The Ultimate Guide to E-Commerce Fulfilment

Order fulfilment can seem like a complicated subject, but optimising the process is fundamental to your success as an e-commerce brand.

Allegro Logistics is a leading fulfilment provider, specialising in helping ambitious e-commerce brands grow and reach new markets. Our streamlined, technology-led solutions are here to ensure you always deliver an exceptional customer experience.

In this ultimate guide, we cover everything you need to know about e-commerce fulfilment – from start to finish.


What is E-Commerce Fulfilment?

E-commerce fulfilment can be defined as the complete process of dealing with a customer order on your online store – from successful purchase all the way through to the arrival of the items at the delivery address.

Typically, this process involves several stages, including picking the correct items from the stock room or warehouse, packing them up ready to ship in robust, branded packaging, and handing the package over to a courier.

Managing a successful fulfilment process is integral to your future growth. After all, the customer experience is paramount when it comes to e-commerce – with a whole internet of competitors, falling behind on service is not an option.

So, what equals good e-commerce fulfilment? For starters, fast, cheap, or better yet free delivery is an absolute must. It’s also important to provide an unforgettable unboxing experience through branded packaging. Finally, fielding returns requests in the right way is crucial – saving you money, and ensuring customers remain content, and more likely to shop again.

With all this in mind, e-commerce fulfilment might sound like a minefield. And it can be. Luckily, the fulfilment experts at Allegro Logistics are here to walk you through the entire process.

Why is E-Commerce Fulfilment Important?

As already touched on, e-commerce fulfilment is absolutely critical to your success in a competitive retail landscape. Why? Here are three reasons.

First Impressions

Your order fulfilment process is any new customer’s first interaction with your brand in the real world.

The moment your parcel arrives at their door, they will be forming an impression of you that may go on to define whether or not they choose to buy from you again. As in day-to-day life, first impressions count. Wowing first time purchasers with a streamlined and effective service will guarantee the next time they’re looking for a product you sell, your name springs to mind.

Standing Out

E-commerce offers many advantages to retail businesses, but also, inevitably, a greater deal of competition than the traditional high street. To combat this and ensure you stand out from the crowd, your fulfilment process can prove invaluable.

Many businesses use elements of their order fulfilment as an effective marketing tool. An example of this is an attractive returns policy. These are widely used to push hesitant buyers into action – giving them an easy option to return the item if when it arrives, they no longer want or like the product.

And guess what? 92% of customers say they will buy again if they have a positive returns experience.

Business Efficiency

Whilst sorting out your e-commerce order fulfilment might seem time-consuming, doing so is well worth it. Not only will it ensure your continued success, but it may benefit your bottom line in the long run. How? Through a combination of fewer returns, more frequent purchases (especially from retained customers), and lower overall shipping costs. By taking the time to create a highly efficient process, you’ll be making your business as a whole more lean, and ready to face future e-commerce demands.

The Order Fulfilment Process, Explained

Optimising your e-commerce fulfilment means getting to grips with and enhancing each aspect of the process. Before we dive into how this can be achieved, let’s outline what these different aspects are.

  • Storage of Goods – whether you store goods in-house or at the warehouse of a 3PL, this is at the core of the fulfilment process. Managing stock effectively can mean the difference between capitalising on demand and running into shortages. Luckily, at Allegro Logistics, our innovative warehouse management system (WMS) ensures total visibility over your inventory.

    What are the Benefits of a WMS? >

  • Picking – on receipt of an order, the warehouse or storage area springs to life. Operatives are told where to pick the items from and do so with optimum efficiency. Once all the items in the order are collected, they are delivered to the packing area.
  • Packing – before the items can be shipped, they first need to be packaged up. The exact packaging used will depend upon the products in question, but typically this involves inner, highly branded and decorative packaging, and outer, more robust shipping containers.
  • Delivery – with everything packed up and ready to go, the shipping address can be added, and the package handed over to a courier. We offer same day dispatch for many domestic orders, ensuring our e-commerce clients consistently deliver the gold standard.

Types of E-Commerce Fulfilment


In-house e-commerce fulfilment is exactly what it sounds like: businesses process all orders by themselves, on their own premises. This approach is most commonly taken by start-up and small businesses who aren’t yet generating the order volume that would necessitate outsourcing.

Third Party Logistics (3PL)

Third party logistics refers to when an e-commerce business lets another business handle their order fulfilment on their behalf. For many, making the move to outsourced logistics is a rite of passage that becomes necessary as the business grows and orders surge. 3PLs offer a number of benefits to e-commerce brands – many of which we will discuss below!


Finally, dropshipping is a type of fulfilment model in which the seller holds no physical stock. Instead, when a customer places an order, the manufacturer of the product ships the order directly to the customer. For many, this is seen as an attractive way to streamline the fulfilment process.

Benefits of Outsourcing E-Commerce Fulfilment

Customer Satisfaction

Working with a 3PL means you’ll ensure you deliver only the highest standards of customer experience. By guaranteeing faster shipping times and a seamless journey, you’ll meet if not exceed people’s expectations, making it more likely that they will buy from you again in the future.

3 Valuable Tips for Keeping Up with Customer Demands in the Supply Chain >

Cost Effective

3PLs are typically able to access the best deals out there in terms of couriers and customs charges. Add to that their existing infrastructure and you end up with a highly economical operation. If you compare the costs of enlisting external fulfilment help and doing everything in house, it quickly becomes clear where the savings lie.

Find out more about e-commerce fulfilment with Allegro.

Saves Time for Core Business Activities

With everything handled by an external, high performing logistics company, you won’t have to worry about any time consuming order fulfilment and admin tasks. Instead, you’ll be able to focus on your core talents and ambitions – the reason you probably started the business in the first place!

The Importance of Logistics in the Retail Industry >

No Need for Own Warehouse or Staff

As previously stated, 3PLs have existing infrastructure, warehouses, and highly trained members of staff – all of which you’ll have access to. Instead of shelling out for your own storage space and going through the lengthy process of hiring and training up effective team members, everything is already in place and ready to answer your call.

We store business inventories securely in our two warehouses which combined span more than 80,000 sq ft! Learn more here.

Access to Industry Expertise

It goes without saying that logistics companies know a thing or two about logistics. Work with experts in the industry and you get an expert service, perfectly tailored to your requirements, and insider knowledge.

Removes Limits to Your Growth

You might be perfectly poised to undergo a business boom, but the practicalities of dealing with the extra demand is limiting your ability to take proper advantage. With a 3PL, you’ll be able to take on whatever order surge comes your way, but equally to scale down the service if you find growth doesn’t go as expected. That way, any hiccups along the way will not become further limitations. Instead, your 3PL will be there to support your business journey every step of the way.

Read more: The Advantages of Using a 3PL >

Signs You Should Outsource Your Business’ Order Fulfilment

So, you’ve decided outsourcing order fulfilment probably makes sense at some point. But, how do you know when that point is? Below, we outline some indicators that you’re ready to level up.

Your Shipping Costs are High

Are you struggling to deal with orders in an economical and timely fashion? Are you suspicious that you’re not getting the best deal from your couriers? If you’re experiencing spiralling shipping costs and dealing with the prospect of shelling out for storage space and additional staff members, it might be a better idea to get a 3PL onboard instead.

How to Create an Effective E-Commerce Delivery Strategy >

You Lack Knowledge and Resources

Everything’s going great and the orders are flying in, but you’re not sure if you’re doing things in the best way, and not sure you have the facilities, resources, and time to deal with it all. A 3PL can help you navigate through unchartered waters and help you streamline your operation with their industry knowhow.

You Don’t Have Enough Space

If you’re struggling to manage stock because you don’t have enough space, and this is causing order delays, it might be time to contact a logistics provider. These days, customers expect speedy shipping and everything available at once. Not having an item in stock may mean you miss out on valuable business.

Read more: The Importance of Effective Inventory Management

You Want to Enter New Markets

Do you want to go international, but you’re not sure how? Finding a 3PL with expertise in the market you want to enter means you’ll have access to expert industry knowledge and be able to orient yourself in the confusing world of import/export and customs charges. Basically, they’ll handle everything for you, so you can globetrot to your heart’s content.

Shipping Solutions for Small Businesses >

You’re Not Optimising Customer Experience

Fast shipping, rapid returns, and top quality packaging equal plenty of happy customers. If you’re concerned you’re not optimising any aspect of your customers’ journey, it might be time to get some expert help. In a competitive marketplace, anything you can do to add value to your products is going to help you stand out from the crowd. With a 3PL, you’ll stand out for all the right reasons.

Related: Bespoke Packaging – Why is it Important & What are its Benefits?

You Receive Lots of Customer Support Requests

In relation to the last point, are you starting to see customers getting in touch with issues, queries, problems with their orders? Are things arriving late, arriving damaged, or returns not being dealt with in a timely manner? It can be difficult to please every customer all of the time, but a surge in customer support requests might indicate there are things to be improved upon. An e-commerce logistics provider can show you what needs to be done.

How to Choose an E-Commerce Fulfilment Company

Ready to outsource? When choosing a 3PL, there are a range of different factors to consider when assessing the options available.


In the age of e-commerce, your customers will be looking for a speedy and cost-effective delivery service. To make sure you can provide this, you need to look for efficiency above all else when choosing your fulfilment company. The business in question should have a tried and tested pick and pack process, aided by the most advanced warehouse management software (WMS) on the market. In fact, for domestic shipping, they should have a same day delivery service – and one you can rely on!

Domestic Shipping with Allegro Logistics >


Think long term. You don’t want to choose a fulfilment company that can only handle the order volume you currently have. If you experience a surge in demand, you need to know you can rely on your chosen partner to scale accordingly. As such, it’s important to choose a 3PL that has a large capacity. They should run purpose-built warehouses and have experience taking brands from tiny start-up to international retail phenomenon. A fulfilment company should facilitate your growth, not impede it.

At Allegro Logistics, we pride ourselves on being a partner for growth. We have the experience, the resources, and the facilities to help take your business regardless of your current size to the next level. Get in touch today to see how we can help.


The transition from handling your own order fulfilment to working with a 3PL doesn’t always go smoothly. To make sure yours does, it’s important to enquire about what the integration plan is for merging your existing processes with the company’s WMS. A seamless integration is fundamental to the success of the partnership, so look for experience and knowledge making this happen for a wide range of platforms. At Allegro Logistics, our WMS integrates quickly and easily with over 50 popular e-commerce and courier platforms – forming a single, unified system in the blink of an eye!


Putting your order fulfilment in the hands of an external provider is always going to feel a bit strange at first – but it shouldn’t feel like you’re losing control of your business. A good order fulfilment company will provide transparent reporting through their WMS, enabling you to track orders, gain insights from tools and data, and access up-to-the-minute information on inventory. Our system is fully automated, meaning you get real-time information 24/7, 365 days of the year. As a result, you can oversee every aspect of your operation whenever you want to. This availability of information is crucial when making the switch.


To offload your order fulfilment process, you will have to offload your inventory too. For many e-commerce businesses, their stock represents a significant investment. As such, you need to make sure the provider you choose can provide the safety and security you require. Our fulfilment centres are monitored day and night by advanced CCTV. That means with us you don’t have to worry about a thing.

Read next: The Role of Warehouses in Supply Chain Management

Returns Process

In the world of e-commerce, customers aren’t always happy. Providing unbeatable customer service only goes so far – you also need to back it up with a slick and reliable returns process. In fact, a solid returns solution can actually form part of the decision-making process for would-be buyers – a safety net if they’re on the fence! That’s why, if you want to drive conversions and keep impressing your customers, you need to make sure your 3PL can provide a gold standard of returns service.

How to Create an Effective Returns Solution >

Additional Offering

What other services do you need in a fulfilment company? You might not need to use them now, but it’s good to know your chosen company covers multiple disciplines. With a range of additional services on offer, you can rest easy in the knowledge that your fulfilment partner can provide for your needs now, and in the future.

At Allegro Logistics, we offer numerous complementary services to e-commerce fulfilment, including point of sale distribution and bulk storage. We even offer a bespoke marketing and packaging service, allowing you to enhance your brand and boost the customer experience with beautiful promotional materials.

Bespoke Marketing and Packaging Projects >

Track Record

Lastly, but perhaps most importantly, what brands has the 3PL in question worked with? Don’t forget to ask for referrals and look for excellent online reviews when making the choice. This is not a step to skip; if your 3PL hasn’t provided a stellar service to others, they won’t provide it to you either. Luckily, at Allegro Logistics, we’ve helped all kinds of e-commerce businesses scale, grow, and access new markets. Need proof? Take a look at our case studies!

An Overview of Pick and Pack Fulfilment

What is Pick and Pack?

Pick and pack is fundamental to any successful e-commerce fulfilment system. When an order is placed by a customer, the two-stage process is set off. Simply put, a warehouse employee or ‘pick-packer’ will use a pick list to select the correct type and number of items from a range of locations. After this, the items will be placed in the correct sized box and packaged to ensure customer goods are safe and well-presented upon arrival.

See more: How to Create an Effective E-Commerce Delivery Strategy

Types of Pick and Pack Fulfilment

There are various types of pick and pack fulfilment. The process used in each warehouse will depend upon the amount of orders being fulfilled, the size of the space and the number of employees.

  • Piece Pick and Pack – This is the simplest of the four types and involves each pick packer finding and collecting all of the items on their pick list and then moving onto the next order.This can be an effective process for small businesses, but is not often used in larger warehouses as one employee having to cover long distances to find all of the items themselves, one order at a time, can result in delays.
  • Batch Pick and Pack – This is similar to the previous type, however the employees will be dealing with multiple pick lists at once, meaning they can multi-task and be more efficient.
  • Zone Pick and Pack – In larger warehouses, zone pick and pack is often used because it decreases travel time between areas.
    Basically, employees stay in one area of the warehouse and only collect items that are in their zone. If orders contain items from multiple zones, the items are sent on once picked via conveyer belts, robots, tubes or other means.
  • Wave Pick and Pack – Like zone pick and pack, this type decreases travel times by making employees each cover only a specific area of the warehouse. The only difference here is that they will handle multiple lists – again with the aim of increasing efficiency and speeding up the process.

How Does Pick and Pack Work?

At Allegro Logistics, we are passionate about providing a flawless fulfilment service for our clients and are constantly looking to invest in new technologies and further rationalise our methods. Using a cloud-based order management system, we can process high volumes of orders and integrate many different online platforms, resulting in seamless shipping procedures with real-time reports and up-to-date tracking information. But how does the process work?

  1. An order is placed by a customer shopping online, setting off the pick and pack process.
  2. The required items are identified using our advanced scanning technology and bins allocated to track and collate all the items of the order.
  3. Employees accurately assemble the items from over 3,500 locations in our warehouse and deliver them to the packing station.
  4. Here, the order is wrapped according to the client’s wishes, placed into branded packaging and shipping labels are applied. The consignments can then be handed over to couriers.

The order fulfilment process in full >

Returns Management Best Practices

What is Returns Management?

Returns management encompasses the entire process of returning products, from customers creating a return and sending it, to a client or logistics provider receiving it, and then deciding how to manage reparations.

Depending on the retailer’s location and processes, returns management can vary greatly. For example, a brick-and-mortar store may only handle in-person returns, then make decision on returned items and refunds/exchange on the spot.

E-commerce stores, however, may have to work a little differently. Consumers are entitled to returns within 14 days, but this can be complicated to fulfil. A logistics provider (like Allegro!) can be invaluable when it comes to managing these returns and making the process as smooth as possible.

Why Does Returns Management Matter?

For so many reasons! Namely – 67% of shoppers check returns policies before making a purchase (Shopify). So, your returns policy could be the make or break for sales.

There are many other reasons why a good product returns management system matters. These can be split into reasons for customers, and reasons for retailers.

For customers, a smooth returns process can be the difference between a good ‘I-want-to-purchase-from-here-again’ experience, and a bad one. Of course, the positive return-visit experience is desired. The easier, cheaper, and quicker the return, the more customers will want to spend with your business. In fact, 72% of shoppers are willing to spend more, more frequently, with brands that make returns simple (Shopify). Good returns processes give shoppers confidence to spend with you. It’s as simple as that.

For businesses, the customer experience is important, but so is effective stock management. Knowing where products are, and in what order state, allows for seamless inventory management and financial planning. Fulfilment software can help simplify data for businesses, clearly displaying stock numbers, order information, tracking data, returns status, and more. Leveraging this software for returns management can lead to automation and simplification. By better managing returns, retailers can turn their attention fully to bettering the customer experience.

See more: The Importance of Effective Inventory Management

6 Best Practices for Returns Management

  1. Make Returns Cheap (or even free!)

    When purchasing products, customers may be put off if they see returns aren’t free to make. Whereas, if they are safe in the knowledge they can return products at no loss, then customers have the confidence to spend. This confidence to spend drives sales – ideal!If it isn’t cost effective to make returns free, try to keep costs as low as possible. Research various courier options or store solutions to see where money could be saved. The more effective and efficient your fulfilment processes are, the more you can reduce returns costs and boost sales.

    Courier Delivery Service: How it Works and its Benefits >

  2. Make Returns Convenient

    As returns management becomes an ever more important aspect of e-commerce in the modern day, the effort customers have to put in decreases. Where traditionally customers would take returns products to a store, now couriers can arrive on their doorstep for returns collections!

    Modern customers are accustomed to convenience, so any retailers that don’t accommodate simplicity may miss out on huge chunks of the market seeking ease. Queuing in the post office or driving to a dedicated drop-off location doesn’t appeal to customers. Instead, retailers should look to offer collections, multiple drop-off locations or other convenient solutions for customer returns.

    Also consider how the return is initiated; if customers have to phone up and talk to your customer service team, customer relations may improve, but your team is suddenly extremely busy and unable to help with other point-of-sale queries. Alternatively, including a returns clip in the order packaging or having an online returns portal can streamline the process for customers and internal teams alike.

  3. Make Returns Quick
    The faster the customer gets refund money back in their account, or an exchange product, the happier they are. Also, for businesses, the faster the returns process, the faster they can resale products and better manage finances. Having a dedicated returns team and proven methods can speed up the process and keep stocking smoothly flowing in and out.

    Our returns service at Allegro Logistics ensures our clients benefit from efficient returns processing, without disruption to their day to day running. We handle the processing, refreshing, and tracking of returned products in a streamlined manner.Get our top tips for improving retail logistics with our blog on improving order fulfilment processes.

    Our processes >

  4. Make Returns Trackable

    Modern technology allows for the entire journey of a product to be tracked, from manufacturer to warehouse and to the customer, or even from the customer back to the supplier. This is useful for both the customer and the retailer; customers know exactly where their return is, and retailers can give up-to-date information on progress if required.

    See more: How Technology Transformed the Logistics Industry

    Tracking is also critical in preventing returns fraud – as can, sadly, happen. Plenty of couriers offer confirmation of delivery that goes beyond a text, and even includes a photograph of the package in the doorway, providing clear evidence of proper delivery. Having the evidence to prove that packages have been delivered safely can come in handy if anyone tries their luck and claims it has been stolen.It’s also important retailers stay informed after a return. In order to optimise future returns management, retailers should prompt customers who created returns to leave reviews and complete surveys. Data gathered from these may include why the return was made, how easy it was, and how the process could be improved.

  5. Make Returns Processes Rigid

    Most returns policies give customers two weeks to returns items. For overseas retailers, during unprecedented events like coronavirus, or seasonal periods such as Christmas, these dates may be extended. It is critical to have set timeframes for returns. This means seasonal products are returned in time for possible resale, customers have adequate decision time, and products from years ago can’t suddenly be refunded.

    See more: E-Commerce Strategies and Tips for Small BusinessesThis return period should be set in stone and only changeable in exceptional circumstances. If giving too much leeway, retailers could open themselves up to issues and exploitation. The time limit, price, and policy for returns should be exact and well presented to inform customers.

  6. Make Returns Environmentally Friendly

    Retuned items can get a bad rep. In recent years, retailers have come under fire for the mismanagement of returned products. Clothes retailers, especially, have faced criticism for irresponsibly managing returns via landfill. Best practice is to resale returned products where possible, but if not possible, retailers can consider other options like recycling materials, reducing the price, or donating to charitable causes.As the environment sits at the front of consumers’ minds in the 21st century, the impact of returns must be considered. Public scrutiny especially can lead to huge decreases in sales.

How to Choose the Right Packaging for Your E-Commerce Business

With a host of options out there, figuring out which packaging to go for can be tricky. Not only is it important to find a solution that is robust enough to fully protect your product during shipping, but it also needs to look beautiful. With the rise of the ‘unboxing experience’ brands are having to continuously find new and innovative ways to wow customers with their packaging.

Here are some things you should consider when designing your packaging solution.


A key thing to get nailed down is the main shipping container your products will be shipped in. This could be a bag, a box, a pouch, or something else. If you’re a sustainably-minded business, you’ll probably want to go for cardboard or recycled plastic or even a biodegradable option. When choosing the container, remember to find an option that is roomy enough to contain your product, but not so roomy it rattles around inside – potentially getting damaged in transit.

Internal Packaging

Most e-commerce brands don’t just stop at the main container. Often, the ideal way to balance aesthetics with robustness is to have a sturdy main container, and a beautiful container on the inside. As well as this, many brands choose to incorporate materials like tissue paper to add another level of excitement to the experience of opening the package, and another level of anticipation. Depending on how fragile your product is, you also might want to consider using filler inside the package like peanuts, foam inserts, bubble wrap, or shredded paper.


You’ve worked so hard to choose the right packaging, now let’s make sure your brand gets remembered. Unifying your packaging design and materials with your brand identity will ensure customers have a cohesive experience from start to finish, and make customer retention more likely. You could print directly onto the materials, or use stickers to keep costs down. Some retailers also choose to include business cards, flyers and other marketing materials, and even handwritten thank you notes to add a personal touch. The choice is entirely yours.

What is Custom Packaging?

Custom or bespoke packaging refers to packaging that is uniquely designed around its product. This is in contrast to standard or stock packaging, which is a generic packaging produced in mass quantities with limited, standardised size options.

Custom packaging not only reflects the dimensions and weight of the product, but also a sense of brand identity. Standard packaging, on the other hand, does not convey anything to the consumer about your brand or your product. It usually comes in the form of a plain cardboard box. Even if the customer was satisfied with your product, they’re less likely to come back if your overall brand failed to make a connection with them. That’s where custom packaging can help you out.

Benefits of Custom Packaging

  • Protection – Perhaps the first and most obvious benefit of bespoke packaging is that it offers products better protection compared to stock packaging. Custom packaging better ensures the integrity of the product via compact and tailored designs. Stock packaging, on the other hand, is premade, and therefore does not account for what it is transporting. This naturally increases the risk of the product becoming damaged during transit. With custom packaging, you can be assured that your product will remain in a fixed position. This is vital for fragile products, such as glassware.
  • Efficient Storage – Since custom packaging reflects the size and shape of the product, it inherently saves space. This means that you can more efficiently store your products in warehouses, stores, and shipping vehicles. The more units you can store and ship, the more you can sell.
  • Marketing – Custom packaging offers businesses a low-cost avenue for additional marketing. With custom packaging, businesses can add logos, brand colours, promotional material, and marketing slogans in a way they can’t to a premade package.
    Furthermore, by getting creative with the aesthetics of the package, businesses turn their customers into brand ambassadors. Consumers love to show off brands that excite them on social media, and a unique package presents them with the opportunity for unboxing – which only spreads awareness of, and interest in, your brand.
    Ask yourself what sets your business apart, what its story is, and what its company values are, then convey those things to the consumer with custom packaging.
  • Repeat Business – Building on from the last point, investing in custom packaging markedly increases the customer experience. A package that’s unique and interesting implicitly conveys to the consumer that they are getting a valuable product. This gives new customers a great first impression of your business and increases the likelihood that they turn into repeat-buyers. A stock package, such as an unmarked brown box, does not give your customer the opportunity to think about your brand.In order to grow your business, you want the customer to be thinking about your brand as a whole – not just your product and how well it suits their needs. A stylish package builds brand loyalty among new customers, who will better remember it compared to a plain box with no branding.
  • Standing Out – Perhaps the most significant advantage of custom packaging is that it makes your business stand out from its competitors. A well-designed package elevates what you’re selling, turning it from being simply a product to an experience. No matter what you’re selling, bespoke packaging can work to convince consumers that it’s unique and valuable, rather than being one of many such products of its kind on the market. When presented alongside other products on a store shelf, your packaging is the key to drawing the consumer’s attention. What colours does it use? What shape is it? What materials is it made out of? The more of these questions you ask, the more effectively you can increase your product’s exposure. The last thing you want for your product – whether it’s in a physical store or an online one – is for it to blend into its competition.

What is Inventory Management?

Inventory management describes the management of ordering, storing and using a businesses’ inventory, from raw materials to finished goods. This can also include warehousing and the processing of items.

Businesses may have inventory that is not physical, such as data and information, which is stored and managed using specialised software. For retail, manufacturing or food service businesses, as examples, physical inventory is the lifeblood of business. With inventory, these businesses can sell products and gain profit. However, inventory can also be a liability, if stolen or damaged, or even mismanaged, products can be wasted, leading to wasted investment.

Inventory management, therefore, is a careful balancing act between having enough inventory to ensure business can successfully continue, but not too much that time and money is wasted. To effectively manage inventory, one must know precisely when to restock, what amounts to purchase and what price to pay.

Importance of Inventory Management

Stock Control

A business must know and be in control of how much stock they have. If they have too much, products may have to be destroyed or sold cheaply, wasting a revenue stream. But if they have too little, orders may be unfulfilled and customers are likely to use competitor services instead.

Inventory Reporting

Information and insights about inventory can help facilitate important business decisions and highlight areas for improvement which may have otherwise been overlooked. Effective inventory reporting is critical for reviewing previous sales and business as well as forecasting future success.

Cost Saving

Properly planned and managed inventory can lead to reduced storage and insurance costs, as you only pay for what you need.

Real Time Integration

Modern inventory management software can be integrated with other platforms to automate processes such as updating stock levels on an ecommerce website platform. This is also useful for businesses operating across multiple premises, such as a website store and physical store, to track inventory sales regardless of the avenue it is sold.

Saving Products

A lot of inventory may be deemed ‘perishable’; not just food but time/seasonally dependent stock such as fast fashion. It is especially important that products with sell-by dates are properly managed and sold so as not be wasted.

Improving Customer Service

Businesses that can effectively fulfil orders in time due to proper inventory management will be favoured by customers. Those who continually fail to provide promised inventory, inform customers of sold-out stock or do not restock in time risk losing business.

See more: The Importance of Efficient Delivery Management for Ecommerce Business and Online Retailers

Speeding Up Order Fulfilment

Inventory management, with warehouse management, can be useful in ensuring inventory is well-placed and recorded, so it’s not lost or misplaced. This then helps warehouse pickers to find products faster and consequently speed up order fulfilment.

Your E-Commerce Fulfilment Partner for Growth

Whatever you sell, wherever you sell it, Allegro Logistics is your partner for growth, expansion, and optimisation. With extensive facilities purpose-built for the storage and fulfilment of goods and industry-leading WMS software, we provide tailored e-commerce solutions – designed to suit the needs of individual customers.

To find out more about how we can help you grow, contact us today.

Share This Post, Choose Your Platform!

Warehouse Graphic

Get your custom quote today!

For any enquiries regarding the services we offer, please get in touch using the contact form below. We look forward to hearing from you.