Fulfilment is an area that many online retailers often neglect and can actually be a key differentiator in the etail space. Delivery remains a problem area for some and poor shipping is still a consumer’s top complaint. So how can etailers address this issue to provide a user experience that keeps customers coming back?

Order fulfilment

At a time when consumers are turning to the web for cheaper deals and alternatives to the high street, etailers need to stand out from their competitors and go the extra mile to provide that special service. Order fulfilment is a fundamental aspect of a successful ecommerce operation and etailers have to balance the challenges of keeping up with customer demand but minimising logistical costs.  

In order to meet delivery demands, it is imperative that online retailers enhance the efficiency of their supply chains. E-fulfilment demands a low cost and efficient service so retailers must look at all areas to examine where to cost save and where to increase productivity. For example, can transport be shared with other retailers? An initiative by DHL is already underway to offer this and provide a cost effective option for reducing both cost and carbon footprint for each individual retailer. Look closely at warehouse processes and IT to see what changes can be made.

White labelling

Outsourcing can also be an important factor, as demonstrated by several of the large retailers who turn to experts to deal with the logistics of delivering customer orders. This is one of the advantages of working with a white label partner, as a third party can handle the shipping, as well as numerous other aspects such as order tracking and customer delivery communications. Improvements in the logistics process will help online retailers cut fulfilment costs, therefore passing the saving onto the end consumer.

Working with a white label partner, retailers can reduce their own overheads. A white label specialist can manage the whole process of an etail site and ensure that products can be taken to market quickly and effectively. In order to achieve a similar level of technical expertise and knowledge, the retailer would need to employ large numbers of people, which will only increase overheads and reduce margins.

Stockholding

When competition is high, it is vital that a range of products are offered by online retailers, particularly as this is one of the differentiators online retail has versus the high street. The ability to offer a greater selection of products and services is an area that etailers must capitalise on. However, the key to getting this right is ensuring that core products are kept in the warehouse. It is critical that an etailer has a large number of SKUs (stock keeping units) in the warehouse and ready to ship. Core product lines must be turned around in 24 hours to provide that all-important fast and positive purchasing experience.

Offering a range of delivery options is another important aspect that will help add value. It is convenience, value and service that the consumer is looking for from the online shopping experience, so fitting delivery around different lifestyles and needs is an aspect that can enhance an online retail offering. Through successful inventory management, merchants can track best selling products to ensure these lines are constantly in stock and the warehouse is replenished. If these are not available for shipping when a customer places an order, the likelihood is that they will look elsewhere.

Pre-ordering to deal with demand

Whilst an etailer can do everything in their power to hold large amounts of stock, it is necessary to be prepared for a rise in demand of unexpected items. Having a pre-order system in place can help counteract this issue. If a retailer can inform a customer at the checkout when the product will next be in stock and offer the option of pre-ordering, this may deter them from going elsewhere.

A successful ecommerce operation will offer the customer a good user experience, from website usability and ordering to delivery and fulfilment. Enhancing a retail website with extra information, such as product reviews, a good selection of images and all the information they require, can create a positive user environment.

A pre-order system is an important feature that provides consumers with an additional service to make their purchasing habits more convenient. If a pre-order system is available, they can complete the order and the retailer still gets the sale. This is particularly critical in industries where customers want the latest product releases, such as DVDs or new games consoles. The challenge for retailers with pre-ordering is to manage demand and fulfilment. For highly anticipated releases or ‘hyped’ products, user demand will be high.

Stock is the key

When it comes to providing good customer service, one of the most important things that etailers must remember is that stockholding is key to a quick turnaround. Keeping best selling products and core lines stocked in the warehouse will ensure that orders can be shipped quickly and customers will receive items without hassle or long delays. Product variety is essential in today’s current marketplace, but online merchants must be able to fulfil orders, or face losing customers for good.

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