Let’s say you have a sudden influx of orders pouring in, but your order processing is slow, then you might be in trouble. So what is order processing? It is the behind-the-scenes” work that starts from customers’ orders (from your website to their doorstep). Steps, including receiving and verifying orders, managing inventory, packing items, shipping, and tracking deliveries. An efficient order processing system is super important for any business because it directly impacts your customers’ experience. However, with an inefficient order process, here are some very relatable problems that you might face, Manual Mistakes, Inventory Issues, Slow Fulfillment, and Lack of communication. Now, the literal million-dollar question is, how do you make an efficient order process?
Let’s get down to business and explore the top 10 tips to improve your order process:
Automated order processing is a technology-driven system that streamlines how customer orders are handled. Instead of manual entry, it uses software to automatically validate orders, update inventory, generate pick lists, and manage shipping.
Let’s look at how an automated process can benefit your business in every step of the order process.
When a customer makes a purchase, the order processing software validates the order and automatically inputs the data into your enterprise resource planning (ERP) system. It includes advantages such as fewer manual errors, automated and efficient delivery routing.
An automated pick list is generated and assigned to an order picker who selects the correct items. After picking, the order goes to a packing station for appropriate packaging. The advantages of automation in this step include increased accuracy and speed of pickup and ensuring optimal packaging.
Once packed, the order is ready for shipment, whether fulfilled in-house, via dropshipping, or through a third-party logistics provider (3PL). Partnering with a 3PL can result in lowered shopping costs and improved delivery times.
After shipping, tracking information is sent to your eCommerce store, enabling you to share delivery dates with customers. Real-time tracking keeps them informed and worry-free. This can improve transparency which can lead to happier customers and repeat business.
A reliable OMS tracks customer orders from the moment they’re placed until they arrive at their destination. It helps businesses manage everything smoothly so nothing falls through the cracks. Here is how:
A standardized order process is all about having a clear and consistent way to handle orders from start to finish. When your team knows the exact steps to take, things go more smoothly and order process becomes more efficient, and you get the same great results every time. Here’s why having a standardized process matters:
Emphasize the importance of ongoing training to ensure that staff are proficient in using the latest tools and following best practices.
Ongoing training is essential for keeping your staff sharp. This ensures their skills are honed and remain aware of the latest tools, best practices, and policy updates.
It may come as a no-brainer that clear and timely communication is key to enhancing the customer experience and minimizing order-related issues. But remember, communication extends beyond just verbal communication. Value your customers and let them know exactly what to expect (order confirmation, shipping updates, or delivery timelines). Here’s how a better business-customer communication can help:
Accurate inventory management is crucial for preventing stockouts and delays, which can seriously hinder order fulfillment speed. Here’s how optimizing your inventory helps
Leveraging real-time data is essential for making informed business decisions. Here’s why it matters:
Put yourself in the shoes of a customer – if you find a site that has a terrible return policy, there is no doubt you be reluctant to purchase. On the other hand, a simple and fair Return policy also helps in the following way:
Encourages Purchases: A hassle-free return policy can be a major selling point, encouraging customers to make future purchases.
Reduces Workload: An efficient returns process minimizes the time and effort needed to handle returns, freeing up your team to focus on fulfilling new orders.
Builds Loyalty: A smooth returns experience can lead to repeat business, as customers feel valued and respected.
Tracking metrics like order accuracy, fulfillment time, and customer satisfaction help to identify areas that need improvement. Here’s why it’s simply so important:
Adopting a continuous improvement mindset helps to refine your order process. Here’s how to embrace this approach:
Outsourcing in the eCommerce world means partnering with a third-party service provider to handle certain parts of your business (order processing, inventory management, customer support as well as marketing).
If running your eCommerce business feels like a never-ending juggling act—managing customer orders, handling inventory, packing, shipping, and customer support—it might be time to consider outsourcing.
This can be especially beneficial when your business experiences a spike in scales overall or for seasonal demand. Instead of hiring more staff or investing in expensive software, you let the experts handle the details.
But is outsourcing the right move for you?
Long story short, it depends on your business goals and current operations. As a rule of thumb, if you’re spending too much time on tasks that don’t directly drive growth, having order backlogs, or facing troubles managing consumer demand – resulting in unhappy customers, consider outsourcing as your next step.
When deciding whether to outsource your order processing or keep it in-house, it’s important to weigh the pros and cons of both options. Each approach has its advantages and so scale them in terms of cost, efficiency, and scalability. Here’s a quick comparison you help you out:
| Factor | In-House Processing | Outsourced Processing |
|---|---|---|
| Cost | High upfront costs for software, staff, and equipment. Ongoing expenses for maintenance and salaries. | Lower costs since you pay for services only when needed, with no upfront infrastructure investment. |
| Scalability | Limited by in-house resources. Expanding means hiring more staff and buying more equipment. | Highly scalable. Outsourcing partners can quickly adapt to spikes in demand without additional cost to you. |
| Technology | You’ll need to invest in order management systems and continuous upgrades. | Outsourcing partners use cutting-edge technology without additional costs for you. |
| Expertise | Requires internal training and development. Mistakes may occur, especially if staff lacks experience. | Access to experienced professionals who specialize in order processing, reducing errors. |
| Time Commitment | Time-consuming as you need to manage every aspect, from order entry to shipping. | Frees up time to focus on your business’s core areas like growth and strategy. |
| Control | Full control over every step of the process, but this can be a double-edged sword. | Less direct control, but you gain efficiency, reliability, and accountability from professionals. |
For small businesses, every minute and dollar counts, and your business might be bleeding money if your in-house Managing order processing fails to keep up with the demand and is overwhelmed. Outsourcing order processing might be a smart, scalable solution that can save time, money, and stress while your customers get the best possible service. Here’s why outsourcing order processing can be a game-changer for small businesses:
Choosing the right outsourcing partner for your order processing can seem like a daunting task and the burden of research might fall on you entirely.
But it doesn’t have to be if you know what to look for. Let us help you with some tips to guide your decision to select the best partner for your business:
Before diving into any partnership, it’s essential to know exactly what parts of the order process you want to outsource. Prioritizing your business needs will help you find a partner that specializes in what matters most to your business.
No business is exactly like yours, so the outsourcing partner should offer customizable solutions. Keep in mind that there is no one-size-fits-all approach. Whether you need help with scaling during peak times or handling international shipments, ensure their services can be tailored to fit your requirements.
A proven track record is essential. Look at their case studies, reviews, or testimonials from clients in your niche and industry. This gives you confidence that they can handle your specific needs effectively. Ask for solid metrics (like how they’ve improved order accuracy or reduced delivery times for similar clients).
Your outsourcing partner’s tech capabilities should enhance your operations, not complicate them.
Are they using automation and are competent to handle your business requirements? Do they provide real-time tracking and transparent reporting?
Strong communication is the backbone of any good partnership. You want an outsourcing partner that keeps you in the loop, not just with periodic updates, but in real-time when in demand.
Ask about their customer service policies and support team—because when something goes wrong, you’ll want to know they’re responsive and solution-oriented.
It’s not just about handling your current needs, but also whether the partner can grow with your business. Can they adapt to increased order volumes during high-demand periods like the holidays? Are they good enough to integrate new technologies as your business evolves and changes?
Streamlining your order process smoothly is crucial for delivering a great customer experience for the fluid operation of your business. To reiterate tips like automating your workflow, optimizing inventory management, training your staff regularly, improving communication with customers, and considering the prospect of outsourcing, you can significantly boost efficiency and customer satisfaction. Hope these tips will help you navigate the sea of e-commerce with smooth sailing.
Sales organization and business process outsourcing specialist with over 15 years experience in building and running highly efficient sales and customer support organizations, and in providing board and project level consulting to the sales and service organizations of leading companies all over the globe. Developed and implemented staffing strategies and programs that improved operational.
Natore Tower (12th Floor), Plot no 32D & E, Road 2, Sector 3, Uttara Model Town, Dhaka- 1230, Bangladesh
