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An estimated 165 billion packages are shipped in the US every year. And that number is growing at a rate of about 20% year-over-year. One of the reasons is that more people are shopping online than ever before, with an estimated 80% of the US population ordering products online.
Order management is complex and brings a lot of challenges for eCommerce brands. People expect short delivery times, but there are many steps in the process, from receiving an order to delivering a package.
The leading companies need top-notch processes and professionals to streamline their order processing and fulfillment operations, decrease costs, and meet customer expectations. One of the best ways to do that is by outsourcing your order management process.
Why is Order Management So Important?
Order management is a highly-visible process and step in the customer journey. And there is a lot that could go wrong.
A package must go from the supplier to the sorting facility, the warehouse, usually a larger shipping company, and then the last-mile delivery service. Sometimes, third-party delivery companies (3PLs) are involved, which adds another layer of complexity. To make things go as smoothly as possible, brands need a dedicated team of customer service reps who can answer customer concerns in real-time, troubleshoot issues, and deal with all parties involved.
Reasons to Outsource Order Management
Here are the main reasons for outsourcing your order management.
Accelerate Processing
Ecommerce fulfillment is a complex process and has a lot of steps. There are different touchpoints between the company, the customer, and the warehouse operations team. Brands need an efficient order management team to speed up processing and ensure it's all done as efficiently as possible.
Shorten Delivery Times
Sometimes the slightest mistake can cause a delivery delay of a day or two, which can frustrate customers. As an eCommerce business grows, it becomes more and more challenging to catch these mistakes in time. That's why there's an advantage to having an outsourced order management team to ensure each order is processed correctly.
Reduce Costs
For most retailers, the average cost to fulfill an order is 70% of the average order value. That's a lot of money, considering the most minor mistake can lead to the customer canceling or returning the product.
Resolve Problems More Effectively to Support Customer Retention
Customers expect flawless delivery on every order, and any mishap can cause them to defect to another supplier. Studies show that 69% of consumers are less likely to shop with a retailer if the order is not delivered within two days of the date promised. Brands that outsource their order management and improve delivery accuracy can significantly reduce the costs associated with churned customers and grow more sustainably into the future.
Hire a Top-Notch Order Management Team
The order management process is complex and has many moving parts. As a package switches hands between the supplier and the various shipping companies involved, many things could go wrong. Brands need a dedicated order management team to support customers, solve issues, and ensure that every order is processed and delivered on time.
Here at Helpware, we have a seasoned team of experts that can help you streamline your order management process. Want to learn more? Get started today.
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