Online shopping has become a part of people's lives, from groceries to electronics to apparel, people purchase everything online. Consequently, the Indian ecommerce retail industry is growing exponentially; according to Statista, it is expected to reach $73 billion by 2022.

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With the growth of the ecommerce sector, customer expectations in India have also undergone a change. Customers now expect a lot from ecommerce brands, including 2-day shipping, customised packages, real-time order tracking, active post-purchase communication and more. As a result, online brands must keep up with these standards to drive ecommerce sales and build loyalty.

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However, ensuring cost-effectiveness and efficiency while delivering a superior customer experience (CX) can be challenging for ecommerce brands.

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You must be wondering how to overcome the above-mentioned problem and ensure profitability for 2023. Ecommerce brands can find the right balance by leveraging ecommerce fulfilment services.

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In this blog, you will learn what are ecommerce fulfilment services and the benefits of a logistics services provider to carry out these essential services.

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What are ecommerce fulfilment services?

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Ecommerce fulfilment services refer to all the operations that facilitate the process of order fulfilment, i.e. receiving, processing and delivering online orders.

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Let’s have a brief look at the processes involved in ecommerce fulfilment services:

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1. Ecommerce warehousing

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Inventory is stored in ecommerce warehouses till an order is received. Products are stored safely and in an organised manner to facilitate streamlined order processing when they are placed.

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2. Inventory management

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Inventory management is the process of receiving, storing and tracking inventory levels across the logistics chain. Inventory Management Systems (IMS) automate processes to reduce human errors and prevent situations like stock-outs through replenishment reminders.

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3. Order management

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Once you receive an order from a customer, the next step is to pick the product from its designated shelves in the ecommerce warehouse and pack it properly. The packed order is then marked ready to ship.

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4. Ecommerce shipping

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Ecommerce shipping refers to the process of delivering orders from an ecommerce warehouse or fulfilment centre to the customer’s location. You can partner with multiple courier partners to ensure cheap and fast delivery of orders.

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5. Returns management

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If a customer initiates a return for a product, ecommerce sellers have to pick the product from the customer and then asses its quality and restock or refurbish it, if possible. If managed effectively, returns can be a revenue driver for your ecommerce brand.

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What are the benefits of using a 3PL for ecommerce fulfilment services?

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Outsourcing fulfilment services to 3PL providers like Eshopbox has multiple advantages for ecommerce brands; let's take a deep dive into them.

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1. Multi-channel integration

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Selling on multiple sales channels is a great strategy to drive ecommerce sales and profits, as it helps you connect with as many customers as possible. However, managing inventory, orders and returns across multiple sales channels can be difficult. Partnering with a tech-enabled 3PL can save you trouble.

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For instance, Eshopbox has pre-built integrations with multiple sales channels that you can connect with in just a few clicks.

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• Ecommerce sellers can also use custom integrations using developer-friendly APIs.
• Eshopbox's actionable dashboard gives you a bird's eye view of inventory, orders, returns and more on all sales channels to manage everything easily.

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2. Efficient inventory management

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An IMS (Inventory Management System) is a combination of hardware and software technology that helps keeps track of inventory levels across various stages of the order fulfilment process— from warehouse shelves to orders out for delivery and even returns. A robust IMS saves time and money, streamlines order fulfilment and has multiple other benefits.

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• With Eshopbox, you can use the same inventory for all sales channels.
• Eshopbox has a robust IMS that automates inventory allocation and distribution across multiple fulfilment centres to improve regional utilisation.
• Eshopbox allocates inventory according to local demand and provides lightning-fast shipping.
• Eshopbox's actionable dashboard lets ecommerce sellers view all their orders and status.
• You can prevent losing out on sales opportunities by getting inventory replenishment reminders (so no stock-outs).
• Eshopbox updates inventory across sales channels every 5 minutes to prevent overselling.

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3. Strong shipping network

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Tech-enabled 3PLs like Eshopbox split inventory across multiple state-of-the-art fulfilment centres to enable you to gain a geographic footprint across India. Moreover, by storing inventory closer to customers, ecommerce sellers can reduce transit times and ensure lightning-fast shipping, an expectation of 42% of customers.

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• Ecommerce brands can take advantage of Eshopbox’s tie-ups with multiple courier partners. Eshopbox provides negotiated shipping rates due to the high order volume Eshopbox deals in.
• Eshopbox distributes inventory across multiple fulfilment centres to store it closer to customers; this way, you only have to pay for local or regional shipping (cheaper) instead of national shipping (expensive).
• Eshopbox provides same-day shipping, two-day shipping and express shipping.

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4. Superior customer experience

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Customer Experience (CX) is crucial for ecommerce brands as it has quite the potential to increase customer loyalty and drive repeat purchases by delighting them. You can enhance CX through branded shipping, active post-purchase communication, and adding personalised touches to the shipping process.

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Here's how Eshopbox alleviates customer experience to help you boost ecommerce sales:

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• You can provide custom packaging by creating distinct packaging lists and instructions to ensure a great unboxing experience.
• You can add marketing inserts, freebies, product samples and more based on your business requirements to delight customers.
• Ecommerce sellers can send proactive order notifications through email or SMS at various stages of order fulfilment.
• D2C brands can create a branded order tracking page to provide real-time order tracking information to customers.

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According to research, 42% of customers are willing to pay more for an enhanced customer experience.

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5. Seamless returns management

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Improper management of returns can be unprofitable for ecommerce sellers. Moreover, a stressful returns process annoys customers and can hinder future sales. The good news is that returns management with Eshopbox can be a revenue driver for your ecommerce brand; let's see how:

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• Customers can easily initiate return requests and turn returns into exchanges with easy one-click exchanges on Eshopbox’s customer portal.
• Eshopbox schedules return pickups with order deliveries in the nearby location to help you save on return shipping.
• Returned items go through a quality check to restock or refurbish them so that you can resell them quickly or raise a claim on marketplaces easily.

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6. Tech-enabled fulfilment

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3PLs utilise technology to reduce human intervention in ecommerce operations and, as an extension, reduce the scope for human errors. Robust technology has several benefits, such as saving time and reducing costs.

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For instance, Eshopbox uses technology like conveyer belts and RFID tags to quicken the shipping process and ensure an exceptionally high order accuracy rate. In addition, a 3PL service provider like Eshopbox follows a Standard Operating Procedure (SOP) and automated workflows to streamline order processing and optimise shipping.

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7. Data-driven decisions

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Ecommerce metrics and reporting tools can help ecommerce sellers make data-driven decisions for your ecommerce business. Tech-enabled 3PLs like Eshopbox provide ecommerce sellers with data and insights to determine sales velocity, return rate and more to take profitable business decisions.

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Summing up

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Efficient order fulfilment is the backbone of a profitable ecommerce business. While order fulfilment methods such as in-house fulfilment and dropshipping seem attractive, they come with a plethora of challenges which hamper an ecommerce brand's growth in the long run. Partnering with robust ecommerce fulfilment services like Eshopbox helps you overcome order fulfilment challenges like a pro.