Shopify Order Fulfillment for eCommerce: Cut Costs, Save Time, Win Customers

Efficient order fulfillment isn’t just a goal—it’s the key to happier customers, repeat sales, and a thriving Shopify store.

Even with a solid plan in place, small gaps in the process can lead to delayed deliveries, frustrated buyers, and a hit to your brand’s reputation. 

But here’s the good news: if you’re on Shopify, you’re already ahead. The platform’s robust tools and integrations make streamlining fulfillment faster, easier, and more cost-effective than ever.

However, this begs the question,

What is order fulfillment?

Order fulfillment is the complete product lifecycle, from when the customer places their purchase until it is safely delivered to its rightful place. 

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It is important to note that your order fulfillment on Shopify or any other platform is not limited to pick up and delivery alone. It also involves:

• Tracking and managing inventory to avoid overselling or stockouts.
• Processing orders to verify payment and organize items for shipping.
• Picking products accurately and packing them securely for delivery.
• Shipping orders promptly using reliable carriers.
• Handling returns efficiently to maintain customer trust.
• In case of missing or lost packages, you can try finding its location with delivery tracking. In case of no luck, you can also recover your losses with the help of insurance (which we strongly suggest you purchase. 

Easyship allows you insure domestic shipments starting from only 1% of the shipment value, including full policy coverage.

When done well, fulfillment reduces errors, speeds up delivery times, and keeps customers happy. Understanding this process is essential for success, whether starting or scaling your business.

So how do you get started?

This blog will discuss how you can set up your order fulfillment on Shopify to ensure you and your customers have a positive experience.

1. Setting up a shipping and Shopify order fulfillment checklist 

This checklist helps you form the foundation of your order fulfillment process on Shopify. 

Set up shipping rates and methods

Hidden or obscured check-out rates are one of the primary reasons your customers abandon carts. To avoid this, you can set up the shipping costs you’ll be charging your customers, including exact shipping costs, flat-rate shipping, and free shipping which are dynamic calculated based on the delivery address so your customers know what they’ll be charged. You can also set up a flat fee for shipping across the US or offer free shipping above a certain amount, for eg. free shipping threshold. 

Categorize your products with HS codes

HS codes are standardized nomenclature for shipping packages and are dependent on the type of retail item sent. It is crucial that you understand the different HS codes relevant to your store, and you need to add these when listing your products. With tools like Easyship, you can easily look up the HS codes of your items and select the most relevant one from the pre-populated drop-down.

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 Do not forget to add detailed descriptions and warnings like allergens, etc., to make them clear and legible for your consumers. 

Select your preferred packaging type

You can select your preferred packaging type on Shopify admin like boxes, and envelopes to suit your requirements. Some carriers like DHL Express, UPS, and USPS offer free packaging above a certain charge but you need to be vigilant. 

Print your shipping labels

If the customer pays for shipping, you will receive payment for the order for which you will need to print the final label. Depending on your Shopify plan, you will be charged for this label. 

2. Set up your location

Now its time  to set up your location (or locations) to track your delivery, inventory, and the overall fulfillment of your order.  For those with multiple warehouse locations, they  can add that to your Shopify admin to manage the  inventory. The same is applicable to different retail stores and even dropshippers, considering business models. 

Moreover, if one of your locations is running low on inventory and the other has plenty, you can split the order on Shopify and track the delivery from these two points of origin to ensure order fulfillment. 

You can also set up an order route to these fulfillment locations based on your custom route configuration or the default route based on your business requirements. 

3. Set up your shipping profile

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For Shopify, your shipping profile = shipping rules to streamline your workflow 

Your shipping profile sets the pathway to selling your specific products to specific locations. These profiles can be super general, which have a common rule for almost all products or they can be super specific, based on the nature of the packaging or the location it is being shipped. 

The general shipping profile is more like the default profile where all your products are automatically categorized into.

In the custom shipping profile, where you can create up to 99 of such profiles, adding clauses where required. 

For instance, if you are sending an overnight package, you can set up a shipping profile charging a $150 flat fee for the trouble. Or, have different rates for fragile items. 

4. Establish your delivery methods

Based on the location of your customers, you can either set up shipping and delivery or arrange for pick up from stores. 

Sometimes, local pickups are cheaper and more convenient options for your customers, which would help add to a fulfilling experience for them. 

5. Set up your shipment and delivery dates

This step of your order fulfillment journey on Shopify is all about setting up the right shipping labels, packages, barcodes, and shipping carriers.

Adding all the information like delivery address, package weight, and box dimensions helps with accurate processing, calculating the right shipping costs, and choosing the most suitable courier partner for the package. 

However, your package delivery is incomplete without adding the processing time and tentative delivery dates. It is important to add the processing time between when the order is placed and when the order is most likely fulfilled by the business. This range should be flexible and must have a buffer to avoid unforeseen delays and as a result, customer dissatisfaction. 

You can also set up default packages and other information on your Shopify admin.

6. Order status

This is the final page of your store checkout that gives your customers all the information they need about the order they have placed. You need to ensure that your order status page offers the following information:

• Latest status of the shipment.
• Real-time location of the shipment, especially if a third-party courier delivers it.
• Email id to contact you or your support in case of any help.
• An incentive to check out your online store.

With Easyship, you can create a customized tracking page that helps your customers know their shipment status in real-time, enables you to build a brand identity, increases trust, and enhances customer experience. 

This creates a consistent brand experience between your Shopify checkout and delivery while providing clear, timely shipping updates to keep customers informed every step of the way

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7. Managing inventory

Once your orders are shipped, it is time to check up on the store's and warehouse's stock and align their numbers accordingly for future orders. 

Effective inventory management is crucial for smooth fulfillment. Key strategies include:

• Track Stock Levels: Use Shopify’s inventory management system or integrate with 3PL software for real-time updates.
• Forecast Demand: Analyze historical sales data and present run rate to predict seasonal trends and avoid stockouts.
• Optimize Storage: Use multiple fulfillment centers to position inventory closer to customers, reducing shipping times and costs.

Order fulfillment is the process of delivering customer orders efficiently and accurately. For Shopify store owners, this includes managing inventory, processing orders, picking and packing products, and shipping them to customers. 

A smooth fulfillment process ensures timely delivery, customer satisfaction, and repeat business. Let’s dive into the different fulfillment options available to Shopify merchants and how you can choose the right strategy for your store.

Why Reliable Fulfillment Matters for Shopify Stores

Reliable fulfillment isn’t just about delivering products; it’s about meeting and exceeding customer expectations. Today, customers expect fast, free, or low-cost shipping. In fact, a research conducted by Oberlo suggests that 28.5% of shoppers expect same-day, next-day, or two-day delivery, and 53.2% say free shipping influences their buying decisions.

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As your Shopify store grows, managing fulfillment manually can become overwhelming. A poorly managed process can lead to shipping delays, lost orders, and unhappy customers, potentially damaging your reputation and bottom line. Investing in efficient fulfillment solutions helps you maintain high standards as your business scales.

Shopify’s Native Fulfillment Options

Shopify provides built-in tools to help merchants manage fulfillment, including Shopify Shipping and Shopify Fulfillment Network (SFN).

Shopify Shipping

Shopify Shipping allows you to:

• Buy and print shipping labels directly from your admin dashboard.
• Access discounted rates from major carriers like USPS, UPS, and DHL Express.
• Automatically calculate shipping rates for customers at checkout.
• Track shipments and provide tracking details to customers.

This option is a great starting point for smaller Shopify stores looking to streamline their shipping process. However, it may not offer the scalability or global reach required for larger operations.

Shopify Fulfillment Network (SFN)

SFN is Shopify’s answer to outsourced fulfillment. It offers:

• Distributed inventory across multiple fulfillment centers.
• Order routing optimization to reduce delivery times.
• Built-in integration with Shopify for seamless operations.
• Returns management to handle customer returns effectively.

While SFN is ideal for U.S.-based stores with simple product catalogs, it has limitations. For example, it’s currently unavailable for merchants outside the United States and may not support certain product types, such as perishables or regulated goods.

Fulfillment Methods for Shopify Sellers

Depending on your business size and needs, you can choose from several fulfillment methods:

1. Self-Fulfillment

This involves handling all fulfillment tasks yourself. It’s best suited for small businesses with manageable order volumes or merchants who sell handmade or customizable products. While self-fulfillment gives you complete control, it’s time-consuming and may become inefficient as your business grows.

2. Dropshipping

With dropshipping, suppliers handle inventory, picking, packing, and shipping on your behalf. This eliminates the need for inventory storage, making it an attractive option for new businesses. However, slower shipping times and less control over the process can negatively impact customer satisfaction.

3. Third-Party Logistics (3PL)

A 3PL provider stores your inventory, processes incoming orders, and ships products to customers. This option is ideal for growing businesses that need to scale fulfillment operations. While 3PLs require upfront investment, they save time, reduce operational complexity, and provide access to discounted shipping rates.

Partnering with a 3PL allows you to focus on running your business while they handle the logistics. A 3PL typically offers:

• Inventory Storage: Warehousing your products in strategically located facilities for faster delivery.
• Order Processing: Picking and packing orders with high accuracy.
• Shipping: Partnering with multiple carriers to secure better rates.
• Returns Management: Handling returns efficiently to maintain customer satisfaction.

For example, a Shopify merchant selling fitness equipment might use a 3PL to manage seasonal surges in demand. By outsourcing fulfillment, they can ensure timely delivery during peak periods without hiring additional staff or renting warehouse space.

If you want a 3PL partner that takes care of your end to end shipping journey, try Easyship. With 99.8% order fulfillment accuracy, Easyship not only delivers but delivers your precious cargo safely and accurately!

Comparing Shopify SFN and 3PL Fulfillment

When deciding between Shopify SFN and a 3PL provider, consider these factors:

• Scalability: SFN supports limited order volumes, while 3PLs can handle large-scale operations and seasonal spikes.
• Global Reach: SFN is U.S.-focused, whereas many 3PLs have warehouses worldwide for faster international shipping.
• Customization: 3PLs often offer custom packaging and specialized handling, which SFN may not provide.
• Technology: Leading 3PLs provide advanced analytics and real-time inventory tracking.

If your business has a global customer base or complex fulfillment needs, a 3PL offers greater flexibility and scalability than Shopify’s native options.

Make Shopify order fulfillment easy with Easyship 

Easyship provides a seamless, global eCommerce fulfillment solution tailored to Shopify merchants. With Easyship, you can streamline your order fulfillment process, reduce costs, and expand your global reach effortlessly.

Benefits of Easyship Fulfillment Services:

• Cost-Effective Solutions: Access discounted shipping rates and reduce overhead costs by leveraging Easyship’s global scale and strategic warehouse locations.
• Global Reach: Ship to 220+ destinations with a single, scalable partner. Easyship’s network ensures your products reach customers faster.
• Custom Fulfillment: Tailor services to your brand’s unique needs, from custom packaging to optimized shipping routes.
• Operational Accuracy: Achieve a 99.8% operational accuracy rate with Easyship’s advanced fulfillment technology.
• Customer Satisfaction: Improve delivery times, provide transparent tracking, and enhance the customer experience with branded tracking pages and incentives for repeat purchases.

Key Features:

• Integrated Courier Solutions: Compare pre-negotiated rates across multiple carriers for the most cost-effective shipping option.
• Global Fulfillment Centers: Easyship’s warehouses across four continents bring inventory closer to your customers, reducing shipping times and costs.
• Advanced Tools: Use Easyship’s universal API and integrations to connect seamlessly with your Shopify store, ensuring smooth operations and complete visibility.

Start simplifying your Shopify order fulfillment today with Easyship. Create your free account or speak to an expert to learn more!

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FAQs

How does order fulfillment work on Shopify?

Order fulfillment on Shopify begins when a customer places an order. The process includes verifying payment, preparing the order for shipping, and updating the order status to inform customers. Merchants can choose between manual and automatic fulfillment. For businesses seeking advanced options, third-party logistics (3PL) or Shopify Fulfillment Network (SFN) can manage storage, picking, packing, and shipping.

How do I change my Shopify order from fulfilled to unfulfilled?

To change an order status from fulfilled to unfulfilled on Shopify:

1. Navigate to your Shopify admin and go to the "Orders" section.
2. Select the specific order you want to update.
3. Click "More Actions" and choose "Mark as unfulfilled."
4. Confirm the change. This action removes the fulfillment status, allowing you to edit the order or process it again.

What happens when you hold fulfillment on Shopify?

Holding fulfillment on Shopify pauses the order processing. This is useful for managing stock issues, handling pre-orders, or waiting for additional customer details. When fulfillment is on hold, the order remains in your system without triggering shipment actions, ensuring you have time to resolve any issues before proceeding.

Is Shopify fulfillment network worth it?

Shopify Fulfillment Network (SFN) is worth considering for U.S.-based merchants with straightforward product catalogs and domestic customers. It simplifies order fulfillment by offering distributed inventory, returns management, and integration with Shopify. However, it has limitations, such as restricted global reach and product type constraints.