Order fulfillment strategies for ecommerce to maximize profits

Did you know that the average cart abandonment rate is around 70%? That’s a whopping 7 out of 10 customers that begin with a genuine desire to shop with you but back out before hitting that all-important ‘buy now’ button. 

Substandard order fulfillment is one of the primary culprits of cart abandonment, with shipping costs causing 48% of drop-off and slow delivery prompting 23% of potential customers to cut their losses. 

We don’t need to break that down into potential dollar losses so you can see the scale of the problem. That should be glaringly obvious. What we can do is help you ramp up your ecommerce fulfillment strategies to narrow that gap considerably. 

From how to prevent picking errors in a warehouse to optimizing inventory management and shipping processes, we have you covered. Here’s everything you need to know.

9 ecommerce fulfillment strategies for maximizing profits

As you can see from the stats above, an effective order fulfillment strategy is more than just a back-end operation. It’s the engine that drives your entire business. And, just as with any other engine, the whole system can grind to a halt if just one component falters. So, eliminating inefficiencies is a top priority. 

Are you ready to revamp your order fulfillment services and wave goodbye to lost sales and frustrated customers? Here are nine strategies you can use to streamline processes and boost your bottom line.

1. Optimize your warehouse layout and processes  

Cluttered and poorly designed spaces lead to wasted time—and lots of errors! Here’s a few tips for how to pick faster in a warehouse without compromising on quality:

1. Evaluate your current layout to identify and eliminate bottlenecks: A critical assessment of your layout can reveal several areas for improvement. Common order fulfillment problems include storing high-demand items on hard-to-reach shelves and packing stations that are too far away from your storage area. 
2. Standardize picking and packing processes to create a smooth workflow: Do you have standardized picking routes? Are your bins clearly labeled? Have you developed kitting and bundling for top-speed picking and packing? If not, then it’s time to make some changes. 
3. Implement warehouse management systems (WMS) to facilitate operations: Real-time tracking doesn’t just tell you where everything is. Your WMS can also alert staff when stock levels drop or items are misplaced, helping you prevent stockouts or overstock situations.

Looking for more ideas on how to improve warehouse picking speed and accuracy? We recommend utilizing barcode scanners to streamline order picking. This simple technology can drastically reduce the time spent locating correct items. 

Need proof? Here’s a case study of how sports and outdoor brand Flag Nor Fail utilized scanning technology to handle more orders than ever before.

2. Implement real-time inventory management  

Keeping tabs on your inventory shouldn’t feel like searching for a needle in a haystack. Effective real-time inventory management is your best defense against running out of popular items or ending up with excess stock. Here’s how to get started:

1. Invest in multichannel inventory management software: With accurately synced stock levels across all sales channels, stockouts become a thing of the past. Plus, when your online stores reflect actual availability, you’ll never have to run the gauntlet with a frustrated hoard of disgruntled customers due to overselling.
2. Monitor stock levels frequently: Regular inventory audits help you catch discrepancies before they escalate, saving you much bigger headaches down the line. Let’s say your weekly cycle count highlights a new popular item is selling faster than anticipated. No problem! You’ve got plenty of time to reorder before the shelf becomes bare. 
3. Automate stock updates: Optimal ecommerce fulfillment without the stress? Yes, please! Automated updates paired with well-timed notifications when you’re approaching a reorder point prevents lost sales due to out-of-stock items. The result? Happier customers and a much healthier cash flow. 

If you’re looking for 100% real-time inventory certainty, look no further than SkuVault Core. Key features include automated syncing with all of your marketplaces, built-in quality control, scanning capabilities, and fully customizable interfaces and dashboards. 

And the kicker? It’s crazy easy to use, absolutely no spreadsheets are required, and it’s super accessible to your teams via mobile app. 

3. Use multiple fulfillment centers  

Why limit yourself to just one order fulfillment center when you can spread your wings? Utilizing multiple centers cuts shipping times and reduces costs, making it a win-win for your business and your customers. Here’s a list of steps to follow:

1. Choose fulfillment centers near key customer locations: Duh! Why delay deliveries with unnecessarily long routes when you can slash drive times by using fulfillment centers with more central locations. 
2. Sync inventory across locations: Aligning stock levels across multiple centers ensures consistency and accuracy, preventing that all-too-familiar terrible twosome (hey there overselling or stockouts, we’re looking at you) from raising their ugly heads.
3. Automate order routing: Wherever a customer places their order from, your inventory management system should pull stock from the closest center, ensuring faster delivery.

Want to take this strategy to the next level? Then, you might want to look into dedicated order fulfillment services from Amazon FBA. With strategically positioned fulfillment centers globally, Amazon knows how to pick and pack in a warehouse with optimal efficiency and dominates on speedy delivery, offering guaranteed fulfillment in as little as 2 days. 

4. Automate your order management process  

Automation is the name of the game when it comes to streamlining ecommerce fulfillment. Not only does it save time, but it also reduces errors that can frustrate customers. Here’s how to embrace and integrate automation into your workflows:

1. Use an automated order management system: Imagine reducing the time it takes to process an order from hours to minutes—now that’s efficiency! 
2. Batch process orders: By grouping orders together, you can process multiple orders at once, dramatically reduce picking time, and speed up shipping.
3. Integrate with shipping carriers: Shipping management integration allows you to automate order routing and find the lowest-cost shipping service for your orders every time.

Interested in ramping up your automation efforts? Linnworks customers using SkuVault Core can leverage a network of 70+ shipping integrations for effortless order routing, simplified FIFO routing, intelligent package assignment, and easy returns management.

“Connecting Linnworks with our 3PL means we can manage orders, inventory, shipping, and returns all from one platform.”

Wesley Scourfield, Finance Ops Manager, Gym+Coffee

5. Develop an effective returns management process  

No matter how much effort you put into how to improve picking accuracy in warehouse settings, some returns are inevitable. Think damage during transit, instances where the customer purchased the wrong item, or times when a product falls short of expectations, etc. 

Here’s how to create a smooth process that boosts customer satisfaction and profitability:

1. Create a transparent returns policy: Make sure customers know what to expect, and avoid small print that might make consumers feel duped by unforeseen details. 
2. Simplify returns with prepaid labels: Having to return products is annoying enough for your customers. Making the process as hassle-free as possible goes a long way in reducing frustration. 
3. Make exchanges easy: The easier it is to exchange items, the more confident consumers will be in checking out their carts, safe in the knowledge they can switch any items they’re not 100% happy with. 

Inventory solutions with inbuilt workflows for automated returns management simplify the experience for both you and your customers. Check out this quick tutorial to see how easy it is to process refunds, returns, resends, and exchanges using Linnworks software. 

6. Leverage data for accurate forecasting and inventory planning  

Love it or hate it, you have to get down and dirty with analytics and reporting to really nail your ecommerce fulfillment strategy. Why? Because a data-driven approach ensures more effective decision-making, ensuring you always have the right products in stock at the right time. 

Here’s a list of best practices:

1. Utilize historical sales data to inform demand forecasting: Analyzing past sales trends provides invaluable insights into seasonal demands and customer preferences for all-year-round peace of mind.
2. Monitor real-time sales and adjust inventory levels dynamically: Keeping an eye on current sales allows you to react swiftly to changing market conditions and the rise of hot new ‘must-haves.’
3. Invest in inventory optimization tools to enhance stock management: Tools that analyze inventory data streamline inventory management processes by providing recommendations for optimal stock levels.

Thankfully, the best inventory management software comes complete with snazzy tools to help you forecast demand, establish reorder points, and set alerts for low inventory, all in one centralized system. Here’s a handy explainer video of how this type of technology works. 

7. Offer flexible shipping options  

This is a biggie, because shipping costs are the primary reason for cart abandonment among 48% of customers. So, offering a range of choices that fit various needs and timelines can significantly enhance customer satisfaction:

1. Offer multiple shipping speeds: Providing options for standard, expedited, and overnight shipping allows customers to select the method that best fits their urgency and budget.
2. Set free shipping thresholds: Establishing a minimum order amount for free shipping incentivizes customers to buy more and increases your average order value.
3. Use real-time shipping rates: Displaying accurate and transparent shipping costs eliminates the frustration over surprise charges during checkout.

Of course, the better value you can negotiate with your shipping partners, the sweeter the deal you can pass on to your customers. Here’s a handy guide on how to get better shipping rates for your ecommerce business.

8. Prioritize customer communication  

Want to build trust, loyalty, and make even more bank from lucrative referral business? Then, you need to communicate like a pro to set your order fulfillment services apart in the crowded marketplace. 

Here’s how to do it:

1. Provide transparent order tracking: Eliminate uncertainty and improve customer experiences by allowing buyers to track the status and location of their orders in real time.
2. Offer responsive customer support: Ensure quick, efficient answers and problem resolution through various channels, including chat, email, and phone. 
3. Personalize communication: Nobody likes to feel like a faceless number. Tailoring messages using first names and making product recommendations based on past purchases makes people feel valued.

Linnworks customers benefit from being able to send automated or custom template emails to keep customers informed about how their orders are progressing.

9. Continuously evaluate and improve your order fulfillment strategy  

While improved processes and automated workflows go a long way, it’s not an entirely ‘set and forget’ deal. You’ll need to run regular assessments to remain efficient and competitive as market conditions and customer expectations evolve. 

Here’s a few pointers on how to rock ecommerce fulfillment:

1. Monitor KPIs: Specific metrics to watch closely include order accuracy, average order processing time, delivery time, and shipping costs.
2. Stay informed on industry trends: Understanding what your competitors are doing and how industry trends are shifting is essential for business agility. 
3. Conduct performance reviews: Assess individual and team performance against established benchmarks and discuss additional training and technology that may be required for employees to excel in their roles.

Running regular audits of your order fulfillment processes is another proven way to pinpoint inefficiencies and enhance operations. A full warehouse efficiency audit should encompass processes, inventory management, employee productivity, organization redundancies, and storage and handling procedures. 

Take ecommerce fulfillment to the next level with Linnworks and SkuVault Core

Ready to supercharge your order fulfillment game? Linnworks and SkuVault Core can help you tackle your biggest challenges head-on. Our powerful inventory and warehouse management tools streamline operations and improve order accuracy—all while saving valuable time and resources.

“With Linnworks, we tripled our fulfillment rate with the same staff and saved around 12 hours daily across stock management and order processing.”

Ben Dobson, Operations Manager, Aspire Furniture

Book a free demo today to learn more, get going, and keep growing! 

FAQs 

Have questions? We’ve got you covered! Here are some quick answers to some of our most common queries.

How does order fulfillment impact customer satisfaction?  

Directly!  Customers who receive their orders on time and in good condition are more likely to return and recommend your business.

What tools can help automate the ecommerce fulfillment process?  

Automation tools like Linnworks and SkuVault Core streamline various aspects of fulfillment, including order management, inventory tracking, picking and packing, and shipping integrations. 

What is picking and packing in a warehouse?

Picking refers to retrieving items from storage, while packing involves preparing customer orders for shipment. Both processes must be efficient to ensure the right products reach customers in perfect condition.

What is wave picking in a warehouse? 

Wave picking is a proprietary Linnworks solution in which multiple orders are picked simultaneously in “waves” or batches. This allows workers to fulfill multiple orders in one go while reducing travel time within the warehouse.

How can I measure the effectiveness of my order fulfillment strategy?

Regular audits and performance reviews will help identify areas for improvement, as will tracking KPIs like order accuracy, average processing time, and customer satisfaction scores.