arrange for delivery.

This approach has relative control over the product, but requires sufficient funds to purchase and maintain inventory.

So the need to buy inventory is a key feature that differentiates e-commerce delivery.

The benefits of choosing a third party for shopify order fulfillment

The benefits of order fulfillment service providers/3pl are briefly described above, and the benefits of choosing a third party for shopify order fulfillment are explained in detail below.

  • Save on shipping costs

    Shipping costs are a significant cost for online retailers. Since shipping rates are driven by sales, reducing shipping costs is an important operating expense for an e-commerce company. Third-party logistics and fulfillment service providers work with hundreds of merchants to get deep discounted shipping rates. In this way, you can pass this part of the cost to your customers to enhance the brand image by offering free shipping or giveaways.

  • Get faster shipping

    Fulfillment centers can quickly process from receipt to delivery, and quickly deliver products to consumers through integrated shipping solutions.

  • Efficient inventory management

    1.Most order fulfillment service providers have their own inventory management monitoring solutions that monitor inventory levels, order and replenish inventory, and utilize the collected data to aid the process of inventory forecasting. For example, which products are the most popular and which products are slow, there are visual data reminders.

    2.Automated and mechanized warehousing services.

    3.Order fulfillment service companies have multiple fulfillment warehouses, automated equipment, and a complete warehousing system that can safely store your products and process orders quickly.

  • Customized Packaging Service

    Different packaging services can be provided for different products, and special packaging materials can also be customized to meet different needs

Benefits of choosing Angetion

Angetion as a professional order fulfillment service provider, can continuously improve the development of your business.

  • High processing speed: We can efficiently process orders within 24 hours and guarantee delivery within this time, ensuring the timeliness and correctness of order fulfillment.
  • Customized packaging service: We will provide standardized packaging services, but there will be different packaging materials for special orders, and customized selection and packaging will be done. Packaging orders can be perfectly presented to customers.
  • Branded Packaging: For companies that need to do brand marketing, we also have complete branded and customized packaging, kitting and assembly products, marketing inserts to increase your customer loyalty and boost your sales.
  • Free warehousing for a long time: For e-commerce order fulfillment warehouse services and solutions, we provide 60 days of free warehousing. And our warehousing is mechanized and systematic operation, you can safely store your goods.
  • Efficient Inventory Management: We use WMS system to record and update the quantity, size and stock of products. You'll be notified when products are low in stock, and you can have your bestsellers ready on time.

Our international e-commerce fulfillment service allows you to cover more than 200 countries and regions from China to the world. Choose us to be your e-commerce fulfillment service provider and give yourself the opportunity to develop your orders with all your strength.

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