Order picking in e-commerce: methods and processes for efficient order processing

Order picking
What is order picking in e-commerce?
Picking refers to the process in which goods are removed from a warehouse for an order, compiled and prepared for shipping. In e-commerce, this includes recording the order information, navigating to the storage location, picking the items, scanning them to update the inventory and then packing and preparing them for shipping.

Picking is one of the most crucial processes in e-commerce fulfillment. Online retailers rely on goods being picked from the warehouse quickly, accurately and efficiently so that orders reach the customer without delay.

Modern picking methods, digital systems and automated solutions ensure that order processing works reliably and that picking performance increases continuously. Systems such as pick-by-light, pick-by-voice or robot-assisted solutions increase efficiency and accuracy

In this article, we show how order picking works, what processes are available and why optimized warehouse processes are so important for online retailers.

What does order picking mean?

Definition and basic procedure

Order picking refers to the compilation of goods from a warehouse for incoming orders in order to fulfill the orders or partial orders. This involves picking items from various storage zones, shelves or containers and preparing them for dispatch.

The picking process typically includes

  • Transmission of order information
  • Checking stock, article numbers and storage location
  • Navigation to shelves or storage areas
  • Removal of the correct quantity of products
  • Scanning barcodes or RFID tags
  • Transport to the picking station or packing table
  • Packaging, enclosing the delivery bill and labeling
  • Handover to the dispatch office

Importance for online retailers in e-commerce

Order picking is a critical success factor for online retailers. Fast delivery times, low error rates and transparent processes are standard requirements in e-commerce today. Efficient order picking ensures that orders reach the customer reliably and promptly – a decisive competitive advantage in a market with high expectations.

Influence on delivery times, costs and customer satisfaction

Optimized picking processes reduce travel times, minimize errors and lower operating costs. At the same time, they improve delivery speed and increase customer satisfaction. Incorrect or late deliveries lead to returns, additional costs and negative reviews – a risk that is significantly reduced by professional order picking.

Why efficient order picking is crucial for online retailers

Challenges in modern e-commerce

In e-commerce, order volumes, product diversity and customer requirements are constantly increasing. Retailers therefore need order-oriented fulfillment partners who:

  • ensure short travel times and optimized routes,
  • use modern order picking systems,
  • Reduce errors,
  • Process orders quickly,
  • enable flexible storage processes,

to reliably fulfill customer orders.

Effects on return rates and customer experience

High efficiency in the picking process has a direct impact on:

  • Costs
  • Delivery times
  • Return rate
  • Customer satisfaction

from.

Incorrect picking in contract logistics or fulfillment leads to incorrect items, damaged goods or incomplete deliveries. This increases the returns rate and puts a strain on the customer relationship. Precise order picking, on the other hand, ensures a positive shopping experience and strengthens brand loyalty.

Advantages of optimized warehouse processes

Optimized warehouse processes enable shorter routes, faster picking times and better employee utilization. Modern systems such as pick-by-light or pick-by-voice provide additional support and increase efficiency. The result: lower costs and higher productivity.

The 5 most important picking methods at a glance

1. picking per pick list

Picking goods
Picking goods

The picking list is one of the classic picking methods. It contains all relevant order information such as

  • Article
  • Quantities
  • Storage bins
  • Serial numbers or batch numbers (if required)

The order picker moves through the warehouse, removes the products and confirms the removal using a barcode scanner or MDE device.

Advantages:

  • Simple implementation
  • Low costs
  • Flexible for different storage structures

Disadvantages:

  • Longer distances
  • Higher error rate
  • Lower efficiency with large bearings

This process is often sufficient for smaller online retailers, while growing stores are increasingly switching to paperless systems.

2. goods-to-man picking

Goods to man order picking
Goods to man order picking

With this method, shelves and storage containers remain stationary, while automated systems transport the goods directly to the picking station. These include

  • Shuttles
  • Conveyor belts
  • Automated shelving systems
  • Robot-assisted storage technology

The picker picks the items directly at the workstation, which eliminates travel times and significantly reduces picking time.

Advantages:

  • High efficiency
  • Low error rate
  • Ideal for large order volumes

3. pick-by-light

Picking Pick by Light System
Picking Pick by Light System

Pick-by-light is a paperless picking process in which light signals are displayed on the shelf:

  • which article
  • in what quantity
  • at which storage location

of the employees.

Advantages:

  • Very low error rate
  • Quick orientation
  • Ideal for series-oriented or recurring processes

4. pick-by-voice

Picking Pick by Voice System
Picking Pick by Voice System

With the pick-by-voice system, the picker receives voice instructions via a headset. He also confirms the removal by voice input.

Advantages:

  • Both hands free
  • Intuitive operation
  • High efficiency in large storage areas

5. robot-assisted order picking

Picking by robot
Picking by robot

Modern warehouses are increasingly being used in logistics:

  • autonomous mobile robots (AMR)
  • Robot arms
  • Shuttle robot
  • Cobots

These systems support gripping time, transportation, removal or complete picking processes.

Advantages:

  • Maximum efficiency
  • Constant performance
  • Ideal for highly automated warehouses

Special requirements in order picking

Serial numbers and batch numbers

Depending on the product type, additional information must be recorded:

  • Serial numbers (e.g. electronics, SIM cards)
  • Batch numbers (e.g. medical devices)
  • MHD (FiFo principle for food)
  • Hazard numbers (dangerous goods documentation)

This data is important for traceability, quality assurance and legal requirements.

Best-before dates (BBD) and the FiFo principle

The best before date is crucial for food, food supplements and cosmetics. The FiFo principle (“first in, first out”) ensures that older goods are removed first. This avoids losses and complaints.

Hazard numbers and dangerous goods documentation

Dangerous goods require special care. Hazard numbers enable seamless documentation along the entire supply chain. Errors here can have serious consequences – clear processes are therefore essential.

Optimization potential in the picking process

Reduction of travel times and dead times

The use of modern systems makes it possible to:

  • Reduce travel times
  • Minimize dead times
  • Shorten picking times
  • Reduce errors
  • Standardize processes
  • Reduce costs

Digital warehouse management systems (LVS/WMS)

Digital warehouse management software (WMS) or warehouse management systems (WMS):

  • Order distribution
  • Picking lists
  • Warehouse processes
  • Stock updating
  • Shipping preparation

Paperless and automated picking processes

Pick-by-light, pick-by-voice or RFID-supported systems replace paper lists and speed up the entire process. Automated processes also increase precision.

Increased efficiency through modern technologies

Robots, shuttles, MDE devices and intelligent software solutions increase efficiency and enable scalable processes – particularly important for growing online retailers.

Order picking at Subke: advantages for online retailers

Proven systems and optimized storage zones

As a 3PL Fulfiller, we at Subke rely on modern, scalable and efficient picking methods that are specially tailored to the requirements of e-commerce retailers and their goods.

Our advantages:

  • Precise order picking according to pick list or goods-to-man
  • Short walking distances thanks to optimized storage zones
  • Digital inventory management
  • Fast order processing
  • Reliable shipping preparation
  • Transparent processes for online retailers in the dashboard

Fast order processing and precise inventory management

Digital processes and real-time inventory management minimize errors and orders are reliably picked.

Whether small stores or large e-commerce companies – orders are stored and picked in such a way that they reach the customer quickly, efficiently and without errors.

Scalable solutions for growing e-commerce stores

Whether you are a start-up or an established retailer – Subke offers scalable fulfillment solutions that grow with your store.

Transparent processes and reliable shipping

Transparent processes in the dashboard, clear communication and reliable shipping processes ensure that your customers receive their orders on time.

Conclusion

Why professional order picking is a competitive advantage?

Optimized order picking is crucial for online retailers to remain competitive. Modern picking processes, digital systems and automated solutions improve:

  • Efficiency
  • Speed
  • Accuracy
  • Cost structure

How online retailers benefit from optimized fulfillment processes

Retailers who have their goods professionally picked benefit from faster delivery times and lower error rates.

Optimized processes ensure satisfied customers, fewer returns and a stable basis for growth in e-commerce.

Picking process
Picking process

About the author: Over the last few years, Mr Schmidt has become increasingly involved in logistics at Subke GmbH. Previously, he implemented online shops, marketing and SEO strategies himself. He knows the requirements and challenges that an online business brings for retailers.

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