How eCommerce Inventory Management Software Solves Fulfillment Issues

Tackle Fulfillment Issues With eCommerce Inventory Management Software

Having been in business for more than 40 years, we know how challenging it is to run and grow a company. Successful leaders constantly have to balance the time and attention they give to advancing important strategic initiatives that ignite growth while dealing with the “fires” that occur in day-to-day operations.

7 Common Fulfillment Issues That Cost You Money

The game of business is tough enough without fulfillment problems making you feel like you’ve got one hand tied behind your back. These common order fulfillment issues cost you money and time and can ultimately hinder the growth of your business.

#1 Mismanaged International Shipments

If you’re an online retailer who’s expanded into international markets, congratulations! It’s pretty cool that eCommerce makes it possible for people all over the world to access your brand. However, shipping internationally presents some complex challenges that, without expertise, can cripple your ability to get products into your customer’s hands.

#2 Poor Inventory Management

The advent of eCommerce has allowed consumers to directly impact the supply chain more than ever before. Brands are expected to quickly fulfill single-item or small orders, which makes keeping inventory up to date more challenging than ever. 

Counting by hand and tracking inventory in a spreadsheet is sure to lead to issues such as overstocking, mispicks, out-of-stock selling, and others. Out-of-stock selling and mispicks are two issues that are sure to erode your customers’ trust in your brand. Once customers begin to doubt that your company can deliver up to their expectations, it becomes increasingly costly to win them back — even with discounts and other incentives.

To avoid these pitfalls, utilizing advanced eCommerce inventory management software is crucial. Inventory management software for eCommerce provides real-time updates and analytics, ensuring that your inventory is always accurate and ready to meet customer demands.

#3 Lost Time Managing Exceptions

Why spend money on inventory management software for eCommerce when you’re not really losing that much money without it? The truth is, you’re probably wasting and losing much more money than you realize. When you take your focus away from the strategic growth of your business, you may not feel the financial impact right away. Spending time troubleshooting fulfillment issues is an urgent task, but it doesn’t help advance your business forward or achieve your goals. If you’re spending time fixing an issue, you’re not making money; you’re losing it.

#4 Inaccurate Order Picking and Packing

Mistakes during the picking and packing process, such as selecting the wrong item or failing to properly package products, can create a ripple effect of costly issues for eCommerce businesses. When incorrect or damaged items are shipped, your company not only incurs the direct costs of processing returns and replacements but also has to manage the associated shipping fees. With the best eCommerce inventory management software​, these mistakes will be a thing of the past!

It is also worth noting that these errors negatively impact the customer experience, leading to frustration, dissatisfaction, and a loss of trust in your brand. Over time, this can result in fewer repeat customers, higher churn rates, and potentially damaging reviews, all of which can have a significant long-term effect on revenue and brand reputation. Streamlining and improving the accuracy of the fulfillment process is critical to avoiding these costly mistakes.

#5 Overstocking and Stockouts

Overstocking and stockouts represent two sides of the same coin. Both stem from ineffective demand forecasting and poor inventory management, increasing the risk of significant financial consequences. Fortunately, both can be solved by utilizing the best eCommerce inventory management software. 

Overstocking occurs when a business holds excess inventory, tying up valuable capital in products that may sit unsold for extended periods. This not only increases storage costs and the risk of inventory obsolescence but also reduces liquidity, limiting the company’s ability to invest in other growth opportunities. On the flip side, stockouts occur when demand exceeds available supply, leading to missed sales opportunities and disappointed customers. Frequent stockouts can drive customers to competitors, reducing the company’s market share and harming long-term customer loyalty. 

Either scenario — whether too much or too little stock — highlights the importance of precise demand forecasting and real-time inventory tracking. Failing to strike the right balance can severely impact profitability and overall business performance.

#6 High Return Rates Due to Poor Quality Control

When products arrive damaged or do not meet customer expectations, high return rates can quickly become a significant financial burden for eCommerce companies. Returns not only mean lost sales, but the costs associated with managing these returns — often referred to as “reverse logistics” — are substantial. These include shipping fees for returning the product, inspecting and restocking the item, and, in many cases, refurbishing or even discarding damaged goods. 

Beyond the logistical expenses, high return rates increase the strain on customer service teams, as they must handle inquiries, process refunds, and resolve complaints, all of which require time and resources. As well, frequent returns can lead to customer frustration and damage to brand reputation, potentially driving away future business. 

The cumulative effect of these issues can erode profit margins and significantly increase operational costs, making it critical for eCommerce companies to ensure that products are accurately described, well-packaged, and properly handled throughout the fulfillment process. Effective quality control and clear product descriptions are key to reducing return rates and protecting the bottom line.

#7 Delayed Shipping Times

Failing to meet promised shipping deadlines can have far-reaching consequences for eCommerce companies. When customers expect their orders to arrive by a specific date and that expectation isn't met, frustration and disappointment are often the result. This dissatisfaction can lead to customers requesting refunds or even canceling their orders, directly impacting a company's revenue. 

Additionally, delayed shipments often cause customers to leave negative reviews, publicly criticizing the brand's reliability. These negative reviews can significantly damage a company's 

reputation, as potential customers often rely on reviews to make purchasing decisions. Over time, a pattern of missed deadlines can erode trust, making it harder to retain existing customers or attract new ones. 

The cost of lost customer loyalty, combined with the immediate financial impact of refunds and returns, can severely hinder future sales. To avoid these risks, businesses need to implement robust shipping processes, partner with reliable carriers, and provide clear communication about any potential delays to manage customer expectations effectively.

Leverage The Best Inventory Management Software for eCommerce

An expert 3PL partner can help you avoid all of these fulfillment pitfalls. With eCommerce inventory management software that integrates with your eCommerce platform, a responsive customer service team, and more than four decades of experience solving complex fulfillment problems, Materialogic is ready to help. By leveraging our state-of-the-art software and industry expertise, we streamline your fulfillment process and eliminate inefficiencies.

Stop letting fulfillment issues limit your business’s potential. Contact us today and let’s start a conversation about getting your company up and running on the best inventory management software for eCommerce​!