Effective Order Splitting: Streamlining E-commerce Fulfillment

Georgina Monti
July 23, 2024
In this article, we will explore what order splitting is, why it is used, the challenges, and how businesses can implement it successfully.
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https://www.vesyl.com/effective-order-splitting-streamlining-e-commerce-fulfillment

Within the world of e-commerce, customer expectations are far from slowing down. In fact, customers expect their orders faster than ever, putting increasing pressure on businesses to optimize their fulfillment processes. 

One strategy to help streamline operations and meet customer demands more effectively is order splitting. In this article, we will explore what order splitting is, why it is used, the challenges, and how businesses can implement it successfully.

What is Order Splitting?

Ever had an order arrive in 2 separate boxes? Or only had half of your order arrive to have the other half delivered the following day? 

That’s order splitting.

Order splitting (split shipping) is the process of dividing a customer's order into multiple shipments. Instead of sending all items in one package, items are shipped from different locations or at different times, depending on their availability and the logistics involved. This can mean splitting an order between multiple warehouses or even sending part of the order immediately while waiting for other items to become available.

Why is Order Splitting Used?

Faster Delivery Times

One of the primary reasons for order splitting is to reduce delivery times. If a customer orders multiple items, and one of them is out of stock at the nearest warehouse, the entire order might be delayed if shipped together. By splitting the order, available items can be shipped immediately, ensuring faster delivery for part of the order. However, to avoid customer frustration, be sure to communicate this so customers are not left wondering if the other part of their order has been lost or forgotten.

Inventory Optimization

Order splitting allows businesses to optimize their inventory management. By shipping items from multiple locations, companies can balance stock levels across warehouses, reducing the risk of overstocking or stockouts in any single location. This leads to more efficient use of inventory and storage space.

Cost Efficiency

Shipping costs can be a significant expense for e-commerce businesses. Order splitting can help reduce these costs by allowing items to be shipped from the closest warehouse, minimizing shipping distances and costs. Additionally, it can help avoid expedited shipping fees that might be necessary if waiting for all items to be available at a single location.

Use the VESYL USPS Zone Map for a clear breakdown of shipping zones and costs. 

Improved Customer Satisfaction

By splitting orders and shipping available items immediately, businesses can improve customer satisfaction. This demonstrates a commitment from the brand to deliver orders to their customers as quickly as possible and when communicated well, can foster further trust and brand loyalty. This partial fulfillment can be especially beneficial during peak shopping seasons when delays are more common.

Challenges of Order Splitting in E-commerce

Increased Complexity

Order splitting can add a layer of complexity to the fulfillment process. Businesses must have systems in place to manage multiple shipments, track inventory across various locations, and ensure accurate order processing. This can require robust order management software and efficient coordination between warehouses.

In VESYL, you can view these split orders in the Orders tab. They will show the same order number but will show different tracking numbers and shipping information.

Higher Shipping Costs

While order splitting can reduce shipping costs in some cases, it can also lead to higher costs if not managed properly. Multiple shipments mean multiple shipping fees, which can add up if not carefully monitored. Businesses need to analyze zones and shipping costs and determine the most cost-effective way to split orders.

Customer Communication

Effective communication with customers is crucial when splitting orders. Customers need to be informed about the multiple shipments, expected delivery times, and any additional tracking information. Failure to communicate clearly can lead to confusion, dissatisfaction and reduced brand loyalty.

Inventory Management

Order splitting requires precise inventory management to ensure that items are shipped from the correct locations. Inaccurate inventory data can result in delays, stockouts, or shipping errors which can make or break a customer relationship. By leveraging inventory management software and ensuring it is up to date, brands can mitigate these risks. 

Simplified Order Splitting with VESYL

With VESYL, it’s simple to split orders and view shipping information in one place. Simply navigate to orders, select edit and split. From here, shippers are able to move items between the order split and can ship the split orders using different rates and carriers. This is particularly useful for stores who have one item of the order out of stock, or if one item is particularly large or heavy and it is cost effective to use a different carrier to the rest of the order. 

For a step-by-step guide to order splitting on VESYL, head on over to our Help Desk. For a complete demo of order splitting with VESYL, schedule a call and we’ll show you the ropes. For any questions, feel free to email us at hello@vesyl.com.

Conclusion

By enabling faster delivery times, optimizing inventory management, and potentially reducing shipping costs, order splitting offers significant advantages. However, businesses must also carefully navigate the challenges.

With the right systems and strategies in place, order splitting can become an effective tool in e-commerce operations, helping businesses stay competitive in an incredibly fast-paced environment. 

A complete guide to order splitting on VESYL.

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