Although most websites currently receive fewer than 400 orders per day, as the buying public gains trust and comfort with Internet purchases, web sales should increase exponentially. Inventory and fulfillment issues resulting from increased orders will continue to catch many an unwary e-commerce site unprepared. Now is the time to perfect the fulfillment systems and services needed so that when your website s business takes off, everything is in place.

When a customer orders a product from a website, that customer is trying to achieve one or more objectives:

• Save money on product cost (which is partially offset by the addition of shipping costs).

• Avoid the additional expense of state sales tax.

• Purchase specialty products that are not available locally.

• Convenience by avoiding a time-consuming trip to a mall or specialty store.

What your customers fear most about buying from an e-commerce site is the uncertainty of whether their purchase will be delivered when promised. Web newsgroups are full of tales about products ordered and not received when promised (sometimes never).

There comes a time when every web-based business selling a physical product as opposed to a virtual product (such as software or music that can be downloaded over the Internet) must decide how to pick, pack, and ship the product to its customers in a timely manner. As stated many times in this book, online customers have zero tolerance for delays and poor service. But there are steps an e-commerce business can take to provide superlative fulfillment services. They...