From Cart to Customer: Turn Ecommerce Fulfillment Into Your Competitive Advantage

Selling on ecommerce channels and think you are just competing on product, price, selection and quality?

Think again.

Fulfillment, often dismissed as just a cost of selling online, can be the key to growing sales, profits and brand equity in crowded ecommerce channels.

Done right, fulfillment could even be your competitive advantage.

Satisfied Customers Build Strong Brands

Research shows that fulfillment drives the brand experience, customer recommendations and repeat business:

• 90% of online shoppers say that their shipping delivery experience accounts for at least half of their total online shopping experience.
• 98% of ecommerce consumers?say their delivery experience affects their loyalty towards a brand.
• 82% of customers?who are satisfied with their delivery experience will share and recommend the brand to friends and family.
• 72% of customers who?are satisfied with their delivery experience will increase their purchase levels with the brand by 12%.

But get fulfillment wrong and the results won’t be pretty.

• 85% of online shoppers say that a poor delivery experience would prevent them from ordering from that online retailer again.

Cut Costs, Enhance Margin Through Efficient Fulfillment

Effective ecommerce fulfillment isn't just about meeting customer expectations; it also significantly cuts cost and enhances profit margins

A streamlined fulfillment process, including order and inventory management, reduces shipping costs, overhead expenses and errors in order handling. Plus, it creates a ripple effect – improving inventory ROI and yield, and even contributing to sustainability improvements.

Improving fulfillment helped one Etail customer cut their carbon footprint by 35% while saving $5.7 million in shipping costs.

And establishing fulfillment as a competitive advantage drives growth. Brands that optimize their fulfillment can afford to reinvest savings into other areas of their business, such as product development or customer acquisition, further enhancing their competitive position.

Leveraging Technology for Enhanced Efficiency

Modern fulfillment isn't just about shipping products. It's about smart technology integration.

That often includes implementing distributed logistics as a core fulfillment strategy.

Incorporating distributed logistics into ecommerce strategies offers a tangible advantage for customer-friendly, cost-effective fulfillment.

Distributed logistics includes both distributed order management (DOM) and distributed inventory management (DIM) systems.

Distributed inventory management places inventory at multiple locations including your own warehouses and DCs; 3PL and other fulfillment partners; FBA, WFS and other channel fulfillment options; even retail locations and dark stores. Putting inventory near the customer cuts shipping time and expense.

DOM systems route orders to the best fulfillment option that meets the customer and channel delivery expectations.

Working together DIM and DOM systems allow companies to manage orders more efficiently across various channels and fulfillment centers, ensuring that customers receive their products promptly, no matter where they are ordered from or stored.

Optimization Through Data Analytics

Data is a gold mine for ecommerce operations. By analyzing past purchasing data, companies can forecast demand more accurately, optimize inventory levels and even customize pricing and other marketing efforts. This data-driven approach not only improves operational efficiency but also enhances the customer experience by ensuring products are in stock and ready to ship.

Sustainability in Fulfillment

Sustainability has become a buzzword in all sectors, including ecommerce. Consumers are increasingly aware of the environmental impact of their purchases. Companies focusing on sustainable practices, such as using recyclable materials for packaging and optimizing delivery routes to reduce carbon emissions, not only appeal to environmentally conscious consumers but also often see reductions in costs.

DOM and DIM management systems have a major impact on sustainability – and the bottom line. A recent study of one Etail Solutions customer implementing distributed logistics showed using optimal inventory placement cuts their carbon footprint by 35% while saving $5.7 million in shipping due to lower last-mile shipping costs.

Fulfillment: The Core of Ecommerce Success

Transforming ecommerce fulfillment into a competitive advantage involves more than just shipping products quickly and cheaply; it's about strategically utilizing modern logistics, investing in analytics, and focusing on sustainability.

These efforts lead to improved margins, heightened customer satisfaction and a stronger, more resilient brand.

Interested in learning more about turning fulfillment into a competitive advantage while improving ecommerce profitability? Check out our recent blog post “Making Ecommerce More Profitable: Five Strategies to Make Ecommerce Fulfillment Your Competitive Advantage”.