What is order processing?
Order processing is everything that happens to a customer order between “buy” and “shipped”: receiving the order, checking it, choosing the warehouse, picking and packing the items, labelling the parcel and handing it to the carrier. When it runs well, orders leave the warehouse fast and complete, stock levels stay accurate and customers get what they ordered.
Core principle: Order processing turns an order in your shop into a packed, labelled parcel on its way. Every manual step adds time and a chance of error.
The order processing steps
1. Order received
The order arrives from your webshop, a marketplace or a B2B customer, usually automatically through an integration or an order management system (OMS).
2. Order checked
Payment, address, stock availability and any special requests are checked. Orders with problems, such as an incomplete address, are put on hold before they reach the warehouse.
3. Warehouse and carrier chosen
The system decides which warehouse ships the order, usually the one closest to the customer with the items in stock, and which carrier and service to use.
4. Picking
The items are collected from their storage locations and scanned to confirm they are correct. See picking.
5. Packing and labelling
Items are packed with the right box, filling and any inserts, and the shipping label and documents are printed. See pick and pack.
6. Dispatch and confirmation
The parcel is handed to the carrier, the order is marked as shipped and the customer gets a tracking link.
Order processing vs order fulfilment
| Order processing | Order fulfilment | |
|---|---|---|
| Starts | When the order is placed | When stock arrives at the warehouse |
| Covers | Checking, routing, picking, packing, dispatch | Receiving, storage, order processing, delivery and returns |
| Ends | When the parcel is handed to the carrier | When the customer has the order, or the return is processed |
Order processing is one part of eCommerce fulfilment. The two terms are often used as if they mean the same thing.
How to measure order processing
- Order cycle time: time from order placed to parcel dispatched
- Same-day dispatch rate: share of orders shipped on the day they arrive before cut-off
- Picking accuracy: share of orders with the right items and quantities
- Fill rate and perfect order rate
- Cost per order: labour, packaging and systems divided by orders shipped
Order processing in eCommerce and B2B
In eCommerce, order processing handles many small orders a day, so automation matters most: orders sync from every sales channel, are routed to the right warehouse and released for picking in real time, with the carrier and label chosen automatically. B2B order processing adds retailer rules, such as delivery slots, pallet labels and advance shipping notices by EDI. See B2B fulfilment.
Example: A customer orders a dress from a fashion brand’s Shopify store at 10:30. The order syncs to the Waredock platform within seconds, is routed to the warehouse in Germany that holds the stock, picked and scanned, packed with the brand’s thank-you card and labelled for a German parcel carrier. It leaves the warehouse the same afternoon, and the customer receives the tracking link by email.
With eCommerce fulfilment from Waredock, our team and AI agents handle order processing for you, from the first sync to the tracking email.
Frequently asked questions
What is order processing?
The steps from receiving a customer order to handing the parcel to the carrier: checking, routing, picking, packing, labelling and dispatch.
What is the difference between order processing and order fulfilment?
Order processing handles an order after it is placed. Order fulfilment is wider and also covers receiving and storing stock, delivery and returns.
How long does order processing take?
In a well-run fulfilment warehouse, orders placed before the daily cut-off are usually processed and shipped the same day.
How can I automate order processing?
Connect your shop and marketplaces to an order management system or fulfilment platform, so orders, stock and tracking sync automatically and orders are routed and released to the warehouse without manual work.
