The E-commerce industry is growing at an exciting rate of about 15% every year. Several reasons have motivated the trend of online shopping to increase in 2020, and Covid-19 is obviously among them. With the impacts of COVID increasing online shopping drastically in Q2-Q3, we can be certain that Q4 will show it’s the highest volume of shoppers in history. Of course, you know this already! What you might not know are these top 3 metrics to measure to improve your e-commerce holiday fulfillment success this season.
Foolproof holiday fulfillment strategy
It is worth noting that e-commerce orders increase during the holidays and most online stores struggle to deliver. That is why you need to come up with a foolproof holiday fulfillment strategy to ensure that your customers get what they need in time. In order to come up with a good improvement strategy, you have to evaluate order fulfillment metrics in order to identify the best way to improve your holiday fulfillment. Here are the critical metrics you should look at.
1.) How Holiday Fulfillment Plays in Customer Satisfaction
As you are aware, customer experience has a significant impact on the bottom line of business. This is why customer satisfaction in your order fulfillment should be a key area to focus on. You can look into several factors to identify if you are able to achieve customer satisfaction. That is, complaints, number of returns, positive reviews, and if the goods are delivered on time.
Slow delivery and the delivery of wrong items will make customers unhappy. Through customer complaints and a record of returned items, you can tell the areas you need to improve. Note that if you are struggling to achieve that level of satisfaction during this time, then during the holiday season, it could get a lot worse.
Look at customer satisfaction and identify ways you can improve it in preparation for holiday fulfillment.
2. Speed & Accuracy in Holiday Fulfillment
When looking at the speed and accuracy of order fulfillment, you are looking at metrics such as whether the orders are picked over the planned intended hours. Also, you need to look at the time it takes to process an order: the fulfillment cycle time and if the number of accurate orders over the total number of picked ones.
Slow order fulfillment and the delivery of wrong orders are the things that frustrate customers the most. There is usually a lot going on during the holiday season with so many orders coming in. Mistakes are likely to be made, and the wrong orders are delivered and tons of delays. Create a strategy that covers the areas of speed of delivery and to ensure the accuracy of orders.
3. e-Commerce Fulfillment Costs
It will help if you optimize your online store operations so that costs are kept at a minimum. Note that customers want a shipping solution that will not cost an arm and leg. It would help if you looked at ways you can reduce costs and minimize wastage in order to be able to have competitive prices.
The metrics you should be looking at are the percentage of inventory loss, storage space utilization, and inventory turnover. Note that inventory loss leads to a lot of wastage, which will hurt your bottom line. Storage, insurance, carrier rates, and labor are some of the costs that lead to the overall increase in fulfillment costs.
By keeping the costs low, you will be able to give your customers low-shipping price options. The areas mentioned above that are storage, inventory loss, and labor are some of the areas you can work on to reduce costs.
A lot of spending accompanies the holiday season, hence online shopping. In order to get the most out of this opportunity, you should be able to satisfy your customers. That way, they will return and even refer you. Having a cost reduction strategy will also give you a competitive advantage as online retailers with low shipping costs attract customers. With all the above metrics in mind, you will increase turnover, satisfy customers, and reduce costs.