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What is exactly omnichannel order fulfillment?
Omnichannel order fulfillment can simply be understood as the whole process from the time the customer orders to the time the merchandise is delivered to the end-user. It includes pick up, warehousing, packaging, and delivery to the buyer on time, etc… through a synchronous way, where the data channels are centralized together.
Omnichannel retail fulfillment also allows customers to research products, compare prices, make purchases and receive goods via multiple channels and to move between channels seamlessly.
With the right Omnichannel fulfillment model, retailers can simplify and automate order fulfillment while achieving the speed and agility needed to compete in a rapidly changing retail industry.
The Benefits of Omnichannel Order Fulfillment
Manage and reduce inventory costs
Founding on a Peoplevox report (2016), 82% of e-commerce businesses realize increased sales, indicating that e-commerce has opened up great business potential. This also means the number of orders will increase, businesses have to put more goods in the warehouse, increase the number of employees to manage the items, ensure products delivered to consumers on time.
However, the confusion begins when the business has to balance between marketing and sales activities while managing inventory as well.
The Omnichannel fulfillment’s role in this regard is the synchronization of data, which handles orders quickly from A-Z. As a result, the company saves about half of the cost of warehousing, staffing and spend more time focusing on business.
Equitable seller benefits and buyer satisfaction
Proper quantity, timely delivery is important in online sales because it affects the satisfaction of the buyer. According to a recent study, 48% of customers refuse to continue shopping on e-commerce sites that have been slow in delivery. However, in reality, 63% of businesses admit that they don’t deliver on time due to many objective factors.
Consequently, Omnichannel fulfillment as a solution ensures customer satisfaction in this case. Order fulfillment model arranges and manages orders professionally for delivery on time and the right quantity to the buyer, and collect the seller’s money if required (COD — Cash on delivery). Thus, the seller can sell goods, gain profits without losing processing time and delivery while buyers are satisfied when receiving products on time.
And much more…
These omnichannel technologies can help retailers manage the operation smoothly by:
- Accurate Inventory Management — Effectively managing warehouse and inventory helps keep cross-channel fulfillment consistent.
- Real-Time Reporting — If you implement an Omnichannel fulfillment model, monitoring warehouse and fulfillment center performance is key. In-depth and granular insights reveal essential performance metrics. With real-time reporting, you’ll be able to constantly adapt and improve warehouse processes.
- Sales and Revenue — Distributing products through several channels opens up new market opportunities, resulting in increased sales and revenue.
- Warehouse Productivity — Implementing a system that takes advantage of new technology to streamline fulfillment processes provides warehouse personnel more detailed information in areas such as inventory, increasing overall operational efficiency.
- Customer Satisfaction and Retention — Retail fulfillment processes that leverage multi-channel distribution open up different buying channels. As a result, those customers are likely to be more satisfied with your brand and will keep coming back for more.
- Brand Perception — Brands that take advantage of multiple distribution channels are viewed in the marketplace as attentive to customers’ needs and preferences. This differentiates your brand from competitors who have yet to take advantage of multi-channel distribution.
In addition, Magestore is also offering a Magento Order Management Fulfillment module, which can help retailers overcome the troubles. This is the perfect solution for your retail problem, which allows to create new orders, manage all orders and track order fulfillment process in only 5 simple steps “Verify — Fulfill — Pick — Pack — Deliver”.