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What is order fulfillment?

Order fulfillment is everything that happens between a customer placing an order and receiving it: confirming the order, picking the items from stock, packing them, shipping or handing them over, and updating the customer along the way. It also covers what happens when something goes wrong, such as a back order, a lost parcel or a return.

A shop can have the best product page on the internet and still lose the customer at the packing bench. Fulfillment is where the promise made at checkout is either kept or broken.

· Co-founder

4 min read · Published

Fulfillment models compared
ModelWho holds stockWho packs and shipsSuits
In houseThe shopThe shopSmall ranges, handmade goods, local delivery
Third party logisticsA 3PL warehouseThe 3PLGrowing volume, wide delivery area
DropshippingThe supplierThe supplierTesting products with no stock
Click and collectThe shopThe customer collectsLocal customers, bulky or fresh items

The steps in order

Fulfillment begins when payment is confirmed. The order is confirmed to the customer, usually by email, with what was bought and when to expect it. Stock is reserved or deducted so the same item is not sold twice. Someone picks the items, checks them against the order, packs them with any paperwork, and books delivery or marks the order ready for collection. The customer gets a dispatch notice with tracking, and the order is marked fulfilled. Each step should leave a record, because questions about late or missing orders are answered from those records.

Delivery promises and the law

What you promise at checkout becomes part of the deal. In the UK, guidance for online sellers says goods must be delivered within 30 days unless a different time was agreed, and the contract must be confirmed as soon as possible, for example by email. In Australia, the consumer guarantees of the Australian Consumer Law include supplying goods within the time agreed or a reasonable time, and misleading delivery claims can breach the law. State realistic dispatch and delivery times, and tell customers early when something will be late.

When to outsource

Most small shops start in house, which keeps control and suits handmade or fragile goods. A third party logistics provider makes sense when packing takes more time than making or selling, when orders spike seasonally, or when a warehouse closer to customers would cut delivery times. Dropshipping removes stock risk but hands quality and delivery speed to a supplier, which is risky when the shop's name is on every complaint.

Common mistakes

Selling stock that is not there is the most common fulfillment failure, usually because stock counts are not updated when orders arrive. Others include confirming orders without a dispatch time, packing without checking items against the order, not sending tracking, and leaving cancelled or refunded orders in the packing queue. A simple status flow, from paid to packed to fulfilled, solves much of it.

Where it shows up in OneCraft

OneCraft has no ready made store. With its orders guide, the agent builds orders in the site's own database with statuses pending, paid, fulfilled, cancelled and refunded, prices read from the database and stock deducted when the order is placed, and an admin Orders area with filters by status and Mark fulfilled and cancel buttons that record an order event. Its delivery guide adds zones, slots and a tracking page. Without payments, the thank you page says the owner confirms the order by email.

Questions people ask

What is the difference between fulfillment and shipping?

Shipping is one step of fulfillment: getting the parcel from the shop to the customer. Fulfillment includes everything around it, from confirming the order and reserving stock to picking, packing, handling returns and updating the customer. A shop can outsource shipping to a carrier and still do the rest of fulfillment itself.

How fast should online orders be dispatched?

As fast as you can reliably manage, and no slower than what you state at checkout. Many small shops promise dispatch within one to three business days. The important part is consistency: customers forgive a two day dispatch they were told about more readily than a surprise delay on a next day promise.

What is a back order?

A back order is an order for an item that is temporarily out of stock, accepted on the understanding that it will ship when stock arrives. Tell the customer the expected date before they pay. The page on pre-orders and back orders explains how they differ and when each makes sense.

What should go in the box besides the product?

At minimum, a packing slip listing the items so the customer can check the order, and the shop's contact details. Many shops add return instructions and a thank you card. If the customer needs a tax invoice for a business purchase, send it by email so it is easy to keep.

Who is responsible if a parcel is lost?

In most cases the seller is responsible until the goods reach the customer, which is why carriers offer tracking and insurance. Consumer law generally protects the buyer if goods never arrive. Keep tracking records, claim from the carrier, and replace or refund the customer without waiting for the carrier to settle.

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Written and checked by the OneCraft team. Last checked .