Fulfillment

Definition

Fulfillment is the process of receiving, processing, and delivering customer orders. It encompasses all steps from storing inventory (if applicable) to picking, packing, shipping, and updating the order status.

Explanation

In a dropshipping model, fulfillment is primarily handled by the supplier rather than the retailer. The retailer collects orders from customers and forwards them to the supplier, who then packages and ships the products directly to the customer. Efficient fulfillment is critical in Dropshipping, as it impacts delivery speed, customer satisfaction, and return management.

Example

1. A customer orders a smartwatch from a retailer’s online store.
2. The retailer sends the order details to the supplier.
3. The supplier picks the smartwatch from their inventory, packages it, and ships it directly to the customer.
4. The retailer updates the customer with tracking information.