Fulfillment: The Solution for Customer Retention in Ecommerce

Why is efficient fulfillment so important to improve customer satisfaction?

The internet not only changed our way of producing and relating, it also accustomed us to a culture of immediacy where most processes are carried out in an accelerated manner. Currently, online buyers accept increasingly shorter delivery times under premises such as “I want it now” or “Why wait if I can buy it in another store that sends it to me faster?”

These expressions are very common today and have caused theecommerceface a frenetic race against the clock to remain competitive in theirdelivery times, mientras protegen su rentabilidad a largo plazo.

Do you feel like you are in that situation?

Next, we will tell you everything you need to know about the advantages offulfillment and which one is best for your business to increase the customer satisfaction rate.

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What is fulfillment in ecommerce? 

The fulfillment process is known as one that contemplates the reception, storage, assortment, packaging and delivery of orders within an ecommerce; That is, each of the stages that are generated from the moment the purchase is registered until the product is in the customer's hands.

In general, the success of the package arrival depends on the efficiency of each phase, now we will see why.

Step by step of fulfillment

🚚 Step 0: Inventory up to date

Tener un adecuado inventory control and management It is essential, it must be updated in real time to never fall into a “short supply” sale, unless it is a pre-sale commercial strategy. Remember: the worst thing that can happen to you is to sell something you don't have.

🚚 Step 1: Order generation

Once the customer enters your e-commerce and make the purchase, an order is created and, from that moment, the time you defined in your delivery promise begins to pass. 

🚚 Step 2: Procesamiento eficiente

This stage plays a determining role. If the order preparation is done efficiently, then it can be transported to the customer quickly without causing misordering.

🚚 Step 3: Shipments on time

After the order has been placed and shipped via courier or parcel service, the last mile phase begins, the moment where the user receives their purchase and, if there are no incidents, it ends with the receipt of the order.

Keep in mind that clear communication with the end customer, before and after the transaction, is one of the most important sales characteristics of the ecommerce.

As we can see, the three previous phases influence your compliance levels. To give you an idea of how the sector moves, 73% do so in a range of 48 to 72 hours.

In a smaller percentage, there are deliveries made on the same day, which although they can be an attractive sales hook, are highly impossible for many. businesses for the operational efforts they represent. 

🚚 Step 4: Customer Service

The service does not end when the seller delivers the item. The ecommerce must be prepared to provide excellent after-sales service, where traceability is given to the customer regarding their shipment and their doubts, as well as their needs, are addressed.

🚚 Step 5: Timely returns

Unfortunately, dissatisfied customers or certain conditions mean that returns can occur in any of the purchases, the important thing is to find the best way to deal with them, generating the minimum possible impact on your business. 

In this case, a return and exchange policy can help you by allowing you to know how to act and when to accept the return to reschedule the shipment, return the product to inventory and have it available for sale or discard it due to malfunction.

Revisemos cifras 

• 53% of ecommerce users consider that the speed of arrival of their product is an influential factor in their purchase decision. 
• 38% will not purchase products again from a company with which they had a bad delivery experience. 
• 61% will not even complete the purchase and abandon the cart if the shipping rates are too high. 

What do you think of these statistics? Consider them for the current evaluation of your fulfillment strategy.

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Fulfillment models: Which one is best for your ecommerce?

Factors such as sales volume, growth projection and internal administration impact the type of service that best suits you.

Vamos a conocerlos.

📝 In-House Fulfillment

The ecommerce that have adopted it assume all the preparation functions on their own, that is, without hiring external people. The last mile, depending on the case, can be internal or external with parcels or couriers.

Pros

The model is an alternative for those emerging online stores that are starting and do not yet have a high volume of orders and can manage inventory and packaging manually, generally from their homes or sales premises, which allows them to save operating costs, but above all: learn from the business.

Contras

If the team wastes a lot of time preparing orders, it will be difficult for them to focus on making important decisions for the business, such as generating strategies to attract more customers. 

📝 Outsourced fulfillment

If your business has grown and you do not have the time or the infrastructure (operational muscle) to meet the high demand of the business, outsourcing is a good option, it is also a global trend for all companies; You do not require investment and you save money (if we compare it with the cost of your own infrastructure), it also prevents you from operational wear and tear and gives you the time to dedicate yourself to other fronts of the business.‍

Pros

You will be delegating work to an ally specialized in ecommerce and fulfillment who will give you the best practices from day one, which will guarantee efficiency, quality of service and lower costs (companies likeCubbo, for example, save between 5% and 39% of the logistics cost for their clients).

Contras

It is important that before outsourcing your service, you make sure to hire a company that offers you guarantees in this field, that has the resources, technology and track record to provide a satisfactory experience to your end consumer.

Remember that delivery is the letter of introduction of your e-commerce, maintaining a long-term relationship with the buyer largely depends on it.

Outsourcing in the Mexican ecommerce

According to studies by AMVO on storage and transportation services in the sector, currently 60% of ecommerce Mexicans use their own storage, while 64% hire transportation for their deliveries.

This is a considerable difference if we compare it with countries like the United States where 85% of transportation and 78% of storage are outsourced, that is, the hiring of storage providers in the Mexican ecommerce is almost 50% of that produced in the great American power.

Own or outsourced, every process requires planning that gives order to each phase and allows it to be developed in the most efficient way possible. Businesses that have a good plan, an efficient infrastructure, with established systems and teams, are one step closer to achieving that long-awaited end customer satisfaction.

Repurchase, the reward for your effort

Gaining a new customer is much more expensive than maintaining a current one; the investment in attracting users generally involves spending on marketing and other strategies for attracting prospects. The ideal scenario is one where the customer makes their first purchase and generates subsequent repurchases.

How is this achieved? Thanks to the magic word: satisfaction.

• If your customer is comfortable with the cost and speed of delivery, it will increase your conversion rate. 
• If the service provided after the sale (follow-up, response to your requests and solution to eventualities) is carried out effectively, you will surely be considered again in their purchasing decisions and will increase your repurchase rate.

Customer satisfaction is derived from various factors and the quality and efficiency of the service. Fulfillment is perhaps one of the most important, as it represents ecommerce.

The kings of speed

Amazon and Walmart are speed benchmarks, the first promises one-day shipping for its usersprime, while the second offers its customers a 3-hour delivery promise for purchases of household and technology products, thanks to its option “On Demand”. Within the Mexican industries of fulfillment that makes the difference due to their speed and attention, you will find Cubbo, who makes same day delivery in CDMX.

This and other examples allow us to show that good management practices fulfillment They become true competitive advantages for those brands that seek to stand out with innovative and challenging alternatives for the sector.

Only those sellers who evolve their customer service under solid operations will continue to be players in the market. 

Are you looking for an ally to help you improve your delivery process, enhance your compliance and the satisfaction of your customers? Do not hesitate to contact us, we are the bestfulfillment center for ecommerce in Mexico and Colombia.

If your business is growing in different regions, rely on solutions such asfulfillment in Querétarocan help you expand your operation and optimize delivery times without losing control of your inventory.

Information sources:‍ Bigcommerce / Marketing4ecommerce / Thelogisticsworld/ Study of KPI´s Logistics in Online Sale AMVO, December 2020.