In ecommerce, where speed, accuracy, and customer satisfaction are key, pick and pack is the heartbeat of every successful order fulfillment operation. This guide walks you through everything you need to know about the pick and pack process — from what it is, how it works, the best practices to follow, and how to optimize your operations for growth.
What is pick and pack?
Pick and pack refers to the process within a fulfillment center where items for a customer order are selected (picked) from inventory and then packaged (packed) for shipment. It’s one of the most crucial parts of the supply chain because it directly impacts the speed and accuracy of order delivery.
The process begins once a customer places an order. A warehouse worker, or picker, retrieves the ordered items from their storage locations. Then, those items move to the packing station where they’re carefully packed, labeled, and prepared for shipment. While the process may sound simple, scaling it efficiently and accurately requires smart planning, trained staff, and the right technology.
Why does pick and pack matter in ecommerce fulfillment?
Pick and pack is more than just moving items into boxes. It directly affects:
- Customer satisfaction: Delays or mistakes during this phase lead to unhappy customers, returns, and bad reviews.
- Efficiency: Streamlined pick and pack operations help businesses scale while keeping costs low.
- Profitability: Reducing errors, packaging waste, and labor costs boosts the bottom line.
A well-executed pick and pack system can be the difference between repeat buyers and lost business.
What does the pick and pack process look like? (step-by-step)
Let’s break down the process into four main stages.
1. Order receiving
The process kicks off when an order is received through an ecommerce platform or order management system. The system generates a pick list — a document listing all items and their quantities.
2. Picking
The warehouse team uses the pick list to locate and retrieve each item. There are several picking methods used depending on the size and scale of operations:
- Piece picking: Picking one order at a time.
- Batch picking: Picking multiple orders simultaneously to save time.
- Zone picking: Assigning workers to specific zones; each worker picks items from their zone only.
- Wave picking: A hybrid strategy combining batch and zone picking, often used for large operations.
Choosing the right method depends on order volume, warehouse layout, and product types.
3. Packing
After picking, the items are taken to a packing station. At this stage, the packer:
- Verifies items match the order
- Selects appropriate packaging
- Adds protective materials if needed
- Inserts receipts or promotional materials
- Seals and labels the package
Choosing the right packaging materials is essential to protect items during transit and to avoid excessive shipping costs due to dimensional weight.
4. Shipping
Once packed, the order is labeled with shipping information and handed over to a carrier for delivery. Most fulfillment centers integrate with shipping software to automatically print shipping labels and select the most cost-effective carrier.
What are the best practices for efficient pick and pack fulfillment?
Optimize warehouse layout
A logical layout reduces the time spent walking between shelves. Place fast-moving items near packing stations or group commonly ordered items together to speed up picking.
Use barcode scanning
Barcode scanners reduce human error during picking and ensure real-time inventory updates. They’re essential for accurate order fulfillment and inventory management.
Implement inventory management software
Using software to track stock levels, reorder points, and location of products improves efficiency and reduces errors. It also provides data to make smarter purchasing decisions.
Train your team
Even with automation, a skilled team is critical. Ensure workers are trained in handling products, using scanners, and following standard operating procedures.
Match packaging to products
Using the right-sized boxes not only saves on shipping costs but also ensures products arrive safely. Standardizing packaging sizes can also speed up the packing process.
Batch and zone picking for scale
If you’re handling many orders daily, shift from piece picking to more advanced methods like batch or zone picking. These methods reduce walking time and speed up the process.
Integrate with ecommerce platforms
Seamless integration ensures orders flow automatically into your fulfillment system without manual input, reducing errors and delays.
In-house vs. outsourced pick and pack fulfillment
Businesses have two main options when it comes to order fulfillment: handling it in-house or outsourcing to a third-party logistics provider (3PL).
In-house fulfillment (self fulfillment)
Pros:
- Full control over operations and customer experience
- Custom packaging and branding options
- No monthly fees to a fulfillment partner
Cons:
- High startup and operating costs
- Time-consuming to manage staff, equipment, and shipping
- Harder to scale quickly during growth or peak seasons
3PL fulfillment
Pros:
- Scalable infrastructure
- Lower shipping rates due to high volume
- No need to manage warehouse space or staff
- Faster shipping via multiple fulfillment center locations
Cons:
- Less direct control over the fulfillment process
- Onboarding and integration may take time
- May have minimum order or storage requirements
Outsourcing pick and pack to a 3PL can be a smart move for growing brands that want to focus on product development, marketing, and customer service.
KPIs to track pick and pack efficiency
To keep operations running smoothly, monitor these key performance indicators:
- Order accuracy rate: Measures how often orders are shipped correctly.
- Pick rate: Number of items picked per hour or per picker.
- Pack rate: Number of orders packed per hour.
- Order cycle time: Time taken from order receipt to shipping.
- Return rate: High rates may indicate pick/pack errors or poor packaging.
- Inventory turnover: Tracks how often inventory is sold and replaced.
Regularly reviewing these metrics helps identify bottlenecks and areas for improvement.
How to scale your pick and pack operations
When order volumes grow, it’s important to scale without sacrificing accuracy or speed. Here’s how:
Invest in better tools
Upgrade from spreadsheets to cloud-based fulfillment software. Invest in barcode scanners, mobile picking devices, and automated label printers.
Hire strategically
During high seasons, bring in temporary workers but ensure they’re trained in your processes. Cross-train employees to handle multiple tasks as needed.
Add packing stations
More stations reduce bottlenecks. Each should be fully stocked with boxes, tape, labels, and other supplies to keep operations flowing.
Expand storage
Consider vertical shelving, mezzanines, or off-site storage for slow-moving items. Grouping inventory by velocity (fast vs. slow movers) helps streamline picking.
Partner with a 3PL
When the volume becomes too much to handle efficiently in-house, a 3PL can provide the infrastructure to support growth without additional overhead.
Frequently asked questions about pick and pack
Q1. What does “pick and pack” mean in ecommerce?
A1. Pick and pack refers to the process of selecting products from inventory (picking) and preparing them for shipment (packing) once a customer places an order.
Q2. What is the difference between picking and packing?
A2. Picking is retrieving items from their storage locations based on an order, while packing involves packaging those items securely for delivery.
Q3. How can I reduce errors in the pick and pack process?
A3. Use barcode scanners, implement inventory management software, train staff regularly, and perform routine quality checks to minimize mistakes.
Q4. Is it better to do pick and pack in-house or use a 3PL?
A4. If you’re a small business with low volume, in-house may work well. For growing businesses, outsourcing to a 3PL can provide faster, more scalable fulfillment.
Q5. What tools help improve pick and pack efficiency?
A5. Inventory management systems, barcode scanners, automated label printers, and warehouse optimization software all improve accuracy and speed.
Summary
In ecommerce fulfillment, Pick and Pack is the process of selecting items from inventory and packaging them for shipment after a customer places an order.
