Internet retailing is growing at a constant speed in today's fastest growing world. The new concept of e-retailing is as competitive as its brick and mortar counterparts. The customer service provided by e-retailers includes shopping from within the comforts of the home and a wide assortment of products and services. The growth of internet retailing has pushed supply chain logistics to work just as efficiently.

What is E-commerce Fulfillment?

E-commerce fulfillment is defined as the order fulfillment process which involves packing, picking and shipping to the consumers. Many e-commerce businesses outsource the above three steps to a third party. This means that the customer service of an e-retailer is based on the service of the third party logistics (or 3PLs as they are nicknamed).
In pre-internet times, when the orders were placed by the customer, a cumulative record was posted to the order fulfillment centre through fax or email, and the third party would then further process the order. Traditional retailers still follow this practice, except the fact that the list is e-mailed, rather than fax-ed.

Importance of E-commerce Fulfillment

The demand of products online has pushed supply chain management to be as cost efficient, fast and flexible as the online marketplace itself. However, traditional supply chain management is having a hard time keeping up with this. The ironic observation here is the fact that the factors that make e-retailing attractive are exactly the things that make e-commerce fulfillment and distribution center operations difficult.

For marketplaces online, effective competition will require the e-retailer to think of ways through which the distribution center can be turned into a profit making centre and a competitive asset for the internet company. E-stores build on sales and goodwill through efficient service. In fact nothing really, can damage an online seller's reputation other than the excessive shipping charges and inefficient delivery service.

Possibilities

Recent innovations in technology like image processing and wireless communications have promoted efficient logistics. Advancements in technology have brought in queue optimization, vehicle navigation and obstacle avoidance has bumped up e-commerce fulfillment servicing. In addition, the cost control has become efficient allowing online stores to reduce their shipping costs.

Warehouse automation essentially changes the process of order fulfillment for the purpose of adapting to the demands of the e-commerce industry. Without over burdening the employees, the logistics can be improved in terms of accurateness, speed and the compliance of the distribution department.