New retail is the future, and many businesses are realizing that they need to expand beyond their traditional online stores to stay ahead. By embracing omni-channel, O2O, and OMO model, these companies hope to attract new customers and provide a more complete shopping experience. However, with so many options for order pickup, logistics can be a real challenge.
Take Merchant A, for example. They operate both physical and online stores and want to offer customers the ability to choose between home delivery or store pickup after shopping online. But as their order volumes grow, they’re struggling to decide whether to handle logistics delivery in-house or outsource to a logistics company.
Take Merchant A, for example. They operate both physical and online stores and want to offer customers the ability to choose between home delivery or store pickup after shopping online. But as their order volumes grow, they’re struggling to decide whether to handle logistics delivery in-house or outsource to a logistics company.
What is “Hybrid Order Fulfillment Model”?
The Hybrid Order Fulfillment Model consists of different modes of fulfilling orders, including third-party order fulfillment, self-fulfillment, and direct delivery. As the e-commerce market becomes more diversified, the hybrid order fulfillment model allows companies to plan logistics and delivery more flexibly, without relying solely on a single mode, thereby enhancing their ability to respond to market changes.
Common order process modes:：
1) In-house Fulfillment
In-house fulfillment means that everything from managing inventory to packing and shipping orders is done within the company, using their own team and equipment. The great thing about this mode is that companies have complete control over the entire fulfillment process. They can customize and tweak every detail to their liking, making it easy to adjust to changing customer demands and market trends. Plus, by handling everything in-house, they can ensure the quality and consistency of their products and services.
2) Third-party Fulfillment
Outsourcing order fulfillment to third-party logistics is a smart move for e-commerce companies looking to streamline their operations and focus on their core competencies. With the support of a professional team, and their state-of-the-art equipment and advanced systems, e-commerce companies can confidently process high volumes of orders and provide their customers with a seamless and satisfying shopping experience.
3) Drop Shipping
Drop shipping is a game-changer for e-commerce businesses looking to speed up their order fulfillment process. By cutting out the middleman and having manufacturers/factories ship products directly to consumers, online stores can save on inventory costs and reduce the risk of overstocking. This model is particularly popular among start-ups and smaller online stores that need to minimize logistics costs to stay competitive.
For more established businesses like merchant A, a hybrid order fulfillment model might be the way to go. By fulfilling “pick-up in-store” orders themselves, they can have greater control over inventory management and ensure a seamless customer experience. For larger volume “delivery to door” orders, they can entrust third-party logistics providers to handle the shipping and speed up delivery times.
Is a hybrid order fulfillment model suitable for me?
Ultimately, the key to success is to develop a strategy that meets the needs of your business and customers. By carefully considering your options and utilizing available resources, you can grow your e-commerce business and stay ahead of the competition.
A hybrid order fulfillment model may be more suitable for you if you:
- Your local market is becoming mature and you want to expand your business overseas, with plans to stock and ship locally.
- Your company only wants to handle partial order fulfillment internally.
- You are currently testing the “online sales, offline pickup” option for customers.
- You lack logistics equipment and manpower to handle large order volumes.
- Your current business strategy can support the implementation of a mixed order fulfillment model
In the fast-paced and ever-changing world of e-commerce, businesses that can adapt quickly and stay flexible are the ones that thrive. That’s where hybrid order fulfillment models come in – they offer a comprehensive and versatile logistics and distribution experience that can help businesses boost their operational efficiency and stay ahead of the competition. As your most reliable logistics partner, e+Solutions specializes in handling both online and offline logistics and fulfilling local and overseas orders. With our expertise in both online and offline logistics, we can handle local and overseas orders with ease. And thanks to our Smart eCommerce Logistic System, managing inventory, processing orders, and tracking logistics status has never been easier – no matter where you are in the world.
Read More：
【Farewell O2O?】How Smart Logistics Can Embrace the OMO Trend
Southeast Asia Market Strategy: The 3 Factors Driving Malaysia’s E-commerce Boom
Omnichannel Operations】The New Future of Combining E-commerce and Logistics
Encountering any e-Commerce logistics troubles? e+Solutions can help you! From goods storage and management, handling and packaging, to arranging last-mile, we can meet all your logistics needs while allowing you to operate an online store easily!
