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Shopify fulfillment for e-commerce merchants

Fulfillment is the handling of the storage and entire order processing of orders from the online store. The retailer can do this themselves or outsource the tasks to an external logistics provider.

Shopify fulfillment is an important component for the smooth running of an e-commerce business. Tailor-made 3 PL solutions offer online retailers the option of having the entire order volume and all necessary processes handled by several logistics companies.

Since Shopify merchants only deal with e-commerce orders, the term e-fulfillment is often used. The E stands for electronic and the term commerce comes from English and means trade.

Fulfillment service providers take care of receiving, storing, warehousing, picking, packing and shipping products to customers. The fulfillment service provider also handles returns processing and inventory management and adjusts the stock in the store.

Well-structured logistics processes are usually part of the solution to the success of an online store. The advantages are that all the complex tasks can be outsourced without having to operate your own warehouse or employ permanent staff. With external providers, the business is easier and faster to scale.

A reliable fulfillment service provider can increase customer satisfaction with fast order processing through good process integration. Benefits such as environmentally friendly packaging can also sustainably increase the repurchase rate and thus improve brand awareness.

External service providers offer sufficient resources and solutions in commerce when it comes to seasonal business or when own warehouses are not available in the respective country. Complex packaging processes can also be taken over by the provider.

What does Shopify Fulfillment (SFN) mean?

The term “Shopify Fulfillment Network” refers to a warehouse network provided by Shopify to facilitate the shipping process of orders for online merchants and brands. The Shopify Fulfillment Network ➚ (SFN) enables merchants to fulfill their orders in real time via a network of strategically placed warehouses. Most SFN centers are located in North America and offer good integration with existing regional online stores.

Shopify logistics solutions:

  • Warehousing: Products are stored in the nearby SFN warehouse to minimize delivery times. Items require a scannable barcode and must be created in the system.
  • Picking and packing: Once the order has been received, the SFN centers take care of assembling and packing the products. The stock level is adjusted after each order.
  • Shipping: The goods are delivered quickly and cost-effectively via various partners.
  • Returns management: Fast processing of returns to optimize customer service and increase repeat purchases.

Shopify Fulfillment Germany

If you are an online retailer looking for a fulfillment provider for your deliveries in Germany, the EU or non-EU, Subke GmbH is an ideal partner.

The range of services includes:

  • Incoming goods and goods preparation according to your specifications
  • Warehouse and inventory management
  • Order processing and shipping process to customers
  • Overview of the inventory
  • Processing of returns
  • Takeover of the refurbishment
  • Customs clearance

We are constantly working on optimizing processes for retailers in fulfillment, reducing costs and adapting capacities to increasing requirements. This enables you to expand your business more efficiently without running into bottlenecks or physical limits.

Shopify Shop external fulfillment
Shopify Shop external fulfillment

Shopify Shop Fulfillment Connection

In order to retrieve the orders from the Shopify store, it must be connected to the fulfillment service provider.

The fulfillment software is a central point that the fulfillment partner uses. The software must record the order data in real time and transfer it to the warehouse. It must also be possible to transfer data bidirectionally so that the status, stock level and transaction number can be fed back into the Shopify store.

Only after the store system has been successfully integrated can the entire order processing be taken over externally. Here are the individual steps for the connection to fulfillment at Subke:

Procedure:

  • First you will receive an individual offer.
  • After your confirmation, we will draw up the service contract.
  • Then you will receive an account with JTL-FFN .
  • Your Shopify store is connected to JTL-FFN via the interface provider FFN-Connect.
  • JTL-FFN is connected to our JTL merchandise management system and JTL-WMS.

Test and optimization:

  • The items from your store are synchronized and released.
  • We will carry out a test order with you to optimize the process.

Automation:

  • Product data and orders are transferred seamlessly via the interface.
  • We take care of inventory management.
  • The current stock and tracking numbers are transferred back to your Shopify store.

Connection options:

  • About the Shopify App Store: An efficient and fast method for EU-based merchants.
  • Via API: Ideal for retailers outside the EU.

Connection via app

You connect your Shopify store with JTL-FFN to our logistics center via app. The product data such as SKU, images and descriptions are transferred. Once the products have been assigned to the fulfiller and approved, the orders are transferred in real time.

A) Create a JTL-FFN account:

  1. You will receive an invitation from us by e-mail for a free JTL-FFN account.
  2. Click on the link and assign a password.
  3. Log in to JTL-FFN with your access data.
  4. Grant the rights requested by JTL.
  5. Enter the necessary information in the form.
  6. Complete registration and click on the activation link in the following e-mail.

B) Create an account with ffn-connect:

  1. You will receive a link for the registration process by e-mail from ffn-connect.
  2. Follow the link and assign a password for ff-connect.
  3. You install the FFN-Connect app in your Shopify store.

Advantages of using the FFN-Connect app:

  1. No own JTL Wawi required.
  2. No one-off set-up fees.
  3. No hosting fees.
  4. Permanent optimization of data transmission.
  5. Data transmission in real time.
  6. Fast support by e-mail

Connection via API

In your Shopify online store, you must have a

  • API key
  • API password and
  • create a Shared Secred.

Log in to your ffn account:

  • Click on my connection in the menu.
  • Then click on Start connection.
  • Select the store software Shopify.
  • Enter the data from JTL-FFN.
  • Click on continue, done.

Advantages of Shopify fulfillment service providers

3 PL service providers take on many different logistics tasks, which can be a challenge for retailers.

  • Order processing with the latest WMS technology
  • Cost savings through optimized processes
  • Goods receipt with visual inspection and professional storage
  • Receipt of the number of items during goods receipt
  • Container unloading within the regular truck standing time
  • Flexibility for growth and seasonal products
  • Scalability for brands
  • Preparation of goods
  • Individual services, such as wrapping in wrapping paper or bottle cartons, enclosing leaflets, stickers or cards, environmentally friendly packaging and much more.
  • Takeover of returns management
  • Reliable 3PL cooperation with third-party providers such as shipping centers and customs agencies
  • No one-off set-up fees – fast & free
  • IT support for the interface included

Order processing processes

Overview of the individual processes of order processing in fulfillment.

  1. Customer order in the store
  2. Payment processing in the store
  3. Order to the warehouse
  4. Picking and packing
  5. Status change in the Shopify Shop
  6. Reduction of stock in the store
  7. Shipping preparation and labeling
  8. Transmission of the transaction number
  9. Collection by the shipping service provider
  10. Shipping notification to the customer
  11. Delivery to the customer

Fulfillment status of order processing

In the dashboard, you can see the current status of fulfillment orders: released, accepted by the fulfiller, picked from the warehouse and shipped.

Shopify Fulfillment Status
Fulfillment Status

Using Shopify as a multichannel system

If you as an online retailer want to sell on several eCommerce platforms and the fulfillment for these orders should also be taken over, it is not necessary to connect each individual platform separately.

You can connect Shopify to various sales platforms such as Amazon, Otto, eBay or AboutYou. You can find the right apps for this in the Shopify App Store, which you simply install and connect to your account on the sales platform.

The orders are all stored centrally in Shopify and can be retrieved from there by the fulfiller.

Dropshipping with Shopify

Dropshipping with Shopify is a popular business model in which the online retailer sells products without having to buy, store or ship them themselves beforehand.

To be able to use dropshipping, retailers need a dropshipping supplier such as AliExpress, Spocket, Zendrop or SaleHoo. These offer the products for sale. Popular niches include fashion, gadgets, home decoration and fitness.

Go to the Shopify App Store and install the apps like Oberlo (no longer directly supported by Shopify, but alternatives like DSers or Zendrop).

Select products via the dropshipping app (e.g. DSers) and import them into your store with one click.

Pay attention to legal requirements (e.g. VAT ID, EORI number, may the products be imported at all – for EU sales).

Is a fulfillment provider a dropshipping provider?

No, a fulfillment provider is not a dropshipping provider. As a logistics provider, the fulfillment provider handles the entire order processing and storage of the goods, which are the property of the retailer.

Although the dropshipping provider also stores and delivers the goods to the end customer, they are also the owner of the goods, which you do not have to purchase in advance as an online retailer.

Shopify Fulfillment Prices

The fees are calculated differently depending on the fulfillment partner. In general, the prices are divided into 5 areas.

  1. Incoming goods
  2. Warehousing
  3. Order picking
  4. Outgoing goods
  5. Returns processing

Some providers do not charge for incoming goods, while others charge per container or item. The storage fee is sometimes calculated per shelf rack, pallet space or per cubic meter.

There are also flat rates for order picking or prices per item and effort. In some cases, fees are also charged for outgoing goods, for example when pallets are shipped.

The returns handling processes can be very time-consuming. Prices are charged per return or according to the actual effort per hour.

Some providers charge a fee for outsourcing if you leave the provider. You should pay attention to the contract term in the contract.

Create a sample invoice and discuss it with the fulfillment partner to get a better overview.

A setup fee is sometimes charged for the Shopify Shop connection to fulfillment. Often because developers help with the setup. With us, there is no one-off setup fee.

Conclusion

With a professional fulfillment partner, you can concentrate on your core business while the fulfillment partner takes care of the logistics processes and delivery of the goods.

You do not need any programming knowledge for the integration. The app is easy to install in Shopify.

The entire connection process can be completed within one day.

If you have any questions during the connection, we can help you as a fulfillment partner with our developer.

Installation of the ffn-connect app in Shopify

Shopify-Dashboard-Bestellstatus

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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