What is Shopify Fulfillment?

Are you interested in growing your eCommerce business using the Shopify eCommerce platform? You’re not alone. Shopify powered over one million online stores as of 2023. But there are challenges any eCommerce merchant must tackle to be successful. One key challenge: eCommerce fulfillment.   

There are many ways to optimize your eCommerce fulfillment with Shopify, whether through Shopify’s own fulfillment service or through other strategies.  

Let’s dive deep into Shopify, Shopify fulfillment services, and other outsourced eCommerce fulfillment options for both emerging and enterprise brands.  

In this article, we answer these questions: 

Shopify is a full-service eCommerce platform that allows merchants to build online stores, market to potential customers, sell products, and accept payments. The platform allows sellers to connect their product catalogs to online marketplaces like Amazon, Walmart, and eBay, as well as via social media, search, and through emerging channels like TikTok Shop. Shopify also helps both emerging and enterprise eCommerce merchants manage their eCommerce by outsourcing eCommerce fulfillment to Shopify’s fulfillment service, Shopify Fulfillment Network (SFN). The Shopify Fulfillment network is a network of Shopify warehouses designed for order management, inventory management and order fulfillment on behalf of Shopify merchants. 

eCommerce fulfillment is the process of receiving, processing, packaging, and delivering online orders to customers. It encompasses everything from order management, inventory management, warehousing, packaging, shipping, and returns (also known as reverse logistics).  

All growing eCommerce merchants need to tackle an eCommerce fulfillment strategy to fulfill customer expectations, ensure customer satisfaction, and grow revenue successfully. A fulfillment strategy aims to ensure customers receive their orders accurately and promptly while maintaining efficiency and cost-effectiveness. 

From order processing to inventory management and warehousing to shipping and returns management, every step of the fulfillment process plays a pivotal role in delivering a seamless customer experience. 

eCommerce merchants put in a lot of effort to set up their Shopify sites, launch products, and win customers. And it can all unravel due to poor eCommerce fulfillment. Here are reasons to prioritize efficient and effective fulfillment: 

The first step for growing online brands: understand how you intend to fulfill online orders before launching on Shopify. Consider the packaging, technology, warehousing or other storage, transportation requirements, international shipping, and much more required to fulfill orders successfully. Answer these three questions: 

There’s good news: you have options—from Shopify eCommerce fulfillment to third-party logistics providers (3PLs). 

Shopify powered over one million online stores as of 2023. It’s popular for a reason: Shopify provided significant functionality, programs, partnerships, and integrations for eCommerce merchants. But how does Shopify’s eCommerce fulfillment work?  

The Shopify Fulfillment Network (SFN) provides Shopify order fulfillment services brands can use to store inventory and manage orders. Shopify leverages a network of Shopify warehouses and fulfillment centers in the US. It also works with UPS, DHL, USPS and other shippers to deliver orders. To use the Shopify Fulfillment Network, eCommerce merchants must sell in the US, have an active Shopify Payments account, and meet Shopify’s other eligibility parameters. 

Shopify’s fulfillment solution may not be for every eCommerce retailer. Many leading eCommerce brands instead leverage dropshipping, in-house fulfillment, or third-party logistics providers to drive growth and reduce costs. 

Dropshipping is a fulfillment model where the eCommerce business doesn’t hold inventory or handle product fulfillment directly. Rather, when a customer places an order, the business forwards the order details to a supplier or manufacturer, who then ships the products directly to the customer. 

The eCommerce business acts as an intermediary, taking orders and payments from customers and passing on the order information to the supplier for fulfillment. Dropshipping eliminates the need for inventory management and upfront investment in stock. Instead, instead focus on marketing, customer acquisition, and building their online presence.  

There are potential drawbacks. Dropshipping may result in less control over product availability, shipping times, and customer experience, as these aspects are managed by the supplier. 

With an in-house fulfillment model, also known as merchant fulfillment, the Shopify merchant handles all aspects of the fulfillment process internally. That includes warehousing, inventory management, order processing, picking, packing, kitting or gift wrapping, shipping, and returns. 

The business maintains its own fulfillment centers or warehouses to store inventory, and the entire fulfillment process is managed by the merchant’s own staff.  

In-house fulfillment provides large and small businesses with greater control over the fulfillment process and allows for more customization and flexibility. But it requires significant infrastructure, resources, and expertise to effectively manage order fulfillment operations. 

Many growing eCommerce retailers outsource fulfillment to third-party logistics partners (3PLs). 3PLs are specialized fulfillment companies that manage warehousing, inventory storage, order processing, kitting or gift wrapping, shipping, and returns on behalf of merchants.  

The 3PL provider typically has expertise in fulfillment operations, established warehousing infrastructure, and advanced systems to handle the entire process efficiently. This model allows businesses to focus on core activities such as marketing and product development, while relying on the expertise of the 3PL provider for an efficient order fulfillment process. It offers scalability, reduces operational costs, and provides access to specialized fulfillment services.  

Other ways 3PLs make eCommerce fulfillment simple, scalable, and customizable for Shopify merchants: 

The best fulfillment services or best 3PL provider for Shopify may vary based on a variety of factors, but specialized logistics partners can make growing eCommerce on Shopify simpler—from the shopping cart to order delivery. 

Radial is a trusted partner for Shopify merchants seeking to grow their eCommerce businesses quickly, efficiently, and profitably. We offer tailored and scalable eCommerce fulfillment for emerging and enterprise brands—from click to delivery. Shopify merchants meet their fulfillment promises, and customer expectations, while reducing overhead and boosting profitability.  

With fulfillment centers across the globe, Radial helps Shopify merchants: 

Global brands have trusted Radial for 30+ years to help them deliver a distinctive consumer experience through tailored, personalized and scalable solutions. We partner with clients across Europe and North America with technologies such as advanced eCommerce fulfillment omnichannel order management, as well as payment and fraud management. 

Delivering brand promises is simple with Radial and Shopify fulfillment. With our Shopify certification and Radial Fulfillment App, Radial leverages an in-depth platform understanding and offers expert insights. Plus, our access to Shopify’s resources ensures Radial stands as a prime choice for eCommerce businesses seeking to enhance their logistics and fulfillment.  

The Radial Fulfillment App automatically integrates Shopify webstores with Radial Systems through APIs. Once integrated, Radial will be able to pull the orders from the webstore and ship them to customers. Radial updates the order status on webstore with tracking information as soon as orders are shipped. Partner with Radial to: 

In cases where customers want to return a product, Radial’s integration with Shopify also includes managing returns and providing customer support. This may involve processing returns, issuing refunds or exchanges, and addressing customer inquiries or complaints. It typically consists of the following functions: 
 

You tackle the toughest parts of starting, scaling, and succeeding in eCommerce with Shopify. You deserve a logistics partner with deep industry expertise, extensive market reach, and the innovative approach necessary to drive seamless eCommerce fulfillment.  

Learn more about how Radial helps Shopify merchants succeed with tailored approaches to eCommerce and beyond—from click to delivery.  

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