E-Commerce & Online Business · Intermediate level

Intermediate level · Module 3: Inventory and Order Management · Lesson 2 of 3

Fulfilment Workflow

Pick, pack and ship orders correctly every time.

In this lesson you will

  • Design a fulfilment workflow
  • Calculate profit per order

Key concepts

pick, pack, shippacking checksorder statusorder profit

The lesson

Fulfilment steps: receive and confirm the order, pick items, check, pack, dispatch, update status and notify the customer.

A packing check against the order prevents wrong items.

Know your profit per order after product, packaging, delivery, payment fees and advertising.

Step by step

  1. Write the fulfilment steps.
  2. Create a packing checklist.
  3. Process test orders.
  4. Calculate profit per order.
Worked calculation

What does one order really earn?

Counting every cost in an online order for a 25,000 SSP bag.

Amounts in SSP for one order (illustrative; check your provider's actual fees)
ItemWorkingAmount
Customer paysbag 25,000 + delivery fee 2,00027,000
Product costfrom supplier12,000
Packagingbag, tissue and sticker1,000
Rideractual delivery cost3,000
Payment fee1% × 25,000 (illustrative)250
Advertising per orderad spend ÷ orders from ads2,500
Profit per order27,000 − 18,7508,250 (30.6%)

Explanation

The bag's 'margin' looks like 13,000 SSP (25,000 − 12,000), but after packaging, the delivery shortfall, fees and ads the real profit is 8,250 SSP.

Charging 2,000 SSP for a 3,000 SSP delivery costs 1,000 SSP every order — worth fixing with a higher fee, free delivery above a minimum spend, or batching deliveries.

Check your understanding

12,000 + 1,000 + 3,000 + 250 + 2,500 = 18,750.

Practice activity

Document fulfilment and calculate order profit.

Expected result: A fulfilment procedure and order profit calculation.

Check your understanding

  1. What prevents wrong items being sent?

    Show answer

    A packing check against the order.

  2. Name four costs in an order.

    Show answer

    Product, packaging, delivery, payment fees or advertising.

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