The Ecommerce Fulfilment Process Explained: From Order to Delivery

From storage and picking to packing and shipping, ecommerce fulfilment is the engine room of any successful online business. 

So how do ecommerce fulfilment services actually work? And what role do warehouses, 3PL providers and logistics partners play behind the scenes?

This in-depth guide breaks down the entire ecommerce fulfilment process, step by step. Whether you’re a startup founder, a growing DTC brand, or an established retailer exploring outsourced warehouse services, you’ll walk away knowing exactly what happens from the moment a customer clicks Buy Now to when their parcel lands on the doorstep. Let's get into it:

What Is Ecommerce Fulfilment?

The Ecommerce fulfilment process includes storing products, processing customer orders, packing items, and delivering them to the final customer.

In practical terms, it covers:

• Receiving and storing stock
• Managing inventory
• Picking and packing orders
• Shipping parcels
• Handling returns

Fulfilment can be handled in-house or outsourced to a 3PL(third-party logistics) provider that specialises in warehouse services and distribution.

How Does Ecommerce Fulfilment Work?

At its core, ecommerce fulfilment follows a predictable lifecycle. Let’s break it down into clear, manageable stages.

Step 1: Receiving Inventory

Before a single order can be shipped, your products need somewhere tolive.

Inbound Stock Management

Inventory typically arrives at a fulfilment warehouse from:

• Manufacturers
• Wholesalers
• Import hubs or ports

At this stage, warehouse teams:

• Count and inspect goods
• Check for damage
• Match deliveries against purchase orders
• Log stock into inventory systems

A professional 3PL provider will use barcode scanning and warehouse management software (WMS) to ensure accuracy from day one.

Why this matters: Errors at receiving create stock discrepancies that ripple through your entire operation.

Step 2:Warehousing and Storage

Once received, products are stored safely and efficiently within the warehouse.

Smart Warehouse Services

Modern ecommerce warehouse services are designed to:

• Maximise space utilisation
• Improve picking speed
• Reduce errors

Depending on your product type, stock may be stored on:

• Pallet racking
• Shelving units
• Bins or totes
• Climate-controlled areas (for cosmetics, food, or supplements)

A good 3PL provider will assign storage locations based on:

• Product size and weight
• Sales velocity
• Order patterns

Fast-moving SKUs are placed closer to packing stations to speed up fulfilment.

Step 3: Inventory Management and Stock Control

Inventory management is the backbone of ecommerce fulfilment.

Real-Time Stock Visibility

Your fulfilment system should update stock levels automatically when:

• New inventory arrives
• Orders are shipped
• Returns are processed

This prevents:

• Overselling
• Stockouts
• Manual reconciliation nightmares

Most fulfilment providers integrate directly with platforms like Shopify, WooCommerce, Magento, or Amazon, syncing stock in real time.

Step 4: Order Processing

This is where ecommerce fulfilment really kicks into gear.

What Happens When a Customer Places an Order?

The moment an order is placed:

• Order data flows from your ecommerce platform to the fulfilment system
• The order is queued for picking
• Shipping rules and preferences are applied

Automation is critical here. A reliable 3PL provider ensures orders are processed quickly, accurately, and without manual intervention.

Step 5: Picking the Order

Picking is the process of retrieving the correct items from storage.

CommonPicking Methods in Ecommerce Fulfilment

• Single-order picking: One order at a time (ideal for low volume)
• Batch picking: Multiple orders picked simultaneously
• Zone picking: Pickers operate in assigned warehouse zones
• Wave picking: Orders released in timed waves for efficiency

High-volume fulfilment centres use a mix of methods to balance speed andaccuracy.

Accuracy matters: One wrong item can mean returns, refunds, and unhappy customers.

Step 6: Packing and Quality Checks

Once picked, items move to packing stations.

The Packing Process

At this stage, warehouse teams:

• Verify items against the order
• Select appropriate packaging
• Add protective materials
• Include branded inserts or returns paperwork
• Seal and label parcels

Many ecommerce brands use fulfilment as a branding opportunity, with:

• Custom boxes
• Branded tape
• Thank-you cards

A professional fulfilment operation balances presentation with cost efficiency.

Step 7: Shipping and Carrier Selection

Shipping is where ecommerce fulfilment meets customer expectations.

Choosing the Right Delivery Options

Fulfilment warehouses work with multiple carriers, such as:

• Royal Mail
• DPD
• Evri
• UPS
• DHL

Orders are assigned shipping services based on:

• Destination
• Delivery speed selected at checkout
• Parcel size and weight
• Cost efficiency

Advanced 3PL providers automatically select the best carrier for each order.

Customer impact: Fast, reliable delivery is one of the biggest drivers of repeat purchases.

Step 8: Last-Mile Delivery

The final mile is the most visible part of the fulfilment process, and often the most challenging.

What Customers Experience

Customers expect:

• Accurate delivery estimates
• Tracking notifications
• Safe, on-time delivery

Fulfilment performance here directly affects:

• Reviews
• Brand trust
• Customer lifetime value

This is why many ecommerce brands choose a 3PL provider with strong carrier relationships and proven delivery performance.

Step 9: Returns Management

Returns are an unavoidable part of ecommerce.

Reverse Logistics Explained

When a customer sends an item back:

• The parcel is received at the warehouse
• Items are inspected
• Stock is restocked, refurbished, or disposed of
• Inventory levels are updated

Efficient returns processing protects margins and improves customer satisfaction.

Pro tip: A clear, easy returns process can actually increase conversions.

In-House Fulfilment vs Outsourced Fulfilment

So, should you manage fulfilment yourself or partner with a 3PL?

In-House Ecommerce Fulfilment

Pros:

• Full control
• Direct oversight
• Potentially lower costs at very small volumes

Cons:

• Limited scalability
• High overheads
• Time-consuming operations
• Storage constraints

Outsourced Fulfilment with a 3PL Provider

Pros:

• Scales with your business
• Access to professional warehouse services
• Faster delivery options
• Reduced operational headaches

Cons:

• Monthly fees
• Less hands-on control
• Requires careful provider selection

For most growing ecommerce brands, outsourcing becomes the logical nextstep once order volumes increase.

What to Look for in a 3PL Provider

Not all fulfilment partners are created equal.

Key Criteria to Consider

• Technology: Real-time inventory and order tracking
• Location: UK-based warehouses for faster delivery
• Scalability: Ability to handle seasonal peaks
• Carrier options: Competitive shipping rates
• Customer support: Clear communication and transparency

Ask potential providers about accuracy rates, onboarding timelines, and  reporting capabilities before committing.

Common Ecommerce Fulfilment Challenges (And How to Solve Them)

Inventory Inaccuracy

Solution: Barcode scanning and automated stock updates

Slow Dispatch Times

Solution: Optimised warehouse layouts and cut-off times

High Shipping Costs

Solution: Multi-carrier rate shopping via a 3PL

Poor Returns Experience

Solution: Clear processes and fast turnaround

Proactively addressing these issues keeps fulfilment from becoming a growth bottleneck.

The Future of Ecommerce Fulfilment

Ecommerce fulfilment continues to evolve, driven by customer expectations.

Emerging Trends

• Same-day and next-day delivery as standard
• Sustainable packaging
• Automation and robotics
• Data-driven inventory forecasting
• Distributed warehouse networks

Brands that invest early in scalable fulfilment strategies gain aserious competitive edge.

Final Thoughts: Why Ecommerce Fulfilment Matters

Ecommerce fulfilment isn’t just a back-office function, it’s a core part of the customer experience.

From the moment an order is placed to the final delivery, every step affects:

• Customer satisfaction
• Brand reputation
• Profitability

Whether you manage fulfilment in-house or partner with an experienced 3PL provider, understanding how the process works helps you to make better decisions and scale with confidence.

Ready to Optimise Your Ecommerce Fulfilment?

If you’re struggling with storage, shipping delays, or rising operational costs, it may be time to explore professional warehouse services. The right fulfilment partner can help you deliver faster, scale effortlessly, and keep customers coming back. Get in touch with our expert team today to get started.