“Fulfillment” is an English word that means “the act of completing” or “the complete execution of a task, goal, or desire.”
In another context, “fulfillment” can also be related to the business and e-commerce field. In this case, it refers to the process of processing and fulfilling customer orders, including packaging, shipping, and delivering to customers in a complete and timely manner.
How to deliver products to customers quickly and safely has always been a challenging issue for businesses and individuals operating in the e-commerce platform. Therefore, to address the long-standing concerns of businesses in this matter, fulfillment was introduced. So, what is fulfillment? What is the process of these services? And why should one use it? Let’s answer these questions in the following article!
What is Fulfillment ?
Fulfillment is a term used to describe the process of completing an order by a third party. In other words, it acts as a substitute for the seller, ensuring the prompt delivery of orders to customers.
Overall, it can be understood as the state of accomplishment, satisfaction, or complete execution of a task, goal, or desire.
Fufillment Process
The Fulfillment process consists of 6 basic steps, including:
Step 1: Receiving goods from the seller
The fulfillment service provider sends their staff to the seller’s location to receive the merchandise and products for storage as requested by the seller.
Step 2: Warehousing
After receiving the goods, the staff organizes and stores them in warehouses.
In addition, the fulfillment company responsible for shipping also has the task of regularly monitoring and inventorying the goods, continuously updating the stock movements, ensuring that all items are delivered on time to customers.
Step 3: Processing when orders occur
All processes are handled within the system. This step include order confirmation, retrieving items from the warehouse, inspecting products, and sending them to the packaging department.
Step 4: Delivery
Upon receiving the order information, the fulfillment service company proceeds with delivery, ensuring that the buyer receives the goods at the confirmed address and time on the system.
Step 5: Cash-on-delivery (COD) if requested
For orders with payment upon delivery, the fulfillment service will collect payment on behalf of the seller if requested.
Step 6: Post-sales handling requests
Customers may request exchanges or returns if the received products do not match the specifications and quality as stated by the seller.
At this point, the service will accept the requests and process them according to the seller’s policy, ensuring customer rights and minimizing losses for the seller.
Benefits of using Fulfillment
In the rapidly growing era of e-commerce as it is today, these services have become increasingly popular and has emerged as a method to support fast and efficient shipping, bringing many tangible benefits to customers.
Saving costs and management time when using Fulfillment
Without using these services, the seller would have to tackle a challenging issue regarding the costs of warehouse rental, labor expenses, equipment, and operational management. Additionally, the seller may face fluctuations in costs for each order to meet fixed fees.
When sellers choose the right service provider with suitable costs.They can maximize savings on warehouse rental, employee salaries, warehouse management software, and other related operational costs. This also helps the seller reduce the time spent on managing packaging, shipping, and handling returns.
Reducing shipping costs
For many cross-border e-commerce sellers, using these services can significantly save on shipping costs compared to traditional methods. This is because it providers often have special agreements with shipping partners, ensuring the best discounted rates for international shipments.
Moreover, fulfillment companies typically have multiple warehouses located in different locations. Sellers can choose storage locations according to their needs. This enables the optimization of shipping costs. When sellers entrusting this responsibility to the fulfillment provider. They can focus on their core business activities and enhance the customer experience.
Fulfillment plays a crucial role in the success of businesses. It ensures that orders are efficiently processed, packaged, and delivered to customers in a timely manner. By outsourcing fulfillment services, businesses can focus on their core competencies, such as product development, marketing, and customer service, while leaving the logistics and operational aspects to the fulfillment provider.
Effective service contributes to customer satisfaction by ensuring accurate and prompt order fulfillment, reducing shipping errors, and providing reliable tracking and delivery updates. It enhances the overall customer experience, leading to repeat purchases, positive reviews, and increased customer loyalty.
Furthermore, this service helps businesses expand their reach by enabling them to sell and ship products to customers globally. It overcomes geographical barriers and allows businesses to tap into new markets and customer segments.
In summary, it is a vital component of successful business operations, enabling efficient order processing, enhancing customer satisfaction, and facilitating business growth.
