Now that you understand what is fulfillment, what exactly does the process look like? Typically, this includes:
As the name suggests, fulfillment statuses indicate the state of the order in question after a consumer initiates a purchase. There are five prevalent statuses, including:
Although both of these methods intend to avail goods to the customer as seamlessly as possible, their processes are different. Order fulfillment means that manufacturers can involve the use of third-party logistics providers who keep their inventory in their warehouses and await customer requests.
On the other hand, dropshipping is that kind of delivery model where wholesalers or manufacturers supply orders directly to buyers. It can be considered a go-to strategy for retailers who buy products from manufacturers at a large discount. However, the manufacturer keeps the inventory and products until it’s time to distribute customer orders.
The best distribution strategy entails partnering with third-party logistics providers, popularly abbreviated as 3PLs (Third-Party Logistics) in eCommerce. These are service providers that store your products in their warehouses and deliver them to the customer when they initiate the buying process.
An excellent example of an eCommerce player using this strategy is Amazon. The online retail giant uses 3PLs to cut costs, as well as enhance customer experience by shortening the delivery timeframe. This is because 3PL warehouses are often close to the customer, unlike your production plant, which might only be in one location.
This means that the order has been accepted and the process of fulfilling it, such as packaging, has been initiated.
Prevalent distribution companies in the industry include Red Stag Fulfillment, Amazon FBA, Whitebox, Fulfillment.com, and ShipMonk.
Yes, it’s worth doing it, especially if you want to reduce operational costs associated with storage, packaging, and shipping.
They include:
