Success or failure? The role of fulfillment in e-commerce

Sep/2024

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Reading: 2 min

Success or failure? The role of fulfillment in e-commerce

|

Reading: 2 min

Fulfillment dictates the success or failure of e-commerce, since the concept is primarily reflected in the customer satisfaction strategy. Present throughout the entire journey of an order, i.e. from the moment it is placed to the point at which the product is delivered to the consumer, fulfillment has numerous stages that result in a reduction in operating costs and delivery times.

The logistics solution gained popularity during the Covid-19 pandemic, when online sales boomed among Brazilians due to restrictive measures. During this period, around 13 million consumers made their first purchase online. 

Today, a beautiful store layout alone, combined with a functional sales funnel, does not determine the success of sales and business. This is because it is fulfillment that simplifies and optimizes the company's service chain, as well as synchronizing online and offline operations, making the delivery experience as good as the sales experience.  

It's no wonder that fulfillment is becoming increasingly popular in both B2C and B2B operations, as it provides agility and precision, both considered key terms in the dynamic and competitive world of e-commerce. Revolutionizing logistics, optimizing processes and, above all, enhancing the customer experience, the concept is already present on platforms such as Shopify and Amazon. This makes it possible for small and medium-sized companies to compete with big players in the market, for example.

According to the survey How Retailers Use Innovation to Gain an EdgeAccording to a study by the Boston Consulting Group (BCG) and the World Retail Congress (WRC), retail investment in technology is expected to increase by 20% in Latin America by 2027. After all, companies that monitor behavioral changes and consumer preferences through data, achieve a higher return on investment (ROI). Also according to the study, at a global level, the retailers that invest the most in innovation - an average of 13% - obtain a 2.3x higher ROI than those that invest only 3%.

By integrating automation and artificial intelligence, fulfillment has a technological synergy that enables a more cohesive, efficient and even sustainable operation. After all, it minimizes waste and improves energy efficiency, in line with the principles of green logistics, as well as facilitating reverse logistics through tracking and monitoring systems, while also predicting consumption patterns, which makes logistics more proactive.

In fact, implementing this solution requires significant changes in internal processes and, above all, the integration of new technologies. Consolidated as a crucial strategic solution for the competitiveness and success of modern businesses, fulfillment requires investment in specialists in the field, infrastructure and continuous innovation.

Therefore, entrepreneurs need to understand that the success of a brand is not strictly tied to the aesthetics of the store or an optimized sales pipeline, for example. Fulfillment is responsible for boosting consumer loyalty and, consequently, growth in turnover and net revenue, while it has become vital in the global supply chain. From ordering, picking, packing, logistics to after-sales, the model offers a series of benefits that will keep your business ahead of the competition.

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