Effective Order Splitting: Streamlining E-commerce Fulfillment
Within the world of e-commerce, customer expectations are far from slowing down. In fact, customers expect their orders faster than ever, putting increasing pressure on businesses to optimize their fulfillment processes.
One strategy to help streamline operations and meet customer demands more effectively is order splitting. In this article, we will explore what order splitting is, why it is used, the challenges, and how businesses can implement it successfully.
What is Order Splitting?
Ever had an order arrive in 2 separate boxes? Or only had half of your order arrive to have the other half delivered the following day?
That’s order splitting.
Order splitting (split shipping) is the process of dividing a customer's order into multiple shipments. Instead of sending all items in one package, items are shipped from different locations or at different times, depending on their availability and the logistics involved. This can mean splitting an order between multiple warehouses or even sending part of the order immediately while waiting for other items to become available.
Why is Order Splitting Used?
Faster Delivery Times
One of the primary reasons for order splitting is to reduce delivery times. If a customer orders multiple items, and one of them is out of stock at the nearest warehouse, the entire order might be delayed if shipped together. By splitting the order, available items can be shipped immediately, ensuring faster delivery for part of the order. However, to avoid customer frustration, be sure to communicate this so customers are not left wondering if the other part of their order has been lost or forgotten.
Inventory Optimization
Order splitting allows businesses to optimize their inventory management. By shipping items from multiple locations, companies can balance stock levels across warehouses, reducing the risk of overstocking or stockouts in any single location. This leads to more efficient use of inventory and storage space.
Cost Efficiency
Shipping costs can be a significant expense for e-commerce businesses. Order splitting can help reduce these costs by allowing items to be shipped from the closest warehouse, minimizing shipping distances and costs. Additionally, it can help avoid expedited shipping fees that might be necessary if waiting for all items to be available at a single location.
Use the VESYL USPS Zone Map for a clear breakdown of shipping zones and costs.
Improved Customer Satisfaction
By splitting orders and shipping available items immediately, businesses can improve customer satisfaction. This demonstrates a commitment from the brand to deliver orders to their customers as quickly as possible and when communicated well, can foster further trust and brand loyalty. This partial fulfillment can be especially beneficial during peak shopping seasons when delays are more common.
Challenges of Order Splitting in E-commerce
Increased Complexity
Order splitting can add a layer of complexity to the fulfillment process. Businesses must have systems in place to manage multiple shipments, track inventory across various locations, and ensure accurate order processing. This can require robust order management software and efficient coordination between warehouses.
In VESYL, you can view these split orders in the Orders tab. They will show the same order number but will show different tracking numbers and shipping information.
Higher Shipping Costs
While order splitting can reduce shipping costs in some cases, it can also lead to higher costs if not managed properly. Multiple shipments mean multiple shipping fees, which can add up if not carefully monitored. Businesses need to analyze zones and shipping costs and determine the most cost-effective way to split orders.
Customer Communication
Effective communication with customers is crucial when splitting orders. Customers need to be informed about the multiple shipments, expected delivery times, and any additional tracking information. Failure to communicate clearly can lead to confusion, dissatisfaction and reduced brand loyalty.
Inventory Management
Order splitting requires precise inventory management to ensure that items are shipped from the correct locations. Inaccurate inventory data can result in delays, stockouts, or shipping errors which can make or break a customer relationship. By leveraging inventory management software and ensuring it is up to date, brands can mitigate these risks.
Simplified Order Splitting with VESYL
With VESYL, it’s simple to split orders and view shipping information in one place. Simply navigate to orders, select edit and split. From here, shippers are able to move items between the order split and can ship the split orders using different rates and carriers. This is particularly useful for stores who have one item of the order out of stock, or if one item is particularly large or heavy and it is cost effective to use a different carrier to the rest of the order.
For a step-by-step guide to order splitting on VESYL, head on over to our Help Desk. For a complete demo of order splitting with VESYL, schedule a call and we’ll show you the ropes. For any questions, feel free to email us at hello@vesyl.com.
Conclusion
By enabling faster delivery times, optimizing inventory management, and potentially reducing shipping costs, order splitting offers significant advantages. However, businesses must also carefully navigate the challenges.
With the right systems and strategies in place, order splitting can become an effective tool in e-commerce operations, helping businesses stay competitive in an incredibly fast-paced environment.
Carter made this CMS template to help the VESYL Team
VESYL is Lit and I've enjoyed working on this project and pushing some limits. Seriously, you can fact check me.
"Carter's Tutorial Updates: Now remember, I've only setup 3 quotes templates, but for real we shouldn't need more than 3. If not, call me."
The busy seasons are both a blessing and a challenge for e-commerce businesses. Whether it's the holiday rush, back-to-school season, Black Friday or any other peak period, increased demand brings with it the potential for significant revenue, but only if your shipping operations can keep up.
In this article, we'll explore key strategies for effectively scaling your shipping operations during busy seasons, ensuring your business can handle the increased volume without compromising on service quality.
Forecasting Demand Accurately
The foundation of scaling your shipping operations lies in demand forecasting. By analyzing historical sales data, market trends, and customer behavior, you can best predict the volume of orders and products you'll need to fulfill during peak periods. This information allows you to plan your inventory, staffing, and logistics accordingly.
Optimizing Inventory Management
Efficient inventory management is critical during busy seasons. Overstocking can lead to unnecessary storage costs, while understocking can result in missed sales opportunities, delayed shipments and unhappy customers. The key is to find the right balance. To stay ahead of inventory needs, work closely with suppliers to ensure timely restocking and leverage inventory management for clear and real-time insights to stock levels. With any management system, implement regular inventory checks to reduce the risk of any mistakes.
Streamlining Fulfillment Processes
As order volumes increase, your fulfillment processes need to be as efficient as possible. Streamlining and automating these processes helps reduce the time it takes to pick, pack, and ship orders, minimizing the risk of delays and errors. For example, batch processing orders significantly speeds up order fulfillment, allowing you to get more orders out of the warehouse, in less time.
Learn how VESYL automations are improving fulfillment efficiency for businesses.
Enhancing Warehouse Operations
Your warehouse is the heart of your shipping operations, and its efficiency can make or break your ability to scale. During busy seasons, optimizing your warehouse layout, staff training, and workflow processes is essential. For example, you can create a "Golden Zone," where the top 20% of SKUs that account for 80% of your orders are stored. This zone should be located near the packing and shipping stations to minimize the distance these items travel.
Leveraging Multiple Carriers
Relying on a single carrier during busy seasons can be risky. Carrier delays or capacity issues can disrupt your fulfillment. By working with multiple carriers, you can mitigate these risks, ensure timely deliveries and save on costs.
With VESYL, we deliver the best-in-class shipping rates across multiple carriers in just a few clicks, allowing you to make the most informed decisions for your shipments, without sacrificing flexibility.
Implementing Flexible Shipping Options
Customers expect fast and reliable delivery, especially during busy seasons. By offering flexible shipping options such as expedited shipping, same-day delivery, or in-store pickup, you can meet customer’s expectations and improve their experience. It’s important to clearly communicate shipping options and cut-off dates for guaranteed delivery on your website.
Outsourcing Fulfillment and Logistics
For many e-commerce businesses, outsourcing fulfillment and logistics to third-party providers (3PLs) is a scalable solution during peak seasons. 3PLs can offer additional storage space, advanced technology, and expertise in managing high volumes, allowing you to focus on other aspects of your business. However, 3PL’s can come with their own set of challenges such as a large initial investment and limited visibility.
Alternatively, businesses can leverage shipping software. At VESYL, brands can simply connect their stores, import orders, run shipping automations, such as assigning particular products to certain package sizes or shipping rates, batch purchase up to 500 shipping labels at once at the best rates, and print labels with their corresponding packing list. This allows businesses to manage their fulfillment internally while still saving time and money on shipping.
Enhancing Customer Communication
During busy seasons, clear communication with customers is vital. Be sure to keep them informed about order status, shipping timelines, and any potential delays. This transparency can help manage expectations and reduce customer frustration. You can utilize automated email notifications and SMS alerts to keep customers updated throughout the fulfillment process.
Preparing for Returns and Exchanges
Both brands and customers would prefer to get it right the first time but as we know, it doesn’t always go that way. Busy seasons can often lead to increased returns and exchanges, especially during the gifting season. Preparing for this influx is crucial to maintaining customer satisfaction and minimizing operational disruptions.
Streamline your returns process by providing clear instructions and offering easy-to-print return labels or QR codes. You can also consider using a returns management software that automates the process and provides customers with instant refunds or exchanges.
Conclusion
The key to a successful busy season is ensuring your fulfillment can keep up. By forecasting demand, optimizing inventory and warehouse management, leveraging multiple carriers, and enhancing customer communication, you can ensure a smooth and successful peak season. Finally, be sure to track, record and analyze for continuous improvement and business success.
.png)
With the increase in online shopping and the convenience associated with it, consumers expect seamless and timely delivery of their orders. Therefore, streamlining e-commerce logistics has become a crucial aspect for businesses looking to meet these expectations while reducing costs and time. In this article, we delve into the importance of streamlined logistics for e-commerce businesses and discuss five top strategies to help businesses streamline their logistics operations.
The Importance of Streamlined Logistics for E-commerce Businesses
A well-oiled ecommerce logistics machine is the backbone of any successful e-commerce business. Firstly, it ensures the delivery of an exceptional customer experience, where the efficient handling of transactions, order processing, inventory updates, and timely deliveries increases customer satisfaction and boosts the likelihood of repeat purchases.
Along with satisfied customers, streamlined ecommerce operations also contribute to organized growth for companies. By optimizing workflows and removing bottlenecks, businesses can manage higher order volumes without compromising on quality or productivity.
In addition, well-organized operations lead to cost reductions and increased profit margins. Through error prevention, labor savings, and enhanced stock management, companies can save money and increase their profits.
Top Strategies for Streamlining E-commerce Logistics
Optimize Inventory Management
Effective inventory management is key to streamlined logistics. Adopting just-in-time inventory practices, employing demand forecasting tools, and utilizing SKU rationalization can help businesses maintain optimal stock levels, reduce holding costs, and minimize the risk of stockouts or overstock situations. However, it is important to note that in the case of any supply chain disruptions, for example during COVID-19, just-in-time inventory practices can negatively impact a business and the customers. Therefore it is crucial with these practices to take the correct precautions.
Additionally, utilizing inventory management software allows businesses to maintain a live, up-to-date monitoring of their stock levels while automating tasks such as order tracking and restocking alerts. This not only reduces errors but also improves efficiency by simplifying processes related to inventory management.
Implement a Flexible Fulfillment Strategy
Flexibility in fulfillment is vital to meet varying customer demands. Implementing multiple fulfillment options such as dropshipping, third-party fulfillment centers, or a hybrid approach allows businesses to adapt to changing market conditions and scale their operations efficiently. This flexibility ensures that orders can be fulfilled quickly and cost-effectively, even during peak seasons.
Prioritize Last-Mile Delivery Optimization
The last mile of delivery is often the most critical and expensive part of the logistics process. Optimizing last-mile delivery through route optimization, real-time tracking, and leveraging alternative delivery methods like lockers or local pickup points can significantly improve delivery efficiency. Additionally, exploring sustainable and eco-friendly last-mile delivery options can align with growing consumer preferences for environmentally responsible practices.
Utilize Integrated Shipping Solutions
Integrated shipping solutions involve the incorporation of logistics components, such as order processing, inventory management, and transportation, into a unified system. By leveraging shipping solutions, companies can automate and streamline processes, reducing manual errors and operational inefficiencies, helping them to better manage their logistics. This approach not only enhances overall efficiency but also results in faster order fulfillment, improved customer satisfaction, and reduced shipping costs. The integration of shipping carriers, real-time tracking, and analytics further empower businesses to make data-driven decisions, enhancing visibility and control over their logistics operations
With carrier, speed, shipment size and cost comparisons in one place, VESYL allows shippers to quickly define their needs and shop the best-in-class rates. Learn more about Quick Ship and its capabilities.
Forecast And Plan Demand
Forecasting and planning demand is a key for streamlining e-commerce logistics. By employing advanced analytics, data modeling, and historical sales data, businesses can accurately anticipate future product demand. This enables them to make informed decisions about inventory levels, procurement, and distribution.This helps to minimize the risk of stockouts or excess inventory, optimizing warehouse space and reducing carrying costs. Additionally, it allows for better coordination with suppliers and logistics partners, ensuring timely and cost-effective replenishment of stock.
Conclusion
Mastering logistics is a must for sustained growth and success in the e-commerce landscape. Streamlining logistics not only enhances operational efficiency but also directly influences customer satisfaction and brand loyalty. By embracing advanced technologies, optimizing inventory management, fostering strong partnerships, implementing flexible fulfillment strategies, and prioritizing last-mile delivery optimization, e-commerce businesses can position themselves for long-term growth and success.
Within the world of e-commerce, customer expectations are far from slowing down. In fact, customers expect their orders faster than ever, putting increasing pressure on businesses to optimize their fulfillment processes.
One strategy to help streamline operations and meet customer demands more effectively is order splitting. In this article, we will explore what order splitting is, why it is used, the challenges, and how businesses can implement it successfully.
What is Order Splitting?
Ever had an order arrive in 2 separate boxes? Or only had half of your order arrive to have the other half delivered the following day?
That’s order splitting.
Order splitting (split shipping) is the process of dividing a customer's order into multiple shipments. Instead of sending all items in one package, items are shipped from different locations or at different times, depending on their availability and the logistics involved. This can mean splitting an order between multiple warehouses or even sending part of the order immediately while waiting for other items to become available.
Why is Order Splitting Used?
Faster Delivery Times
One of the primary reasons for order splitting is to reduce delivery times. If a customer orders multiple items, and one of them is out of stock at the nearest warehouse, the entire order might be delayed if shipped together. By splitting the order, available items can be shipped immediately, ensuring faster delivery for part of the order. However, to avoid customer frustration, be sure to communicate this so customers are not left wondering if the other part of their order has been lost or forgotten.
Inventory Optimization
Order splitting allows businesses to optimize their inventory management. By shipping items from multiple locations, companies can balance stock levels across warehouses, reducing the risk of overstocking or stockouts in any single location. This leads to more efficient use of inventory and storage space.
Cost Efficiency
Shipping costs can be a significant expense for e-commerce businesses. Order splitting can help reduce these costs by allowing items to be shipped from the closest warehouse, minimizing shipping distances and costs. Additionally, it can help avoid expedited shipping fees that might be necessary if waiting for all items to be available at a single location.
Use the VESYL USPS Zone Map for a clear breakdown of shipping zones and costs.
Improved Customer Satisfaction
By splitting orders and shipping available items immediately, businesses can improve customer satisfaction. This demonstrates a commitment from the brand to deliver orders to their customers as quickly as possible and when communicated well, can foster further trust and brand loyalty. This partial fulfillment can be especially beneficial during peak shopping seasons when delays are more common.
Challenges of Order Splitting in E-commerce
Increased Complexity
Order splitting can add a layer of complexity to the fulfillment process. Businesses must have systems in place to manage multiple shipments, track inventory across various locations, and ensure accurate order processing. This can require robust order management software and efficient coordination between warehouses.
In VESYL, you can view these split orders in the Orders tab. They will show the same order number but will show different tracking numbers and shipping information.
Higher Shipping Costs
While order splitting can reduce shipping costs in some cases, it can also lead to higher costs if not managed properly. Multiple shipments mean multiple shipping fees, which can add up if not carefully monitored. Businesses need to analyze zones and shipping costs and determine the most cost-effective way to split orders.
Customer Communication
Effective communication with customers is crucial when splitting orders. Customers need to be informed about the multiple shipments, expected delivery times, and any additional tracking information. Failure to communicate clearly can lead to confusion, dissatisfaction and reduced brand loyalty.
Inventory Management
Order splitting requires precise inventory management to ensure that items are shipped from the correct locations. Inaccurate inventory data can result in delays, stockouts, or shipping errors which can make or break a customer relationship. By leveraging inventory management software and ensuring it is up to date, brands can mitigate these risks.
Simplified Order Splitting with VESYL
With VESYL, it’s simple to split orders and view shipping information in one place. Simply navigate to orders, select edit and split. From here, shippers are able to move items between the order split and can ship the split orders using different rates and carriers. This is particularly useful for stores who have one item of the order out of stock, or if one item is particularly large or heavy and it is cost effective to use a different carrier to the rest of the order.
For a step-by-step guide to order splitting on VESYL, head on over to our Help Desk. For a complete demo of order splitting with VESYL, schedule a call and we’ll show you the ropes. For any questions, feel free to email us at hello@vesyl.com.
Conclusion
By enabling faster delivery times, optimizing inventory management, and potentially reducing shipping costs, order splitting offers significant advantages. However, businesses must also carefully navigate the challenges.
With the right systems and strategies in place, order splitting can become an effective tool in e-commerce operations, helping businesses stay competitive in an incredibly fast-paced environment.