When customers place an order, they expect their package to arrive on time, in perfect condition, and without hassle. If your fulfilment process falls short, it can lead to frustrated customers, bad reviews, and lost revenue.

Poor fulfilment doesn’t just mean slow shipping—it includes inventory mismanagement, incorrect orders, lack of tracking updates, and inefficient returns handling. These hidden costs can quietly drain your business, impacting both customer trust and long-term growth.

So, what are these hidden costs, and how can you avoid them? Let’s break it down.

Increased Customer Complaints and Refund Requests

When orders are delayed, damaged, or incorrect, customers don’t just shrug it off—they reach out to complain. Every email, chat, or call to your customer service team takes time and resources to resolve.

Worse, frustrated customers often request refunds instead of waiting for a replacement. Not only do you lose the sale, but you may also have to cover return shipping and restocking costs.

How to Avoid It:

• Use a reliable fulfilment provider with high order accuracy rates. Click on the link for end-to-end warehouse fulfilment solutions you can trust.
• Implement automated tracking updates to keep customers informed.
• Have a clear and fair returns policy that prioritises customer satisfaction.

Negative Reviews and Brand Damage

One of the most damaging consequences of poor fulfilment is negative online reviews. Customers are quick to share bad experiences on Trustpilot, Google Reviews, and social media. A few bad reviews can deter potential buyers, especially if they mention repeated issues like delays or missing items.

Trust is everything in e-commerce, and a reputation for unreliable fulfilment can be hard to recover from.

How to Avoid It:

• Ensure transparent shipping times—don’t promise what you can’t deliver.
• Monitor customer feedback and address issues before they escalate.
• Offer proactive solutions (such as discounts or store credit) for delays.

Higher Cart Abandonment Rates

If your fulfilment process is unreliable, customers will notice—especially if they’ve experienced delays before. This can lead to abandoned carts, where customers leave without completing their purchase because they don’t trust your delivery times.

Slow or expensive shipping options also contribute to cart abandonment, as customers often prefer faster, more affordable alternatives.

How to Avoid It:

• Offer clear estimated delivery times at checkout.
• Provide multiple shipping options, including express delivery.
• Partner with a fulfilment provider that ensures timely order dispatch.

Lost Customer Loyalty and Repeat Business

A bad fulfilment experience doesn’t just affect one purchase—it can stop customers from coming back. Loyal customers are the backbone of a profitable business, and if they don’t trust your fulfilment process, they’ll take their business elsewhere.

Even if your product is great, customers expect seamless fulfilment. Competitors who offer faster and more reliable shipping will win them over.

How to Avoid It:

• Prioritise a smooth post-purchase experience, including easy tracking and hassle-free returns.
• Implement a loyalty programme that rewards repeat customers.
• Continuously assess and improve your fulfilment operations.

Increased Operational Costs

Poor fulfilment can actually cost you more in the long run. Frequent errors mean spending extra on customer service, replacements, refunds, and expedited shipping to fix mistakes. Stock mismanagement can lead to overstocking (tying up capital in unsold products) or understocking (causing missed sales opportunities).

All of this adds up, eating into your profits.

How to Avoid It:

• Use inventory management software to prevent stock issues.
• Automate fulfilment processes where possible to reduce human error.
• Work with a fulfilment centre that guarantees high accuracy rates.

What You Want to See from Fulfilment Warehouse Solutions

Does your business need help with fulfilment? Struggling with a small team can impact negatively on customers and your brand’s reputation. Instead, you need to know when to choose fulfilment warehouse solutions. This can help you with storage and getting orders out as soon as they come in. Here’s what you want from fulfilment warehouse solutions

Large Warehouses

Do you not have enough storage space for all of your products now? This often becomes the case when you’re expanding. You might also be in a position where renting warehouses is too expensive. So, this is where a good fulfilment warehouse service comes in. You want to look for a provider that has a large warehouse where you can keep all of your products in stock. 

Same Day Fulfilment

One of the reasons why businesses outsource their fulfilment needs is because they can’t keep up with orders. Indeed, you want to ensure that the provider you choose is able to deal with orders as they come in. This ensures that your customers will be happy with the service provided. Therefore, you need to look for providers that offer same day fulfilment. This ensures efficiency and can have a positive impact on your brand’s reputation.

Custom Packaging

Do you want to ensure that the unboxing experience is special for your customers? Well, know that some fulfilment warehouse solutions can include custom packaging. This allows them to personalise orders and make sure that special touches are included. Indeed, this allows customers to have the best experience when they order something, and you don’t have to do any of the hard work.

Conclusion

Poor fulfilment isn’t just an inconvenience—it’s a hidden cost that can damage your business in multiple ways. From lost customers to negative reviews and increased operational expenses, the impact is significant.

By investing in a reliable fulfilment strategy, you can avoid these pitfalls, improve customer satisfaction, and set your business up for long-term success.

If you’re struggling with fulfilment, now is the time to take action—before it costs you more than just money.

Teleperformance, the world’s largest call center operator, has posted last month strong full-year 2024 results (27 February 2025), surpassing analyst forecasts with revenue of EUR 10.28 billion and a recurring EBITA margin of 15 percent. Despite concerns that artificial intelligence (AI) might render traditional customer experience (CX) operations obsolete, Teleperformance continues to show resilience, demonstrating both adaptability and consistent cash generation. Notably, net free cash flow hit EUR 1.084 billion, a testament to prudent fiscal management even in an uncertain economic environment.

Previously, some market commentators had expected AI-driven platforms to replace much of the human-led services that underpin Teleperformance’s business model. Yet the company has effectively leveraged AI, viewing it as a catalyst rather than a threat, as stated by the Deputy CEO Thomas Mackenbrock in a recent interview with Fortune. Its 2023 acquisition of Majorel and 2025 purchase of ZP Better Together reflect a strategy of growth through targeted deals that bolster the group’s market presence. These integrations, which keep net debt-to-recurring EBITDA at a conservative 1.9x, have yielded tangible benefits. Cost synergies from Majorel alone reached EUR 94 million last year, underscoring Teleperformance’s aptitude for disciplined expansion.

Some industry observers, however, maintain that Teleperformance’s reliance on human agents remains essential. The nuanced interpersonal skills required for complex customer interactions, they argue, simply cannot be fully replicated by AI-driven tools. This perspective supports the notion that Teleperformance’s hybrid approach—combining technology and human expertise—will continue to differentiate the firm in an increasingly competitive global market environment. This stance reassures certain wary market participants.

Nonetheless, the firm’s valuation remains a point of contention. According to a recent story by french financial media “Investir”, Teleperformance trades at a relatively low forward earnings multiple—around six times for 2025—compared with industry peers. This discount could stem from lingering worries that AI might eventually displace large segments of the CX workforce. Teleperformance’s stance, however, is that sophisticated voice and chat automation can enhance customer satisfaction without sidelining the empathy and contextual understanding that well-trained staff provide.

In practice, the group has invested heavily in AI-based solutions aimed at raising service quality. For instance, it has developed a software tool that neutralizes regional accents in real time, potentially reducing communication barriers between agents and customers. The company has earmarked up to EUR 100 million for further AI innovations in 2025, highlighting management’s intent to remain competitive and technologically relevant.

Teleperformance’s evolving portfolio also underpins its optimism. LanguageLine Solutions, long the firm’s flagship specialized offering, continues to meet rising demand in sectors such as healthcare and government. Meanwhile, the acquisition of ZP Better Together extends Teleperformance’s reach into the deaf and hard-of-hearing market, which represents a niche yet increasingly important segment of the CX industry.

Skepticism does persist, especially among investors who believe the rapid emergence of generative AI could transform contact center operations more dramatically than Teleperformance anticipates. Yet for now, the company’s results show steady resilience. Its balanced approach—emphasizing both cost efficiency and adaptability—positions it to navigate shifting consumer preferences and possible economic headwinds. Reuters has already pointed out Teleperformance’s potential for accelerated revenue gains, a view supported by the firm’s ongoing investments and historical record of smooth integrations.

In the end, Teleperformance’s ability to combine advanced technology with human oversight may offer a blueprint for the future of the CX sector. Whether AI eventually supplants human operators remains open to debate, but for the moment, Teleperformance’s commitment to innovation, coupled with a healthy balance sheet, suggests it is well placed to maintain its standing. For investors, that combination of stability and potential upside could look increasingly appealing if market sentiment shifts.