Understanding Fulfillment Status: A Complete Guide

by | Nov 7, 2024 | Blog, Industry Insights

Keeping track of orders is the lifeline of any successful eCommerce business. With customer expectations higher than ever and the need for fast, accurate deliveries, understanding where your products are at every stage of the journey isn’t just important—it’s essential. At the heart of that process is fulfillment status, a key indicator that helps businesses and customers understand where an order is in its journey. Whether running a small online shop or managing a complex supply chain, understanding fulfillment status is important for delivering the best customer experience and maintaining smooth operations.

Today, we’ll explain exactly what fulfillment status is, why it matters, and how to track it effectively. We’ll also dive into the most common types of fulfillment statuses and show you how tools like Elite EXTRA can help streamline your fulfillment process.

What is Fulfillment Status?

Fulfillment status refers to real-time updates that track an order’s journey from the moment it’s placed until it reaches the customer—or, in some cases, is returned. This status provides critical insight into where an order stands in the overall process. It gives both the business and the customer a clear understanding of what stage the order is in. Whether it’s pending, processing, shipped, or delivered, fulfillment status helps keep everyone informed.

The fulfillment process consists of multiple stages, and each one plays a vital role in delivering the product to the customer. Typically, the process begins when the order is received, followed by payment confirmation and inventory check, and then moves to processing, packaging, and shipping. Finally, the order reaches its destination and is marked as delivered. Tracking fulfillment status at every step helps businesses stay on top of their operations. By doing so, they can optimize inventory management, streamline logistics, and address any delays before they become major issues. Without a clear understanding of fulfillment status, businesses risk losing track of orders, causing delays, increasing costs, and disappointing customers. In short, fulfillment status is key to maintaining a smooth and efficient supply chain.

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Common Types of Fulfillment Statuses

Global eCommerce sales are projected to hit $4 trillion by 2025. Understanding the different fulfillment statuses is key to successfully managing the order fulfillment process. Each status provides valuable information about where the order stands in its journey, allowing businesses to stay organized and customers to stay informed.

1. Pending

When an order is marked as pending, it signifies that it has been received but hasn’t yet entered the next fulfillment steps. It’s the most common status right after a customer places an order, signaling that the request is being registered within the business’s system. But, the order may stay in the pending stage if there is an issue that needs to be resolved, like a payment delay or a problem with stock availability.

  • When It’s Used: This status is usually seen in the initial phase after the order is placed, before the business starts any actions to prepare it.
  • Why It Matters: Pending status provides a buffer for businesses to review the order details and make sure everything is in place. It’s important because it gives time for problem-solving before resources are allocated to processing.

Pending orders can also remain in this phase if they’re placed outside of business hours. Therefore, it’s important for businesses to monitor and address these orders quickly to keep the process moving smoothly.

2. Processing

Once an order moves past the pending phase, it enters processing. At this point, the business begins preparing the order by pulling products from inventory, packing them, and completing any other necessary steps to prepare it for shipment. The processing stage is a key part of the order fulfillment cycle because it directly affects how quickly the order can move out of the warehouse.

  • When It’s Used: This status kicks in once payment is confirmed and the inventory check is complete. It’s the middle ground between receiving the order and getting it ready to ship.
  • Why It Matters: Processing status indicates that the business is actively working on the order. For businesses, it helps them keep track of what’s currently in the pipeline, and for customers, it shows that their order is being prepared and isn’t just sitting in limbo.

Processing can be quick or take some time, depending on the order’s complexity and the items’ availability. Businesses that can efficiently manage the processing phase will have a significant advantage in speed and customer satisfaction.

3. Shipped

Once the order is packaged and ready, its status changes to shipped. The product is now in transit, and the fulfillment process is nearing completion. In many cases, businesses will provide customers with tracking details, allowing them to monitor the order’s progress as it makes its way to its destination. This level of transparency is important for customer satisfaction, especially for time-sensitive deliveries.

  • When It’s Used: The shipped status is applied once the order has left the warehouse or distribution center and is en route to the customer.
  • Why It Matters: The shipped status gives customers peace of mind, letting them know their product is on the way. It also allows the customer and the business to monitor the shipment, providing accountability if anything goes wrong during transit.

With modern tracking tools, customers can receive real-time updates on the location of their package, which has become an expectation in the current eCommerce environment. This transparency builds trust and helps manage customer expectations about delivery timelines.

4. Delivered

An order marked as delivered means it has reached its final destination—the customer. This status indicates the completion of the shipping process and is typically the last step in the order’s journey unless there is a return.

  • When It’s Used: This status is updated once the shipping company confirms that the product has been delivered to the customer.
  • Why It Matters: Delivering the order is the most critical step for customer satisfaction. The delivered status confirms that the order has been completed successfully, marking the end of the business process. It also helps prevent any misunderstandings about whether or not the product was received.

Keeping accurate records of delivered orders is vital for maintaining transparency and tracking customer feedback. It’s also helpful in minimizing disputes about whether a package arrived as expected.

5. Canceled

Sometimes, the customer or the business cancels an order. This might happen for a variety of reasons, such as the customer changing their mind, an error in the order details, or issues with stock or payment. A canceled status halts the fulfillment process entirely, preventing the business from processing or shipping the product.

  • When It’s Used: Cancellation happens when the customer or business decides not to proceed with the order.
  • Why It Matters: Canceling an order early can save the business time, effort, and resources. If an order is mistakenly processed, it could lead to wasted labor and shipping costs. The canceled status allows businesses to clear unneeded orders and return inventory to stock quickly and easily.

For businesses, managing canceled orders effectively is important for maintaining accurate inventory and avoiding unnecessary costs. By clearly communicating the canceled status, the company and customer are kept in the loop, preventing misunderstandings.

6. Returned

Sometimes, a customer will decide to send an item back, and the order’s status changes to return. This can occur for many reasons, including receiving a damaged product, ordering the wrong item, or simply deciding they no longer want the purchase. The returned status marks the start of the reverse logistics process, which involves receiving the item back into inventory and processing a refund or exchange.

  • When It’s Used: This status is applied once the seller receives the returned item from the customer.
  • Why It Matters: Returns are an important part of inventory management and customer service. The returned status allows businesses to keep track of products coming back into stock and confirms the proper handling of refunds or exchanges. It also provides insights into why customers are returning products, which can be valuable for improving the overall customer experience.

Returned items also impact inventory and fulfillment costs, so managing this process carefully is crucial for maintaining profitability. Businesses that can handle returns efficiently tend to build better customer relationships and loyalty.

These common fulfillment statuses help businesses manage their orders effectively, streamline logistics, and keep customers informed.

Why Tracking Fulfillment Status is Important

39% of shoppers purchased same-day delivery through Amazon in 2023, showing the growing demand for faster delivery options. That means tracking fulfillment status goes beyond simply knowing where an order is.

Impact on Customer Experience

Empathy in customer experience is vital, as understanding what customers need and keeping them informed—like through real-time fulfillment tracking—can elevate their overall satisfaction and confidence in your brand. When customers know the exact status of their order, it increases trust and satisfaction. A smooth fulfillment process with clear status updates means fewer customer inquiries and more positive reviews. Transparency in delivery also reduces anxiety and keeps customers loyal to your brand.

According to research by Ipsos and Octopia, 85% of online shoppers say that a poor delivery experience would prevent them from ordering from that online retailer again. By offering real-time updates on fulfillment status, businesses can enhance the customer experience, which is so important in today’s competitive eCommerce market.

Managing Inventory and Logistics

For businesses, tracking fulfillment status is vital for maintaining control over inventory and logistics. By knowing the exact stage of an order, companies can better manage stock levels, avoid over-ordering, and reduce waste. It also allows businesses to respond quickly to delays, stock shortages, or returns.

Tracking fulfillment status also helps businesses predict future demand, plan reorders, and guarantee they have the right products in the right place at the right time.

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Tools and Software to Track Fulfillment Status

The eCommerce market is projected to surpass $7.9 trillion by 2027. That will make tracking fulfillment status manually, already time-consuming and prone to errors, virtually impossible for businesses with growing order volumes. Luckily, several software solutions are available that automate this process, providing real-time updates and streamlining operations.

1. Elite EXTRA

One of the most powerful tools for tracking fulfillment status is Elite EXTRA, a comprehensive platform designed to optimize every delivery process step. Elite EXTRA’s system provides advanced tracking features like dynamic route optimization, real-time status updates, and automated customer notifications. This allows businesses to manage their entire fulfillment process with clarity and precision. With real-time tracking, companies can monitor where orders are in the process, from pending to delivered, ensuring complete transparency for the business and its customers.

Elite EXTRA’s system is particularly effective in preventing bottlenecks and delays. It allows businesses to reroute deliveries, adjust plans based on customer priority or order updates, and provide instant updates to customers. You can automate the entire fulfillment process by integrating Elite EXTRA into your existing platform. It reduces manual work and human errors while delivering up-to-the-minute fulfillment status information to your customers.

2. Integration with eCommerce Platforms

Many popular eCommerce platforms, like Shopify and WooCommerce, offer built-in features or plugins that allow businesses to integrate fulfillment tracking software directly into their systems. These integrations provide seamless order management, automatic updates for customers, and easy handling of returns. Instead of updating each order’s status by hand, the fulfillment tracking software takes care of it, allowing businesses to focus on other critical tasks.

eCommerce platforms with tracking integration can also provide comprehensive analytics, helping businesses understand where potential delays occur and how to streamline their operations. The right integration can also facilitate communication between your warehouse, shipping partners, and customers, making sure everyone can access the same real-time fulfillment status information.

Elite EXTRA offers robust analytics features that help businesses identify potential delays and optimize delivery operations. By analyzing real-time data, Elite EXTRA provides insights into where bottlenecks occur, allowing companies to make informed decisions and streamline their processes.

Elite EXTRA Can Help Optimize Your Fulfillment

Understanding and managing fulfillment status is necessary for running a successful business in today’s fast-paced eCommerce world. From keeping customers informed to optimizing logistics and inventory management, the ability to track every step of the fulfillment process can make a big difference.

Elite EXTRA provides the tools to streamline your delivery operations and improve transparency. With real-time updates, dynamic route planning, and automated notifications, Elite EXTRA takes the guesswork out of fulfillment tracking. Your customers will know exactly where their order is—every step of the way.

Ready to take control of your fulfillment process? Contact Elite EXTRA today to see how our solutions can help you optimize your operations and deliver the best possible customer experience.

Sources

https://www.readycloud.com/info/30-order-fulfillment-statistics-for-2024

https://hbr.org/2023/03/using-technology-to-create-a-better-customer-experience

https://www.ipsos.com/en/ecommerce-marketplaces-delivery-experience

https://www.forbes.com/ advisor/business/ecommerce-statistics

Mallorie Barabas

Mallorie Barabas

Author

Mallorie is the Marketing Strategist at Elite EXTRA; if you ask her about her job, she will immediately tell you to follow @EliteEXTRA on LinkedIn (that is your cue;) When she isn't at the office, you can catch her teaching aerial yoga, swimming, or just generally enjoying the outdoors.

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