Four Key Factors to Design a Successful Ecommerce Order Fulfillment Strategy

Designing a successful eCommerce order fulfillment strategy can be tricky because this task requires consideration of various factors in the process. You need to understand all aspects of the supply chain and provide your customers with an excellent experience after careful planning and optimization.

Here are some tips to help you design an eCommerce order fulfillment strategy to help you deliver products on time while improving customer satisfaction.

How to Design a Successful Ecommerce Order Fulfillment Strategy?

Track inventory regularly

When a customer finds that the ordered product is out of stock and not delivered in time, they may never shop in your store again, or vent their anger on social media. These consequences may not only lead to an increase in customer churn but also have a terrible impact on your brand.

Therefore, to avoid these incidents to the greatest extent, your best strategy is to simplify your order fulfillment process and deliver products to customers as quickly as possible. You need to focus on inventory and build an inventory management system. This system can help you get real-time fulfillment cycles, so you always know when products are out of stock or unavailable.

Ecommerce-Order-Fulfillment-Strategy丨A-Better-Lemonade-Stand丨ChinaDivision
Ecommerce-Order-Fulfillment-Strategy丨A-Better-Lemonade-Stand丨ChinaDivision

Product Kitting

Product Kitting helps reduce the processing time and cost of order fulfillment. Product Kitting refers to the process of grouping, packaging, and supplying different but related items as a unit.

Product Kitting can increase productivity and reduce labor costs by storing products in separate kits. Besides, you can reduce inventory and improve cash flow.

Automated warehouse

Adopting an intelligent warehouse system can help you manage inventory, warehouse organization, and logistics using data-driven technology.

You can automate the warehouse by choosing to use technologies including RFID identification, the Internet of Things, and easy tracking of the inside of the IoT.

Using a warehouse management system can reduce human errors in order processing.

Transparent supply chain

Supply chain visibility is the focus of your strategy. Supply chain visibility can give you a deeper understanding of each process and improve the underperforming parts.

For example, if you track picking activities in a warehouse and find that manual picking increases time costs, you can move it to an automated process.

Therefore, you must keep track of your supply chain and collect data.

How to Use Warehouse Logistics Plan to Accelerate Your E-Commerce Development

Warehouse logistics is the process of planning, operating, and controlling the flow of goods in a warehouse to optimize costs and time and achieve other business goals. The warehouse is an important part of the supply chain and should be aligned with the broader organizational goals and the entire supply chain.

Before you start planning a new warehouse, it is always recommended to develop a feasible warehouse logistics plan. Without a plan that includes clear business goals and a road map to achieve those goals, it is impossible to estimate whether you can reach your goals.

Warehouse-Logistics丨-Maintenance-Covid-Management丨ChinaDivision
Warehouse-Logistics丨Maintenance-Covid-Management丨ChinaDivision

Identify warehouse logistics requirements

If you need to determine the company’s warehouse requirements, you need to ask some questions before making a final decision, such as:

  • Who are your customers?
  • Where are they located?
  • What is the order volume?
  • What solution is currently adopted?
  • What is the cost of the current solution?
  • What is the delivery time of the current solution?
  • Will the new warehouse save costs?
  • What is the implementation timeline?
  • How efficient is the operation of the new warehouse?

Thinking of these questions can help you clearly define implementation needs, requirements, benefits, and timelines. You need to estimate operating costs, including all the elements of the current warehouse logistics operation, the cost or time savings gained from the investment in the new warehouse, and the break-even point of the project.

This analysis may not prove the rationality of the dedicated warehouse. In this case, cooperation with a reliable third-party logistics operator may better meet your needs. The top third-party logistics providers have spent years perfecting their operations, allowing the company to use its expertise and achieve the best performance at the lowest cost compared to maintaining internal warehouses and logistics operations. Or, you can extend the life of your warehouse by implementing flexible automation solutions.

Find location

When you finally decide that you need a new warehouse, then you need to determine a suitable location. The questions you answered in the previous requirements gathering phase will come in handy here. Once you know the location of the customer, you can easily find the best warehouse location to serve the customer.

Remember, prioritize customers who can create greater profit margins for you. You can select warehouse locations based on your proximity to your best or long-term customers so that you can deliver to these customers faster than short-term or occasional customers. goods. Geographic Information System (GIS)-based tools can be used to determine the best location for the warehouse.

Logistics丨PNGWing丨ChinaDivision
Logistics丨PNGWing丨ChinaDivision

Another factor to consider is whether you want to use an existing warehouse to upgrade to a new warehouse or choose a new warehouse. These considerations boil down to your storage needs and costs. You should also work with the company’s financial department to determine the best solution from a financial perspective. Purchases, leases, and leases have different effects on the balance sheet, and the finance department is more capable of determining the factors that are most suitable for the company’s long-term financial situation. At the same time, your new storage requirements should not be affected. Achieving finance and goals at the same time is a delicate act of coordination, so it is necessary to maintain transparent and open communication between various departments.

Mapping warehouse

Mapping the warehouse is essential for determining subsequent deliveries and how to handle operations. Order picking activities are considered to be the most labour-intensive activities in the warehouse, accounting for as much as 55% of warehouse logistics operating costs, and mapping the warehouse can help simplify this basic business function. The warehouse mapping process includes:

  • Evaluation space
  • Marking space (including aisles, shelves, shelves, containers or garbage bins, etc.)
  • Estimated traffic volume
  • Implement the right shelf system
  • Choose the best order pickup truck to meet warehouse requirements
  • Implement inventory management software

Mapping the warehouse is a crucial step and should not be missed. Without a well-mapped warehouse, your logistics business will be chaotic, because there is no operational blueprint.

Challenges in Dropshipping Business

Dropshipping business is undoubtedly one of the most outstanding things brought about by the Internet and our new lifestyle. This new business model allows start-ups to run e-commerce with little resources. Here, we will discuss the seven most common challenges related to dropshipping business and how to overcome them:

Find a reliable supplier

The first major challenge most companies face in dropshipping is to find reliable suppliers. There are many manufacturers and sourcing agencies that can be your suppliers, but you need to maintain a detailed relationship with them on the same page.

You can easily find suppliers in almost any niche market of your choice. There are many resources to help you search. Make sure that the supplier you choose can meet your needs. Consider factors such as supplier fees, minimum orders, professional industry knowledge, and scalability.

Dropshipping-problems丨ChinaBrands丨ChinaDivision
Dropshipping-problems丨ChinaBrands丨ChinaDivision

out of stock

When you start your dropshipping business, you will discover that the warehouse may be out of stock. It is one of the most common problems, and it is more common in certain product hot seasons. If you work with a very large manufacturer and order fulfilment company, you may not experience a shortage. If a product is out of stock, you must notify the customer as soon as possible, even if you find another supplier. It is recommended to cooperate with multiple suppliers.

Delay in order processing

When customers buy items from your website, they expect their order to be processed as quickly as possible. Most customers don’t understand that, in most cases, the process of processing orders is not completely under your control.

In some cases, orders that have already been placed with manufacturers will be delayed. When customers wait for the tracking code, this delay may create some tension with them. Don’t let it linger. If you haven’t received any news from the supplier within 24 hours after placing the order, please contact them to solve the problem. When these situations occur, you will at least know why the order has not been processed and how long you have to wait. Pass information to customers to appease them.

Ship to the wrong address

As embarrassing as it sounds, some orders have been shipped to the wrong or non-existent address. This is another major challenge you may face as an e-commerce entrepreneur. The best way to solve this problem is to carefully check each order address sent to the supplier.

Product return

This is something you can’t escape in e-commerce. In most cases, this is never your fault, because third parties are always involved in direct shipping. You cannot make all the rules here. Suppliers handle returns in different ways, so you must find a way to communicate clearly with customers. Your return policy is clearly stated on your website. Make all necessary efforts to make your order fulfilment proceed smoothly.

5 Ways to Reduce Product Returns

Facilitating order payment may be one of the happiest things for e-commerce sellers, but there is a worrying hidden danger: product returns.

In this era of fast and free shipping and returns, no matter whether the products can meet customer expectations, they will face the risk of being returned. In this article, we will provide you with five ways to reduce product returns.

Why reduce product returns? In short, it increased the company’s operating costs and caused financial pressure. Product returns will cause the following risks to the cost of e-commerce:

  • Refund cost: The company loses profit opportunities and may lose customers.
  • Transportation costs: Companies that provide free transportation and return goods to take care of transportation costs to invest in their customers.
  • Product disposal costs: returned products must be inspected and then resold, liquidated, or discarded. If the products are liquidated, the company will lose money because these products must be sold at a price lower than the original value. In the worst case, the project will be discarded and no cost can be recovered.

Fortunately, there are ways to reduce product returns.

Reduce-Product-Returns-RepricerExpress-ChinaDivision
Reduce-Product-Returns-RepricerExpress-ChinaDivision

An Important Way to Reduce Product Returns

Accurate and clear product pictures

Display the appearance of the product with maximum clarity and accuracy. A 360-degree product is an ideal way to provide your customers with a view from all angles, especially to showcase furniture or technical products.

But if you cannot provide this type of image, try to provide an image that can zoom in to see close-up details. Make sure that the image you provide can be displayed clearly on the mobile device because the mobile terminal often has more order opportunities than the desktop computer.

Use video to showcase products

Although pictures are useful, videos can make your product display more clearly, especially for product categories with a high customer return rate, such as electronics, clothing, etc. Clothing videos show the upper body effects of models; household appliances or electronic products show how the products are used.

Value customer feedback

Customer reviews or feedback on the product is the best way to better understand your product and how to improve it. Comments can provide you with ideas to better describe the product or discover product problems. You should not avoid this but encourage customer feedback. Your return and exchange form should provide the customer’s description of the problem, such as the product size is different from expected or not as shown in the advertisement, etc. Secondly, you can also encourage customers to leave comments by using discount coupons or free gifts.

Correct packaging

The correct packaging method is a key factor in avoiding returns, as they help prevent items from being damaged or broken. Please make sure that the packaging materials you use can protect the product from external shocks. In addition, please ensure that the product information on the package is consistent with the packaged product.

Clear delivery time limit

When customers browse the product page, please indicate the approximate delivery time of the order. This detail should be paid more attention to products that need to be customized. Please also pay attention to the logistics on weekends and holidays. Provide customers with the ability to select a specific delivery date, even if customers need to pay additional shipping costs can also improve customer experience.

Although offering free returns can help improve the customer experience, if you find that the number of returns is unacceptable, try using the methods described above to reduce returns.

How to Save money at Amazon as Seller?warehouse fee,shipping fee?

The ongoing global pandemic has forced most to self-isolate and sprouted up a multitude of challenges for businesses. Together, supply chain disruptions and demand fluctuations have left even well-positioned e-tailers to juggle with economic uncertainty. In this article, we explore cost-saving factors that can be evaluated by Amazon sellers. While these aspects are part of regular business operations, the importance of conserving cash in the current situation calls for a detailed assessment.

Over the past few weeks, we have been helping our clients think through the areas where they can cut costs. For one such client on Amazon, we took a closer look at the inventory and ended up saving thousands of dollars. Here are some ways you can do that too:

1) Aim for the right product size – A crucial factor that can add to your FBA fees is the size of the product. There are two things to consider while re-evaluating the fee:

Packaging – Various size tiers define the respective FBA fulfillment fee in any category. Optimize your packaging to fit the smallest tier possible. For example, there may be a tier with lower dimensions where your product still fits and leads to lower fulfillment fees.
Dimensions – While entering the right dimensions in the system is a prerequisite, in some cases, Amazon may have misrecorded the dimensions leading to higher fees. While manually monitoring this for all products may be cumbersome, doing periodic checks can help catch such inconsistencies. If the dimensions are not right, you are owed a refund. One of our health & wellness clients can back this up!
2) Sell items in bundles – Analyse historical data and consider bundling products that are usually bought together, or items that can be clubbed into packs of 2, 4 and so on. If you sell two items separately, you need to pay FBA shipping and closing fees on both the items. But, if you bundle those two items together as a single unit, your shipping fee may only increase by a certain percentage. This depends on the new size/dimensions of the combined bundle, rather than simply being doubled up.

3) Choose your product categories wisely – Product categories decide the Amazon referral fee you must pay. For instance, as a broad category, you might want to choose ‘Watches’ (referral fee: 13%) instead of ‘Apparel Accessories’ (referral fee: 17%). While this can be an easy cost saving trick, make sure that your product is highly relevant to the category that is chosen.

4) Take stock of stranded inventory – Stranded inventory is a broad term for several problems such as expired listing, suppressed listing, delisting etc. It can hamper available storage space and incur long term storage fees. Do an in-depth analysis periodically to mitigate issues due to stranded inventory, and ensure every product you’ve listed is either in stock, sold, or reimbursed.

5) Pay attention to inventory placement – Sellers on Amazon.in may have seen substantial sales growth from certain regions without registering for fulfillment centers in those areas. Consider opting for such warehouses to reduce delivery costs as a result of closer distance. Additionally, you may also become eligible for Prime tags, if you’re not an FBA seller already.
6) Select the best warehouse and ship way for your order.
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What Is the Use of Google’s Mobile-First Indexing and Ranking

Mobile-first indexing means that Google would primarily use the mobile version to rank pages from a website, to understand the structured data and to show it accordingly in the mobile search results.

whether you are a businessman, student or entrepreneur ,if you have a website then Mobile-first indexing is the right tool for you. (E-Commerce order fulfillment)

Your Google Ranking Will Depends Entirely on Your Mobile Site

Why Mobile-first index?

Speed Matters :

Your website’s loading speed is matter, because for making first impact your website will have to open less than 5 seconds.

If your web page can load within 2 seconds its too good for your business.

Because if your website load slowly then may be in 7-8 seconds or more then user will go back and click on other web link. (ecommerce order fulfillment)

In result, you will lose your new customer or follower .

Easy To Read:

This is 2nd most important thing you will have to notice because you know that smart phones are available in different sizes.

Then you will have to keep font size in standard manner between 13 to 15 pixels. Don’t say your customers to Zoom. (E-Commerce order fulfillment)

Optimize Image:

This column belongs to speed but I want to tell you, if your website is loading slowly then check your website’s images.

If you already know that then compress your website images first then use them.

If you have a responsive website then this should not negatively impact your Google search ranking infect it will boost your Google ranking if your competitor don’t have a Mobile Friendly Or Responsive Website. (E-Commerce order fulfillment)

 In order to have all these elements taken into account, you must be sure you follow the next steps:

Make everything flexible: layouts, image sizes, text blocks.

The picture element must be used when a responsive design determines how different images appear on some types of screens.

Make text accessible. Once you set up a smaller resolution, make sure the text is easy to read and there is sufficient contrast. Don’t use text within graphic, because it will become unreadable in different sizes. (E-Commerce order fulfillment)

Create fluid heights and widths.

Set up a meta view-port tag which gives directions to the browser about the website’s dimension and scale.

Use at least 3 breakpoints, one for each device, such as mobile, tablet, and desktop. A break point is the media query value that marks the transition to a new class of devices. (ECommerce order fulfillment)

The lack of a mobile-friendly experience can impact negatively on the rankings of that site. On the other hand if a site has a good mobile experience, it shall receive a good ranking boost, even when searched on the desktop.

So, what is your next plan?