Order fulfilment is one of those logistics terms that gets used a lot, but rarely explained properly. At its core, it covers everything that happens after a customer places an order, right through to delivery at their door. For eCommerce businesses, it plays a huge role in customer satisfaction, repeat purchases and long term growth.
In logistics, order fulfilment brings together inventory control, warehouse operations, packing, shipping and returns. When it works well, customers receive their orders quickly and accurately. When it doesn’t, even the best marketing and products can fall flat.
This guide breaks down what order fulfilment really involves, how the process works behind the scenes, and the main fulfilment models businesses use as they grow.
What Does Order Fulfilment Actually Mean?
Order fulfilment in logistics refers to the complete process of receiving, processing and delivering customer orders. It starts the moment an order is placed and finishes only once the product has arrived safely with the customer or been returned if needed.
For most online retailers, this includes inventory management, order processing, picking and packing, shipping and delivery tracking. Many businesses also factor returns management into their fulfilment setup, as handling returns efficiently has become a standard customer expectation.
How the Order Fulfilment Process Works
Although fulfilment can look different depending on the business, the core steps are broadly the same across eCommerce and logistics operations.
Receiving and Processing Orders
The fulfilment process begins when a customer places an order through an online sales channel. This might be a website built on WooCommerce or Shopify, or a marketplace such as Amazon or eBay. Once the order comes through, it is checked for accuracy, including product details, quantities and delivery information, before being passed into the fulfilment workflow.
Inventory Management
Inventory management sits at the heart of effective order fulfilment. Stock levels need to be monitored constantly to ensure products are available when customers place orders. Many fulfilment operations rely on warehouse management systems to keep inventory data accurate across multiple sales channels, helping to avoid stock shortages or excess inventory.
For growing eCommerce brands, working with a third party logistics provider that already has inventory systems in place can remove a lot of operational pressure as order volumes increase.
Picking and Packing
Once an order is approved and stock is confirmed, it moves to the picking and packing stage. Products are collected from their storage locations and prepared for dispatch. Careful packing is essential to protect items in transit and reduce the risk of damage or returns.
This stage is particularly important for businesses shipping high volumes, where consistency and accuracy can make a noticeable difference to delivery performance and customer feedback.
Shipping and Logistics
After packing, orders are labelled and handed over to couriers for delivery. Logistics decisions at this stage are influenced by delivery speed, shipping costs and customer expectations. Many fulfilment operations work with multiple couriers to balance reliability and cost effectiveness, especially for next day or international deliveries.
Marketplace sellers often have additional requirements here, particularly when fulfilling orders through programmes such as Amazon FBA or seller fulfilled models, where delivery performance is closely monitored.
Order Tracking and Delivery
Once dispatched, customers expect visibility over their order. Providing tracking details allows customers to follow their delivery and reduces the need for customer support queries. When the order is successfully delivered, the fulfilment cycle is complete, unless a return is requested.
The Main Types of Order Fulfilment
There is no single fulfilment model that works for every business. Most companies choose an approach based on order volume, available resources and growth plans.
In House Fulfilment
In house fulfilment means managing the entire fulfilment process internally. This approach gives businesses direct control over stock, packing and shipping, which can be useful in the early stages of growth. However, as order volumes increase, in house fulfilment often requires more space, staff and systems, which can slow expansion if logistics becomes too demanding.
Outsourced Fulfilment and 3PL
Outsourced fulfilment involves working with a third party logistics provider to handle storage, packing and shipping. Many eCommerce businesses move to this model as they scale, using external expertise and infrastructure to support higher order volumes.
Understanding how 3PL services work and what they cover is an important step when deciding whether outsourcing fulfilment is the right move for a business.
Dropshipping
Dropshipping is a fulfilment method where products are shipped directly from the supplier to the customer. The retailer does not hold inventory themselves, which reduces upfront costs and storage requirements. While this model can be attractive for new sellers, it often comes with less control over shipping times and product quality.
Want to start your dropshipping business? Check out our beginner’s guide to dropshipping blog now.
Crowdsourced Fulfilment
Crowdsourced fulfilment relies on flexible networks of independent workers to pick, pack and ship orders. This approach can be useful for managing seasonal demand or unpredictable order spikes, allowing businesses to scale fulfilment capacity up or down without fixed overheads.
Why Order Fulfilment Matters in Logistics
Order fulfilment has a direct impact on customer experience. Late deliveries, incorrect orders or poor communication can quickly lead to negative reviews and lost customers. On the other hand, fast and reliable fulfilment helps build trust and encourages repeat purchases.
For eCommerce brands, fulfilment also affects costs, operational efficiency and the ability to expand into new sales channels. As order volumes grow, having a fulfilment setup that can adapt without disrupting the business becomes increasingly important.
Order Fulfilment with PackPro
For many growing eCommerce brands, fulfilment eventually becomes too complex to manage in house. This is where working with an experienced fulfilment warehouse can provide structure and support as order volumes increase.
PackPro Fulfilment supports businesses across a range of industries, including fashion, beauty, subscription brands and multi channel sellers. By providing warehousing, inventory management, picking, packing and shipping services, PackPro helps brands manage day to day fulfilment while focusing on growth.
Rather than offering a one size fits all approach, PackPro works with businesses to support their specific operational needs, whether that involves handling higher order volumes, managing returns or fulfilling orders across multiple sales channels.
List of Some of the Industries we Work With
Frequently Asked Questions About Order Fulfilment
What is order fulfilment in logistics?
Order fulfilment in logistics is the process of receiving, processing, packing and delivering customer orders. It covers everything from inventory management and picking through to shipping, delivery tracking and returns.
What are the main steps in the order fulfilment process?
The order fulfilment process typically includes receiving and processing orders, managing inventory, picking and packing items, shipping orders to customers and handling any returns or exchanges.
Why is order fulfilment important for eCommerce businesses?
Order fulfilment plays a key role in customer satisfaction. Accurate, fast deliveries help build trust, reduce negative reviews and encourage repeat purchases, while poor fulfilment can lead to lost customers and higher return rates.
How does order fulfilment differ by industry?
Fulfilment requirements vary by industry. Fashion brands often manage high return volumes, health and beauty products may require careful handling or batch tracking, and subscription brands usually prioritise speed and consistency across repeat orders.
What is the difference between in-house fulfilment and outsourced fulfilment?
In-house fulfilment is managed entirely by the business, while outsourced fulfilment involves working with a third party logistics provider. Many growing businesses choose outsourced fulfilment as order volumes increase and operations become more complex.
What is a third party logistics provider?
A third party logistics provider, often referred to as a 3PL, is a company that handles fulfilment services such as warehousing, inventory management, picking, packing and shipping on behalf of a business.
Should a business use more than one next day courier
Many ecommerce brands use more than one courier to balance cost, coverage, and service levels. This allows lightweight parcels to be sent through lower cost networks while premium services handle high value or urgent orders.
When should a business consider outsourcing order fulfilment?
Many businesses consider outsourcing order fulfilment when order volumes grow, stock management becomes harder to control or when selling across multiple channels creates operational pressure.