Order processing, also known as order fulfillment, is the task of taking an e-commerce order and sending the customer their goods via freight delivery. Because most businesses have entered the e-commerce realm of Internet sales, order fulfillment has become an integral part of the business model. Finding inexpensive fulfillment services leads companies to create their own or outsource to fulfillment companies.
Outsourcing
The first step in the order fulfillment part of e-commerce is deciding whether a company should create their own fulfillment department or outsource to another company. Outsourcing is a traditional part of business because it allows companies to focus on their goals: making the best products or services possible. Order fulfillment can be a laborious process of dealing with freight companies, handling customer questions or complaints, and tracking shipments. Outsourcing to a fulfillment company limits the extra work of order fulfillment.
IT Integration
When outsourcing to a fulfillment service company, information technology (IT) integration is a critical component of the fulfillment process. Most companies use their internal website to drive sales from consumers; this information must then be sent electronically to the fulfillment company so the order can be processed and shipped. While technology and computers have greatly enhanced the business world, they can still create problems in the retail supply chain. Incompatible technology, power outages and incomplete data must all be handled quickly for companies to remain competitive in the marketplace.
Fulfillment Centers
Fulfillment centers are nothing more than large warehouse with several thousand feet of storage and loading docks for shipping and receiving goods. An important part of fulfillment companies is how many warehouses they have and where the warehouses are located. The ability to quickly process and ship goods must also be connected to a short delivery time for customer orders. With so many websites selling similar or substitute goods, longer delivery times may force customers to other websites with shorter waits.
Call Centers
Many order fulfillment companies will also offer call centers for customer support. Once a company outsources their e-commerce fulfillment, they may not have information regarding a customer's order. Call centers at the fulfillment centers allow service representatives to help answer any questions regarding orders and shipping problems from customers. Call centers will also have an order-taking unit, which is used to fill orders placed by phone from retail catalogs.
Drop Shipping
A niche market for e-commerce fulfillment is the drop shipping methods offered to small businesses selling goods through eBay or Specialty Merchandise Corporation (SMC). Drop shipping allows individuals and small businesses to sell goods without ordering or storing them at their location. Once an order is placed, the drop shipper is notified of the order, and it is processed and shipped to the customer. Call center services are not usually offered by drop shipping companies.
