FULLFILMENT

SERVICE

Many businesses benefit from outsourcing ecommerce order

fulfillment. Here are a few signs it might be the right time to
outsource the fulfillment process for your business :

1 Sales spikes : You experience a high volume of orders during

a certain time of year.

2 Growth : Your customer base is growing, and your present

infrastructure can’t keep up.
3 Time : Fulfilling orders is consuming your time and limiting
your ability to focus on other aspects of your business.

receiving inventory,
storing and packing
FULFILLMENT IS products, shipping orders,
THE PROCESS OF and handling returns, as
GETTING ORDERS well as maintaining
TO CUSTOMERS communication with the
customer, along the way.

1 Orders are on the rise IF YOU’RE EXPERIENCING

CHALLENGES LIKE THESE,
You don’t have the infrastructure A SERVICE LIKE FBA
2 to handle inventory MIGHT HELP FREE YOU
UP TO FOCUS ON OTHER
Fulfillment costs are eating into AREAS, SUCH AS
3 STRATEGY AND GROWTH.
your margins

In-house fulfillment is worth

considering if you:
· Sell a low volume of products
· Have a functioning logistics
network
· Sell products with complicated
IN-HOUSE FULFILLMENT packing and shipping requirements
Storing and shipping orders from your place
of business is a common approach for
smaller brands. This option may limit the
variety and quantity of products you can
store and sell, and it could increase your
overhead expenses.

THIRD-PARTY FULFILLMENT
Many ecommerce service providers offer
fulfillment solutions, including warehousing,
packing, shipping, and handling returns. For
example, FBA provides all these services for
Amazon sellers. During 2021, more than 600,000
sellers in Amazon’s U.S. store used FBA to
provide free, two-day shipping to customers.

MULTI-CHANNEL FULFILLMENT
Multi-channel fulfillment is the process of managing and fulfilling
orders across various channels where customers can purchase
products, such as from your website, in Amazon stores, on social
media, or elsewhere.

You don’t need an exclusive fulfillment option for each channel.

Having a multi-channel fulfillment solution can help you diversify
your ecommerce marketing and sales channels while keeping your
order fulfillment process manageable. Amazon's Multi-Channel
Fulfillment program can provide fulfillment for all your sales
channels.

https://sell.amazon.com/learn/ecommerce-fulfillment?ref_=sdus_fba_ecommf_what_h1
FULLFILMENT
SERVICE

FULFILLMENT BY AMAZON
Ecommerce customers expect reliable delivery and fast shipping
timeframes. Many online retail businesses use FBA to provide Amazon
Prime shipping to meet customer expectations.
FBA allows you to ship inventory to an Amazon warehouse at a
competitive cost. When an order comes in, Amazon delivers the product
to the customer. You can take advantage of Amazon’s distribution
network, infrastructure, world-class delivery service, returns system,
and customer service process.
FBA supports multi-channel fulfillment. This means you can sell
products on your own website, then process and send orders through
Amazon fulfillment centers.

FBA may be the right fulfillment option for your business if you:
· Are looking for a way to save time and scale your business
· Need an end-to-end solution for inventory storage, shipping, and returns
· Want to attract customers with fast, free shipping
If you sell in Amazon stores, FBA also offers several more advantages:
· Offer fast, FREE delivery to Prime members
· Display the Prime badge on eligible products
· Improve your chance of winning the Featured Offer spot on detail pages

How FBA Works

1 2 3 4
Seller Seller Ships Amazon Costumer
Procures Products to Stores Orders
Products Amazon Products Online

5 6 7 8
Amazon Costumer Amazon Costumer
Receives Receives an Ships The Receives
Order Their
Order Confismation
Order
Package

DROPSHIPPING
Dropshipping involves outsourcing all or most of the supply
chain process—from product sourcing or production through
delivery and returns. You can use dropshipping to work with a
manufacturer or third party to send orders directly to customers.

This option appeals to some sellers, since it can reduce

overhead. You handle marketing products and other business
operations, while the fulfillment service manages the physical
goods, including the fulfillment process.

How Dropshipping Works

1 2 3 4
Seller Signs Costumer
Agreement
Costumer Seller Receives an
with Orders Receives Order
Dropshipper Online Order Confirmation

5 6 7
Seller Dropshipper Costumer
Forwards The Ships The Receives
Order to Their Product
Order
Dropshipper

https://sell.amazon.com/learn/ecommerce-fulfillment?ref_=sdus_fba_ecommf_what_h1
 5 MEASUREMENT
IN E-COMMERCE
AVERAGE ORDER VALUE (AOV)
Is tracks the average dollar amount spent each time a customer places an order
on a website or mobile app. To calculate your company's average order value,
simply divide total revenue by the number of orders. And we should track the
metrics of Average order value (AOV) because is an important metric for any
ecommerce business because it measures the average amount of money spent
by each customer. A higher average order value suggests that a business is
driving sales by promoting more expensive products or cross-selling.

FORMULA
AOV = Revenue generated on
website / Number of orders
EXAMPLE
An online store that sells products earns
130 million for 1 month, and there are 121
orders placed. Then the Average Order
Value (AOV) is 130 million / 121 =
IDR 1,074,380.

GROSS MERCHANDISES VALUE (GMV)

The total value of merchandise sold over a given period of time through a
customer-to-customer (C2C) exchange site. It is a measure of the growth of
the business or use of the site to sell merchandise owned by others.

EXAMPLE on an e-commerce platform

An e-commerce platform sold $10 million worth of products during the
March. This value will be calculated as the monthly GMV for the platform.

CUSTOMER LIFETIME VALUE (CLV)

The total worth to a business of a customer over the whole period of their
relationship. It’s an important metric as it costs less to keep existing customers
than it does to acquire new ones, so increasing the value of your existing
customers is a great way to drive growth. CLV is a measurement of how valuable
a customer is to your company, not just on a purchase-by-purchase basis but
across the whole relationship. CLV can help you evaluate the effectiveness of
customer acquisition, retention, and loyalty programs, as well as allocate
resources and budget more wisely

EXAMPLE grocery shop

Grocery stores inspire loyalty among residents within the vicinity.
Let’s say a shopper frequents a grocery in New York every week.
He spends around $100 per visit. He returned every week, 52 weeks a year,
for an average of three years.
$100 (purchase per visit) × 52 (visits per year) × 3 (years) = $15,600 (CLV)

NET PROMOTER SCORE (NPS)

NPS is a widely used market research metric that is based on a single survey
question asking respondents to rate the likelihood that they would recommend a
company, product, or a service to a friend or colleague. Measuring NPS is
important to measures customer experience and predicts business growth,
because NPS gives insights about customer loyalty by measuring customers'
willingness to recommend a business to a friend or acquaintance.

EXAMPLE
The classic NPS question is simple: “On a scale of 0 to 10, how likely
are you to recommend our business to a friend or colleague?”

SALES CONVERSION RATE (SCR)

The percentage of visitors leads or opportunities that achieve a goal such as a
sale. We should track the metrics for calculate our sales conversion rate by
dividing the number of leads that are converted into sales by the number of
qualified leads your team has received. Then simply multiply this figure by 100
to get a percentage result.

EXAMPLE
If an ecommerce site receives 200 visitors in a month and has 50
sales, the conversion rate would be 50 divided by 200, or 25%.

https://docs.google.com/presentation/d/1rNIazHbLkBVPNVoux7R
jYrCTCsjdjUv8RGLO9yzYLws/edit#slide=id.g22d0d2cf4a0_0_20
 A model that is strongly associated with performance
measurement and Key Performance Indicators. It
helps companies to manage their products by finding
one important metric (North Star Metric) that best
describes the core value that their product is giving to
customers (Busch 2020).

North Star Framework consists of North

Star Metric, business results and customer
value, inputs and the work. Inputs are
number of impressive factors which affect
the NSM. (Bauer et al. 2020, p. 10-13)

The Benefits
of Using NSM :
Prioritize and increase informed
1
and decentralized decision-making
Team communication 2
Enable teams to concentrate on impact
3
and resistant, product-led growth

Input Metrics

New Artist
Input Metrics
Notifications

Bring Users
Back More
Often
Recomme-
ndations North Star Metric

Time Spent
Listening
To Music
Create
Playlist

Increase Time
Spent Per
Sesson
Discover
New Songs

https://docs.google.com/presentation/d/1RcYadwtQe8QC8GzrfT5t
4BAGOtbSOmhwjjAiEbOIFS4/edit#slide=id.g1230a27de60_0_112
 BUY-SIDE AND
SELL-SIDE
E-COMMERCE
For most commercial and not-for-profit organisations
we can distinguish between upstream supply chain
activities which are equivalent to buy-side e-
commerce and down- stream supply chain activities
which correspond to sell-side e-commerce.

Upstream Downstream
Supply Chain Supply Chain
Transactions between Transactions between an
an organisation and its organisation and its customers
suppliers and intermediaries and intermediaries

Supplier Organization Costumer

Buy-Side E-commerce Sell-Side E-commerce

Supplier Organization Supplier

Interm- Interm-
ediaries ediaries

Buy-Side E-commerce Sell-Side E-commerce

Inbound Logistic Outbound Logistic

https://docs.google.com/presentation/d/1kqCA
iocyktbZo29Pf4FyS2p2-yCmo2A2qwKau-
DUq_8/edit#slide=id.g124f4fec6ac_0_39
Social Media and
Social Commerce
With the development of Web 2.0 and social media technologies
in marketing contexts, social commerce, as a new mode of e-
commerce, has risen in popularity (Mikalef et al., 2017).

In China, for example, by June 2020, the number of

Internet users had reached 940 million, including
749 million users of online shopping sites
(China Internet Network Information Center, 2020).

The growth in s-commerce indicates that

e-commerce is evolving from traditional business
exchange to relationship-based exchange
(Kozlenkova et al., 2017).

Researchers have also paid

individual’s experience of being
attention to social support
cared for, responded to, and
in the s-commerce context
helped by others in a social group
(Liang et al., 2011).

s-commerce consists of two dimensions

Informational and Emotional (Hajli, 2014).

Informational support provides consumers with information needed for purchasing and
helps them solve problems, and emotional support brings feelings of warmth to consumers,
which can promote a relationship between consumers and sellers (Tajvidi et al., 2017), and
enhance consumers’ purchase intention. Hajli (2014)

social support on relationship quality in the s-commerce had a

positive effect on relationship quality.

However, few researchers (Sheikh et al, 2019) have examined the influence
mechanism of social support on s-commerce purchase intention, in China, which has
a large scommerce market and where guanxi plays an important role in the context
of the country’s collectivistic culture.
Wang et al. (2020) found that both social support subdimensions were positively
related to consumer involvement, together promoting consumers’ engagement in the
s-commerce community.

The second largest s-

commerce platform in
China in terms of
number of users had

2015
attracted global
attention.

The term social commerce describes a subset of electronic

commerce (e-commerce) which involves the use of social
media, online media supporting social relations and user input
to help the online purchase and sale of products and services
(Mardsen, 2010).

https://docs.google.com/presentation/d/1DMyoaFs2eH3ImEzbJR1
xZcRqwdWFsjsaGar9j_LIPqQ/edit#slide=id.g11e96c2502c_0_31