Difference Between Processing and Shipping: Distinguishing Operational Phases

04 December 2023 - E-Commerce

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Difference Between Processing and Shipping: Distinguishing Operational Phases

Order processing and shipping are two distinct phases in the operational workflow of an e-commerce business¹ ². Understanding the difference between these two phases is crucial for efficient business operations.

Order Processing

Order processing refers to the series of actions that occur once a customer places an order¹. It begins with the receipt of the order and includes steps such as verifying the order details, checking the availability of the ordered items, and preparing the items for shipment¹. The goal of order processing is to ensure that the order is accurate and ready for delivery¹.

Shipping

Shipping, on the other hand, involves the physical movement of the product from the seller to the buyer². This includes activities such as packing the order, labeling it for shipment, arranging for pickup or drop-off with a shipping carrier, and tracking the package until it reaches the customer². The goal of shipping is to ensure that the order reaches the customer in a timely and safe manner².

SaaS Products for Order Processing and Shipping

Several SaaS products can help businesses streamline their order processing and shipping operations. Here are a few examples:

NetSuite: Offers a comprehensive suite of order management solutions, including order entry automation, inventory management, order fulfillment, and customer communication³.
Zoho Inventory: Provides powerful inventory management features, including real-time inventory tracking, automated reordering, and multi-channel selling⁴.
ShipStation: Offers robust shipping and order fulfillment features, including automated shipping label generation, rate comparison, and order tracking².
QuickBooks Commerce: Provides a range of order management features, including automated order entry, real-time inventory management, and multi-channel order fulfillment⁵.
TradeGecko: Offers a powerful order management platform, including automated order entry, inventory management, order fulfillment, and customer communication⁴.

Conclusion

Understanding the difference between order processing and shipping is crucial for e-commerce businesses. By leveraging technology and the right SaaS products, businesses can automate various steps involved in these processes, thereby reducing processing time, enhancing customer satisfaction, and ultimately improving their e-commerce operations.