This slides have details about fulfillment phase

1. FULFILLMENT
PHASE
Supun M Dissanayaka (B.SC)

2. E-commerce
is a transaction of
buying or selling
online.

3. Fulfillment ?
Fulfillment encompasses the entire
process of receiving an order and
delivering it to a customer.

4. 1.Warehouse organization
2.Order management
3.Packaging
4.Shipping
5.Customer communication
Focus Points

5. 1.Drop - Shipping
2.Third – Party Fulfillment
3.Self - Fulfillment
Common
Strategies

6. Drop - Shipping
• Inventory is not owned before the sale is made.
• The seller is a middleman, often never actually seeing or
“possessing” the product.
• But rather focusing on marketing products to customers and
making sales.
• Once goods are sold, the seller has them shipped directly to the
customer from a dedicated drop shipper, or the manufacturer.

8. • Easy to start
• Minimal business development
• Test before committing
• Focus on what you do well
• Lower risk
•No customization
•Lower quality
•Lower control
•Reduced brand power
“+” points
“-” points

9. Drop - Shippers

10. Third-Party Fulfillment
• Inventory is owned before the sale is made.
• The seller often purchases or manufactures the product.
• Stores the inventory with the third-party company.
• Then markets the product in order to sell it.
• When an order is processed, the third party packages the order
and ships it to the customer.

12. “+” points
“-” points
• Saves more time and effort
• No investment is required
• There is an added convenience of outsourcing
• Shipping discounts
• Quality can be reduced
• Higher fees
• Loss of direct control

13. 3rd Party Logistic Providers

14. Self-Fulfillment
• “Direct fulfillment” or “Merchant fulfillment”
• With self-fulfillment you own the inventory and fulfill orders
yourself .
• No outside party involved.
• You keep your products through your own storage.
• When a customer orders your product, you ship it by yourself.

16. “+” points
“-” points
• It offers 100% control
• Flexibility
• Less worries and distrust
• Anyone can do it
• It consumes more time and effort
• Requires larger initial capital
• It is costly as the business grows
• Warehouse space
• Warehouse equipment
• Additional staff
• Order fulfillment software requirements

17. Self – Fulfillment Providers

18. Summary
• Each strategy has their own advantage
• Not all suitable for every occasion
• Drop Shipping is the easiest to implement
• Self Fulfilment is with more control
• Third party is in between