Why Customers Chase Orders and How to Prevent It: Solving Common Inventory Management Issues

In the competitive world of e-commerce, customer satisfaction isn't just important—it's everything. When customers are happy, they return, refer others, and become loyal advocates for your brand. However, one of the biggest frustrations they face is having to chase their orders. This not only impacts their satisfaction but can also damage your reputation and bottom line. In this blog post, we'll explore some of the most common reasons why customers end up chasing their orders and provide practical solutions to address these issues. By improving your order management processes, you can ensure a smoother, more satisfying experience for your customers.

Common Reasons Customers Chase Orders

There are a few common reasons why customers chase orders, and as we know, this is far from an ideal experience. When customers have to track down their orders, it leads to frustration and can tarnish their view of your business. Let's dive into some of the most common reasons and then explore practical solutions to address them.

Understocking

Understocking happens when items are oversold and not available for immediate shipment. This often leads to frustrated customers who either have to wait longer than the advertised wait time for their order or have to chase their orders to find out when they will be fulfilled.

Inadequate Shipping Notifications

When customers don't get timely updates about their order status, they are left wondering and often end up reaching out for information. Missing or inadequate shipping notifications create a communication gap that can lead to frustration and a lack of trust in your business.

Manual Processes

If you have any manual processes within your e-commerce business, human error is going to trip you up at some point. Relying on manual stock tracking and order processing can be incredibly inefficient and error-prone. These manual processes often lead to mistakes such as overselling, delayed shipments, and ultimately, customers chasing their orders. When your team is bogged down with manual tasks, it reduces overall efficiency and increases the likelihood of human error.

Solving Understocking Issues

Chances are, you've encountered one or more of these problems in your e-commerce business. But don't worry—solving these challenges is our specialty at SMB Consultants, and we're here to help. Let’s explore some effective strategies to address these common challenges.

Buffer Stock

Maintaining a buffer stock is a great way to avoid overselling. For example, if you have 50 items in stock, only list 45 for sale. This buffer provides a safety net, allowing you to handle unexpected demand or any inventory discrepancies. By keeping a small surplus, you can quickly resolve issues and ensure your customers always receive what they ordered without disappointment.

Presales and Open to Sell Functionality

Presales are a great way to manage inventory and meet customer demand without holding excess stock. Tools like Cin7 Omni's "open to sell" feature make managing presales easier by allowing you to list stock that is due to arrive within a specified timeframe (usually 7 or 30 days). By offering products that are yet to arrive, you can gauge interest and plan your inventory more effectively. By setting clear expectations with your customers about when they can expect their orders, you build trust and reduce the likelihood of order chasing. Using presales strategically, along with "open to sell" features, can help you manage inventory more efficiently and keep your customers informed and satisfied.

Improving Shipping Notifications

Good communication is key throughout the customer's journey. Keeping them updated about their order status helps build trust and reduces frustration. With today's tools and integrations with systems like Inventory Management Systems, staying connected with your customers is easier than ever.

Automation Bots

Implementing automation bots can significantly improve your shipping notifications. These bots can send timely updates at different stages of the order process, keeping customers informed about their order status. For example, an automation bot can send notifications when an order is received, processed, shipped, and out for delivery. This continuous flow of information reassures customers and reduces the need for them to chase their orders.

Additionally, automated chatbots like Gorgias can handle customer queries and provide instant responses, reducing the overhead on your staff. These chatbots can answer common questions about order status, shipping times, and more, ensuring that your customers always have the information they need without having to wait for a human response.

Shipping Software

Integrating specialized shipping software like Shippit or Starshipit with your e-commerce store and Inventory Management System (IMS) can significantly improve your shipping processes. These platforms automate tasks like label generation, carrier selection, and tracking updates, ensuring your customers receive real-time notifications about their orders. By relying on expert systems, you can provide a seamless shipping experience that keeps your customers informed and satisfied.

Streamlining Manual Processes

Overcoming the pitfalls of manual processes is essential for smooth operations. By integrating your systems and developing custom workflows, you can automate tasks, ensure accuracy, and boost overall efficiency.

System Integration

Integrating your inventory management system with e-commerce platforms like Shopify and accounting systems like Xero can automate stock updates and reduce manual errors. This integration ensures that your stock levels are always accurate and up-to-date. By automating these processes, you increase your data integrity, minimize the risk of human error, and improve overall efficiency.

Custom Workflows

Developing custom workflows that align with your software capabilities is crucial. For example, creating customer orders before purchase orders ensures accurate tracking and fulfillment. This workflow prevents the overselling of items and keeps your inventory management system organized. By matching purchase orders to customer orders, you can ensure that each order is fulfilled accurately and promptly.

A Burnt Butter Example

Having worked with hundreds of clients, we are no strangers to the common challenges businesses face with stock management and order fulfillment. One such client, Burnt Butter, was struggling with manually tracking stocks sold online using spreadsheets—a labor-intensive process prone to errors and inefficiencies. This manual method made it difficult to maintain accurate stock levels and provide timely updates to customers.

To address these challenges, we guided Burnt Butter through a transition to Shopify, integrating it with Cin7. This integration automated stock updates, significantly reducing the risk of human error and freeing up valuable time for the team. With their systems now talking to each other, Burnt Butter can ensure that their stock levels are always accurate and up-to-date.

Additionally, by leveraging the automation capabilities of Cin7, Burnt Butter can now send real-time notifications to customers about their order status, from processing to shipping. This has greatly improved their customer communication and satisfaction.

Through our expertise and tailored solutions, SMB Consultants helped Burnt Butter transform their stock management processes, leading to a more efficient operation and happier customers. If your business is facing similar challenges, we can help you achieve the same results.

Putting Customers at the Heart of Your Business

By addressing common reasons why customers chase orders and implementing effective inventory management strategies, businesses can significantly improve customer satisfaction. Leveraging automation, integrating systems, and maintaining clear communication are key to creating a seamless order management process that keeps customers happy and loyal.

Is your business struggling with order management issues? Contact SMB Consultants today to learn how we can help you integrate and optimize your systems for a better customer experience.