Maximize Customer Satisfaction and Loyalty with Distributed Order Management

In ecommerce, customer satisfaction and brand loyalty are key.

Customer acquisition costs are high – and it's far more profitable to keep a customer than to have to find a new one.

Customer expectations are high – they demand fast, often free shipping. As a result, ecommerce fulfillment costs average 70% of the total delivered product cost.

And fulfillment drives customer satisfaction.? According to a study by Retail Touchpoints, 98% of ecommerce consumers say that their delivery experience affects their loyalty to a seller. ?And, according to another study by Ipsos, 85% of online shoppers say a poor fulfillment experience will prevent them from ordering from that seller again.

Successful online sellers strive to meet and exceed customer expectations while protecting their bottom line from the high cost of ecommerce fulfillment. Distributed Order Management (DOM) systems play a vital role in achieving this. DOM systems streamline the fulfillment process. And they enhance the customer experience and build loyalty. ?Let’s explore how.

What is Distributed Order Management?

Distributed Order Management handles order fulfillment across multiple locations. Inventory is placed in multiple locations to be close to potential customers. This includes brand-owned warehouses and distribution centers, 3PLs and other third-party fulfillment services like Amazon FBA or Walmart WMS, retail stores, or last-mile options like dark stores or micro-fulfillment centers. ?Placing inventory in multiple locations closer to customers cuts delivery time and expense.

DOM systems manage inventory and orders in real time. When an order is received, it is routed to the best, lowest-cost, fulfillment option that meets customer and sales channel delivery expectations.

How DOM Drives Customer Satisfaction

Faster Delivery Times

One of the main benefits of DOM systems is faster delivery times. Customers today expect quick delivery. A DOM system analyzes various fulfillment options. It chooses the closest or most efficient location. This reduces shipping times. According to a study by McKinsey, fast shipping is a top factor in customer satisfaction.

But while consumers want fast shipping, they don’t want to pay for fast shipping.

DOM systems reduce operational costs by optimizing order routing to reduce shipping costs. These savings can help offset the bottom line impact of fast shipping options.

?Accurate Order Fulfillment

Accuracy in order fulfillment is crucial. Errors in orders can lead to frustration and returns. DOM systems provide real-time inventory visibility. This ensures that the right products are available and sent to the right customers. Fewer errors mean happier customers.

?Flexibility in Fulfillment

Customers appreciate flexibility. Along with traditional parcel delivery, advanced DOM systems support multiple fulfillment methods including ship-from-store, Buy Online Pickup In Store (BOPIS) and drop shipping. Offering multiple fulfillment options caters to different customer preferences. This flexibility improves the shopping experience.

Enhanced Communication

Good communication is essential for a positive customer experience. DOM systems provide automated updates on order status and shipping. Keeping customers informed builds trust. It also reduces unease about delivery times.

Effective customer service is a cornerstone of brand loyalty. With accurate inventory and order tracking, customer service teams can resolve issues quickly. Quick and effective resolution enhances the customer experience.

Challenges in Implementing DOM

Distributed Order Management capabilities were once confined only to the largest ecommerce sellers, brands and 3PLs.? They were expensive, often could only work within their platform ecosystem, and were complex to implement and maintain.

Etail Solutions helped pioneer affordable DOM systems. Etail’s DOM platform works with the systems you already have in place. Plus, since inventory visibility and placement are critical to making DOM work, Etail includes special tools and capabilities for managing and forecasting inventory distributed across multiple locations.? That helps reduce inventory carrying costs and improves inventory yield and ROI.

Building Customer Loyalty with DOM

Distributed Order Management systems are vital for ecommerce success.

Done right, Distributed Order Management creates a seamless shopping experience that keeps customers coming back. Investing in a DOM system is a smart move for any ecommerce business looking to enhance customer satisfaction and build brand loyalty.

Want to learn more about leveraging Distributed Order Management to improve customer satisfaction and brand loyalty?? Check out our blog post on “Maximizing Customer Satisfaction with Distributed Order Management”.