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Christina David

Christina has in-depth experience in content marketing with work experience in companies like Hewlett Packard Enterprise as a communication lead. She has played various roles like content marketing specialist, and content leads across various reputed organizations.

Dropshipping vs 3PL: What is Right for Your Business in 2024?

As a business owner, it takes a lot more than having the right products and a seamless ordering experience to be successful. The real task begins when the customer makes a purchase. How will the order fulfillment be carried out? In the interest of answering this question, we delve deeper into the top differences between dropshipping vs 3PL fulfillment, in 2024. To make sure that the brand's visibility increases, revenues get generated and more sales take place, SMEs and startups need to ensure that they make the right choice between dropshipping and 3PL fulfillment, for their requirements and ensure that customers experience a quick and smooth delivery process. To make that magic happen, it's important to have a strategy and process in place for order fulfillment. What is Dropshipping Fulfillment and How Does It Work? Dropshipping, also known as consumer direct fulfillment, is a business strategy in which online retailers collaborate with manufacturers or suppliers to distribute products directly to customers (also known as dropshipping products). An eCommerce merchant does not purchase or store an inventory of the products for sale in this arrangement. They offer it on their websites and get it delivered directly to the buyer from their supplier or manufacturing network. The Dropshipping Fulfillment Process eCommerce sellers add products to their online storesCustomer orders a product from the online platform of choice where the store is locatedThe customer is invoiced for the product and an additional shipping feeThe seller now replicates the order with the manufacturer or supplier networkThe supplier/manufacturer packages the order and ships it directly to the customer While the seller is responsible for product marketing and customer service, the inventory management, warehouse management, and eCommerce logistics are handled by the manufacturer or wholesale supplier. Dropshipping fulfillment allows retailers and distributors to extend their product offerings without having to increase the amount of inventory they keep on hand. [contactus_lilgoodness] Common Misconceptions about Dropshipping Fulfillment Dropshipping is an order fulfillment model that has gained popularity over the years and has a successful business model. But it is a bit different from order fulfillment & there are some common misconceptions about this fulfillment method that causes sellers to shy away from leveraging it and utilising it to the fullest potential. Some of the common misconceptions of dropshipping are: 1. Dropshipping fulfillment is quick and easy to start No. Dropshipping as a fulfillment model is smart and simple, but it requires a lot of research and networking to enter the competitive market and thrive. Entering the eCommerce business, especially as a new player, requires patience, research, planning, and continuous improvement to stay relevant in the market and earn profits. Before stepping into the dropshipping business, sellers need to: Pick a niche.Investigate the products of competitors.Look for reliable dropshipping companies and build a network.Create an online store and get onto eCommerce platforms like Amazon.Promote the business.Analyze and improve the store's performance. 2. Dropshipping fulfillment does not have any upfront costs To have a successful dropshipping business, it is important to have a great online store and a good online marketing strategy. While the investment may seem lower than setting up a store that requires inventory and storage, there are still significant costs involved to get business visibility and attract customers. Purchasing a domain and setting up the online store with attractive product pages, browser and device compatibility, responsiveness and live chat support are all key elements to building the brand and improving customer experience.Apart from this, advertising efforts on social media platforms and having good SEO content marketing are also regular expenses that businesses need to account for.Dropshipping fulfillment is only suitable for small-scale businesses. This is not true. Businesses of any scale can follow a dropshipping fulfillment model. SMEs and startups can easily scale their business and have a more streamlined order fulfillment process with dropshipping, but will need a bit more capital to purchase the right products from the supplier network inventory 3. Dropshipping businesses need to be located in the same location as their suppliers No. While many think that the business needs to be located in the same country as their suppliers, dropshipping can be completed from any part of the world. This is an order fulfillment method where global retailers can have an extensive supplier network and serve global customers from any corner of the world. The key here is visibility to the customers and having a reliable manufacturer and supplier network that can fulfill orders efficiently.Dropshipping is a great way for quick and easy sales and profits The eCommerce space is a highly competitive one, especially with all of the digitization taking place. Finding a niche and building a supplier network takes time and effort and business owners need to go through a lot of trial and error to find the right products for the target audience. Research and quality checks are also needed before products are listed in the store and it is important to make sure that there are no fallouts or delayed delivery times. What is 3PL Fulfillment? 3PL Fulfillment companies handle inventories, process orders, and ship items on behalf of other businesses. Business owners can partner with 3PL fulfillment companies to store, package, and ship their products to customers. Outsourcing fulfillment services to a third-party fulfillment logistics company, such as inventory management, monitoring SKU sales performance, forecasting customer demand, packaging and shipping orders, and so on, allows businesses to concentrate on product manufacturing, quality assurance, and customer satisfaction. 3PL Fulfillment Process Businesses manufacture the products or source them from their supplier networkProducts are sent to the order fulfillment center for storageCustomers place an order from an online store or preferred platformCustomers are invoiced and order details are shared with the 3PL partnerThe fulfillment partner processes the order, packages it, and ships it directly to the customer Pros and Cons of 3PL Fulfillment Order fulfillment setbacks for startups and SMEs can harm their business and operational efficiency. As the company grows and attracts customers from all around the world, creating an order fulfillment system in-house gets more difficult. Customer satisfaction and revenues can suffer if the order fulfillment process is inefficient. As a result, the company's reputation is also affected. A third-party order fulfillment partner can assist with inventory management and the end-to-end process of delivering the order to the customer. Pros of 3PL Fulfillment Experts and experienced partners take care of the heavy lifting of order fulfillment.Simplified logistics help business owners concentrate on creating more impactful business outcomes.Scalability and flexible service options to help manage the business and better maintain customer satisfaction.Less expensive shipping with the ability of 3PL partners to manage labour and transportation.Faster delivery to improve customer satisfaction and generate recurring sales.Inventory is stored and managed at fulfillment centers, freeing up the need for additional storage space and inventory management in-house. Greater connectivity with fulfillment centers being available in multiple locations. This helps improve efficiency, and costs and provides quicker order delivery. Cons of 3PL Fulfillment Inventory is limited to what the business owns. This means monitoring the stock levels, analysing trends, and restocking inventory to avoid shortage.Inventory delivery is the business's responsibility. Third-party logistics partners will not be responsible for replenishing stocks without the business owner having them ready to be inventoried at the fulfillment center.Requires upfront investment to pay for the 3PL services like eCommerce warehousing and 3PL distribution.Bad service from the 3PL partner can affect brand reputation. Not providing a good tracking and delivery experience to the customer can impact sales and customer loyalty. Dropshipping vs 3PL Fulfillment: Why are These Models Important? The dynamics of customer order fulfillment have changed. The days of shopping in stores are long gone. The majority of orders are now placed online. As a result, businesses have had to alter their order management procedures. While some fulfill orders from their stores, offer in-store pickup, or have suppliers ship directly to the consumer, others continue to fulfill orders through their distribution centers (DCs). It is critical to use the correct order fulfillment strategy to boost sales, maintain a positive brand image, and cultivate a loyal client base. Dropshipping vs 3PL Fulfillment: Top Differences [table id=11 /] Dropshipping vs 3PL Fulfillment: Benefits Compared The main advantage of third party fulfillment is that it saves the business a significant amount of time. By outsourcing the order fulfillment process, business owners can invest time in critical business operations like marketing, sales, product design, and so on. Furthermore, businesses can scale by integrating third-party order fulfillment services with platforms such as Shopify, Meesho, Amazon, Flipkart and more. This in turn reduces the order fulfillment time as the eCommerce logistics partner detects and processes new incoming orders. Dropshipping fulfillment allows entrepreneurs to start a business quickly and easily. Since the cost for inventory or storage is limited, the investment required can be focused on improving brand visibility and customer attraction. Dropshipping also provides access to a diverse choice of products as business owners research and build their vendor and supplier network. Dropshipping vs 3PL Fulfillment: What is Right for Your Business in 2024? The costs of dropshipping fulfillment are low enough for startups and SMEs to begin their eCommerce journey. This can play an important factor when businesses lack the infrastructure for storage and shipment. Dropshipping is a great order fulfillment option for new businesses that Have limited financial resources.The desire to try out new products, markets, or marketing tactics.Do not want to invest in their own warehouse space or employees. For eCommerce stores that sell their own unique products, third party fulfillment is ideal. As long as product customisations are not needed for each consumer, all the business needs to do is send batches to the logistics partner, who will take care of the inventory management, packing, shipping, and delivery. 3PL fulfillment is a great option for businesses that are scaling up and have large daily order volumes.don't have the labour or resources to finish the order fulfillment process in-house.have the sufficient upfront capital to partner with a 3PL provider In most cases, the benefits of 3PL logistics outweigh the cons. Why is WareIQ the Best 3PL Partner in India for eCommerce Sellers? When evaluating order fulfillment approaches, cost, quality, and control should all be considered. The good news is that changing the fulfillment process to meet business requirements is simple for startups and SMEs. Businesses can choose a procedure they trust and work towards developing their brand and consumer base after careful deliberation and assessing the advantages and downsides. After going through the entire article, you would have understood the benefits of outsourcing your fulfillment needs to a 3PL partner over dropshipping. WareIQ with its full-stack eCommerce fulfillment solution can not only help you with the last-mile delivery requirements but also with the entire end-to-end business operations. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services in India for some of the most reputed brands. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfillment centers, micro fulfillment centers & urban dark stores near their customersAccess to all major national & hyperlocal last-mile couriers at discounted rates for making same/next day deliveries possibleEasy integration across multiple online platforms & marketplacesHorizontal marketplaces: Flipkart, Amazon, etc.Vertical marketplaces: Nykaa, Myntra, etc.D2C platforms: Shopify, Magento, WooCommerce, etc.Social commerce platforms: BikayiAccess to a superior centralised tech platform for eCommerce operationsML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfillment & shipping operationsPost-shipping apps for delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery offerings for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next day delivery and same day delivery service are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing, and data-driven decision-making. WareIQ's WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. [signup] Dropshipping vs 3PL FAQs (Frequently Asked Questions) What are the advantages of 3PL over dropshipping?• An infinite supply of inventory• Exceptionally scalable and adaptable• Maximum convenience at lowest cost• Helps you save time and money• Good customer experience What is the one similarity between dropshipping and 3PL?The retail store does not handle the items in either the drop shipment or 3PL procedures. This means that third-party companies in 3PL handle product packaging and shipping, making it easier for online sellers. What are the benefits of dropshipping?• Less capital investment• Easier than 3PL to start • Low overhead expenses • Flexible locations • Deal in variety of products What are the disadvantages of dropshipping?• Limited Profits • Less control over Inventory • Shipping is slow and expensive What would you choose, Dropshipping or 3PL?Dropshipping is an easy way and sometimes worth starting too. But the profit margin might be minimal as compared to 3PL. In short A retailer has a lot to gain by using the 3PL service.

May 28, 2022

8 Best Small Business Order Fulfillment Services in 2024

When starting a small business and scaling up based on customer orders, every business owner needs to think about having them stored and shipped. While it's exciting when a sale is made, questions about where the products will be stored and how they would be transported to customers are pressing. With the rapid digitization and the COVID-19 pandemic, the eCommerce business has been thriving more than ever. Small businesses have had a chance to scale up during this time, but order fulfillment is a crucial part of making a business successful. It may be confusing to those starting out or even when small businesses need to optimize their order fulfillment and logistics processes. In this blog, we will talk about everything small businesses would want to know about order fulfillment in 2024 and the list of the top 8 small business order fulfillment services providers. What is Small Business Order Fulfillment? Small Business Order fulfillment comes into play after the customer has placed an order with the small business. This process involves storing the products, packaging them and shipping them to customers. There are many ways small businesses can manage order fulfillment. They can choose in-house management, partner with fulfillment partners, drop-ship their orders or even use a combination of different methods. The four major milestones of the order fulfillment process are: 1. Creating the order when the sale is made 2. Invoicing the customer for the order 3. Picking, packaging and preparing the shipment 4. Delivering the order to the customer's doorstep Order fulfillment involves receiving inbound wholesale shipments, sorting stock, and shelving inventory for efficient picking and packaging are all steps in the order fulfillment process. The products are then picked, tested for quality and accuracy, packed, and labelled for shipment as orders come in. Returns management (also known as reverse logistics) is often thought of as an extension of the fulfillment process. When a small business decides to do order fulfillment in-house, all stages of the process — storage, packing, and shipping need to be completed by them. They can also partner with a 3PL fulfillment company to handle the process or even employ drop shipping, with the rest of the processes handled in-house. [contactus_uth] Challenges in Small Business Order Fulfillment Startups and SMEs face setbacks in the order fulfillment process that can affect success and operational efficiency. Creating an order fulfillment system has become challenging, as the business grows and begins attracting customers from all over the globe. Not having a streamlined order fulfillment process can have a negative impact on customer delight and revenue. This in turn damaged the business reputation. Some of the small business order fulfillment changes are: Demand Planning To have the right inventory stock, demand planning is important. Having the ability to predict the demand of the products based on customer buying habits is key to ensuring that businesses have a clear understanding of what to stock and what to hold back on. Inventory Control Maintaining a positive customer experience is important for SMEs and startups to flourish. Poor inventory management has a negative influence on everything from profitability to customer satisfaction, and it frequently leads to increased fulfillment costs and dead inventory stock. Small businesses usually struggle with effective inventory control to know exactly what they have, how much they have, and where it is. Supply Chain Having a good supply chain network is important for an effective order fulfillment process. Small businesses find it challenging to build ways to control each of the risks, reducing order fulfillment issues caused by unanticipated events. Multichannel Small businesses find it taxing to regularly ship the proper package, on time, and undamaged to the appropriate destination. Taking orders across various channels can make things even more complicated, with all the steps involved in the order fulfillment process. Due to a lack of real-time inventory control, eCommerce orders may be fulfilled at the expense of in-store product availability, or merchandise on the shelf vs in a shopping cart may be unaccounted for. Transport and Logistics Increasing transportation costs continue to have an impact on order fulfillment for small businesses, ultimately raising consumer prices. It is a challenge for SMEs and startups to achieve dispatch deadlines, resource management and ensure how client orders are prioritised. Strategies to Improve the Order Fulfillment Process for Small Businesses • Create a statistical forecast by analyzing sales trends, buying history and customer engagement to help make informed decisions for future demand planning. • Collaborate with customers, distributors and logistical partners to understand the demand vs. supply anticipation. • Analyse demands across channels to determine which platform allows for the most sales. • Improve demand forecasting with the help of predictive ordering software solutions to stay equipped for unforeseen demand spikes • Maintain clear stock visibility for overcoming small business order fulfillment issues like backorders, delays, and dissatisfied consumers. • Use the first-in, first-out (FIFO) approach to sell products that were produced first. Have a system in place to add new products and items from the back to push older items for sale to the front. • Identify low-turn stocks by evaluating products that weren't sold over the last 12 months. Have sales to have them sold and do not stock them until there is increased customer demand. • Audit stocks to ensure that inventory matches the predicted demand forecast • Leverage cloud-based inventory management systems with real-time analytics to ensure that there are surplus or out-of-stock items. • Track stock levels and prioritize the most expensive products first • Partner with proper suppliers to have a cohesive, collaborative supply chain. • Identify potential supply chain risks to evaluate all possibilities and their likelihood of occurring. What Are The Benefits of Using Order Fulfillment Services for Small Businesses? No matter how big or small the business is, an order fulfillment service helps in keeping track of complete fulfillment status; will keep track of physical goods inventory and manage the end-to-end process of getting the order to the customer. Order fulfillment firms frequently provide the following services: • Warehousing • Picking & packing • Shipping • Kitting • Logistics • Cross-docking • International shipping Some of the key benefits of using small business order fulfillment services are: • Maintaining inventory remotely by retaining stocks in the service provider's warehouses. These warehouses can be accessed on-demand or on a long-term basis at any preferred location, for a smooth order fulfillment experience for the customer. • Ensuring faster order delivery by reducing the distance between the product's source and the customer's location. Small businesses can easily utilize eCommerce warehouse fulfillment technologies provided by the service partner to store stock items in locations with the highest volume of orders. • Enhancing customer experience by invoking a positive response from customers on a quick and seamless delivery process. By providing a pleasant customer experience, small businesses can increase brand loyalty and drive recurring sales. • Leveraging technology to make delivery services seamless. Small business order fulfillment services use advanced technologies like AI and machine learning to enhance the accuracy of product sequencing, order fulfillment, product tracking and return order processing. Real-time updates on orders and track of stock and orders can also be easily achieved. • Focusing on product sales and revenue generation. By allowing service partners to look into the order fulfillment process, small businesses can prioritize critical functionalities such as marketing, product design, product diversification, and so on, resulting in improved sales. Latest Small Business Order Fulfillment Trends [2024] Small businesses can navigate the order fulfillment challenges in 2024 as a result of the quick change to omnichannel retail and free and fast delivery. It is important to consider the latest trends in order fulfillment services for small businesses to gain a competitive advantage in the market. The latest small business order fulfillment trends include: Extensive Supplier Network The COVID-19 pandemic brought in a plethora of order delivery issues, with small businesses having the highest impact. With the demand outstripping supply, there were substantial worker and transportation shortages, with small businesses being unable to service diverse markets, and warehouse spaces not being able to keep up with shifting needs. This brought in the importance of having a diverse supplier network and contingency measures in place to reduce or eliminate delivery failures. Predictive Customer Journey The pandemic changed the purchasing behaviour of customers. With the major shift in digitization, consumers became more vocal about their desires and needs from businesses in recent years. This is why the customer journey and the ability to predict buyer decisions gained importance. By tailoring online platforms and processes, small businesses can make it easier for customers to buy things and monitor them from the shopping cart to the doorstep. This includes clear communication with customers through sending out automatic notifications when an order is shipped, as well as providing useful product selection advice. Hence, order fulfillment services for small businesses have identified this emerging need and integrated such customer-engagement features into their tech platforms. Real-time Tracking Customers have now grown accustomed to receiving real-time product availability and fulfillment information. With the availability of unique RFID data, eCommerce retailers can track inventories and instantly alert customers as the purchased item goes through the small business order fulfillment process. Hybrid Order Fulfillment There are now several delivery choices available when ordering products online. Before the pandemic, services like BOPIS (Buy Online Pick-Up In-Store) and curbside pickup were nearly unheard of. Having hybrid order fulfillment options relieves some of the strain on traditional supply networks and procedures. However, these order fulfillment services for small business solutions will necessitate the usage of a single inventory system so that retailers may fulfill online purchases using their on-site inventories. Automation Automation is in high demand, in the logistics business, as a solution to address complex supply chains and labour constraints. According to a recent study conducted by ARC Advisory Group, 79 per cent of respondents said they were "likely" or "very likely" to invest in automation in the next 1-3 years. Now, small business order fulfillment companies are working towards adopting a variety of automation options, including automated picking systems and robotic forklifts. When and How to Choose Order Fulfillment Services for Small Business? When a small enterprise begins to grow and order volume increases, outsourced order fulfillment services for small business can provide significant benefits in terms of product management, shipping costs, delivery speed, customised shipping services, and more. When choosing small business order fulfillment services, some of the factors that small business owners and operations managers should consider are: Shipping Speed: The faster the customer receives the order, the more they come back for recurring purchases. With Amazon Prime having options like same-day and two-day delivery timelines, it’s important for small businesses to have an order fulfillment service with quick shipping and delivery.Fulfillment Service Costs: Although an initial investment is required when collaborating with an order fulfillment partner, be sure there are no hidden fees for long-term storage because the products are in high demand. Also, because of the amount they transport, negotiate with them for better carrier pricing.Fulfillment Warehouse locations: The closer the fulfillment warehouses are to the customer base, the quicker the order fulfillment will be. Make sure that when choosing order fulfillment partners, they one ones with an extensive warehouse location network for shorter delivery distance and time.Order Fulfillment Service Features: Order fulfillment software with easy-to-use features and those providing clear order visibility, responsive dashboards, easy inventory management etc. are important so that businesses can focus more on sales and marketing than on figuring out inventory levels and organize their order fulfilment.Process Transparency and Order Visibility: Real-time order visibility and complete process transparency in any delays etc. are crucial to have while building a business and trying to improve customer satisfaction. It’s important that there are easy tracking and order management features provided by the order fulfillment partner.Packaging Options: Depending on the goods being transported, the fulfillment centre of the chosen service provider should be able to give packaging choices. Having a variety of packing solutions will also help to prevent product damage. In addition to packaging, the use of the appropriate insulation material, such as corrugated paper, bubble wrap, or air pillows, can ensure that products reach their destination securely.Returns Management: Orders will be returned at times, and the fulfillment provider should collaborate with the business owner on returns management to help decrease or eliminate them, if possible, through better-advanced logistics. It's critical to be able to recognise clients who are frequent returners in order to reduce order returns and increase their trust in the products they buy. The Best Order Fulfillment Services for Small Businesses Compared WareIQ Source Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce order fulfillment tech solutions for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same day delivery and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to the: Access to WareIQ’s strong nationwide network of fulfilment centres & urban dark stores near their customersAccess to all major national & hyperlocal last mile couriers at discounted rates for making same/next day deliveries possibleEasy integration across multiple online platforms & marketplacesHorizontal marketplaces: Flipkart, Amazon etc.Vertical marketplaces: Nykaa, Myntra etc.D2C platforms: Shopify, Magento, WooCommerce etc.Social commerce platforms: BikayiAccess to a superior centralised tech platform for eCommerce operationsML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfillment & shipping operationsPost-shipping apps for delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same day delivery offering for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack , to Inventory Management across all channels. WareIQ’s next day delivery and same day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realize significant cost savings and wider reach due to better negotiations with shipping aggregators, strategically placed warehouses, economies of scale and scope in warehousing and data-driven decision-making. WareIQ’s WMS, a centralised tech platform, is its core offering, with the following functionalities: Shipping Management Integration to all major national couriers and same-day courier partners through WareIQ platform with discounted ratesGeneration of bulk shipping labels & invoices in a few clicksOffering a branded tracking page and sending auto-alerts to inform customers of their shipment statusReduction in RTO % (Return to origin) by automating cases of failed delivery attempts (NDRs) by the shipping partnerPreemption of COD frauds through integrated AI engine flagging risky ordersOrders managementTracking of orders across the channels Filtering of orders by statusSearching for specific ordersA quick timeline view of where the order is in the fulfillment process (e.g. when an order is picked, packed, or shipped)Shipping-related information (e.g., weights, dimensions, or carrier service) A quick snapshot of any orders that require actionSyncing WareIQ’s out-of-the-box integrations with sales channels to eliminate manual importing of data and trigger all the necessary notifications to the end-customersInventory managementTracking of inventory levels across multiple locations & sales channels – the website and marketplacesUsing WareIQ platform to distribute inventory to multiple locations optimizing for speed & cost/orderSetting reminders to proactively replenish inventory, bundle products for promotions, make inventory transfer requests, and much moreWarehouse managementManaging multiple warehouses and offline stores on WareIQ platform100% inventory accuracy with scan-based operationsAutomated reconciliation tool helps to keep track of returns and unsettled invoicesIntegrations with all major ERP & Accounting systemsFulfilled By Amazon and Prime StatusAssured tag on Flipkart without physically dedicating inventory to them The central platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. 300+ brands, such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, have trusted WareIQ as a reliable partner in their growth journeys. No minimum order quantity requirements make it suitable even for eCommerce firms having low order quantities to take advantage of the latest trends such as next day delivery and same day delivery. The onboarding process is simple, convenient and less time consuming, while the pricing policy is clear and transparent. WareIQ also undertakes strict safety precautions at its warehouses and complete ownership of the operations, thereby minimising the risk exposure of WareIQ customers. Delhivery Source Delhivery is a key player in the Indian small business order fulfillment sector. They have 71 fulfillment centres around the country, with a total storage and processing space of over 6 million square feet. All the major demand channels and courier partners are integrated with their own warehouse management system. It's built to support efficient multi-tenant, multi-location warehousing, allowing businesses to extend operations across India rapidly and flexibly with no fixed expenses. By combining warehousing services and freight solutions, Delhivery can provide small businesses with integrated distribution solutions. This allows Delhivery to better serve its customers with quick and cost-effective offline delivery. Their services include: Same-day/Next-day DeliveryTime-defined/Slot-based DeliveryPerson Specific/Address Specific DeliveryReturns ManagementProduct Replacement/Exchange ServicesLarge/Oversize Order DeliveryHigh-value Product DeliveryHAZMAT/Dangerous Goods DeliveryReal-time Monitoring and ControlConsignee Address ValidationFraud DetectionFlexible Payment on Delivery NimbusPost Source NimbusPost is an intuitive, multi-channel distribution company. It offers a logistics automation CRM that assists customers in automating and simplifying important processes that are involved in the daily operations of a business. It provides cost-effective and transparent pricing and gives clients the option of partnering with the top 7 courier partners in the country. Prominent partners include Bluedart, FedEx, Xpressbees, EKart, Shadowfax etc. Some of the solutions provided by NimbusPost are: Fraud Detection and Order Filtering AI ToolsPlug & Play Technology Centered IntegrationsSmart Automation of Shipping ProcessesCloud-Based Customer Care FacilitiesFast Cash-on-Delivery Remittance and SupportCheaper Pricing Compared to Other Companies Whitebox Source It is popular with sellers on Amazon as well as other B2C sellers. It offers several services to facilitate sellers operating on Amazon. It differentiates itself from it’s competitors since it offers marketing services in addition to order-fulfillment, making it convenient for clients. There is a flat monthly fee for using its platform which includes inventory storage, software, account handling, shipping, receiving, and processing. It does have a MOQ of 1,000 orders but has several success stories of small businesses that started with them and grew to become much larger firms. Some services offered by Whitebox include: Omnichannel Order Fulfillment Retail DropshippingDTC (Direct to Customer) eCommerceMarketplace PreparationAmazon Seller Fulfilled Prime (SFP) Integration Warehousing FacilitiesOptimized Packaging and Shipping iThink Logistics Source iThink Logistics helps small business owners by providing features to automate operations like billing, labelling, and listing. This helps reduce RTO and save shipping expenses in addition to providing safe cargo facilities and a committed support team. There are additional alternatives that iThink provides such as same-day delivery, which is a value-added extension to its small business order fulfillment services. High level customisation of pricing is something that has allowed iThink to create a niche loyal customer base. The extensive features provided by iThink Logistics are: Automated reattemptMultifunctional dashboardAuto-Generated ReportsAI-Driven recommendation engineSame day pickupLive NDR UpdateRTOReal-Time TrackingEarly issue detectionReverse order NDRReverse pickup (DTO)Net Promoter scoreWhite Label Tracking PageAccurate date calculationCustomized tracking pageAutomated billing reconciliation systemFaster Weight discrepancy resolutionRate CalculatorPostpaid PaymentEasy credit transferFaster COD remittanceEmail and SMS notifications ShipBob Source ShipBob delivers high-quality small business order fulfillment services with the level of flexibility desired by many small businesses. It has no order minimums and has a Growth Plan that is excellent for startups looking to rapidly grow their business and order volumes over the next few years. ShipBob has the greatest network of domestic and foreign fulfillment centres on its list, allowing it to deliver high-level distribution capabilities for small businesses across the globe. Some of the features that ShipBob has included are: Zero monthly minimum or maximum ordersAffordable pricingB2B fulfillment with EDI complianceItemized billing format for transparencyFDA-certified climate control and handling99.95% accuracy rateFBA prep services ShipMonk Source ShipMonk's features and capabilities are comparable to those of the industry's best direct-to-consumer fulfillment firms. Its platform is designed specifically to provide order fulfillment services for small businesses, with the scalability required to support expansion as these enterprises grow (with regard to increase in order volumes and geographical territories). The disadvantage of Shipmonk is that they require a minimum of $250 in pick and pack expenses and do not provide batch fulfillment services. Key features include: Amazon Seller-Fulfilled Prime eligibilityOnline billing portal0.01% error rateState of the art warehouse automationRobust customization & branding optionsTax benefits and cost reductions for volume importersTakes a photo of packed orders before they’re shipped FBA (Fulfilled by Amazon) Source FBA gives vendors more access to Amazon's over 150 million Prime users thanks to its automatic Prime designation. Amazon merchants should consider Fulfillment by Amazon since it handles all customer inquiries, manages returns and refunds, and automates order fulfillment, all of which saves time. Amazon has set new standards in small business order fulfillment with same day delivery and next day delivery services. However, FBA's pricing and procedures are more convoluted than those of many other fulfillment warehouses, especially when not selling little or light-weight items, so sellers have to research thoroughly to avoid paying excessive fees. Their key features are: No order minimumsComes with automatic Prime designation on Amazon listingsAmazon handles all customer inquiries, refunds, and returnsCan be used to fulfil non-Amazon orders (part of Amazon's Multi-Channel Fulfillment offerings)Uses inventory pooling that groups identical products from different sellers Conclusion Having a third-party order fulfillment and logistics company can aid development while freeing up time and space for small businesses to focus on other key parts of the business. To provide customers with the fast delivery and flawless delivery experience that they demand, we recommend small businesses to partner with a full-stack order fulfillment firm like WareIQ, which is experienced and resourceful and can provide the greatest logistical experience in the eCommerce sector. Being the fulfillment company that has been the preferred choice of 300+ eCommerce brands including numerous small businesses along with reputed brands (such as Future Group, Piramal Group etc.), WareIQ provides you with the right flexibility in small business order fulfillment with respect to order size and pricing. Moreover, WareIQ has been constantly working on incorporating feedback from customers and strengthening the focal points in the fulfillment chain to provide you with a consistent improvement in customer satisfaction. We help you not only to reduce your logistic costs but also your delivery timelines – this could be the game-changer for your business needs! [signup] Small Business Order Fulfillment FAQs (Frequently Asked Questions) What are the main steps involved in the process of order fulfillment?• Receiving inventory shipments• Inventory storage• Order processing• Shipping of products• Manage Returns What is the cycle of order fulfillment?The time it takes for a client to get a product or service after placing an order is measured by the Order Fulfillment Cycle Time. As a result, it gives information about internal efficiency and supply chain performance. In short,Order fulfillment Cycle= Source Cycle Time + Make Cycle Time + Delivery Cycle Time Does WareIQ offer order fulfillment services for small businesses?Yes! Various SMBs, D2C brands have in fact also started their business & have trusted WareIQ as a reliable partner in their growth journeys from a small to medium business. Which companies specialize in small business order fulfillment?• WareIQ• Delhivery• NimbusPost• Whitebox• iThink Logistics• ShipBob• ShipMonk• FBA (Fulfilled by Amazon)

May 28, 2022

Order Fulfillment: How Does it Work? Key Processes, Steps, and Strategies for 2024

Every eCommerce company strives to provide clients with the best products and an easy and hassle-free ordering process. When a customer makes a purchase, the crucial moment of a business’s success begins. Creating an order fulfillment system has become increasingly complex as the firm grows and attracts customers worldwide. If this process is inefficient, customer happiness and revenue may suffer. As a result, the company’s reputation is at stake. Read on to learn more about order marketplace fulfillment services and the best processes and strategies for 2024. What is Order Fulfillment? The order fulfillment process which is also called order processing involves storing, packing, and sending products to the customers. Receiving inbound wholesale shipments, sorting stock, and storing inventory for efficient picking and packaging are all part of order fulfillment. Later, these orders are checked for quality, packed, labeled, and dispatched to the buyer’s address. The products are then picked, tested for quality and accuracy, and shipped. Returns management (also known as reverse logistics) is an extension of the fulfillment process. [contactus_lilgoodness] What are the Steps Involved in Order Fulfillment Process? The order fulfillment process comprises various steps that can be divided into four distinct phases: Create an order when a sale is done. Create an invoice for the order and send it to the customer. Select, complete the quality check, and pack the order. Deliver the order to the customer’s doorstep. Order fulfillment is carried out at fulfillment centers or warehouses and includes inventory management, supply chain management, order processing, quality control, and customer service to manage the entire value chain. Let us break down each process to understand it better: Receiving and Storing Inventory Source - pexels Every item received at the fulfillment center is counted, inspected, and inventoried before storing to confirm the correct number and ensure good quality. Each product has its own SKU or barcode allocated so that it can be quickly retrieved from internal storage. Order Processing Source: www.netsuite.com Order processing refers to the processes involved, once an order has been placed. The order must be based on SKUs, color, number, and size, before packaging and delivery. This will be completed in-house if self-fulfillment is determined. Packing The team selects packing materials to reduce the dimensional weight. This is a crucial stage because the weight impacts the speed of travel and the potential for cheaper shipping costs. Shipping Once the order is packaged and ready, we can choose the best transportation partner and the channel for shipping the orders to the customer. The freight charges are calculated by determining the actual package weight or the package’s dimensional weight. Most carriers have packaging restrictions to maximize revenues from the available shipping space. The shipments may be delayed if carriers refuse to accept the order when the standards are unmet. Delivery Delivery is usually the final step in the eCommerce order fulfillment process, until and unless the customer wants to return or exchange the product. Customers are provided with tracking information to receive real-time updates on the status of their orders. Returns Processing Returns Processing for Shein, a Major Online Fashion & Lifestyle Platform Returns processing begins with the original customer’s order, including shipping materials and a return label. Customers can seek a return or refund if their items were damaged during delivery or if they are displeased with their purchase. A quicker mechanism for storing and disposing of returned products based on their condition is also required. What are the Different Types of Order Fulfillment? It is critical to have an order fulfillment strategy and process in place to ensure customer satisfaction. It is vital to adopt the right strategy to increase sales, maintain a great brand image, and nurture a loyal customer base. The following are some of the different fulfillment methods that organizations can consider: Self-fulfillment When a company decides to handle order fulfillment in-house, it must address all process aspects, including storage, packing, and shipping. Businesses can either hire a third-party company to execute the process or use drop shipping, with the rest of the work done in-house. Businesses can control product quality, customer service, simplified and timely transportation, and even material prices with self-fulfillment. However, it is logistically demanding and takes time away from marketing, sales, and product development. Dropshipping This method, also known as consumer direct fulfillment, is a business approach in which online retailers work with manufacturers or suppliers to deliver products to customers directly. In this arrangement, an eCommerce retail fulfillment does not purchase or store an inventory of the products for sale. They sell it on their websites and ship it directly from their supplier or production network to the buyer. While the seller is in charge of product marketing and customer support, the manufacturer or wholesale supplier is responsible for inventory management, eCommerce warehousing, and logistics. Dropshipping order fulfillment allows merchants and distributors to expand their product lines without having to raise their inventory holdings. 3PL Fulfillment 3PL fulfillment firms manage inventory, process orders, and ship items on behalf of other companies. They can help business owners store, package, and transport their products to customers. Businesses can focus on product manufacturing, quality assurance, and customer satisfaction by outsourcing fulfillment services to a 3PL fulfillment company. These could be inventory management, monitoring SKU sales performance, forecasting customer demand, packaging, and shipping orders. Why is Order Fulfillment Important? When a business is dependent on consumer orders, it is crucial to consider the storage and distribution of products. The eCommerce industry has been growing more than ever before, thanks to rapid digitalization and the COVID-19 pandemic. Order fulfillment is an important aspect of any business’s success. It is critical to ensure that orders are delivered to clients on schedule. It includes receiving inbound wholesale shipments, sorting stock, and shelving inventory for efficient picking and packaging before it reaches the customer’s doorstep. Setbacks in order fulfillment might hamper their business and operational effectiveness. Benefits of Having a Streamlined Order Fulfillment Process Having an order fulfillment process can help you maintain track of physical items inventory and handle the end-to-end process of getting the order to the customer, despite your company size. Businesses can effectively manage the following by using eCommerce fulfillment companies for: Warehousing Picking and packing Shipping Logistics of kitting Cross-docking International shipping The following are some of the primary advantages of using order fulfillment partner services: One can retain inventory at the service provider’s warehouses and remotely maintain the list. These warehouses can be accessed on-demand or permanently at any preferred location to ensure a flawless experience for the customer. The distance between the product’s source and the customer’s location is reduced by ensuring speedier order delivery. Small businesses can easily use the service partner's warehouse fulfillment technology to keep stock items in areas with the highest frequency of requests. It is crucial to enhance customer satisfaction by eliciting positive feedback from customers about a speedy and flawless delivery process. Businesses may improve brand loyalty and promote repeat purchases by providing a pleasant client experience. One can use technology to make delivery services as frictionless as possible. Advanced technologies like AI and machine learning are used by order fulfillment services to improve the accuracy of product sequencing, order fulfillment, product tracking, and return order processing. It is also simple to get real-time updates on orders and keep track of stock and orders. One can prioritize product sales and revenue generation by focusing on essential functionalities like marketing, product design, product diversification, and so on by allowing service partners to peek into the order fulfillment process, resulting in increased sales. What are the Challenges in Order Fulfillment? Developing an order fulfillment system becomes more difficult as the company grows and attracts clients worldwide. A clumsy procedure may hamper customer satisfaction and income. As a result, the company’s reputation may suffer. The challenges associated with order fulfillment are: Demand Forecasting Demand planning is crucial for appropriate inventory stock. It is essential to ensure that businesses know what to store and what to hold back on, having the capacity to estimate product demand based on client buying habits. Inventory Management It is essential to maintain an outstanding client experience. Inventory management issues have a detrimental impact on everything from profitability to customer satisfaction, and they frequently result in higher fulfillment costs and dead inventory stock. Businesses often struggle to keep track of their inventory and know exactly what they have, how much they have, and where it is. Supply-chain Management An efficient order fulfillment procedure needs a strong supply chain network. Building solutions to control each risk and reduce concerns caused by unplanned events is difficult. Multichannel It becomes more tricky to regularly ship the correct package on schedule and in good condition to the right destination. Taking orders across many channels can be complicated with all of the stages involved in the order fulfillment process. eCommerce orders may be completed at the expense of in-store goods availability due to a lack of real-time inventory control, or merchandise on the shelf vs. in a shopping cart may be unaccounted for. Logistics and Transportation Increasing logistics costs continue to influence the ability to fulfill orders, resulting in higher consumer pricing. For SMEs and startups, meeting delivery deadlines, resource management, and ensuring how client orders are prioritized is a challenge. What is the Strategy to Choose the Best Order Fulfillment Type for Your Business in 2024? Fulfillment solutions can give considerable benefits in terms of product management, shipping prices, delivery speed, tailored shipping services, and more as a company grows and order volume increases. Consider the following aspects when selecting order fulfillment services: Shipping Time: The faster a consumer receives their item, the more likely they may return for additional transactions. Small businesses require these services for speedy shipping and delivery, particularly now that Amazon Prime offers choices like same-day and next-day delivery. Costs of Fulfillment Services: Although working with a fulfillment partner requires an initial investment, make sure there are no hidden fees for long-term storage because the products are in low demand. Warehouse locations for fulfillment: The closer the warehouses are to the consumer base, the faster the order will be filled. When choosing order fulfillment partners, make sure they have a large network of warehouse locations to reduce delivery distance and time. You can have a quick read on warehouse management system here. You can also get a better understanding of different types of warehouses here. Features of the order fulfillment service: Businesses need order web applications with simple features like clear order visibility, responsive dashboards, and simple inventory management so they can focus on sales and marketing rather than working out inventory levels to organize their order fulfillment. Real-time order visibility: Total process transparency in the event of delays, among other things, are crucial while growing a business and enhancing customer happiness. The fulfillment partner should be able to track and manage orders easily. Packaging Options: Depending on the goods being carried, the selected service provider’s fulfillment center should be able to offer packaging options. Product damage can also be avoided by having a choice of packing options. Aside from packaging, using the right insulation material, such as corrugated paper, bubble wrap, or air pillows, ensures the safety of the products. Returns Management: Orders will be returned at some point. The fulfillment provider should work with the business owner to reduce or eliminate them as much as feasible through better-advanced logistics. To prevent order returns and build the customer’s faith in their products, it is essential to recognize clients who return the orders frequently. Cost, quality, and control should be addressed when evaluating order fulfillment methods. The good news is that altering the fulfillment process to fit business requirements is simple for startups and SMEs. After thorough consideration of the benefits and drawbacks, businesses can select a technique they trust and work to expand their brand and customer base. An excellent third-party logistics provider, such as WareIQ, can assist with the entire fulfillment process and any other logistics needs a firm may have. What are the Best Practices in Order Fulfillment? To assist in making informed decisions for future demand planning, create a statistical forecast by analyzing sales patterns, purchasing history, and consumer interaction. Collaborate with customers, distributors, and logistical partners to determine demand vs. supply expectations. Analyze demand across channels to see which platform may generate the highest revenue. To stay prepared for unforeseen demand surges, improve demand forecasting with the help of predictive ordering software solutions. To avoid order fulfillment concerns such as backorders, delays, and disgruntled customers, maintain clear stock visibility. To market the first-in, first-out (FIFO) products, use the first-in, first-out (FIFO) method. Create a mechanism for adding new products and stuff from the back so that older items for sale can be pushed to the front. Examine products that have not been sold in the previous 12 months to find low-turn stocks. Have sales to get them sold, and do not stock them until there is a higher demand. Inventory should be audited to ensure that it corresponds to the forecasted demand. To ensure no surplus or out-of-stock items, use cloud-based inventory management solutions with real-time analytics. Keep an eye on stock levels and put the most expensive items first. To create a unified, collaborative supply chain, work with suitable suppliers. Identify potential supply chain risks and assess all possibilities and the chance of their occurrence. Conclusion: Why Should You Choose WareIQ for Your Order Fulfillment Requirements in 2024? WareIQ has quickly risen to become the leading provider of full-stack eCommerce fulfillment tech solutions for some of India’s most well-known companies since its launch in 2019. We are a full-stack platform allowing eCommerce businesses to offer customers same-day and next-day delivery, similar to Amazon Prime, but for everyone. WareIQ manages the entire range of complex operations in the eCommerce fulfillment process, such as inbound functions like scanning and quality check, 100% accurate Pick and Pack, and inventory management across all channels, with a centralized platform for core fulfillment and shipping operations and post-shipping apps for a delightful experience and zero to minimal supply chain leakages. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next-day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ manages the entire range of complex operations in the eCommerce fulfillment process, such as inbound functions like scanning and quality check, 100% accurate Pick and Pack, and inventory management across all channels, with a centralized platform for core fulfillment and shipping operations and post-shipping apps for a delightful experience and zero to minimal supply chain leakages. The next-day and same-day delivery services help businesses set new standards for setting and meeting customer expectations. Due to enhanced negotiations with shipping partners, strategically positioned warehouses, warehousing economies of scale and scope, and data-driven decision-making, WareIQ customers benefit from significant cost reductions and a wider reach. A machine learning-based prediction engine is deployed for effective warehouse network architecture and creative inventory allocation. All fulfillment and shipping procedures are centralized on a single platform. Its post-shipping apps are beneficial for a pleasant experience and fewer supply chain breaches. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfillment centers, micro-fulfillment centers & urban dark stores near their customers Access to all major national & hyperlocal last-mile courier services at discounted rates for making same/next-day deliveries possible Easy integration across multiple online platforms & marketplaces enhancing multi-channel selling Horizontal marketplaces: Flipkart, Amazon, etc. Vertical marketplaces: Nykaa, Myntra, etc. D2C platforms: Shopify, Magento, WooCommerce, etc. Social commerce platforms: Bikayi Access to a superior centralised tech platform for eCommerce operations ML-based prediction engine for efficient warehouse network design & smart inventory placement Centralised platform for core fulfillment & shipping operations Post-shipping apps for a delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next-day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing, and data-driven decision-making. WareIQ’s WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. [signup] Order Fulfillment FAQs (Frequently Asked Questions)

May 03, 2022