Shopify fulfillment: Everything you need to know

In the fast-paced world of ecommerce, making sure orders are processed quickly and efficiently is paramount for keeping customers happy and your business growing.

As a Shopify store owner, you know how crucial it is to provide a seamless shopping experience, and the order fulfillment method you choose can be a big part of that. This guide will give you all the information you need to know about Shopify fulfillment, including different options you have and advanced tips for making your operations run smoothly.

Whether you're new to Shopify or have been selling online for a while and want to improve your fulfillment process, this article will offer valuable insights to supercharge your business operations.

• A robust Shopify fulfillment process ensures timely deliveries and accurate orders, boosting customer satisfaction, enhancing brand reputation, and allowing scalability as your business grows.

• Shopify store owners can choose from in-house fulfillment for full control, third-party logistics for handling large volumes efficiently, or dropshipping to minimize inventory and overhead costs.

• Shopify Fulfillment Network (SFN) is a fulfillment service offered by Shopify that provides warehousing and fulfillment services across North America. It integrates directly with Shopify for streamlined inventory and order management, though it's currently limited to North America and not suitable for all products.

• The steps for setting up your Shopify store for SFN include checking product eligibility, installing the SFN app, preparing inventory according to SFN guidelines, creating and shipping an inbound transfer, and managing inventory and orders through Shopify's admin panel.

• POD revolutionizes Shopify fulfillment by reducing inventory management needs and allowing for a greater variety of products, faster fulfillment, and easier scalability. This makes it ideal for businesses wanting to expand without large upfront investments.

• Gelato offers high-quality printing, global fulfillment, a wide product range, and competitive pricing. Through print on demand technology, Gelato enables businesses to streamline their fulfillment process and enhance customer satisfaction.

The fulfillment process in Shopify refers to everything that happens after a customer clicks "purchase" on your online store. It includes activities like picking and packing products, shipping them to customers, and managing inventory levels. 

A well-oiled fulfillment system ensures timely deliveries, accurate orders, and a positive customer experience, all of which are critical for building brand loyalty and attracting repeat business. Here's why prioritizing a robust fulfillment strategy is essential for Shopify store owners:

• Customer satisfaction: Fast, reliable shipping and accurate order fulfillment contribute significantly to customer satisfaction. Delays, mistakes, or damaged goods during shipping can lead to frustration and negative reviews.

• Brand reputation: A seamless fulfillment process reflects positively on your brand. Customers who consistently receive their orders on time and in good condition are more likely to trust you and recommend your store to others.

• Scalability: As your business grows, a scalable fulfillment strategy is crucial. Choosing the right fulfillment option allows you to handle increasing order volume efficiently without compromising on quality or speed.

When it comes to fulfilling orders in your Shopify store, you have several options to consider. Each approach has its own pros and cons, so understanding your specific needs and resources is essential for making the best choice. Let's explore the most common fulfillment methods:

In-house fulfillment

In-house fulfillment involves handling the entire fulfillment process yourself. This includes storing inventory, picking and packing orders, and managing shipping with carriers like USPS, FedEx, or DHL.

• Pros: Provides complete control over the process, allows for customized packaging, and can potentially be more cost-effective for small businesses with limited inventory.

• Cons: Can be time-consuming and labor-intensive, requires significant storage space and packing materials, and may not be scalable for high-volume businesses.

Third-party logistics (3PL)

3PL providers are external companies that specialize in warehousing, inventory management, order fulfillment, and shipping. By outsourcing these tasks, you free up your time and resources to focus on other aspects of your business.

• Pros: It offers scalability to handle large order volumes, provides access to a wider range of shipping options and discounted rates, and alleviates the burden of storage and packing.

• Cons: Can be more expensive than in-house fulfillment, requires careful selection of a reliable 3PL partner, and may involve less control over the branding of packaging materials.

Dropshipping

Dropshipping allows you to sell products on your Shopify store without ever physically holding them in stock. When a customer places an order, you forward it to a dropshipping supplier, who then ships it directly to the customer.

• Pros: Requires minimal upfront investment in inventory, allows you to offer a wider variety of products without overhead costs, and is a good option for businesses with limited storage space.

• Cons: Lower profit margins due to markups by the supplier, less control over product quality and shipping times, and limited branding opportunities.

Shopify Fulfillment Network (SFN) is a fulfillment service offered directly by Shopify itself. Launched in 2019, it aims to simplify order fulfillment for Shopify store owners by leveraging a network of strategically located warehouses across North America. 

Here's a breakdown of its key features:

• Warehousing network: SFN provides access to a network of fulfillment centers in North America in collaboration with Flexport fulfillment services. You can store your inventory in these warehouses, allowing SFN to pick, pack, and ship your orders to customers efficiently.

• Streamlined integration: SFN integrates seamlessly with your Shopify store. This means you can manage inventory levels, track orders, and set shipping preferences directly through your Shopify admin panel.

• Scalability: As your business grows and order volume increases, SFN can handle the surge without requiring you to manage additional logistics yourself.

• Competitive shipping: SFN automatically chooses the most efficient shipping option based on factors like cost and delivery speed. This can potentially lead to faster deliveries and reduced shipping costs for your customers.

• Returns management: SFN simplifies returns by handling the process for you. This includes receiving returned items, inspecting them, and potentially restocking them in the warehouse for future sales.

However, it's important to note that not all products qualify for SFN. Restricted items like hazardous materials or perishables are not accepted. Also, currently, SFN is limited to North America, so if your target market extends beyond this region, you might need to explore alternative fulfillment solutions. 

Although SFN is a good option for Shopify store owners in North America who are looking for a scalable and integrated fulfillment solution, particularly those with moderate to high order volume, it might not offer the same level of customization as some third-party logistics (3PL) providers when it comes to packaging or branding.

If you've decided that Shopify Fulfillment Network (SFN) is the right fit for your Shopify store, here's a step-by-step guide to get you started:

1. Check product eligibility

Before diving in, ensure your products meet SFN's criteria. Restricted items like hazardous materials, perishables, or products exceeding size and weight limitations will not be accepted. You can find a comprehensive list of prohibited and restricted items on the Shopify Help Center: https://www.shopify.com/fulfillment/faq.

2. Install the SFN app

Head to the Shopify App Store, a hub for various tools and functionalities that enhance your Shopify experience. Within the App Store, use the search bar and type in "Shopify Fulfillment Network." Once you locate the app, proceed with the installation process.

By installing the SFN app, you'll unlock a direct connection to SFN's infrastructure, allowing you to manage inventory, track orders, and leverage their fulfillment services all from the familiar environment of your Shopify admin panel.

3. Prepare your inventory

For smooth processing within the SFN network, ensure your products are properly labeled with clear and accurate Stock Keeping Units (SKUs) and barcodes. Package your products according to SFN's guidelines to avoid processing delays. These guidelines are typically available within the SFN app or on the Shopify Help Center.

4. Create an inbound transfer

Use the SFN app to initiate an inbound transfer. This involves specifying the quantity of each product you're sending to an SFN warehouse. The app will assign you a fulfillment center location based on factors like inventory distribution and customer proximity. This helps ensure faster delivery times for your customers.

5. Ship your inventory

Following SFN's packaging and labeling instructions (which can be found here), securely pack and ship your inventory to the designated fulfillment center. This ensures efficient processing and minimizes the risk of damage during transit. 

Here are some secure packing tips:

• Use sturdy cardboard boxes appropriate for the weight and size of your products.

• Employ sufficient packing materials like bubble wrap, peanuts, or air pillows to prevent items from shifting during transport.

• Clearly label each box with the designated SFN fulfillment center address and your return address.

6. Manage inventory and orders

Once your inventory arrives at the SFN warehouse, you can monitor stock levels and manage orders directly through your familiar Shopify admin panel. SFN takes care of picking, packing, and shipping your orders, freeing up your time to focus on other aspects of your business.

7. Shipping rates and customer experience

Set up your preferred shipping rates within Shopify's shipping settings. SFN automatically selects the most efficient shipping option based on factors like cost, delivery speed, and customer location. This translates to a potentially faster and more cost-effective delivery experience for your customers, enhancing their satisfaction.

8. Returns management

SFN simplifies returns by processing your orders. This includes receiving returned items, inspecting them for condition, and potentially restocking them in the warehouse for future sales.

Additional tips:

• Consider utilizing SFN's inventory balancing feature. This distributes your inventory across their network, placing products closer to your customers for potentially faster shipping times.

• While convenient, remember that SFN currently operates within North America. If your target market extends beyond this region, you might need to explore alternative fulfillment solutions.

Traditionally, order fulfillment in the ecommerce world involved physically storing inventory, picking and packing products, and shipping them to customers. This approach can be limiting for many Shopify store owners, especially those just starting out or dealing with a wide variety of designs. 

Now, print on demand (POD) technology disrupts this traditional model and offers a revolutionary way to fulfill orders on Shopify, bringing several key benefits such as:

• Reduced inventory management: With POD, you don't need to hold physical stock of your designs. Instead, products are printed only when a customer places an order.

• Greater product variety: POD allows you to offer diverse products with your designs, from t-shirts and mugs to phone cases, helping you expand your product catalog without financial risks.

• Faster order fulfillment: Since products are printed on demand, turnaround times can be significantly faster than those of traditional fulfillment methods.

• Scalability made easy: POD seamlessly scales with your business growth. You can add new designs or products to your Shopify store without worrying about managing additional inventory.

• Reduced startup costs: POD eliminates large amounts of unsold inventory. This is particularly beneficial for new businesses or those testing new product ideas.

• Streamlined logistics: Many POD providers offer integrated fulfillment services, handling the printing, packaging, and shipping of your products directly to customers.

• Increased profit margins: While POD services typically charge a per-item fee, the reduced overhead costs allow you to set competitive prices and maintain healthy profit margins.

• Customization Opportunities: POD allows for a high degree of customization. You can offer customers the ability to personalize products with their names, initials, or even custom designs.

Here's an example to illustrate the power of POD. Imagine you sell t-shirts with unique designs. Traditionally, you'd need to predict demand, order a certain quantity in different sizes, and store them in a warehouse. 

But with POD, you simply upload your designs, and the t-shirts are printed and shipped only when a customer orders one. This eliminates the risk of unsold inventory and allows you to offer a wider variety of designs without financial risk.

As we've explored, traditional fulfillment methods can be cumbersome and require significant investment in inventory and storage space. This is where print on demand technology shines.

By partnering with a POD provider like Gelato, you can revolutionize your Shopify store's fulfillment process and unlock a multitude of benefits:

• High-quality printing and global fulfillment: Gelato utilizes cutting-edge printing technology and a network of strategically located global fulfillment centers to deliver exceptional quality products to your customers quickly and efficiently.

• Extensive product range: Gelato boasts a vast selection of products you can customize with your designs, such as t-shirts, mugs, tote bags, hats, etc., allowing you to cater to diverse customer preferences.

• Competitive pricing: Gelato offers flexible subscription plans with affordable pricing to suit your business needs, making POD an accessible option for businesses of all sizes.

By leveraging Gelato's POD solutions, you can streamline your Shopify fulfillment process, broaden your product offerings, and ultimately create a more satisfying experience for your customers. Sign up for Gelato now!