How to Manage Split Orders and Shipments: A Guide for Retailers
Key Takeaway:
A split shipment occurs when a single order is divided and shipped in two or more separate packages.Split order, which is basically the same thing as split shipment, can be a blessing or an irritating nightmare for your business. Whichever way it swings depends on how well you understand what order splitting is about and how you manage it.
How do we mean?
Let’s say a customer ordered two items from your store: A and B. The issue is that while item A is in a warehouse very close to the customer, it’s a totally different story for item B, and so it will take longer to ship.
The best course of action is to ship out item A to keep the customer satisfied. But on the flip side, you will incur more shipping charges – not to mention taxes.
Getting the gist now?
Needless to say, though largely inevitable, managing split shipments correctly can greatly improve customer experience, enhance order management, and so much more. Read through to learn more.
What are Split Orders/Shipments?
A split shipment occurs when a single order is divided and shipped in two or more separate packages. Instead of delivering all items together, you dispatch the ordered items in bits and pieces.
Split shipments can be intentional or a result of an unavoidable circumstance. For example, customers might want their orders split by brand or categories for faster delivery. In such an instance, it’s intentional.
However, split shipment can also occur when there is insufficient inventory to cover an order or the items in an order are kept in different warehouses.
Why Do Split Shipments Happen?
Like we pointed out earlier, split shipments can happen for multiple reasons, which could be intentional or reasons beyond your control. They are as follows:
1. Backorders and Inventory Shortages
Inventory shortages and a stockpile of backorders can leave you with no choice but to split customers’ orders into multiple shipments.
2. Multiple Warehouse Locations
If you have products stored in multiple warehouse locations or fulfilment center, splitting orders could become an inevitable reality for your business.
3. Supplier Constraints
If you deal with suppliers that deliver supplies in batches, it’s only a matter of time before you begin to split your customers’ orders.
4. Customer Preferences
Customers might want items in their orders sent to different addresses. Also, they might want certain items delivered faster than the others, and wouldn’t mind paying extra. In such instances, splitting the items into separate orders becomes inevitable.
Benefits of Split Shipments
Split shipments aren’t really a bad thing. As a matter of fact, it can benefit you, the retailer, as well as your customers. Let’s go over these benefits.
How Split Orders Benefit Your Customers
1. Faster Access to Products
Splitting orders into different shipments allows your customers to access their orders much faster. For example, if the order is partially ready for fulfillment, you can quickly ship it out while waiting for the complete items to arrive.
2. Improved Customer Satisfaction
When communicated clearly, split shipments show flexibility and responsiveness, leading to better satisfaction on the part of your customers.
3. Reduced Risk of Complete Delays
If one product in the order is delayed due to backorders, production, or shipping issues, your customers don’t have to wait until the product is ready.
4. Supports Personalised Needs
In some cases, your customers may want to personalize their shopping by splitting their orders. One part for them and the other as a gift for a loved one.
How Split Shipment Benefits Retailers
Better Inventory Management
Automated or manual order splitting enables you to ship orders as soon as they arrive. This not only reduces inventory handling costs but can also enhance overall business efficiency.
Reduced Backlog & Inventory Pressure
Shipping out available items as soon as you receive them lessens the chances of backorder build-up, hence reducing inventory pressure.
Better Flexibility
Split shipment will come in highly useful if you store inventory across multiple warehouse locations or fulfillment centers, as it allows you to ship items from the location that is nearest your customer.
Manage orders across all your sales channels efficiently with zero stress
Challenges of Split Shipments
Of course, split shipments aren’t without their downsides. Some of the challeges you will likely encounter are as follows: Businesses need to carefully weigh these challenges:
Higher Shipping Costs: Multiple deliveries increase transportation expenses.
Complex Tracking: Customers must monitor multiple tracking numbers for one order.
Risk of Confusion: Without clear communication, customers may believe their order is incomplete or missing items.
Operational Complexity: Managing separate fulfillment processes for the same order adds strain on inventory and logistics teams.
Tips for Managing Split Shipments
How well you manage split orders determines whether it will serve your business’s interests or not. That being said, here are some tips to manage them for the best results.
1. Strengthen Inventory Planning
The best way to reduce unnecessary split shipments is by improving your inventory management. To achieve this:
Use demand forecasting tools to anticipate stock needs.
Maintain safety stock for fast-moving and high-demand products.
Ensure real-time visibility across all warehouses so teams can plan fulfillment better.
2. Communicate Clearly with Customers
Transparency is key to keeping customers happy when their order arrives in parts. To this end:
Notify customers beforehand if their order will be split.
Provide separate tracking numbers for each package.
Share clear delivery timelines for pending items.
Respond quickly to customers’ messages when they express concerns.
3. Optimize Shipping Strategy
Shipping costs can add up quickly when splitting orders. To keep costs as low as possible:
Consolidate shipments where possible without delaying urgent items.
Partner with logistics providers that offer multi-location fulfillment support.
Use shipping rules to determine whether splitting or consolidating an order makes the most sense financially.
4. Offer Customer Options
Whenever possible, give customers control over their delivery preferences. Allow them to choose between one consolidated shipment (even if it takes longer) or split deliveries for faster access to available items.
How to Handle Returns for Split Shipment
So you shipped an order to a customer abroad in two batches. Unfortunately, the first shipment comes in the wrong size, while the second is damaged in transit. The customer wants to return the items.
While this is a hypothetical situation, it happens pretty much in real life. So, how would you handle a situation like this when it arises?
Here are some helpful tips for handling returns for split shipments:
Provide Clear Return Instructions for Each Package
Include a return slip or label with every shipment so customers can return items individually if needed. On top of that, make sure the instructions clearly explain whether items can be returned separately or need to be consolidated.
Track Returns at the Order Level
Even though shipments are split, treat the return as part of the same order record in your system. An ERP system like Uphance with order return management capabilities will come in handy here.
Communicate Refund Timelines Clearly
Let customers know whether partial refunds will be processed as items are received, or if the refund will be issued once all returns are processed.
Conclusion
Split shipments are an unavoidable part of doing business, especially in industries like fashion and retail. But with the right planning, technology, and customer communication, they don’t have to be a problem. By approaching split shipments strategically, businesses can reduce costs, keep customers happy, and maintain smoother supply chain operations.
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