What is order fulfillment? The ecommerce order fulfillment process, step by step

The seven steps of order fulfillment, the metrics that matter, and when to outsource.

Last reviewed October 2026.

Order fulfillment is everything that happens between a customer clicking buy and the package arriving: receiving, storage, picking, packing, shipping, delivery and returns.

Brands fulfill orders in-house, through a 3PL, or with dropshipping.

The metrics that matter are accuracy (aim for 99.5%+), order-to-dispatch time, on-time delivery and cost per order.

Ship Velocity fulfills orders from Miami with 99.8% accuracy and a 24-hour dispatch SLA.

The order fulfillment process, step by step.

Receiving: inventory arrives and is counted against the purchase order.

Storage: items are shelved with scannable locations.

Order processing: the order syncs from your store and is released to the floor.

Picking: items are picked by scan.

Packing: items are packed, with inserts or branded packaging.

Shipping: a label is bought and the parcel goes to the carrier; tracking syncs to the customer.

Returns: returned items are received, inspected and restocked or disposed of.

Three ways to fulfill orders.

Model: In-house; Best for: Very early brands, under ~300 orders/month; Tradeoff: Founder time, rent and labor.

Model: 3PL (outsourced); Best for: Brands from a few hundred to 100k+ orders/month; Tradeoff: Less hands-on control of the floor.

Model: Dropshipping; Best for: Testing products without inventory; Tradeoff: Low margins, little control over packaging and speed.

Order fulfillment metrics to track.

Ship Velocity reports these monthly to every client from its Doral, Florida fulfillment center, with month-to-month terms and itemized per-touch pricing.

Pick-pack accuracy (rolling 12 months).

Order-to-dispatch time against the daily cutoff.

On-time delivery rate.

Cost per order, fulfillment plus postage.

Return processing time.

What is order fulfillment? Order fulfillment is the process of receiving, storing, picking, packing and shipping customer orders, plus handling returns.

What are the steps of order fulfillment? Receiving, storage, order processing, picking, packing, shipping and returns.

Should I outsource order fulfillment? Usually once you pass a few hundred orders a month or someone spends more than five hours a week packing.

A 3PL is typically cheaper than in-house at around 500 orders a month.

How much does order fulfillment cost? Typically $3 to $6 per order in US fulfillment fees, plus postage.

About Ship Velocity — a Miami-based third-party logistics partner.

Velocity Worldwide LLC operates a purpose-built fulfillment center at 8292 NW 21 ST, Doral, FL 33122, serving direct-to-consumer ecommerce brands, Amazon FBA sellers, subscription-box operators, and wholesale and retail vendors from a single 100,000-plus square-foot facility.

Coverage and reach.

Ground shipping from the Miami hub reaches roughly 90 percent of the continental United States population within two business days and 99 percent within three.

Cross-border programs into Canada, Mexico, the Caribbean, and Latin America route through the same facility.

International freight ships to 200-plus countries via UPS Worldwide, FedEx International, and DHL Express.

How we work.

Engagements are month-to-month with no long-term contracts, no storage minimums, and per-touch pricing itemized in the fee schedule.

Every account is assigned a named account manager who stays for the life of the relationship.

Onboarding a new client typically takes five to ten business days from inventory receive through pilot cutover.

Published performance standards. 99.8 percent pick-pack accuracy on a twelve-month rolling basis, 24-hour order-to-dispatch service level for orders placed before the daily cutoff, sub-one-percent short-ship rate, 99.5 percent on-time carrier hand-off, and sub-half-percent damage claims rate.

Every metric is reported to clients monthly.

Get in touch.

Prospects can request a quote at shipvelocity.com or email [email protected] for a same-business-day response with pricing, references, and an operations plan tailored to the program.