If I had to make a guess as to why you started your e-commerce business I’m 99.99% sure it wasn’t because you’re passionate about picking, packing and shipping orders. Despite the fact that order fulfillment isn’t high on your priority list it can have a huge impact on your business.
In fact ecommerce picking errors or mis-picks can cost you in a few different ways but first let’s discuss exactly what constitutes a mis-pick.
What You Need to Know About Picking Errors
Errors in order fulfillment can happen at a few different points in the process but one of the most common is during picking. According to Multi Channel Merchant, “A mis-pick can occur for a variety of reasons.
- Picking a wrong item, in addition to, or instead of the correct item
- Wrong quantity
- Failure to pick an item
- Picking an item that is unacceptable because of damage, incorrect labeling, or packaging”
These errors are frustrating for both you and your customer because they’re highly preventable. Most of the time these are unforced errors and can be avoided. These mistakes aren’t just a nuisance though, they can cost you big time.
Mis-picks can cost you in three major ways. They can cost you…
- Customers
- Time
- Money
How Mis-Picks Cost You Customers
This is perhaps one of the most obvious ways that a mis-pick can cost you. Shipping errors can have a serious impact on your customer retention, acquisition and overall lifetime value (LTV).
Customers expect to get exactly what they ordered and they want it to show up ASAP. If you’re not meeting these expectations it’s highly unlikely they’ll buy from you a second time. Customers are extremely critical especially towards e-commerce brands.
Not only can you lose existing customers due to mis-pick issues it can also impact customer acquisitions. Bad reviews about a poor fulfillment experience can turn away future/potential customers.
How Mis-Picks Cost You Time
Time is a precious commodity especially for small businesses. Whether you’re a one man show or you have a small team to help you out, it’s best not to waste time on anything unnecessary. Unfortunately mis-picks can end up costing you time.
Resolving a mis-picked order often starts with a customer service call or chat to return the product and make a complaint. Then there’s the time it takes to send out the proper item and correct the issue. And lastly there’s the time it takes to process the return.
While one or two mistakes like this don’t seem like a big deal if it happens repeatedly it can become a real issue. On top of that there’s the time it takes to correct the issue. Whether that’s implementing an entirely new system or taking the time necessary to track down the real issue and retrain yourself/your team on better picking practices.
How Mis-Picks Cost Your Money
In the end mis-picks not only cost you customers and your time but money too. In fact, some experts estimate that the true cost is between $50 to $75 per picking error! That’s a lot of cash you could be burning on silly, avoidable mistakes.
Obviously wasted time and lost customers translates into lost money but it’s also important to consider the shipping costs you’ll have to pay to correct your mistake. You’ll have to pay your customer’s return shipping as well as pay to resend the correct order to them.
This can be a massive cost depending on where your customer lives relative to where you’re shipping from. It’s especially costly if your products are heavy or fragile. And don’t forget that’s a lot of wasted packaging as well.
Of course, this is all assuming that your customer even wants you to correct the error in the first place. Some customers might just decide to return the product for a refund. That’s a lost sale altogether which no one wants.
Fixing Picking Errors Fast
So how do you fix the problem of picking errors? One of the fastest ways to nip this problem in the bud is to outsource your order fulfillment. Outsourcing your order fulfillment to a third-party logistics company can help you quickly solve the problem of picking errors along with a long list of other shipping problems.
Here at Ship Central we are more than 99% accurate when it comes to picking. That’s because we treat your business like our business. At other shipping companies you’re just one of many, many customers. Here at Ship Central we give every customer the time and attention they need.
This also means we can act quickly to help you solve problems and grow your business. When you call us a person will pick up the phone and talk to you. Not all 3PLs can say that!
Whether you’re struggling with picking errors, shipping costs or kitting quandaries we are here to help.
Contact Us for a Quote Today!