If you’ve ordered something online recently, chances are you’ve experienced the ripple effects of what the retail world politely calls “fulfillment friction.”
Maybe the delivery arrived late. Maybe it was damaged. Maybe it never showed up at all. Behind every one of those moments lies a broken link in a chain that, for many ecommerce businesses, has grown too complex to manage without help.
Once a back-office concern, order fulfillment is now front and center. Customers expect a seamless experience from click to doorstep. And they don’t distinguish between warehouse errors and shipping mistakes; they just know when something’s gone wrong. For brands, that means fulfillment has evolved past logistics, into reputation.
Let’s examine the most persistent order fulfillment challenges and how smart retailers are tackling them with technology and processes.
Inventory inaccuracy
The shelf says 12 units, but there are only 9. Or worse: it says in stock online, but you sold out yesterday.
These discrepancies wreak havoc on customer satisfaction and bottom lines. Accurate inventory management is no longer optional. It’s the cost of entry. Without real-time data synced across all sales channels, errors multiply fast, and customers don’t forgive stockouts.
In fact, according to Auburn University's RFID Lab, 58% of retail brands and manufacturers report inventory accuracy below 80%. To fix this, businesses are investing in connected tools that centralize inventory across stores, warehouses, and ecommerce platforms. Regular cycle counts, automated alerts for low stock, and seamless updates across sales channels can reduce overselling and help deliver on customer expectations.
Shipping delays and rising costs
Fast delivery has become a competitive differentiator. But as fuel costs rise and global carrier networks face disruption, getting packages to customers quickly and affordably is harder than ever. Many ecommerce operations still rely on manual processes or limited carrier relationships, a recipe for missed SLAs and blown budgets.
Carrier rate hikes averaged 5.9% in 2024, and shoppers now expect more flexible delivery options. Using a multi-carrier strategy, automated carrier allocation, and rate validation, as enabled by the nShift platform, retailers can reduce last-mile delivery costs by up to 20% per parcel.
Packaging problems
A cracked jar. A crushed box. A product that arrives looking nothing like the care that went into selling it. Poor packaging isn’t just inefficient, it’s actually expensive. Damaged goods lead to refunds, returns, and resentment, but over-packaging isn’t the answer either.
Up to 11% of ecommerce deliveries arrive with damage. Smart fulfillment teams now use right-sized boxes, high-quality internal protection, and eco-conscious materials that improve the unboxing experience while reducing returns. Packaging optimization also reduces dimensional weight charges, helping control costs.
Error-prone picking and labeling
A mislabeled order. A pair of shoes in the wrong size. Mistakes like these scale quickly in high-volume environments. As order volume grows, manual workflows buckle.
Most fulfillment centers operate with a 1–3% error rate in order picking, according to industry reports. But even a 1% error rate can severely dent profitability: a significant 58% of customers would abandon a brand after receiving an incorrect order. And the financial toll adds up: just one picking mistake can cut into an order’s margin by up to 13%, factoring in re-picking, returns, and support costs.
With RFID, pick-to-light systems, and integrated label automation, brands can improve accuracy, reduce repacking costs, and lower customer churn. Solutions like nShift Ship also allow for label customization and QR code integration, useful for customer vouchers and returns.
XXL, the Nordic sporting goods giant, turned to nShift to get delivery right the first time, every time. With over 1,000 stores and massive online volume, XXL needed a platform that could handle high-scale logistics with precision. Using nShift, XXL reduced manual errors and ensured each order left the warehouse correctly packed and labeled.
And it’s not just large-scale operations seeing the impact:
GlowiD, a beauty retailer known for its curated skincare collections, used nShift to reduce delivery errors by 50%, simply by improving order clarity and automating shipping processes.
When every detail counts, streamlined fulfillment makes the difference between a delighted customer and a lost one.
Scaling without systems
Growth is a good problem to have, unless your tech stack can’t keep up. Businesses outgrowing spreadsheets or disparate platforms often see fulfillment start to break down: slower dispatches, more returns, and longer customer service queues.
Platforms like nShift integrate with ecommerce platforms, ERP systems, and WMS tools. This allows businesses to automate fulfillment, access 1000+ carriers, and onboard new delivery options in minutes instead of weeks.
Lack of tracking visibility
“Where is my order?” Chances are it’s the #1 question your support team hears. Research shows that these WISMO calls account for over 35% of ecommerce support volume, each costing roughly €5.50 to handle, based on LiveAgent’s analysis of EU support center costs. Worse: these inquiries erode trust.
nShift Track gives you proactive notifications, branded tracking pages, and multi-language experiences. The result? WISMO calls cut by 50%, and up to a 15% click-through rate from branded tracking links - far higher than average marketing email campaigns.
Poor post-purchase communication
Order fulfillment doesn’t end when the package leaves your warehouse; customers expect consistent, transparent updates. Without them, one in three say they’d stop doing business with a brand after one bad post-purchase experience.
Transparent, timely communication is the antidote. If a delivery is running late due to a carrier issue, a quick email or SMS to the customer can make a huge difference, showing that you’re on top of it and value their time. Providing delivery confirmations (“Your package was delivered today at 3pm”) also closes the loop and reassures customers.
Returns that ruin loyalty
Returns are inevitable, but a clunky return process isn’t. Online return rates are as high as 17.6%, and inefficient return flows eat away at profit and loyalty. Yet a smooth returns journey is a powerful retention lever.
Retailers using nShift Returns have seen measurable results, including:
- 60% reduction in return handling time
- 30% of returns turned into exchanges
- 15% increase in in-store returns (and add-on purchases) with digital return prompts
Easy, branded, and digital-first returns keep customers coming back. They also help restock items faster and reduce refund lag.
A fulfillment wake-up call
The future of fulfillment is integrated, predictive, and personalized. The most successful retailers are automating where it matters, personalizing the post-purchase experience, and capturing insights that drive smarter decisions across the entire customer lifecycle.
nShift helps brands deliver on their promises - literally. From Checkout to Returns, we provide the infrastructure to scale operations, improve margins, and make delivery feel like less of a liability and more like part of the customer experience.
If your fulfillment process is under pressure, let us show you how nShift can help you ship smarter and grow with confidence.
About the author
Thomas Bailey
Thomas plays a key role in shaping how new features and platform improvements deliver real value to customers. With a background spanning product, tech, and go-to-market strategy, he brings a pragmatic view of what innovation looks like in practice and how to make delivery experiences work harder for your business.
