Insights from Forrester’s April 2024 Report on Ecommerce Fulfillment

I reviewed the 37-page Forrester report from April 2024, titled “Unleashing The Power Of E-Commerce Fulfillment.” Here are my notes.

Forrester surveyed 300 ecommerce merchants, from SMBs to enterprises, about ecommerce order fulfillment.

*Note: The report was commissioned by Amazon, so there may be a bias towards using FBA (Amazon’s outsourced fulfillment). Keep this in mind when the report advocates for outsourced fulfillment.

Key takeaways…

1️⃣ Order Fulfillment and Returns Impact Brand Loyalty

– 79% of customers say their decision to repurchase is heavily influenced by the order fulfillment experience.

– 78% are similarly influenced by the order return experience.

Yes, I can relate to this. Amazon’s drop-off in Whole Foods returns experience is phenomenal. A hassle-free return process encourages more purchases.

2️⃣ Reasons for Keeping Fulfillment In-House

– To maintain control over the fulfillment process (44%).

– To manage the returns process (41%).

– To control the brand and customer experience (48%).

This resonates with what I hear from our customers. Particularly, SMBs want strong control over the brand experience.

3️⃣ Challenges of In-House Fulfillment

– High logistics costs (43%).

– Handling spikes in order volumes (42%).

– Time spent managing fulfillment (41%).

This is why Ordoro exists.

– We reduce logistics costs through carrier partnerships and discounted rates.

– We help you manage order volume volatility.

– We automate your order fulfillment tasks.

Come talk to us!

4️⃣ Difficulty in Tracking Fulfillment KPIs

– Many ecommerce businesses struggle to track order fulfillment KPIs or effectively use the data they collect.

– SMBs have more difficulty with this than enterprises.

Absolutely. Enterprises have IT teams for this, but SMBs often do not. Another reason for Ordoro’s existence.

5️⃣ Focus on Improving Fulfillment Technologies

– 82% of ecommerce leaders aim to significantly improve their fulfillment technologies to better serve their customers.

Bring it on! We’re ready for you.

My takeaways…

– If you can run a tight and efficient in-house order fulfillment process, it’s the best option. You maintain strong control over order delivery, returns, and brand experience.

– If you can’t manage order fulfillment well, it’s better to choose a quality 3PL. But choose wisely, as a bad 3PL can harm your brand with a poor fulfillment experience.

In both scenarios, Ordoro can help.

– Our software supports in-house fulfillment.

– If you use a 3PL (we are not a 3PL), our software can route orders to your 3PL (many of our customers use 3PLs).

So, come talk to us at Ordoro.

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