Order Management | Maximize profitability through Efficient Fulfilment Process
by Leap Feed LeapFeed - Leap Towards SuccessOrder management is an important part of your Ecommerce business. Properly
covered, it will withstand a great deal of adverse conditions. While its
management can be costly to lose in many ways.
Think of cases where an error occurred in any of the
fulfillment events and led to disaster. Eg. any payment error, missing order,
incomplete order, or shipping issues. These problems will leave a negative
impact on the quality of the customer.
With each survey, 65% of customers do not trust the
product and despite one negative experience.
Therefore, to prevent this from happening, you need to
have an effective eCommerce order management system in place. Once everything
is ready you can end up returning customers regularly.
To save you from a bad online customer experience, in
this post, you learn all the features of a good order management system.
What is order
management?
Order management refers to keeping track of incoming
orders and managing their fulfillment
processes in the sales business. In short, order management is about order
placement and performance.
This process is not limited to sending an order
successfully. Instead, it incorporates each category from the place of
receiving the order, performing the delivery process, to post-sales actions.
Post-sales actions include return management, customer reviews, and customer
support as well.
The following figure shows the flow of order processing
in the combined data.
As you can see above, there are basically three stages of
a standard order management process.
1: Receiving an
order
·
Payment process
·
Place orders first
·
Manage multiple channel orders
2: Order
completion
·
Order selection process
·
Packing process
·
Shipping process
3: Managing
post-sales actions
·
Follow customers
·
Refunds and administrative refunds
·
Feedback and management
·
Therefore, let us dig into each point in detail
in order to explore the areas for improvement of your order management.
Receiving an order
The first step is to succeed for the seller. Success in
that way - someone comes to your store and chooses to buy from you.
Yes, for small beginnings, tracking incoming orders can
seem a lot easier in comparison. But for large businesses, it is difficult to
follow orders from various sales channels.
Therefore, you need to consider the following in terms of
multiple orders.
Payment process
The payment process is an important level when you
receive payment online. Failure to receive payment damages your sales and loses
any potential customer.
Note, hard-working payment systems with unnecessary
features are one of the main reasons for failure to pay. Therefore, it is
important to choose a payment processor that is completely reliable and easy to
use.
Place orders first
There are some cases where the customer needs an urgent
delivery.
For example:
If the customer chooses a faster delivery then they
should give a signal to the warehouse team to prioritize.
Pro-tip:
You can get out of the box and create action
"wow" for other customers.
What you can do:
·
Add bonus gifts for orders in excess of a
certain amount.
·
Offer pages discount on their next purchase.
·
Include transfer discounts for other products.
·
A gentle thank you note that makes you stand out
from the crowd.
·
Manage multiple channel orders
·
You can increase your sales by listing your
products on multiple sales channels.
To manage multichannel sales orders, it is best to choose
a solution that helps you manage all channels on one platform. There is much
software available online for this purpose. Its effective order management
system saves the attention of complaints.
So, solutions like these software tools help you to raise
money in the end. So buying such a tool is worth investing in - because it
saves you from losing regular sales due to poor order management.
Fulfillment of the
order
Speed and accuracy of order fulfillment are critical to
your eCommerce order management process. The following are a few excerpts from
the research and research.
60% of consumers would like to be delivered on the same
day or the next.
54% are unwilling to buy from a seller who delivers late
delivery.
As a result, the sooner customers receive their orders,
the more satisfied they become.
So the following items play their part in making delivery
faster and more meaningful.
Order selection
process
You should be well aware of the experience of getting
hundreds of orders each day if you are a business merchant. Therefore, it is
important to include the right way to build your eCommerce business.
You need to keep your business size in mind while
choosing the right pick to improve your order management.
Below is a list of four options for choosing one for your
business.
1- One order
One order at a time is taken and delivered to the packing
station.
2-Picking up a batch
A certain number of orders are taken at a time before
delivering them to the packing station.
3- Picking up space
Each location in the warehouse is assigned an order
selector. When each location has order items. Not all components are processed simultaneously.
4- Wave selection
Each location in the warehouse is assigned an order
selector. When each location has order items. Orders from all parts are
processed simultaneously and delivered to the central packing station.
Packing process
In a successful order management process, packaging is
not just about packing things easily. It's way more than that.
This process means sending the right order to the right
customers quickly and effectively.
Consider the following.
Verify order accuracy.
Make sure each order is shipped with the correct items.
Make sure the shipment is safe.
Tip: Use a barcode scanner to activate the authentication
process.
Box weight
Shipping companies now charge different prices depending
on the weight of the box.
Therefore, remove the confusion by adding 3-5 standard
box sizes to help customers choose the one that best suits them.
Ensure packaging quality
It is important to check that the contents of the
packaging are strong enough to protect the order items.
In some cases, you have to postpone the higher costs than
the high-quality items.
Shipping process
Once you have successfully completed the order packing,
now is the time to:
Print shipping labels and invoices.
Mark order status as sent.
Inform customers of shipping confirmation.
They sent you tracking emails to order.
Post-sales actions
As we learned earlier in this post that the complete
eCommerce management process does not stop order shipping.
There are a few post-sales actions you should follow
consistently. Therefore, exercising this right can make you a better seller
with greater product potential.
Customer tracking
You can build and maintain customer trust by following
them regularly. It is a good practice to keep customers informed as much
information as possible. This practice allows you to reduce the risk of
receiving customer complaints.
The most common practice of sending emails in relation to
shipping and tracking. So to make your eCommerce business stand out, you can go
further by sending order delivery updates via SMS messages. You can accomplish
this task by working with a mail provider.
Alternatively, you can switch to simple tracking emails.
Emails can be query, in relation, if there are problems with their order or
delivery process.
This action can make the consumer feel that the product
is genuine and professional.
Managing returns
and refunds
Establish a refund and return policy, especially if you
have multiple customers. Doing so may reduce the number of incoming customers.
Keep the following point in mind when managing your
return:
Easy to find.
·
Make sure customers can easily find the policy
without roaming the nest.
·
It is easy to understand.
·
Make sure the policy is clear and broad enough
to understand.
·
Try restoring the block.
·
Try to help the customer first by trying to fix
the issues.
·
Experienced staff.
·
Make sure support staff is well aware of the
true details of the policy - so they can provide clear customer support.
·
Refund on time.
·
Give specific times for each action.
Reviews and feedback
are used
Reviews and feedback are very powerful in any business.
According to a survey, 85% of consumers trust online reviews exactly as their
recommendation. So ask customers to review honestly with a tracking email. Make
sure the email is broad enough to request negative experiences and if any. Don't
just put these updates in the inbox. Use them to find your areas of
improvement. Therefore, feedback and customer reviews will allow you to improve
your business performance and profitability. Important metrics for the order
management process
Identify the weaknesses of your eCommerce business by
carefully analyzing the KPIs of your order management process. The following
are the KPIs to consider for your eCommerce business.
Order Lead Time
The lead lead time determines the time between the
customer placing the order and its delivery time. Improved lead time is
critical to customer satisfaction. Therefore, it is important not to compromise
on fast and quality service. The lead lead time is calculated as the average
time for all completed orders.
Return Level
The return rate indicates the return pattern of the item.
This is how you can extract the reasons at the end of the item return.
Choosing Accuracy
The accuracy of the wrong selection means you have
frustrated customers. These customers may offer negative reviews that will pay
off your reputation for a bad product. It is therefore important to keep track
of worries.
With the following formula, you can calculate the
accuracy of choosing your order management process.
Frequency Purchase
Frequency purchases total orders for different customers.
It is always a good practice to track the order management process and maintain
the quality of any compliance. ThusHealth Fitness articles, you can enhance the
feeling of the whole customer. You have now understood the order management
process with its KPIs again. Make sure that consistency is the key. Join your
follow-up campaigns to increase customer satisfaction - and make them buy more
often.
Let us help each other by reporting the business growth
you have observed after applying any or all of these processes to your
business. Go and comment below - let's work together!
About the
Author
We are experienced professional, owning a multichannel
eCommerce business. Moreover, I have experience of over 9 years in writing for
the eCommerce and web development industry. Contact us here to get my stated
services.
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Created on May 4th 2021 23:28. Viewed 231 times.