E-Commerce Operations SOP: Order Fulfillment to Returns

E-commerce operations run on speed and accuracy. One wrong shipment, one missed order, one delayed refund, and you lose a customer forever plus get a negative review that costs you 10 more.

These SOPs cover the critical operational processes every e-commerce business needs documented.

Order Processing SOP

1. Orders sync automatically from Shopify/WooCommerce/Amazon to your order management system
2. Review new orders hourly during business hours
3. Flag orders that need manual review: high value (over $500), international, flagged for fraud
4. Verify payment has been captured (not just authorized)
5. Check inventory availability in WMS
6. If out of stock: email customer within 2 hours with options (wait, substitute, cancel)
7. Release order to warehouse for fulfillment

Pick, Pack, and Ship SOP

Picking

1. Print pick list from WMS
2. Pick items in zone order (reduce walking)
3. Verify each item: SKU, quantity, condition
4. Place items in designated staging area
5. Scan each item to confirm pick completion

Packing

1. Select appropriate box size (smallest that fits, minimize void fill)
2. Add branded tissue paper or thank you card (for DTC orders)
3. Include packing slip
4. Add void fill to prevent movement
5. Seal box with branded tape
6. Apply shipping label
7. Scan tracking number to link to order

Shipping

1. Sort packages by carrier (UPS, FedEx, USPS)
2. Schedule carrier pickup or drop off at facility
3. Verify tracking uploads to order management system
4. Customer receives automatic shipping notification with tracking

Returns Processing SOP

1. Customer initiates return via website or email
2. Verify return eligibility (within 30 days, unused, with tags)
3. Generate return label and send to customer
4. When package arrives: inspect item condition
5. If acceptable: process refund within 48 hours
6. If damaged by customer: send photos, offer partial refund or deny
7. If defective: full refund plus prepaid return label, flag product for QA
8. Restock returned items (if resaleable) or move to liquidation
9. Update inventory

Inventory Management SOP

Daily Inventory Tasks

1. Review low stock alerts (items below reorder point)
2. Check for oversold items (sold but insufficient stock)
3. Process any inventory adjustments from previous day
4. Review pending purchase orders for expected deliveries

Receiving

1. Match delivery to purchase order
2. Count all items (do not trust the packing slip)
3. Inspect for damage
4. Enter received quantities into WMS
5. Apply barcodes if needed
6. Put away to assigned locations
7. Update available-to-sell inventory

Monthly Cycle Count

1. Select zone for this month counting cycle
2. Print count sheets from WMS
3. Count physical inventory
4. Compare to system quantities
5. Investigate discrepancies over 2 percent
6. Adjust inventory with documented reason
7. Report shrinkage to management

Customer Service SOPs

Where Is My Order Inquiry

1. Look up order by email or order number
2. Check tracking status
3. If in transit: share tracking link and estimated delivery
4. If delayed: contact carrier for update, notify customer
5. If lost (no tracking movement for 5+ days): file carrier claim, reship or refund

Product Quality Complaint

1. Apologize and ask for photos of the issue
2. Review photos to assess defect
3. Offer replacement (shipped same day) or full refund
4. Do not require the customer to return defective items under $30
5. Log the quality issue in product quality tracker
6. If 3+ complaints on same SKU: escalate to product team

Documenting E-Commerce SOPs

E-commerce operations span many tools: Shopify, Amazon Seller Central, ShipStation, WMS, accounting software. Record your screen while navigating each system and narrate the process. ProcessReel generates SOPs with screenshots from each tool.

This is especially critical for holiday season when you hire temporary workers who need to get up to speed in days, not weeks.

FAQ

How do I handle the holiday rush?

Document all processes before September. Hire temps in October. Train with SOPs in November. By December, they are independent.

Should I automate order processing?

Automate everything you can, but still have SOPs for exception handling. Automation handles 80 percent of orders. SOPs handle the 20 percent that need human decisions.

What about marketplace-specific processes?

Create separate SOPs for Amazon, Walmart, and your own website. The fulfillment is the same, but order processing and customer service differ by channel.

Document your e-commerce operations from screen recordings. Try ProcessReel free