When your customer clicks ‘complete order’, ecommerce fulfilment is what happens next.

It’s all of the behind-the-scenes work that goes into receiving, processing, and shipping customer orders made on online stores and marketplaces.

This guide closely follows each step of the journey, so you can better understand what’s involved. We’ve also provided some tips for managing the common challenges you might face along the way.

 

Step One - Order Capture and Management 

The ecommerce fulfilment sequence starts when a customer clicks to finalise an order on your website, online store, or marketplace listing. The order info (including items purchased, quantities, buyer details, payment method, and shipping address) is captured instantly. Ecommerce platforms then automatically send this data to the seller in real-time via order notifications.

Sellers then review each order to verify the accuracy and completeness of the information they’ve been sent. Valid orders are accepted, while any with data discrepancies or suspected fraud are rejected or held for further investigation. Once orders are verified, they are ready to progress to fulfilment processing!

 

What is an Order Management System (OMS)?

To manage high daily order volumes, ecommerce sellers will use order management systems (OMS) that act as centralised dashboards. OMS tools typically integrate with shopping carts, marketplaces, shipping carriers, and inventory systems. This enables the status of each order to be tracked and updated in real-time across all stages of fulfilment. 

Robust order management is super important to ensure an efficient workflow, reducing errors, and providing valuable insights about customer shipments.

 

Step Two - Inventory Allocation

The next step in the workflow is inventory allocation, where available quantities of the ordered products are assigned to each order. This process prevents overselling of existing stock. Ecommerce sellers will integrate their OMS with an inventory management system (IMS) which cleverly tracks product quantities across warehouses in real-time.

Popular IMS tools use perpetual inventory recording based on goods receipts from suppliers and order shipments to customers. By linking IMS and OMS systems, available and reserved stock quantities are synchronised. Backordered items are also marked to fulfil when restocked.

This integration minimises any costly out-of-stock errors, so it’s a vital part of the ecommerce order fulfilment process.

 

Step Three: Warehouse Picking and Processing

With inventory allocated, warehouse staff then proceed with the order picking - selecting purchased items from storage to be packed and shipped out to customers.

The OMS generates something called a batch pick list that’s helpfully optimised for the warehouse layout and inventory locations. Larger orders might be split into multiple carts or batches for more efficient picking.

Armed with pick lists on mobile devices (tablets or phones, usually) or handheld scanners, the warehouse staff navigate warehouse racks and shelves to identify products on their lists. Barcode scanning confirms each item and quantity as it's picked. 

Some warehouses use automated systems where staff stick to assigned zones, while autonomous mobile robots (AMRs) fetch and move products to the packing station. Welcome to the future!

 

At The Packing Station

After the picks, items are conveyed to packing stations. Here, staff scan products to check for accuracy, place items into shipping containers, add packaging materials like bubble wrap for protection, and generate a packing slip to include. Orders are then weighed and measured to determine which shipping box sizes to use and calculate postage rates

 

Step Four: Shipping and Labelling

Once packed, orders now move to the shipping area. The OMS connects with shipping APIs like ShipStation or direct carrier integrations to buy and print shipping labels. Based on the delivery address and dimensions/weight, it automatically selects the fastest & most cost-effective carrier and service.

Some fulfilment facilities print labels and store orders for periodic carrier pick-up, while  others have onsite carrier hubs for an instant handoff. Either way, the OMS marks orders as 'shipped' once the tracking number is assigned by the carrier, which then triggers delivery status monitoring.

Notifications are now automatically sent to buyers (‘Your order is on its way!’) with shipment updates and links for them to track their order.

 

Streamlined Shipping

To limit the number of touchpoints and accelerate delivery, many leading ecommerce brands use distributed order management systems (DOM).

These regionalise fulfilment by mapping orders to the closest warehouse with available inventory. This reduces zone skipping (where packages travel long distances back and forth) and allows for dynamic routing around weather disruptions, traffic delays, and carrier bottlenecks.

With customer satisfaction and brand reputation on the line, there’s a lot at stake once an order has been placed. That’s why many brands will rely on other processes and practices to streamline and optimise shipping such as:

  • Same-day processing and handoff

  • Carrier pickups every 2-3 hours 

  • Local final-mile couriers for expedited delivery

  • Proactively messaging customers to inform them of delays

  • Providing premium shipping tiers 

  • Partnering with a 3PL partner (third party logistics)

When the choice between you and your competitors might come down to how quickly and cheaply you can get the product to their doorstep, an attractive shipping offer can give you the edge.

 

Returns Management

Quite a significant portion of orders get returned (especially fashion items), so efficient returns handling is a big part of attracting and keeping your customers.

When a buyer starts a return request, the seller provides a prepaid return shipping label. Once the item is received at the warehouse, staff inspect it, verify cause for return, and decide whether to refund/replace or restock.

For refunds, payment is sent back to the customer immediately upon re-receipt of goods. To exchange, replacement items are shipped as soon as viable. Restocked returns are moved back to saleable inventory after any repackaging or repair needed.

Some leading practices used to streamline returns (and improve the experience for customers) include:

  • Accepting returns within 30-90 days of delivery

  • Providing free, prepaid return labels

  • Fast refund processing and exchanges

  • Scheduling regular carrier pickups for returns

  • Identifying return trends

  • Automating return status tracking F

The popularity of ecommerce in recent years has led to over £550 billion in merchandise being returned every year. While it can be costly to manage, hassle-free returns policies are proven to boost conversions and contribute to customer loyalty long-term. 

Similarly, an inflexible and awkward returns process can do significant brand damage. Most consumers can recall a time they were met with an unaccommodating returns policy, or needed to to print out a label (many households don’t have a printer) or travel to an obscure drop-off location.

 

Leveraging 3PLs for Outsourced Fulfilment  

Given the operational complexities, many high-volume sellers partner with third-party logistics (3PL) providers to outsource fulfilment. 3PLs have large, specialised warehouse networks across regions, an existing workforce, and deeply discounted shipping contracts. Top ecommerce 3PLs will also integrate seamlessly with all major storefronts.  

Key benefits of 3PL relationships include:

  • Reduced Fulfilment Costs - 3PLs drive significant synergies across clients to lower fulfilment costs
  • Improved Order Accuracy - 3PLs laser-focused on fulfilment have excellent quality control and low error rates
  • Quicker Order Processing - 3PLs have the bandwidth to turn around orders within 24 hours on average
  • Enhanced Scalability - Ecommerce brands can scale to meet sales spikes like Black Friday and the holidays 
  • Omnichannel Support - 3PLs can fulfil orders from brick-and-mortar, online, and wholesale channels
  • Real-Time Reporting - 24/7 access to inventory quantities, order status, and tracking through 3PL portals
  • Deep Shipping Discounts - High volumes let 3PLs secure the lowest rates which they pass on to clients  

3PL partnerships enable ecommerce sellers to completely outsource fulfilment. This way they can focus efforts on optimising the customer purchase journey and driving online sales growth.

 

Omnichannel Fulfilment

Leading ecommerce retailers combine online sales with physical store networks, marketplaces, and wholesale channels. This omnichannel approach requires unified order orchestration. Orders placed across any channel get fulfilled from the available inventory nearest to the buyer to minimise delivery time and cost. 

Stores double as mini-warehouses to fulfil online orders through in-store pick and pack or ship-from-store. Buy-online, pickup-in-store (BOPIS) provides a popular omnichannel option for customers. Unified order management and inventory visibility across the network enable seamless omnichannel fulfilment.

 

Future Innovations

We’re now seeing many of the fulfilment challenges tackled by high-tech, futuristic solutions thanks to developments in robotics and AI. Warehouses and fulfilment centres are already leveraging the latest technology advancements for efficiency gains such as:

  • Autonomous mobile robots - Handle internal warehouse transfers and transport
  • Robotic pickers - Pick products accurately with grasping technology
  • Automated sorting systems - Route inventory to optimal storage locations 
  • Predictive analytics - Recommend inventory levels, staffing needs based on trends
  • Drones - Provide same day/instant delivery from local micro-fulfilment hubs
  • Augmented reality - Assists warehouse pickers with finding items quickly
  • Exoskeletons - Reduces fatigue for staff by enhancing lifting capacity  

As fulfilment complexity rises with omnichannel operations, these technologies will drive greater speed, accuracy, and efficiency. 

 

How Can SEKO Help?

If you’ve found this guide useful, perhaps we can help you solve your biggest fulfilment challenges.

At SEKO Logistics, we support hundreds of high-volume sellers just like you by offering scalable global fulfilment solutions through a network of over 60 countries, enabling faster deliveries, reduced shipping costs, and a much better customer experience.

Reach out to our friendly, knowledgeable team today! We’re on hand to answer any questions you might have about supercharging your retail or ecommerce delivery offer.