Bad debt: deciding when to stop chasing and write it off
A bad debt is money you have decided not to collect. When to make that call, what the write-off actually involves, and why carrying it costs more than losing it.
Fulfilment is where an order stops being a record and becomes a physical thing. Most of the cost sits in picking, and most of the complaints come from what happens after dispatch.
Order fulfilment is the physical half of an order: picking the items, packing them, labelling, dispatching and handling what comes back. The administrative half — capture, allocation, invoicing, collection — is covered in order management, and the two are worth separating because they fail differently and are usually improved by different people.
The economics are unintuitive at small scale. Picking dominates the labour cost, and picking cost is driven almost entirely by walking distance and by how findable things are — not by how fast anybody works. A stockroom arranged by supplier because that is how deliveries arrive can double the time per order compared with one arranged by how often items sell.
Most fulfilment complaints are about the gap after dispatch, not about the packing. The parcel is with a carrier, the customer has no information, and the only party they can ask is you. Sending tracking automatically at dispatch, and proactively messaging when something is late rather than waiting to be asked, removes the majority of the enquiries a small shop receives — and it costs a message.
Third-party fulfilment starts making sense somewhere above a few hundred orders a month, or earlier if space is the binding constraint. What it buys is capacity and shipping rates; what it costs is a per-order fee, less control over the unboxing experience, and a slower feedback loop when something is wrong. The honest test is whether you are turning away growth because of physical capacity, or simply finding fulfilment tedious — the second is not a reason to outsource, because the tedium is where you learn what your customers actually receive.
Ettex Invoices holds the order that the pick list comes from, with stock levels in inventory management and the delivery expectations you published in shipping policy. Returns run against the terms in returns policy.
The boundary: no warehouse management features, no barcode scanning, no carrier integration, no label printing. For a small operation the pick list and the order record are the parts that matter; above that a warehouse system is a real purchase and not one we make.
The physical side of an order — picking, packing, labelling, dispatch and returns — as distinct from the administrative side of capture, invoicing and collection.
Put fast-moving items nearest the packing bench, label every location and print it on the pick list, and batch orders with overlapping items into one pass.
When physical capacity is limiting growth, or above roughly a few hundred orders a month. Finding it tedious is not the same as needing to outsource it.
Silence after dispatch. Sending tracking automatically and messaging proactively when something is late removes most enquiries a small shop receives.
A bad debt is money you have decided not to collect. When to make that call, what the write-off actually involves, and why carrying it costs more than losing it.
An aged debtors report groups what you are owed by how late it is. How to read the columns, which movement matters, and the mistake of looking only at the total.
Payment terms set when money is due, what happens if it is late, and when the clock starts. Which terms are worth negotiating and which are quietly ignored.