Posts written by

Rahul Kumar

Rahul Kumar worked as a content marketing analyst at WareIQ contributing to blog posts related to eCommerce operations, fulfillment and shipping along with a few topics around tips and tricks for eCommerce sellers. He has more than 3 years of content writing experience across industries like logistics & supply chain, media etc.

Top 10 Methods to Increase Average Order Value (AOV) for eCommerce Sellers in 2024

Top 10 Methods to Increase Average Order Value (AOV) for eCommerce Sellers in 2024

The central aim after starting an eCommerce business is to sell more and more products. Some business practices help you get an idea of your sales performance and how to increase it for the betterment of your firm. One method is to increase average order value. You can calculate how well your store is doing by finding out what your AOV is. The tactics in this article can help you to increase average order value after you have determined it. You will be well on your way to increasing the number of orders placed on your online store, whether you decide to implement bundled discounts or a free shipping threshold, post which, you can easily prepare to experience an increase in sales. What is Average Order Value (AOV)? Average order value (AOV) in an eCommerce business is the average amount of money that each customer spends on each purchase that they order from your business. It is an indication of the cash and inventory flow of your online business. High AOV denotes high sales and healthy profit margins. So for new eCommerce sellers, it is often a challenge to increase average order value. [contactus_gynoveda] How to Calculate Average Order Value? To calculate your average order value (AOV), simply put the total revenue you earned and divide it by the total number of orders. Average Order Value(AOV) = Total Revenue (Earnings) / Total Number of Orders (Sales) For example, let's assume that you own an eCommerce store that sells earphones. In July, you generated ₹45,000 in total revenue from 30 earphones that were ordered. Your average order value will be:  45,000/30 = ₹1,500 The value means that a customer is spending ₹1,500 on average on each transaction from your online store. Benefits of Having a Stong AOV in 2024 Boosts Sales and Profits You will notice a surge in sales and profit as the AOV increases. Your business will generate more money overall, the more you make with every order. If you notice an increase in average order value, you can put more money into the expansion of your company and earn more profit. Offers Better Overall Marketing Returns When you spend money on fixed assets and marketing, that amount is more or less a fixed expense that you have to spend on the business. By spending the same amount of money, you can increase average order value and thus, the overall return margin on spending will also increase. For instance, after subtracting the cost of the products and taxes, you would not have made much money if you spent a lot on marketing, especially if your AOV is low. However, your marketing expenditure becomes more profitable when you notice an increase in the average order value. Hence, the necessity of implementing an average order value strategy is vital. Maintains Better Cash and Inventory Flow A better AOV will provide you with a better flow of inventory as well as the cash flow associated with it. You will be providing fresh items to your buyers and never feel a cash crunch in the business. In the case of pumping extra capital into the business, you will be assured of getting a good return instead of fearing the blockage of money due to leftover inventory. Provides Data for Forecasting Orders The insight that the average order value shows you is the market demand for your products. If it is low, you need to order fewer items and offer discounts in order to sell them. And if it has a high figure, you need to reorder more at a particular time to avoid stockouts. 10 Effective Tips to Increase Average Order Value Execute First Time Offers If your company is less than six months old, the majority of your consumers will be first-timers. Promoting discounts to new customers helps raise the AOV. You can offer this specific audience a one-time discount when they purchase multiple units of a well-liked product or special bundle offers reserved only for customers who have never purchased with you before. It will be considerably simpler to persuade your customer to buy with you again if they order many goods and are happy with their purchases. They will have already had a personal experience using your website to shop. As a result, your chances of getting them to buy from you again are higher, which will help to increase average order value. Run Flash Sales Flash sales are special offers provided by an eCommerce seller for a few hours for a set of specific products. These products often have extra discounts during the period of the flash sale. Flash sales increase the sales velocity for hours in a day which can ultimately increase average order value. It is mostly done during the off-season when the AOV is lower. Provide Discount Coupons Discount coupons and gift cards are a physiologically better method to increase average order value. To avoid losing money, you must make sure that your product prices are high enough to prevent a free purchase from your business after the buyer uses the discount coupons. Make sure that customers are aware that they cannot use the discount coupons to pay for current purchases or delivery and implement digital barriers to prevent them from doing so. Offering discount coupons also encourages additional purchases, which helps cut down on additional advertising expenses. Giving clients more for their money is an amazing idea when sales are lagging due to various factors. This deal should not be available all year long because it can become ineffective and result in losses. Have Festive Offers Many buyers wait for festive offers to buy high-priced products, specifically so that they can receive discounts. These high price products are ordered by a few customers but offer a better profit than most other products. These festive offers also add more customers to your shop while helping you maintain your AOV for the future. While these offers help increase average order value, you can sell your old products by giving high discounts on them and free up your money instead of holding onto them perpetually. Initiate a Free Shipping Threshold Offering a free delivery threshold is the simplest strategy to raise the average purchase value. For example, free delivery on a purchase of above ₹500. When customers check out and their order falls short of the minimum amount required for free shipping, you can include an additional notification. This notification will prompt them to add more items to their cart and enable you to increase average order level. Offer a Minimum Order Discount Indians have a tendency to save money and constantly search for the best offers. Buyers may feel guilty about placing large orders. By showing customers their overall savings if they order a certain amount, you can increase average order value and also increase customer satisfaction. This can stop cart abandonment or alterations, which could reduce the total they intended to spend. Customers will feel as if they are getting a better deal. Even if it serves as a preventative measure, demonstrating to customers the financial advantages they get from purchasing multiple things can help raise your AOV. Cross-Sell or Up-Sell Related Products A cross-sell is a product that is distinct from the one that a consumer is currently browsing but that they might also like. For instance, if a consumer is looking at a pair of shoes, you may suggest a pair of socks that go well with it as a recommended product. Adding all the items that the model is wearing in the listing pictures to the suggested items is a great cross-selling strategy. As an illustration, if a tank top in the product photo is being sold, you might cross-sell the jeans that are in it too. Customers are more inclined to buy the two items together since they can see them in use. To increase average order value or profit, you can up-sell by persuading customers to purchase more expensive items or upgrades. For example, if you sell mobile phones, you might up-sell earphones, mobile covers, add-on guarantees, etc.  Offer Same-day or Next-day Delivery An enhanced sense of satisfaction comes when products/services come to customers as soon as possible and they can utilize them. Many companies are doing their best to make their customers happy and that is why all buyers strive to provide amazon prime-like delivery, i.e., offering Same-day or Next-day delivery A seller who offers a slow fulfillment option can be at risk of buyers preferring to choose a competitor that offers faster delivery. So always keep in mind to make delivery hassle-free and available all over the nation. Provide Different Payment Options Many times, a buyer is willing to purchase and pay for the product but in the end, the cart is abandoned due to a variety of reasons. You may try to persuade the buyer by giving them offers on the product or some extra benefits like free shipping but very often, the reason behind it is the lack of payment methods available. For example, a buyer may prefer to pay through UPI to avail of coupon benefits given by a digital payment platform. So the more payment options you give, your AOV will get higher. Have a Clear and Easy Return Policy In an eCommerce business, you must have a return policy because, in the sector, buyers are afraid of getting a fake or damaged product instead of the one they spent their hard-earned money on. The return option gives them a sense of trust which influences them to place orders without worrying about the product quality. Conclusion Average order value in eCommerce is a helpful tool used by businesses to calculate the average value of transactions done with respect to a particular time frame. There are several reasons to increase average order value and several methods to go about it. This is where WareIQ can help. WareIQ provides services relating to picking, packing, reordering and managing inventory which will help you increase average order value by providing smooth and fast fulfillment to ensure better reviews and positioning of your products. When you use WareIQ’s Warehouse Management System, Inventory Management System and other services, you do not have to worry about fulfillment, taking care of returns or placing orders to your merchants manually as all these processes will be provided by us. We also provide a network of fulfillment centers across the country for easy storage and have partnered with more than 20 of the biggest shipping aggregators to provide ultra-fast delivery to every customer. Increase Average Order Value: FAQs Why is Average Order Value used?The average sum of all orders placed with a merchant over a predetermined time period is measured by an eCommerce indicator called Average Order Value (AOV). Sales Velocity Vs Average Order Value.Sales velocity is measured as the rate at which a potential customer progresses through a company's sales pipeline and earns money where as average order value (AOV) tracks the average amount of money a buyer spends each time they place an order. Does AOV make a distinction between each order, even if they are ordered by the same customer?AOV determines transactions per order, not sales per buyer. Even though a single buyer might buy something more than once, each order would be taken into account independently for calculating AOV. How do you forecast the average order value?Calculate your average order value using the formula:Average Order Value = Total Revenue / Number of Orders 

July 16, 2022

10 Best Oberlo Alternatives for Online Sellers to Fulfill Online Orders in 2022

10 Best Oberlo Alternatives for Online Sellers to Fulfill Online Orders in 2022

If you are an eCommerce seller and gravitate towards dropshipping then you must have heard about Oberlo. It was one of the most well-known dropshipping companies for most sellers but unfortunately, it was delisted from the market. Shopify acquired Oberlo in 2017 and later decided to continue it in May 2022 without sighting a specific reason.  Though it was the first choice for many retailers, they still have to continue their business processes and find an Oberlo alternative for dropshipping that is available in the current eCommerce market. For you to choose which Oberlo competitors to use, we have compiled a list of the 10 best Oberlo Alternatives. About Oberlo Oberlo is likely the most well-known dropshipping service, which enables business owners with a Shopify eCommerce website, to browse through various products and add the ones they want to sell directly through their own store. Because Shopify is used by people who wish to sell things online in a hassle-free way, sellers all over the world have used Oberlo to list and dropship their products. Oberlo imports products from AliExpress directly into your online shop. Although the software is globally functional, it is exclusively accessible by Shopify store owners, which may provide a challenge for businesses who prefer WordPress and WooCommerce. If you wish to choose reverse dropshipping or sell high-quality goods from other dropshipping vendors like Banggood, DHGate and others, your options may also be constrained. [contactus_lilgoodness] Why do Companies Search for an Oberlo Alternative? Shopify has currently removed the Oberlo app from its platform. Oberlo was taken off the market as of May 12, 2022. Additionally, online merchants are no longer able to find it in the app store or download the app from other sources. Retailers who have installed Oberlo can continue to use its features until June 15, 2022. Oberlo broke the devastating news to its users throughout the world. On June 15, 2022, its dropshipping app was discontinued, making it impossible for users to access their Oberlo accounts after that date. The team made it clear that the decision was based on various factors, including what was in the best interest of Shopify merchants. If customers want to keep dropshipping after the discontinuation of the app, Oberlo has provided them with two solutions which have been listed below: The DSers app will automatically transfer previous data from OberloRetailers need to manually move to an Oberlo alternative dropshipping application Although it was simple to use because of its accessible features, there were several limitations with Oberlo which have been listed below: It only works with Shopify storesIt only buys products from AliExpressIt has less control over shipping options provided by suppliersIt is crowded with other dropshippersThere are similar products listed by many dropshippers 10 Best Oberlo Competitors Spocket Source For US or EU-based sellers who want to ship their products to their consumers more quickly, Spocket is commonly regarded as the best Oberlo alternative. Spocket was founded in 2017 and is an innovative online dropshipping marketplace and automation platform. The company also has a vast network of more than 1000 dropshipping suppliers, with over 80% of them based in the US or Europe. After integrating your business, importing products is simple and only requires a few clicks. Additionally, Spocket offers one-click order processing and automated inventory updating. DSers by AliExpress Dropshipping Source DSers is a better Oberlo alternative for dropshipping because it is an approved AliExpress dropshipping partner app. Additionally, Oberlo encourages users to automatically transfer their data to the DSers app, which is officially suggested by the company as a good Oberlo alternative. The features that DSers has are all that users require to scale their dropshipping businesses. The DSers app can handle large orders, has more than 150,000 merchants currently and has an integrated interface with AliExpress. Follow the instructions on the Oberlo FAQ page if you're unsure how to seamlessly switch from Oberlo to the DSers app. The benefit of DSers is that it integrates with other platforms besides Shopify. Another feature of DSers is that its free plan allows for the import of 3000 products, which is fantastic for someone just starting in the eCommerce industry. Suggested Read: Alternatives to AliExpress SaleHoo Source SaleHoo provides retailers with a selection of more than 1.5 million products to sell as they develop their eCommerce brand. Depending on your specific demands, you can currently choose products from thousands of different dropshippers and wholesalers. To make sure you have access to the most reliable providers who can deliver fast, you can also browse the suppliers listed on the site. SaleHoo is designed to be an easy-to-use Oberlo alternative for people who desire a quick way to identify reliable vendors. For beginners who do not have a lot of money to spend on their perfect product strategy, this software is also quite reasonably priced. For instance, the initial cost of SaleHoo is just a little over $65 per year. Seasonsway Dropshipping Source Seasonsway Dropshipping primarily focuses on fashion-related products, which is clear from just a short look at their inventory. It is one of the best Oberlo competitors that are best suited for fashion items. They have a wide range of gift items, clothing, innerwear, household goods and mobile accessories. All of these particular product niches are more lucrative than other niches. Retailers can increase their profits by trading in the mentioned marketplaces, according to experts. So if you want to trade in these sectors, Seasonsway could be among your top choices. It costs nothing to sign up for Seasonsway. However, they do not provide any website building platform and you will have to either build your own website or sign up with retail marketplaces. They offer a variety of fashion-related merchandise. You get a dashboard where you can manage all of your dropshipping needs, such as payments, processing and other necessities. Wholesale2B Source Wholesale2B runs under a software development business that specializes in dropshipping. Because of this, wholesale2B has an edge in terms of the technical aspects of dropshipping. They can offer capabilities like inventory management, order management and website creation that can help your business. Its main limitation is that it only offers customer support by email or a live chat channel and only during business hours. That is why it appears that some users are dissatisfied with Wholesale2B's customer service.  To meet the needs of various consumers, Wholesale2B offers a variety of service plans. These plans must be purchased to begin dropshipping. However, you still sign up for a free account and then you can browse and see the products listed. Wholesale2b makes it simple for anybody to start a dropshipping business on a budget by offering more than 1 million products at wholesale rates, allowing you to rapidly import them to your online store or marketplace. Access to their network of suppliers, the majority of whom have offices or warehouses in the US, is free. The starting price for the premium plans, which include automated inventory management and one-click order fulfillment, is $29.99 for the import of up to 10,000 products. Worldwide Brands Source The Worldwide Brands network is a platform for dropshippers and wholesalers, which makes it a good Oberlo alternative. All of the wholesalers who utilize WorldWide Brands are available to you for a lifetime just after making a one-time payment of $224. Users have access to more than 16 million products. You can order a variety of products from Worldwide Brands and dropship them to your customers and the majority of these goods are bought directly from producers or wholesalers at low prices. The wholesaler sets the delivery period for each product on WorldWide Brands. The goods are delivered in roughly a month to the wholesaler in another nation. Local wholesalers can have the products delivered to you in less than a week. Credit cards and PayPal are accepted for payments. Worldwide Brands is perfect for seasoned dropshippers who want to test out new products in the market. It is not the best choice for new dropshippers looking to launch their eCommerce company. Snazzyway Dropshipping Source Snazzyway is a distinctive Oberlo alternative. It is an India-based website focused on the dropshipping of women's undergarments. The best fit is if you deal in lingerie, bras or other inner-wear for women. You may not know that the Indian lingerie market was estimated to be worth over $3 billion in 2017 and is projected to grow at a solid CAGR of about 14% to reach $6.5 billion by 2023. Snazzyway is an excellent Oberlo dropshipping substitute if your dropshipping business sells clothing and undergarments. Wholesale Central Source Wholesale Central is a wholesale and dropshipping supplier. The US-based dropshipping company has more than 25 years of experience connecting global suppliers and buyers. The platform of Wholesale Central, which contains suppliers from all over the world, is very simple to use and explore and is free for all buyers which makes it a good Oberlo alternative. It transports goods to wholesalers or buyers in bulk. Wholesale Central has a reliable database of global wholesale vendors. It is free for all its customers and simple to use. Finding suppliers who use dropshipping can be more challenging. GeekBuying Source Electronics and tech accessories are the main products sold on Geekbuying. The rarest tech products are available here. Additionally, you may purchase clothing, jewellery, and watches on this Oberlo alternative. Geekbuying can deliver goods anywhere in the world. The average shipping time for all locations is 5 to 10 days. You can also place large orders through it. Geekbuying offers a range of payment options. PayPal, credit card, debit card, Boleto or Konbini are all acceptable methods of payment on this website. Wire transfers and installment payments are additional alternatives. DropshipMe Source DropshipMe is the free WordPress plugin for importing high-selling AliExpress items through WooCommerce-powered stores. DropshipMe is the most practical Oberlo alternative when it comes to establishing a successful dropshipping business using WooCommerce. DropshipMe lets you import goods from a hand-selected database of more than 50,000 top-selling AliExpress items. As a result, you won't need to browse AliExpress in search of profitable goods to sell. Things to Keep in Mind while Choosing an Oberlo Alternative When choosing Oberlo competitors that work for your company, you must understand the processes involved in making a choice. Consider the following factors to help you choose the finest Oberlo alternative: Compatibility with Multiple Selling Platforms The tool you have selected should work with your online store for selling goods online. The AliDropship plugin would not help you much if you have a Shopify store because it's designed for WordPress + WooCommerce stores. Check the compatibility of your Oberlo alternative with your website and other sites that you sell on. Accessibility to Integration With Supplier Platforms The tool you select should facilitate the seamless sourcing of products from the suppliers you want. While some support the importing of AliExpress goods, there are a few platforms that work with Wish, Alibaba, Taobao, etc.  Simplicity to Use and Locate Look for tools that are simple to use and have a user-friendly interface. With Shopify or WooCommerce stores, many providers have completely automated integrations that enable an automatic order fulfillment procedure and simple importing of products. Fast Fulfillment Times Check the shipping method used by the Oberlo alternative you choose. Fast delivery speeds enhance customer satisfaction and enable you to fulfill more orders in a shorter period of time. Maintenance of Quality Your preferred Oberlo competitors should provide a consistent level of product quality. Always order a sample before placing your order to make sure the goods are of high quality. You can evaluate the product quality, delivery costs and vendor communication by testing it out before you commit. Additional Features The features and tools your online store needs should be provided. Today's eCommerce firms need to have access to a wide range of features like order tracking, inventory management, price adjustments, automatic reordering, etc. Cost of Alternatives Always be careful to account for all of your costs when calculating your income vs. profit. Don't just figure out the base product cost; also include any potential extra costs like shipping and handling. The ideal way to get more for your money is to work with a dropshipping agency that will buy your bulk orders directly from Indian or Chinese manufacturers and distribute them to your end clients. Conclusion: WareIQ’s Role in Opting for an Oberlo Alternative Since India is an emerging eCommerce retail market, a number of dropshipping businesses are making a huge profit from operating their services here. The majority of dropshipping sellers form partnerships with numerous eCommerce businesses, but it's also crucial to consider the types of goods you sell, and whether or not their service fees and shipping costs are within your budget. The delivery time should also be reasonable for the locations of your customers. Working with a specialized 3PL provider like WareIQ can be the finest Oberlo dropshipping alternative for businesses who require the entire spectrum of eCommerce fulfillment services because we offer fulfillment services with incredibly quick delivery and an AI-based WMS. WareIQ is a full-stack eCommerce fulfillment platform that provides all the services needed by online retailers. We will always offer the quickest and cheapest delivery options through our partnership with more than 20 of the biggest shipping companies and give users a variety of technological advantages like an advanced WMS, unique app store, storage in numerous fulfillment centers, picking, and packaging, shipping, last-mile delivery, reverse logistics and much more. Oberlo Alternative : FAQs What are the limitations of Oberlo?Although Oberlo is simple to use and offers a lot of helpful features, there are drawbacks. The majority of them are caused by the fact that it only functions with Shopify and AliExpress. It is therefore incompatible with other eCommerce platforms. When and why was Oberlo removed by Shopify?The Oberlo app has already been taken down by Shopify. Oberlo was taken off the market as of May 12, 2022. Now online merchants are no longer able to download the app from other sources or locate it in the app store. What is reverse dropshipping?Reverse dropshipping is obtaining goods from developed markets and then mass producing them in developing countries like India and China instead of the other way around. Is dropshipping possible without Oberlo?Yes, you can dropship products by any one of the alternatives to Oberlo as per your choice. Although Oberlo has been delisted, the dropshipping industry is growing.

July 16, 2022

Reverse Dropshipping: A Comprehensive Guide for eCommerce Sellers in 2024

Reverse Dropshipping: A Comprehensive Guide for eCommerce Sellers in 2024

Dropshipping is a retail business practice where a seller fulfills orders placed by buyers without keeping stock of the product with them. The merchant or vendor directly sends it to the buyers with the help of logistics companies. Conversely, reverse dropshipping is an emerging business practice that involves shipping premium products to exporting companies in countries like India, China, Korea, etc. It indeed has high-profit potential but is also quite complex to start. In this blog, we will help you get a better understanding of reverse dropshipping and the advantages and challenges that a seller will face. What is Reverse Dropshipping? Reverse dropshipping is an eCommerce business concept where a manufacturer offers a premium quality product to retailers in countries with mass production capabilities such as India and China. Preferably, the products utilised for reverse dropshipping are initially developed in the US, Germany and other developed countries. One of the main reasons for reverse dropshipping is that vendors flock to industrial giants like China or India due to the demand for high-quality products that are sought after by the citizens because getting them within their own country is difficult. The majority of locally made goods now have inferior quality due to China's large scale manufacturing. As a result, wealthy Chinese consumers must look for new means of satisfying their extravagant demands. The business model of reverse dropshipping is similar to that of traditional dropshipping but differs in one crucial way. Reverse dropshipping companies get high-quality, handmade products instead of a lot of cheap, low-quality goods. Because of this, reverse dropshipping has far higher profit margins when it succeeds. [contactus_lilgoodness] How Does Reverse Dropshipping Work? Using this business strategy, many prosperous companies are earning enormous sums of money. Fewer sellers will be willing to persevere because starting something is difficult. Here are a few steps you can take to start to reverse dropshipping: Select Your Niche Find a market that is currently underserved before you get started. You probably won't be able to list certain items on Amazon and make rapid sales, unlike what traditional dropshipping entails. You need to do market research, which can involve hiring a local professional to guide you through an uncommon area. A gap analysis will be the ideal place to begin. This will inform you of the areas with the greatest demand and provide you with a few possible starting points. Source Your Products After deciding on a strong market niche, you must source top-notch goods from developed countries like Canada, the United States or in Europe. Get partnered with a reliable dropshipping company. Contacting manufacturers directly and trying to work out a reverse dropshipping arrangement would be a good option. Be upfront about the fact that you want to send and dropship products overseas. They might already be set up for reverse dropshipping in India, making it easy to ship internationally as well. Determine the Most Effective Platform for Product Sales Finding the right marketing channels will go hand in hand with reverse dropshipping. Amazon and Flipkart may not have the same loyal following worlwide. Additionally, you can discover that various social media apps are popular in different countries or that Shopify store websites are uncommon. For example, Tik-Tok is banned in India but is used in many countries. China, for instance, relies heavily on the smartphone app WeChat and has barred other popular social media apps such as Facebook and Instagram. Another country where the majority of sales are made via Instagram (you can sell on Instagram) or the Line app in Thailand. If you want to be successful, you must go where your consumers are and use the platforms that are popular in those countries. Mention and Translate Product Descriptions You must translate product descriptions regardless of where you decide to list your products, be it on social media, an eCommerce platform or a website. Do not trust Google Translate or similar apps. These translation tools frequently make mistakes, which could cause your writing to lose context or become insensitive to cultural differences. You must work with a local translator instead. With a professional translation, everything will be translated accurately without losing the actual meaning. If product descriptions are clearly translated, there will be less chance that there will be misunderstandings that lead to consumer returns or exchanges. Select Marketing Channels According To Specific Products You need to spend money on marketing to magnify your message. You cannot rely on people just stumbling onto your site naturally, especially if they do not know where to look. Consulting a local marketing specialist or a digital marketing company that knows how to promote to the community is a better practice. They can help you avoid wasting your advertising budget by advising you on the finest channels. In order to boost the likelihood that your products will sell and possibly help you raise your prices, local marketers can work with you to present your products in the best possible light. Advantages of Reverse Dropshipping Higher Profit Margins One of the most appealing aspects of reverse dropshipping is the fact that profit margins are higher than the conventional approach. Because most dropshippers rely on buying low-quality commodities in bulk, the profit is competitively low. By using a reverse dropshipping strategy, you can concentrate on selling less quantity of high-quality goods. It means that both your markup and your margin will be higher. Access to Niche Buyers Premium products are always purchased by niche buyers. They may not worry about the amount and other charges but they look for better service and quality. So this niche audience will buy a premium product from you and will have high chances of returning. Knowing that your company has the products they demand. They look for quality over quantity and price. Low Competition There is plenty of room to gain market share because reverse dropshipping is still a niche sector. You will only be up against a handful of companies rather than competing with thousands of dropshippers. These companies might likewise struggle to effectively market online. In other words, if you employ a dropshipping website builder to make the process simple, you can really stand out from the competition and simply take control of the market. In addition, there is plenty of room to expand into new markets despite the presence of thousands of conventional dropshippers. Less Investment in Marketing and Advertising Advertising and marketing are frequently less expensive and more competitive elsewhere. You will probably discover that pay-per-clicks and SEO are far less competitive here because of the limited number of buyers. The best thing you can do if you are serious about starting a long-lasting, sustainable reverse dropshipping business, is to engage with a local business to carry out market research. This will need some initial expenditure, but it will provide you with a thorough picture of the marketing landscape and show you where you can expect to get the most return on your investment. This will help you achieve personal publicity. Easy To Offer a Personalized Experience When you have a limited number of customers and you know that they can give you better profit margins and what kind of goods they require, it is relatively easier to provide a customised experience that is tailored to their requirements. You have dedicated resources from which you can offer a personalized experience. Simplifies Business Operations With the reverse dropshipping concept, you can quickly fulfill your orders and collaborate with the best suppliers. The duty for sourcing, picking, packaging and shipping is handled by your supplier. This makes it simpler to quickly expand your business operations by focusing on the core activities of the company such as research and development and marketing your products. Challenges of Reverse Dropshipping in 2024 Difficult to Start There are other problems besides linguistic barriers in reverse dropshipping, such as cultural differences and governmental requirements. To be successful, you will have to put in the extra effort. Make sure to conduct thorough research to comprehend the market and the local culture before choosing a country to dropship too. Your chances of long-term success will increase the more thorough your initial study is. Has More Compliances One of the problems with India and other Asian countries is that regulations in emerging nations appear to change every day and perhaps, even every hour. In these countries, nothing is set in stone and new rules and bureaucratic red tape are commonplace. Depending on what you plan to dropship, you might have to deal with similarly absurd and complicated rules. To make sure you are abiding by local laws, it could be helpful to consult with an attorney in your area before you begin. Difficult to Source Products To provide the best quality products for which your customers are ready to pay a premium amount of money, you need to do research and tie up with a competent supplier for the business. You will find difficulty in making a deal with the manufacturers who are in other nations like America, Germany, etc. It’s difficult to find them and once you do, you face problems in having a conversation and striking a deal with them. Marketing-Related Challenges The benefit of marketing to people who share a language and culture is that you know how to communicate with them. You can hire a professional who is well-versed with a variety of technologies and social media platforms. It can be challenging to locate the appropriate marketing channels in a foreign country. Working with local marketing professionals to help you create a strong brand and use appropriate marketing channels is one method to get around this. To make this easier, you might need to create some dropshipping positions and hire locals in the regions where you wish to sell. Investing in affiliate marketing, where influencers and bloggers from your target market can drive traffic to your site, is one method to offset this problem. Even the best dropshipping websites may only be profitable if they receive a sufficient number of daily visits. If you want your firm to succeed, this is essential. Need for a Multilingual Website As you now know, reverse dropshipping is fulfilling items to different nations so for each nation, you need to describe the product and other related information in their language. You need to send order confirmation messages/emails, invoices and other sales updates in many local languages such as Mandarin for Chinese customers, a variety of different languages for India, etc. Suggested Read: Dropshipping websites that can help your business grow. Conclusion: How Can WareIQ's 3PL Fulfillment be a Good Alternative to Reverse Dropshipping? WareIQ, one of India’s fastest-growing third-party fulfillment companies, provides a variety of fulfillment options within the country which enables you to run your supply chain smoothly. Experts at WareIQ are experienced in a multitude of different aspects of eCommerce fulfillment. We have tie-ups with dozens of national as well as international shipping companies, sellers and manufacturers. When you use the dropshipping or reverse dropshipping method in India, managing returns becomes a challenge. However, we offer an RTO Shield which helps mitigate RTO requests and provides insurance against it. We have solutions across every touchpoint of logistics. In case you serve a niche market that is not near to your physical location and you find it difficult to reach all your customers, we provide fulfillment centers and dark stores in every corner of the country. We have a complete all-in-one solution for each and every eCommerce business requirement by using a high-tech AI-based application that integrates with multiple selling channels in one place, which ensures that you and your customers will have the best possible experience. Reverse Dropshipping: FAQs What is reverse dropshipping?Instead of purchasing goods from China, India or other countries and exporting them around the world, you import goods from developed countries, particularly the US and and Europe, and sell them in different countries. This is known as reverse dropshipping. Can I dropship to the USA from India?All you require to dropship to the USA is a business bank account in India and registering with your GST number. Is dropshipping profitable in India?India is a very profitable market for dropshipping because of the enormous growth potential, a large amount of untapped resources and the lower risk associated with it. Can I dropship to another country?Dropshipping allows you to sell anytime and everywhere, so instead of just dropshipping in a certain country, you can sell your products anywhere in the world. 

July 14, 2022

10 Best AliExpress Alternatives for Dropshipping  in 2024

10 Best AliExpress Alternatives for Dropshipping in 2024

AliExpress has emerged as a big name in the eCommerce dropshipping space with its specialized dropshipping company, DSers. However, there may be some features that you require from your dropshipping service that isn’t offered by AliExpress. If a need cannot be met by the company, it would be a good option to identify an AliExpress alternative. In this blog, we will look at the best AliExpress dropshipping alternatives and how they compare. What is AliExpress Dropshipping? China-based online retailer AliExpress, which runs the dropshipping website DSers for AliExpress, is owned by Alibaba. AliExpress has millions of products listed that make it the first pick for many dropshippers. Unlike many wholesale merchants on Alibaba, AliExpress lets you order single units of goods. As a result, you can ship directly to customers without the need for special off-site inventory storage. Free registration and the options to browse millions of products at reasonable prices are its two biggest advantages. You can easily place an order on the website without talking to any vendors if there is a language barrier. DSers is in-charge of managing all notifications and shipment tracking. Several very dependable automation solutions are also available that automate order fulfillment for well-known eCommerce sites. One of its drawbacks is that most of AliExpress's suppliers are located in China. The time it takes for products to reach customers in different countries can be longer despite the fact that this leads to reduced prices and commonly accessible global shipping options. Because of the fact that customers must wait weeks for their orders to arrive, it is best for companies to search for an AliExpress alternative that is located in India and has shorter shipping times. [contactus_gynoveda] Required Features in AliExpress Alternative Dropshipping Companies for the Year 2024 Provide Single and Bulk Order Shipping When you become an eCommerce seller, you have to deliver products to each of your buyers as well as store high-demand products to have stock to fulfill later sales to avoid stock-outs or price hikes. Your partner dropshipping company should be able to ship every order, regardless if it is just a single order of a small item or a bulk order of heavy items. This gives you flexibility in knowing that every order can be fulfilled with the same company, which gives you more bargaining power and lower costs. Have Good Return Policies A dropshipping company should frame and offer a return policy according to the facilities they can provide. You should inquire about the return policies of multiple companies and choose the one that offers that fits your requirements. They need to offer features like penalty-free returns in case of product damage or substandard quality. Offer Better Reachability It should be an important aspect to notice. If you want to dropship your products and agree with all of the policies, you should also check the dropshipping coverage of every company and select the one that provides services to the most locations. Utilize Automation Dropshipping is used by eCommerce sellers mainly to be less directly involved in the order fulfillment process and use less of their resources, either financial or labour. A good dropshipping company is incomplete without efficient automation of key processes to provide a good experience.  Comparison Table of Every AliExpress Alternative [table id=38 /] Top 10 AliExpress Dropshipping Alternatives for Retailers Seasonsway Source Seasonsway dropshipping is an AliExpress dropshipping alternative that is best suited for fashion items because they mostly focus on fashion-related products, which can be understood by having a quick glance at their inventory. They have a substantial stock of mobile accessories, home goods, garments, innerwear and gift items. These specific product niches are all more profitable than other niches. Experts give advice on trading in the aforementioned markets where retailers can make more money. Therefore, Seasonsway should be one of the best options if you wish to trade in these categories. Signing up with Seasonsway is free. You will have to either create your own website or register with retail marketplaces since they don't offer any. They provide a wide range of fashion products. You receive a dashboard from which you can handle your dropshipping requirements, including payments, processing, and other dropshipping needs. Snazzyway Source Snazzyway is unique in regard to being an AliExpress alternative. It is an Indian-based dropshipping website specializing in women's undergarments. The ideal fit is if you work in the women's underwear industry, such as lingerie, bras and other inner-wear. In addition, if you think the undergarments market is undervalued, you should know that the Indian lingerie market, which was valued at over $3 billion in 2017, is expected to rise at a healthy CAGR of roughly 14% to reach $6.5 billion by 2024. If you are a dropshipping company that deals in garments and innerwear, you can definitely consider Snazzyway as a prime AliExpress dropshipping alternative. DHGate Source The primary option that crossed every retailer's mind when AliExpress was banned in India and they had to find AliExpress dropshipping alternatives, was DHgate. It is yet another trustworthy AliExpress substitute in India. On DHgate, you can buy practically everything. It offers B2B and B2C dropshipping services. The website's user interface is its best feature. Its product categories are extremely thorough. Various categories have further subcategories. All of the top logistics providers including TNT, HK Post, Singapore Post, Post Link, Ems, China Post, UPS, DHL and FedEx, are used by DHgates. DHgate often needs 3 to 15 days to deliver its goods. Depending on the goods, the days may change. DHgate has the option for credit cards, PayPal, and Western Union. Banggood Dropshipping Source Banggood is another AliExpress dropshipping alternative with affordable rates on a variety of goods and has a strong rivalry with AliExpress. With more than four million listed products, it contains everything from iPhones to drones. This eCommerce shop is relatively unknown, which naturally makes it an alluring location for dropshipping goods. Numerous products are available on Banggood from China, Hong Kong and even the US. The majority of the items on this list are obtained straight from the manufacturer. Banggood offers ePacket and air parcel shipping with transit times ranging from 7 to 30 days. Visa, PayPal, wire transfers, and even cash on delivery are numerous payment options, accepted by Banggood. The majority of items, including drones and robots, that aren't offered by other online retailers are available at Banggood. Banggood is an excellent option to look at if you need to dropship these difficult-to-find commodities. TradeIndia Source TradeIndia is a good AliExpress dropshipping alternative because they are the second-largest B2B marketplace in India, with a total of 42,93,725 registered buyers and 37,47,446 registered sellers. The TradeIndia platform facilitates around 31,42,496 interactions between buyers and sellers each week. That is the main justification for choosing their services. You can connect with thousands of reliable dropshippers in India by signing up on their platform. Although the majority of the vendors listed here are from other nations, you can look for Indian dropshipping businesses too. TradeIndia offers a large variety of products, so you won't ever be out of style. You can browse through thousands of products in a variety of categories on their website. DX Source DX has a huge selection of products available for dropshipping, which makes it a good AliExpress alternative. It has a top bargains section where all items are discounted by roughly 50%. As a result, dropshipping with DX becomes profitable for retailers. The majority of DX products are shipped the same day. The delivery period, however, may surpass 15 days if you reside in a nation that is further from the producer. On the majority of its products, DX provides free shipping. PayPal and credit cards are accepted for payments. Salehoo Source Salehoo is a dropshipping and eCommerce AliExpress alternative designed to prioritize the concerns of eCommerce business owners over inventory. With Salehoo, you can access more than a million products from 8,000 suppliers for just $67 a year. Salehoo's inventory is directly sourced from wholesalers so you have an advantage over other eCommerce store owners that source their products through AliExpress and DHgate. Salehoo offers some of the top products for dropshipping. Most Salehoo wholesalers allow you to negotiate delivery times and receive your products whenever you like. The shipping of the goods will, however, take at least 30 days if the wholesalers are headquartered in China. for payments, PayPal and credit cards are accepted. You can choose the goods you wish to offer through your store with Salehoo by clicking a few buttons. For only $67 a year, it also enables you to bargain with customers and purchase and sell goods at the best prices. GeekBuying Source Geekbuying is an AliExpress alternative where electronic and tech gadgets are the major items sold. You can find the rarest tech products here. On this dropshipping platform, you can also find jewellery, watches and apparel.  Products can be shipped anywhere in the world by Geekbuying. For all locations, the standard shipping period is between 5 and 10 days. It also allows you to place bulk orders. You have a variety of payment choices on Geekbuying. You can pay on this website using PayPal, a credit card, a debit card, Boleto, or Konbini. Additionally, instalment payments and wire transfers are both options. Worldwide Brands Source Dropshippers and wholesalers can connect on the Worldwide Brands network. Just after a one-time payment of $224, all of the wholesalers who use WorldWide Brands are accessible to you for a lifetime. According to the portal, users have access to more than 16 million products. Worldwide Brands offers numerous products that you may order and dropship directly to your consumers. Most of these products are obtained directly from manufacturers or wholesalers so you will get them at a low price. Each product's delivery period on WorldWide Brands is determined by the wholesaler. If the wholesaler’s headquarters are in China, the merchandise will be delivered in about a month. You can receive the goods from local wholesalers in less than a week. For payments, PayPal and credit cards are accepted. For experienced dropshippers who want to test out selling new products in the market, WorldWide Brands is the ideal venue. It is not intended for beginner dropshippers who want to establish their own business. Deodap Dropshipping Source DeoDap is an AliExpress dropshipping alternative that is privately held by the Indian trading and distribution business. Their management has extensive knowledge of the importing and distribution industries. The company's primary duty is to procure, market and distribute grocery goods from both domestic and international markets. In 2010, DeoDap was founded as a tiny family business. At the time, the company's primary activity was delivering various goods to small retail stores. They have a strong presence in India and run a very competent sales, marketing, warehouse and distribution operation. As a result, they can work with all the big wholesalers as well as individual retail businesses. They constantly look for products that they believe could have an impact on the Indian market. They have the expertise, knowledge and resources required to guarantee the prosperity of our suppliers. Conclusion: Opting for the Best AliExpress Dropshipping Alternative with a 3PL Fulfillment Partner like WareIQ India is the biggest eCommerce retail market and that is why there are various dropshipping companies that are trying to capitalize. Most sellers tie up with multiple dropshipping companies but it is also important to think about the kinds of products you sell, if their service fees and shipping costs fit within your spending plan and whether their delivery times are reasonable for the locations of your clients. For retailers who need the full range of eCommerce fulfillment services, working with a specialized 3PL provider like WareIQ can be the best AliExpress dropshipping alternative by offering fulfillment services with ultra-fast delivery as opposed to dropshipping. WareIQ is a full-stack eCommerce fulfillment platform that offers all the services required for online merchants, including storage in multiple fulfillment centers, picking, and packaging, shipping, last-mile delivery, etc. As we partner with more than 20 of the biggest shipping Indian aggregators, we will always offer the quickest and most affordable option for each order within the country and provide users with multiple technological benefits such as an advanced WMS and a custom app store. AliExpress Alternative: FAQs Which is better among AliExpress and Alibaba?Alibaba is the better option for sourcing private labels and custom products because you are buying directly from a manufacturer who can make products to your specifications. You can buy pre-made items from AliExpress that are normally not customizable. Is AliDropship the same as AliExpress?AliExpress is designed keeping in mind the end buyer so retailers may purchase individual products. Additionally, they provide dropshipping by sending goods directly to the address of your choice.After selling AliExpress products, you can start a dropshipping business via the AliDropship platform. What are AliExpress alternatives in India?Gearbest, Banggood, DH Gates, Geekbuying and SaleHoo are some of the top alternatives to AliExpress in India. Is order fulfillment and dropshipping the same?No, order fulfillment is when the retailer fulfills customer orders on their own or through a 3PL company where as dropshipping is done directly by the wholesaler or manufacturer.

July 11, 2022

Top 10 Dropshipping Websites for eCommerce Sellers and the Best Methods to Choose a Dropshipping Company in 2024

Top 10 Dropshipping Websites for eCommerce Sellers and the Best Methods to Choose a Dropshipping Company in 2024

Are you interested in dropshipping but struggling with where to begin? You’re not alone. Most first-time eCommerce sellers face a similar problem with identifying the best dropshipping websites, as there are a lot of options. Questions often arise regarding the cheapest and best offerings that have the most facilities. We have put together a list of the top dropshipping sites to help you make a decision. We will discuss each dropshipping website and its services in detail and suggest the kinds of retailers that would benefit from using it. What are Dropshipping Websites? Dropshipping websites or dropshipping selling platforms are third-party dropshipping companies that manufacture, store and ship the goods that an online merchant sells using the dropshipping business model. Instead of buying in bulk from a supplier, an online company using the dropshipping business model would buy a single item upfront, straight from the manufacturer and then wait to pay for it when the product is sold. There are many benefits to dropshipping companies for new business owners if you do not have many employees during the early phases of your company. Giving up order fulfillment to a third-party service frees up time that may be used for marketing, customer service and brand development. [contactus_uth] How Can Automated Dropshipping Help Your Online Store? Dropshipping websites have a lot of benefits for merchants wishing to expand their business because it transfers most of the heavy work to a third-party fulfillment firm. Some of the benefits are: Low Operating Expenses With dropshipping companies, you never have to worry about spending money on overstocking your product because you only pay for the goods that have been sold. This decreases the amount of investment needed to fulfill orders as firms do not have to pay for what they haven’t used. Lower Initial Investment Since you don't have to invest in product manufacturing and storage, initial setup expenses become substantially cheaper. The extra savings allow for greater spending on sponsored advertisements and promotional campaigns to kickstart your business's growth. Less Need for Human Resources A supply chain network needs to be very accurate and there need to be several experienced employees to perform every task.  While automating your supply chain processes through dropshipping suppliers, there are fewer chances of errors and mistakes being made and also results in lower expenses due to the lack of human resources that are needed. Helps in Inventory Decentralization There are fewer reasons to store your inventory in a fixed location and manage each task from there because the stock is maintained and shipped from your dropshipper's location. You can conduct business from your shop, house or a remote cottage away from the city. The only thing required is a good internet connection and a laptop in order to keep track of all your transactions. This is how it helps in decentralized inventory management. Low Capital Risk With New Items Since most dropshipping websites highlight their best-sellers, you are already aware of the commodities that are in high demand. This gives firms a detailed insight into which products will be successful so that they can focus all their efforts on marketing and selling them. Saves Time It takes a lot of time to manage logistics, secure stock and dispatch goods. You can concentrate on promoting your items and creating your brand image as order fulfillment tasks will be handled by the dropshipping websites you have partnered with. This frees up the amount of time you need to spend thinking about order fulfillment and other operational procedures. 10 Best Dropshipping Websites For 2024 Importify Source Importify manages product importing and automation for dropshipping stores using WooCommerce, Shopify, Wix or Jumpseller. Importify stands out as one of the greatest all-purpose solutions for enhancing WordPress-based WooCommerce businesses while many dropshipping websites are exclusively targeted at Shopify stores. You can find the products you wish to sell and import them with just one click to your WooCommerce store. If one supplier runs out of a product or they discover a better offer elsewhere, Importify makes it simple to swap providers. To speed up the process of moving from sourcing to selling, users can also establish pricing guidelines prior to importing. Additionally, you get a Chrome extension for even simpler product imports, a product listing editor and round-the-clock assistance. Everything mentioned is included in Importify's $14.95 per month Basic Plan. You can upgrade to the Premium plan for $27.95 per month if you want to import goods from Amazon and AliExpress. Dropshippers with a lot of traffic should choose Importify's Gold Package, which costs $37.95 a month. This enables automation of the platform's order fulfillment processes. You can choose product variants and automatically fill up client addresses on supplier forms, enabling you to sell and ship items at a big volume quicker than ever. Shopify Source One of the most well-known platforms for creating an online store, Shopify is one of the best dropshipping websites and is pre-integrated with a wide range of suppliers. A large number of the other dropshipping sites on the list advise using Shopify as your operational hub, simply because Shopify is an authentic plug-and-play eCommerce platform. It functions equally well for dropshipping as well as conventional internet stores. You can create a Shopify account to access more than 70 different dropshipping applications and join forces with a range of suppliers, distributors and warehousing companies, then start selling. Like other dropshipping companies, third-party fulfillment companies manage the inventory and logistics. You simply need to spread the word about your items where the built-in marketing capabilities of Shopify are useful and you can advertise on TikTok, Facebook and Pinterest or display your products on online stores like eBay so that you can concentrate on selling where it matters and the Shopify dashboard automatically records where buyers are coming from. If you are new to the industry, Shopify is one of the best dropshipping sites and has a tonne of materials as well as live chat and email help available around the clock. Suggested Read: Shopify Inventory Management Apps DSers by AliExpress Source China-based eCommerce company Alibaba owns the internet marketplace AliExpress which in turn operates Dsers, AliExpress’s dropshipping website. Millions of products are available on AliExpress, which is frequently the first choice for dropshippers. AliExpress enables you to order single units of goods, unlike many wholesale merchants on Alibaba. As a result, you can ship straight to clients without the requirement for dedicated off-site storage for inventory. Benefits include free registration and the ability to search through millions of products at competitive pricing. If there is a language barrier, you can place an order simply through the website without speaking to any suppliers. All alerts and tracking for shipments are handled by DSers. Additionally, there are a number of very dependable automation technologies that automate order fulfillment for well-known eCommerce platforms. A few of its limitations are that China is home to the vast majority of AliExpress's suppliers. While this results in lower rates and frequently available global shipping alternatives, it can take some time for products to reach customers in other nations. Although buyers have to wait weeks for their purchases to arrive, the packet option makes this inexpensive. DSers by AliExpress is reasonably priced, simple to use and offers a wide range of goods. It's where dropshippers frequently go to test out new products as a result. However, it's not necessarily the best option for large or quickly expanding eCommerce firms that needs swift and transparent delivery to minimize customer service concerns due to the lengthy shipping durations for many products. Suggested Read: AliExpress Alternatives Wholesale2B Source Customers who may do product research before incorporating listings on their eCommerce platform can handle the purchasing and shipping procedures with Wholesale2B's end-to-end dropshipping solution. US-based dropshipping website, Wholesale2B, is working to automate dropshipping so that suppliers and other logistics providers can be contacted as little as possible. Wholesale2B offers an easy, automated solution to start dropshipping a variety of goods from suppliers throughout the globe. The free browsing service has several integrations with eCommerce platforms and online marketplaces. Although visiting Wholesale2B is free, you must have a separate monthly subscription for each service you choose to purchase from them. For instance, you need to pay separately for each platform if you wish to dropship items on a number of them. Additionally, they only offer limited customer care options during regular work hours. The automated dropshipping platform offered by Wholesale2B makes it simple and affordable to start selling on the majority of eCommerce sites. However, they have various membership costs for different services, which might mount up rapidly if you are using their other features like site analytics or selling on several platforms. SaleHoo Source SaleHoo, a New Zealand-based company, offers one of the biggest global directories of buyers and suppliers which is also into dropshipping and wholesale. SaleHoo offers a fantastic approach for customers to find various suppliers from around the world for both dropshipping and conventional wholesale thanks to the size of its database. In comparison to the competitors, their $67 yearly subscription is relatively inexpensive. Unlike other dropshipping websites like AliExpress, SaleHoo does not accept retail orders. Here, the process is a little more formal and needs to speak directly with the suppliers. As a result, you will need to establish contacts and open lines of communication with other companies. SaleHoo has a sizable global supplier network and charges competitive prices for its services. However, getting started and testing new products is a little more difficult due to the procedures and direct contact with suppliers. Consequently, for dropshippers who have some experience with a specific sector or product, this might be a preferable choice. Inventory Source Source Users can place orders, track inventory and sync products from different supplier networks using Inventory Source's dropshipping automation platform. Inventory Source, a US-based company, specializes in providing a configurable platform for controlling the dropshipping process from beginning to end. Inventory Source allows you to connect to both their own network of suppliers as well as develop and manage your own vendors. Since you are not constrained by their curated lists, this makes it different from other dropshipping websites that enable you to grow your business over time without switching to a different software provider. Despite having a vast network of suppliers and products, Inventory Source charges extra for each supplier seller chosen. One supplier integration, for instance, is included in the $99/month basic package, whereas two integrations are included in the $125/month plus plan. Inventory Source offers adaptable dropshipping automation software that connects to the vast supplier network and controls the entire process. However, their invoicing structure makes it challenging for users to purchase from several vendors, which can be burdensome if you run multiple brands or a general-purpose business. Worldwide Brands Source Worldwide Brands is a dropshipping website that has a network of authentic wholesalers, importers and dropshippers available. The company is situated in Florida and has been screening suppliers for more than 20 years. It has a simple technique for finding vetted vendors. Additionally, it offers training materials for setting up and managing online businesses. You will still need to establish your own contacts and payment terms with suppliers. Also, they charge a $299 one-time lifetime subscription price which makes it difficult to test out the service to see whether it is suitable. With a validated list of reputable suppliers and staff based in the US, Worldwide Brands can assist you in finding the best supplier for your company. However, the initial investment is substantial and you will still need to build your own professional networks. Megagoods Source Megagoods is a consumer gadgets distributor contrary to other services because the California-based company is one of the few dropshipping websites that actually owns and stores its own merchandise, making it possible for quick distribution within the US. Megagoods is perfect for dropshippers that sell electronics items to customers in the US because the warehouse and fulfillment operations are both domestic, so customers in the US don't have to worry about long international shipping periods. In addition, they're reasonably priced at just $14.99 a month. A few of its limitations are in comparison to the bigger dropshipping suppliers and marketplaces, where Megagoods' product selection is somewhat more constrained because of its emphasis on consumer electronics. They also don't have integrations with eCommerce sites or research tools. Megagoods is excellent for electronic dropshipping from the US. Their product selection is rather more constrained, and as Megagoods is not yet integrated with any eCommerce platforms, you will need to create a fulfillment strategy from scratch. Spocket Source Spocket gives you a quality dropshipping database app that works particularly well for customers shipping within the US and abroad. You can easily upload the products into your Shopify store and sort the results by nation. By making it simple to locate US and EU products that will ship from within the nation rather than from China or other manufacturing countries, they reduce shipping delays and timelines. Additionally, this keeps prices down for both you and your clients. You can browse Spocket's product database using the company's free plan. You can upgrade to one of the paid plans once you are prepared to begin selling. The starter package is $24.99 and includes 25 products and unlimited orders. For $49.99 per month, you can upgrade to pro and get access to 250 products and branded invoicing. For $99.99 per month, you can access unlimited products with the Empire plan. You can also get a free 14-day Spocket trial and start selling internationally. Wholesale Central Source Wholesale Central is based in the US and has more than 25 years of experience connecting global suppliers and buyers. Wholesale Central's platform is incredibly simple to use and explore, and they have suppliers from all around the world. Since Wholesale Central is largely an internet wholesale channel, compared to other dropshipping websites and any interactions, correspondences or transactions must be made with the supplier directly. Finding the ideal dropshipping partner will require a little more research because the majority of their suppliers provide traditional bulk wholesale rather than dropshipping. Wholesale Central maintains a reliable database of global wholesale vendors. It is free for customers and simple to use. Finding suppliers who enable dropshipping can be a little more challenging, therefore any partnerships and procedures must be established directly with them. How to Find the Best Dropshipping Websites and Suppliers? For a dropshipping business to be successful, selecting a reputable supplier is essential. Follow the tips below to make the right decision in 2024: Go Through Reviews Check the supplier's online reviews to know what people are saying about the company's listed products and customer support. You will get insights into the kind of performance and satisfaction that they have provided to previous customers and will also help you to understand how they handle issues or other inconveniences. Check the Policies You need to know how your suppliers manage things like damaged goods, lost packages, refunds, etc. because such policies will ultimately affect you and your customers. Make direct contact with the supplier to inquire if the policies are not posted on their website to better understand if they coincide with your requirements. Sample The Products Yourself If there's something you're considering selling, place your own order to check the product's quality and shipping time. You can create a precise estimate of how the consumer will evaluate the quality of service based on these findings, for better or worse and will give you a better idea if the supplier meets your expectations. Understand the Rates Most of the time, dropshipping websites include unstated charges and expenses. To understand how these will collectively affect your overhead, you'll need a good understanding of the various shipping rates, monthly subscription fees, stocking fees, etc. to check if the supplier fits your financial requirements or not. Inquire About Automation As your company grows, it could become impractical to manually manage inventory levels, place orders and follow shipments. The supplier should ideally integrate with your eCommerce platform to automate these procedures and free up your time to concentrate on expanding your revenue sources. Software for warehouse management systems that manage inventory, labour, order ratio and other important functions should generally be provided by dropshipping suppliers.  Conclusion: How Can WareIQ be a Good Alternative to Dropshipping Sites? When looking at options for dropshipping websites, it is crucial to pay attention while checking the prices, whether its supplier network is vast enough for your operations and whether its platform is capable of syncing with your online store. Although all dropshipping websites and businesses serve the same purpose, their costs, offerings, policies and user-friendliness might be very different. Since each success story of dropshipping sites is different, the perfect dropshipper for one brand may be entirely different for another. It's important to consider the types of products you sell, whether their service fees and shipping costs fit within your budget and whether their shipment durations are fair for the location of your customers. Dropshipping may not be the best option for retailers who require the whole range of eCommerce fulfillment services and partnering with a dedicated 3PL company like WareIQ could be a better option. WareIQ a full stack eCommerce fulfillment platform that provides every service that is needed by eCommerce retailers including storage in multiple fulfillment centers, picking and packing, shipping and last-mile delivery, across India. We have partnered with more than 20 of the largest shipping aggregators in the country and will automatically provide the fastest and most cost-effective solution for each order. We also provide advanced order tracking through our branded tracking pages, that enables users to provide a personalized experience to their customers. Dropshipping Websites: FAQs What refund policies do dropshippers have?The ideal way to manage refunds and returns are to determine whether it would be less expensive to let the consumer keep the product instead of sending a replacement. If not, let your consumer return it to your supplier. Only whether you will cover the return charges must be decided. Is dropshipping allowed on Flipkart/Amazon?You can use dropshipping for your business on Amazon, Flipkart, or any other eCommerce website as long as you follow their dropshipping policies. What percentage of dropshipping websites are successful?It changes with time and the experience a seller has. During the first year of operations, the highest success rate is around 10%. After 3-4 years, it goes up to 60 to 70%. Is dropshipping different from order fulfillment?Yes. Dropshipping is when customer orders are fulfilled directly by the supplier or wholesaler and order fulfillment is the process of fulfilling an order, either directly or through a 3PL fulfillment company.

July 08, 2022

B2B Fulfillment: A Detailed Guide Including Definition, Processes, Differences with B2C Fulfillment and Use Cases of B2B Order Fulfillment in 2022

B2B Fulfillment: A Detailed Guide Including Definition, Processes, Differences with B2C Fulfillment and Use Cases of B2B Order Fulfillment in 2022

Understanding the differences between B2B and B2C fulfillment and the roles they play in the supply chain may be difficult at first if you're new to the industry. Both of them deal with inbound and outbound logistics processes. B2C fulfillment focuses on smaller orders, whereas B2B fulfillment is primarily concerned with less frequent orders but larger product quantities. B2B fulfillment is also subject to stricter rules and depending on a number of variables, the costs involved can be much higher. Compliance regulations for B2B businesses may include tax laws, product limitations, SKU codes, shipping labels, barcodes or a particular invoicing system. Shipments might be anticipated to cost more and take longer to arrive because orders are larger and bulkier. Let us look at the ins and outs of B2B order fulfillment and how it should be done to get better results. What is B2B Fulfillment? B2B eCommerce fulfillment is the process by which products are transported direct fulfillment to a business or another retailer. Orders are often placed in bulk so that the receiving company can have adequate inventory to sell. Businesses usually order in advance and in large quantities to save time and money by avoiding the need to constantly place purchase orders. If you decide to use a 3PL to fulfill your B2B orders, they should prioritize reliable and quick delivery. eCommerce sellers need these hybrid fulfillment providers to be optimized to enable cost reduction and greater efficiency because of the nature of B2B order fulfillment. They are essential to be able to fulfill orders on time. A 3PL's delays and poor management might result in penalties, refund losses that they would be required to provide and damage to the reputation of the company they represent. [contactus_lilgoodness] Working Processes of B2B Fulfillment The B2B eCommerce marketplace or B2B sector is solely concerned with transporting goods to other companies and shipping in bulk to avoid purchases on a frequent basis. It includes providing goods to other businesses for resale, including to numerous big-box retailers. The B2B fulfillment process is handled by fulfillment centers, which critically emphasize speedy shipment. In B2B fulfillment companies, quick shipping is always vital but there are times when efficiency must be prioritized over providing excellent customer care. A factor for focusing on fulfillment speed is the complicated routing processes that warehouses must follow. B2B fulfillment regulations are very complicated and can result in severe losses, if not followed. It can be very stressful to deal with chargebacks to fulfillment facilities for improperly following the correct procedures. Electronic Data Interchange, also known as EDI, is required by many big-box retailers for B2B fulfillment centers, in addition to compliance with barcodes, shipping labels, and invoices. As a result, B2B fulfillment is far more difficult to complete than B2C fulfillment. B2B vs B2C Fulfillment: Key Differences [table id=37 /] Use Cases of B2B Fulfillment for eCommerce Businesses Due to the benefits that many firms are realizing from online product ordering, the B2B eCommerce fulfillment market is expanding. Now is the best time to provide B2B products if you want to grow your e-commerce company, get a competitive edge, and enhance B2B fulfillment services. Businesses With Small Products Maybe you get shipments of a few wholesale orders to your different small stores each month. If so, you might not require a B2B fulfillment-focused warehouse. Like big-box merchants, small shops do not need to have tight inbound freight needs. If your products are small, you can ship wholesale orders by a common carrier. This B2B fulfillment can likely be handled by your B2C fulfillment center. Businesses With FTL Orders B2B fulfillment services are required if you ship LTL or FTL (full truckload) orders. You will need to create a B2B fulfillment protocol if you have an account with a major retailer. It is crucial to complete the paperwork correctly, and doing so can be expensive. Put your B2B fulfillment plan in place even if you don't yet have the necessary accounts, in case your business plan includes selling to major chain retailers. You'll be prepared to act when you get a big wholesale account. Online Wholesalers The market for wholesale eCommerce is expanding. To more easily access the wholesale market, several internet retailers are launching online wholesale stores. Although wholesale margins are smaller, you can compensate for it by placing bigger orders. A small number of lucrative wholesale accounts can significantly increase your profit margin. In general, customer service is less necessary in B2B sales. Additionally, a happy B2B customer will frequently place additional orders, saving you the occasionally high customer acquisition fees for retail consumers. Are you interested in expanding into the lucrative B2B market? You can grow your firm to new heights with the assistance of outsourced logistics providers. Setting yourself up for B2B fulfillment will pay off in the long run for your company. Conclusion: Role of WareIQ in Helping eCommerce Retailers With B2B Order Fulfillment Do you require specialized B2B fulfillment for your eCommerce business? If you have a variety of customers, including other businesses, then yes. It would be helpful to partner with a third-party logistics firm, whether you distribute primarily to customers or other retailers. While managing your inventory and selling processes, WareIQ also helps you to secure the right amount of inventory from the best manufacturers, wholesalers and other merchants. When it comes to B2B order fulfillment services, accuracy is the most important factor and with WareIQ, accuracy is guaranteed with our extensive use of advanced technology such as our custom WMS. WareIQ can help you forecast demand, determine how much inventory you need to store at a time and can automate your reorder process, in addition to managing your inventory. B2b Fulfillment: FAQs What is the meaning of B2B in logistics?Instead of items being supplied directly to the end-user or consumer, a business-to-business service involves one or more commercial transactions between two businesses. The majority of companies rely on B2B service providers to deliver a positive customer experience. What is B2B warehousing?B2B order fulfillment entails shipping large numbers of orders to companies. A typical form of B2B fulfillment involves wholesale orders that are shipped to merchants for resale to consumers. What is B2C fulfillment?Orders that are sent directly to an end-user rather than a company or other entities are referred to as B2C fulfillment. How do B2B companies earn profit?Businesses frequently purchase products in bulk from manufacturers or wholesalers at a lower cost with the intention of reselling them at retail prices.  Which four forms of B2B exist?The B2B marketplace is generally divided into 4 categories: 1. Producers2. Resellers/retailers3. Governments4. Institutions

July 06, 2022

What is Sell Through Rate in eCommerce and How Can it Impact Your Business in 2024?

What is Sell Through Rate in eCommerce and How Can it Impact Your Business in 2024?

Most eCommerce sellers attempt to manage their inventory in the best way possible but while many of them spend a lot of time on inventory costing techniques, they neglect to consider how effectively the inventory is flowing through their supply chain. A high sell through rate indicates that you are placing the proper amount of orders in relation to demand for those goods. However, a low sell through indicates that you have ordered too much of a product. In many cases, your demand forecasting, purchasing or pricing strategies are fundamentally flawed. Let us get a detailed understanding of what sell through rate is in eCommerce and how it can impact your business. What is Sell Through Rate (STR)? Sell through rate or STR is the ratio of inventory received from your manufacturers during a given time period to inventory sold during the same time period. Your STR is a performance metric that compares monthly sales to a predetermined goal. You can track sales, modify your objectives and maintain supply-chain efficiency by measuring the sell through rate of your company. STR varies depending on the industry and organization but ideally, a rate of at least 80% is preferable. [contactus_gynoveda] How to Calculate Sell Through Rate? Sell Through Rate Formula To calculate your sell through rate, you need to total your sales during a specific time period and the total amount of stock available for sale for that same period.  You can calculate STR using the sell through rate formula which is as follows: Sell Through Rate (Percentage) = (Total Sales / Stock on Hand) x 100 You can calculate your sell through rate weekly, monthly, quarterly, half-yearly or annually, depending on your sales goals and target time to achieve it. Real-World Example  Suppose you sell electronic items. If you order 250 Bulbs for July, you would want to calculate your sell through rate at the end of the month to understand what your sales figures are. If you sell 200 bulbs out of 250 then your STR is: =(200/250) X 100 =80% Hence, your sell through rate for July is 80%. Why is Sell Through Rate Important? The sell through rate is important for several reasons: Helps Discern Your Best Performing Products Your sell through rate is more than just a general indicator of total sales. STR is frequently determined by the supplier, product line, store location and other factors involved in eCommerce retail. As a result, your STR is a useful tool to assist in your understanding of the most popular products. Utilizing this data will enable inventory optimization and a more accurate assessment of consumer demand. It will also help you to focus on refining and promoting those products to generate more revenue. Assists in Calculating Your Inventory Holding Cost A low sell through rate highlights inaccurate forecasting of your goods and possibly under-utilisation of storage space. To learn more about how you can reduce your storage costs, you can calculate STR. Stock that will soon expire or that will become obsolete due to changing seasonal demand can make overstocking even more expensive. The unsold inventory occupies space that could be used to store goods that are highly in demand. You can decide on the amount of storage space you need by taking into account storage expenses versus anticipated transportation costs or losses from stockouts, both of which have increased significantly during Covid-19. Helps in Segmenting Your Supply Chain Unexpected delays frequently occur in different stages of the supply chain, especially during COVID-19. Manufacturers, vendors, retailers and customers are all attempting to compensate for supply cycle bottlenecks. Many businesses make up the difference by placing excessive orders or overstocking before they know whether products will truly be profitable. Your STR gives you clarity on sales trends so you can collaborate with your suppliers to order the appropriate goods in advance and stock up on high-selling items. Assists in Determining Your Targets Every retailer has sales objectives and they will differ for each depending on multiple factors. Setting goals enables you to monitor performance, hold sales representatives responsible and inspire your team and other colleagues. Sell through rate measures your targets and enhances sales via suppliers, product lines, store locations, sales channels and other factors. STR can be used to analyze sales from any angle and gain a better understanding of how various aspects of your retail operation are doing so that you can accurately frame your targets and meet your objectives. Helps With Managing Capital An important tool for comparing your revenue to the cost of goods is your sell through rate. A decreasing STR over time indicates that you are spending more money than you are bringing in. On the other hand, as you alter your inventory orders and storage expenses, a growing STR indicates that your profit margin is increasing and will keep doing so for the foreseeable future. 5 Ways to Improve Your Sell Through Rate in 2024 If you have determined that your sell through rate is poor after calculating it, here are some strategies for increasing STR and expanding your clientele: Maintain Accurate Inventory levels The practice of buying goods in bulk and then putting them aside until they are needed is no longer viable for retailers. A product has a minimal possibility of making a profit when it is sold after being on the floor for ten weeks or more. If your sell through rate is steadily declining, you might want to think about lowering your inventory levels. Slow-selling products could be eliminated or reduced in quantity and you could stock up on high-demand products that will increase your revenue and profit margins. Make Sparing Use of Discounts The quantity of stock you initially ordered may be the reason your sweaters aren't moving as quickly as you'd like, even though you're not selling them at full price. Post the end of a particular season, most items are not sold as frequently and now you have to wait for a whole year to sell them, which will most likely cause them to become obsolete. Suppose a product is out of stock, business is slow or you only have a few of the less sought-after sizes left, discounting current products makes sense to make space for new inventory. Although it could seem like an appealing strategy to increase sales, keep in mind that you'll also be lowering your profit margins. You should use discounts and promotions rarely and if you do run them, keep the break-even threshold in your mind. Forecast Demand How much merchandise you sell in a specific time frame depends on the season. For instance, the sell-through rate of school shoes in December is likely lower than it is in May. Similarly, woolen items' sell through rate in May is much lower than it is in December. Your STR may showcase a few product lines that are out of season even though it doesn't take seasonality into account. Demand forecasting can be used to fix this. Use Social Media More customers translate into more sales and an increased sell through rate. Make a list of prospective marketing tactics to raise the profile of your retail establishment. Consider working with major retailers on campaigns that promote your brand and merchandise to attract new clients, potentially through branded or merchandise-specific retargeting, advertising or Instagram posts and stories. Use social media tools to increase awareness, such as the "swipe up" feature on Instagram (alternatively you can sell on Instagram also) stories or Facebook's shopping ads. This makes it possible for customers to access your product page directly, increasing the likelihood that they will convert. Working together with an influencer or group of influencers who are relevant to your audience will work more. Make Use of Bundling Combining two or more products to be offered for sale at a discount is known as bundling. Product bundling is frequently used by retailers to increase cross or up-selling and lessen the "pain of paying." It's also a wonderful way to sell surplus inventory and slow-moving items, particularly if your products are close to expiry or become out fashioned rapidly. Sell Through Rate vs Inventory Turnover Rate [table id=34 /] Many shops have attempted to make the connection between the two figures or, more specifically, to determine whether inventory turnover and sell-through are correlated, but it is pointless. Manufacturers frequently devise special advertising campaigns or promotions to boost the sell through rate of their goods at the retail level. They will help a retailer move items out of their store using specialized funding known as cooperative funding (co-op). They can be used as advertising funds or, in some cases, as actual cash to mark down your inventory. Conclusion A high sell through rate indicates that you are placing the proper amount of orders according to demand and a low sell through indicates that you have ordered too much compared to demand. One of the best ways to optimise your sell through rate and get a better understanding of how to maintain inventory levels in relation to demand is to partner with a 3PL company like WareIQ. WareIQ employs the use of a custom WMS that gives you access to historical data and all the metrics you need to measure your sell-through rate. We can also help with demand forecasting and suggest the optimum amount of inventory you need and which fulfillment center location it would be best suited for. We also help in determining your EOQ and MOQ to always have the appropriate amount of inventory on hand. In addition, we handle multiple other processes involved in order fulfillment such as storage, inventory management, delivery and returns, and also provide access to our advanced technology and applications through our custom app store. Sell Through Rate: FAQs What is a sell-through agreement?For large shops, a sell through agreement is a set of guaranteed sell-through functions like an insurance policy. For example, a designer is compelled to sell a specific percentage of their products at full price when they have a sell-through agreement. What is sell-in vs sell-through?Sell-through refers to sales that actually reach the customer. Sell-in refers to product transactions that are kept on shelves that customers may or may not choose to purchase. How do you calculate the sell-through rate?STR is calculated by dividing the quantity of units sold by the quantity of units received and then multiplying the result by 100. Every 30 days, most shops calculate their sell-through rate. What is a good sell-through rate?Industry and organization specifics vary, but as a general rule, a sell-through percentage of at least 80% is preferable.

July 04, 2022

What is Shopping Cart Abandonment? Top 10 Strategies for Reducing Cart Abandonment Rates in 2024

What is Shopping Cart Abandonment? Top 10 Strategies for Reducing Cart Abandonment Rates in 2024

The most disappointing thing that a seller can experience is when a buyer shows genuine interest but doesn’t end up purchasing anything. It reflects a loss of all the resources and time that is dedicated by the business. Shopping cart and checkout abandonment are all too prevalent among online buyers in the modern eCommerce space. Data shows that the current average shopping cart abandonment rate is more than 70% in India, which is severely eroding retail revenues. As a result, many retailers have made reducing shopping cart abandonment a top priority and are investing increasing amounts of money in doing so. Fortunately, there are a number of approaches and personalization techniques that aid in abandoned cart recovery and boost returns. Let us look at it in detail. What is Shopping Cart Abandonment? Shopping cart abandonment happens when a potential consumer begins the online check-out procedure for an order but leaves before making a purchase. A commodity that is added to the shopping cart but never purchased is regarded as having been "abandoned" by the customer. In simple terms, it is the same as a customer going to a store to buy products, choosing which ones they want and are about to have them scanned, but suddenly decided against it. In a real-world scenario, a shop attendant can inquire if there are any issues and recommend them better and cheaper products. [contactus_uth] How to Calculate Shopping Cart Abandonment? To calculate cart abandonment rate, you need to divide the total number of completed transactions by the total number of created carts. Subtract from one and then multiply by 100.  The formula is as follows: The total number of transactions initiated. This will show you your rate of shopping cart abandonment over a given time frame. For instance, you can take into account all of the transactions from the previous month or quarter and split them by the number of completed transactions or the goods that customers added to their carts but did not end up purchasing. For example, if you have a total of 500 carts created and 120 completed purchases, the cart abandonment rate is 76%. The 3 Stages of Shopping Cart Abandonment Pre-Abandonment It might be challenging to determine visitor intent during the pre-check-out stage because they might simply be browsing your website without making a purchase decision. In some cases, factors contributing to their final abandonment may be related to the user experience. No one will purchase from your website if it appears to be shady or fraudulent. A reliable website can influence users' behaviour significantly by lowering hesitations and fears. The usability of a website that is simple, transparent and convenient can frequently convert a potential buyer into a loyal customer. Both internal and external aspects of the eCommerce experience, including security seals, shipping procedures, customer testimonials and more, may have an impact on the trustworthiness of your business, as determined by customers. Buyers need to feel secure when making purchases from a website. Broken links, poor image quality, inaccessible sites and site timeouts can make visitors lose faith in your company and their ability to make wise purchases. Three efficient strategies to encourage trust in your business and develop confidence in your site include displaying well-known verification seals and logos, making customer product reviews easily accessible and providing complete disclosure on security standards. According to a study, unanticipated expenses, like expensive delivery fees or additional prices, are the main reasons for cart abandonment. Preventing customer frustrations and significantly lowering pre-abandonment dropouts can be accomplished by streamlining the checkout process and offering upfront prices, clear payment options and transparent delivery charges. Display of Abandonment Intent The warning for impending cart abandonment is set off by a number of the buyer's telling behaviours and intent signals. There are efficient personalization and abandoned cart recovery options that let you recuperate in real-time and convert those potential abandonments into sales. Customers could feel confused when websites have an excessive amount of content. When buyers lose interest and indicate that they are ready to go, eCommerce companies can deliver personalized and incredibly compelling messages to them. Powerful ways to keep visitors engaged before they go back to their referral source include triggering an incentive-laden overlay with limited-time offers, free shipping, money-back guarantees or an inducement to subscribe to a newsletter upon display of this behaviour. For instance, assume that your user has chosen to quit your website rather than completing the checkout after being confronted with unexpected shipping expenses. By automatically launching an exit-intent overlay or message with a tailored incentive for finishing the order when you notice your visitor's exit intent, you can successfully re-engage with them. Employing flashing tab notifications that change the title of the abandoned browser's tab to attract the user's attention and persuade them to purchase if they already have items in their cart is another strategy that is simple but effective in reducing shopping cart abandonment. Post-Abandonment To get your customers to return, resulting in abandoned cart recovery, there are a variety of retargeting tactics and technologies you may use. For instance, businesses can use targeted display advertising to retarget cart abandoners, reminding them that they still have products in their carts and providing them with special offers when they come back to finish their purchases. When a user visits a website, browsing cookies are used to retarget them with highly relevant advertisements for things they have already shown interest in. eCommerce businesses can create customized abandonment email campaigns to remind customers to finish their shopping or to provide discounts when out-of-stock items have been restocked. While requesting input from customers might assist in identifying the issues that contributed to shopping cart abandonment, providing personalized marketing messages is an incredibly successful method to encourage returns. Sending out surveys to your visitors and clients regularly will help you remain on top of their expectations and will provide you with information on the most pertinent and efficient marketing methods to use to decrease future abandonments. Abandoned cart recovery strategies can be quite successful in re-engaging customers at all stages of the cart abandonment process. Customers' demands are rising, and eCommerce merchants in charge of omnichannel shopping should adopt creative new approaches to address their needs on a personal level, throughout the customer journey. Top 10 Causes of Shopping Cart Abandonment in 2024 Unintuitive Checkout Process The buyers should reach the finish line as soon and as easily as possible. A lengthy checkout process with numerous steps and forms might cause friction and slow down your customers. As a result, the buyer not only detracts from the present checkout experience but may never make another purchase on your website. Unforeseen Shipping Expenses Unanticipated delivery expenses typically hit a customer after they've entered their shipping information and discover that it is more costly than they anticipated. Once they notice those fees, customers might reconsider their purchase and, if their expectations aren't satisfied, they might even abandon their cart. Forced Account Setup  Prior to making a purchase, users should not be required to register an account. This is especially true for new customers who might not be prepared to open an account. The checkout experience is complicated and order completion is slowed down when customers need to generate a username and password in order to finish a transaction. Payment Safety Concerns Understandably, most buyers are extremely wary of making purchases online. They won't complete their purchase if they don't feel secure about giving their personal information or if they worry that their payment information won't be handled securely. Shopping Cart Restrictions Customers don't want to add things to their cart only to discover later that they are unable to purchase them due to limitations on the amount that one person can buy. Being forthright about quantity restrictions helps reduce consumer resentment by establishing expectations that a product may have restricted availability. Better Deals Elsewhere Customers now have access to a wide range of options when purchasing online and can compare those options quickly, thanks to the wonders of the internet and the growth of mobile commerce. Deal-seeking customers frequently place items in their carts with the intention of buying them later from a different store that is offering a better deal. Lack of Variety in Payment Options Online buyers prefer to finish their transactions with the payment options that are most practical for them. Some customers may be content with the default selection but others may decide to quit your site entirely if you don't accept their chosen payment method, whether it's card payment, UPI payment or the purchase now, pay later option. Rigid Returns Policy  After adding items to their cart, customers frequently receive information about warranties and return policies. A vague or insufficient return policy may make customers think twice about their purchase. Customers want to know that they can simply return a product to a shop and get a refund if anything goes wrong with it. Long Delivery Timelines  Customers expect to receive their order as soon as possible. The advantage of shopping online over visiting a store is lessened if consumers must wait too long. Instead of waiting for your store to ship, a consumer who needs their purchase by a certain date might decide to search elsewhere. Glitches in Website Performance  A glitchy or unsteady eCommerce site may make customers lose faith in your checkout process or simply become irritated and leave. In the event of an unexpected crash or lengthy page load, customers are less likely to provide their payment information for fear of being charged twice for the purchase or having their payment fail. 10 Best Strategies to Reduce Shopping Cart Abandonment in eCommerce Provide Ultra-Fast Delivery The online shopping space is expanding and enhancing the delivery process to fulfill orders as soon as possible has become very important. Same-day and next-day delivery has become the new standard USP provided by sellers. In many cases, some sellers, with the help of a third-party fulfillment company, can deliver an item within a few hours. This has a positive impact on customers' buying experience and reduces shopping cart abandonment rates. Offer a Mobile-Friendly Experience A streamlined, appealing mobile interface of a website is essential to boosting online sales because younger consumers are increasingly using their mobile phones for shopping. When combined with typical distractions such as calls, messages, social media, etc. an unorganized and unfriendly user experience will increase the rate of cart abandonment. Mobile-friendly websites are fantastic due to their responsiveness and optimization. However, developing a mobile app for both Android and iOS would be the greatest method to appeal to millennials, as no website can match a native app in terms of usability and navigation. Some of the top merchants in the world like Amazon, Flipkart, Mesho and others, have repeatedly demonstrated this. Have a Simple Check-Out Process Customers tend to favour eCommerce websites with simpler checkout processes because there are now more options available to them than ever before. They will immediately leave to locate a website with a simpler interface if they see a lot of pop-up windows or they need to confirm an action more than once. If customers find a website with a good user interface, that brand will easily win them over. Customers dislike filling out registration forms, verifying their phone numbers and email addresses, and entering their billing and payment information. Allowing customers to register using their social network accounts would be a more appealing method to accomplish this. Simple measures like these can greatly increase abandoned cart recovery. The shopping cart must have a clean appearance and show the products clearly. The price breakdown in terms of cost, shipping and taxes, as well as information on the return/exchange policy and delivery, must all be prominently shown on the page. By enabling one-click ordering, other eCommerce companies can learn from Amazon. Another example is Mesho, which has recently introduced a new feature that enables prospective buyers to click on a picture of an outfit they like and make a straight purchase through the app rather than going to the retailer's website. Reduce Any Uncertainties The discrepancy between the actual goods and their online description or product image is among the most common complaints about internet purchasing. Realistic product imagery, snappy, in-depth product descriptions and product films that portray the item more accurately and highlight its features can all help to lessen this. When describing something, it is important to be as truthful and accurate as possible. In a time when consumers seek credibility above all else, images that have been heavily modified are considered unacceptable. Conversion rates can be greatly increased by using images of the use case of the product. Provide Transparent Pricing Most websites display a starting price in their ads or even on the product description page, then raise it when you add items to your cart. This makes customers wary of unexpected price increases. Making sure that all costs, including shipping costs and taxes, are expressly listed on the product description page, is the simplest technique to reduce shopping cart abandonment. This prevents customers from leaving the checkout page after noticing an increase in the overall price. One thing that websites can do is include tax in the cost of the goods and, if applicable, state the threshold for free shipping and delivery on the home page or product page. Undercut Your Competitors  When a buyer lands on your website and starts shopping, they might abandon their cart because of price comparison with your competitors. You lose the deal and the customer for further sales, so you need to check competitor costs and price your product in a similar vicinity or even below it. Additionally, a website can reassure users of this by providing details regarding discounts, customer feedback and reviews for each product page which may add value to the product if the pricing is high in comparison to competitors. Implement a Fair Returns Policy eCommerce's ability to offer a doorstep return/exchange facility is one of its biggest advantages. To reassure customers, an effective policy backing this needs to be prominently shown on the checkout page. Free returns enable customers to make purchases without hesitation or concern. Offer Customization Options Many times, buyers choose a seller because of the colour and size of the product, fast delivery, favourable payment options, etc. They seek the easiest possible transactions and the best customer experience. So you should offer customization options to increase the rate of cart abandonment recovery and finally earn their money. Have Multiple Payment Methods Retailers must provide numerous payment gateways, including region-specific payment alternatives, as well as the choice to remember customers’ payment information and preferences. Additionally, new payment providers could provide promotional offers and cashback plans to entice customers to finish their transactions. Send Emails to Customers Who Showed Interest Staying in touch with customers who have shown interest in your brand and your products can increase their chances of returning to your company and making a purchase. It pays to have a form where users can record their contact details before check-out so if you notice that a customer has abandoned their cart, a personalised email can be sent inquiring about the reason for their sudden abandonment and can suggest similar products or offer a solution. Provide Assurances on Listings Assurances such as a money-back guarantee in case a product is returned or shipping badges that specify the exact delivery speed will reassure customers that they are dealing with a professional company. This will reduce the chances of them suddenly abandoning their cart because they are apprehensive about the company. Additionally, it will give them more clarity on when they can expect to receive the order and anything else that you wish to convey. Conclusion: How Can WareIQ Help to Reduce Shopping Cart Abandonment? To reduce shopping cart abandonment, you should primarily start by measuring and analyzing shopping cart abandonment KPIs in order to figure out where you are going wrong and increase sales and the rate of repeat customers with the help of various technology and experts. Differentiating between cart abandonment and checkout abandonment has proven to be successful for many retailers. WareIQ, one of the country's most trusted third-party fulfillment companies, provides a whole range of eCommerce fulfillment services from storage to delivery and everything in between. We assist retailers with reducing their shopping cart abandonment rates by providing super fast delivery services like same-day and next-day delivery through our WareIQ Rush product. This assures customers that they will not have to wait for multiple days to receive their products and can encourage them to make the purchase after they have added products to the shopping cart. Additionally, you can display custom shipping badges on your product pages to convey faster delivery timelines, which provides assurance to them they will receive their products within 1-2 days of placing the online order. Shopping Cart Abandonment: FAQs What percentage of online buyers abandon their cart?In India, more than 70% of shoppers abandonment their cart. Why do online buyers abandon their cart?Buyers remove items from their shopping cart due to multiple reasons such as excessive checkout rates, increased shipping costs, lack of discounts, slow website performance and much more. How do you calculate shopping cart abandonment?To calculate cart abandonment, divide the total number of transactions by the total number of carts created. Subtract it from one and then multiply by 100. What is the shopping cart abandonment rate in online shopping?The shopping cart abandonment rate is a crucial metric for online shopping to keep track of buyers removing items from their shopping cart and don’t end up purchasing anything.

July 01, 2022

Reorder Quantity Formula: Complete Guide Including Definition, Importance, and 3 Easy Steps to Calculate Reorder Quantity in 2024

Reorder Quantity Formula: Complete Guide Including Definition, Importance, and 3 Easy Steps to Calculate Reorder Quantity in 2024

The inventory of an eCommerce business is its most important asset and one of the most complex and crucial facets of operating an online store is inventory management. Additionally, it gets harder to keep track of stock levels with the more SKUs you have. Without effective inventory control, you can face situations such as overstocking products, which might expire or become outdated before you sell them and running out of stock, and losing clients and sales opportunities. It takes the right balance to have the proper quantities of a product. The reorder quantity formula is used by eCommerce companies to calculate this. Generally, they use the economic order quantity (EOQ) formula to reduce the cost of transportation, warehousing space, stockouts, and overstocks so that they can determine the ideal order amount. One of the best techniques to calculate the number of goods you need to purchase to maintain the proper stock levels is using the reorder quantity formula. Let us go into detail to understand what it entails. What is Reorder Quantity? Reorder quantity is the total amount of units of a product that you seek from a manufacturer or supplier for an inventory replenishment purchase order. The precise number shouldn't be too high so that you have too much capital invested in inventory and subsequent increased storage costs but it also shouldn't be too low so that there isn't enough safety stock and you have the danger of running out of inventory before you can order the next batch. The ordered amount or number of units must be optimal while taking into account a variety of elements, including the cost of the order, the cost of transportation, the cost of transporting the order, etc. The reorder quantity strikes the best balance between a number of variables, including quantity discounts, freight, storage expenses, and the need for working capital. [contactus_gynoveda] 3 Easy Steps to Calculate Reorder Quantity Using the Reorder Quantity Formula Determine Average Daily Usage Average daily use refers to the number of your product's units that are sold each day. Usually, thirty days is a common timeframe but it changes during different seasons or festivals. For instance, if you need to place an order for a product before a festival, your ADU should be determined using that festival’s ADU from the previous year. Calculate Average Lead Time Average lead time refers to the time span between when a supplier receives a purchase order and when they deliver it to the seller's warehouse or fulfillment center. The average lead time is calculated in days. If you reordered inventory on 1st January, your average lead time is 30 days if it is available to be used to fulfill customer orders by 30th January. Calculate the Reorder Quantity You can determine how much inventory you need to reorder by multiplying average daily use (ADU) and average lead time (ALT). Let's have a look at how to determine the reorder amount for a specific product: -ADU is 25 -ALT is 30 days Your reorder quantity using the reorder quantity formula will be: =ADU X ALT =25 X 30 =750 Recalculating your reorder quantity frequently is advised, especially as your order volume rises and if you sell seasonal items. When the reorder level is determined properly, replenishment stock should arrive immediately before the number of units of the existing stock drops to zero. Why is the Reorder Quantity Formula Important for 2023? Helps to Avoid Stockouts Lost sales result from low inventory. Backorders and split shipments are always an option, but they don't provide a seamless consumer experience. Reorder quantity allows you to order just enough to fulfill orders until your next purchase, while reorder level allows you to secure a recovery in time before your inventory runs out and helps handle stockout. Assists in Minimizing Expenses Additionally, you should avoid overstocking your inventory which will ultimately block your capital. You will need to expand your warehousing storage capacity or opt for storing items in multiple warehouses if your stock levels are too high. By estimating reorder quantity, you will be able to maintain just the right amount of inventory which will result in lower storage costs, less wastage, and fewer operational costs. Helps in Managing Inventory You can set up notifications in your inventory management system, allow live inventory tracking, and manage changes in demand over time when you know precisely how much to reorder and when you need to replenish by using the reorder quantity formula to calculate the reorder quantity you need. Example of Calculating Reorder Quantity You don't require reorder quantity calculator always, just using the 3-steps mentioned before we can calculate reorder quantity in a minute. To calculate your reorder level, multiply your average usage rate by the lead time for an inventory item. Be diligent while entering the time values you are using. If you are calculating average daily usage then put the lead time value in days. Suppose, Rajesh experiences an average daily sale of his items as 2500 units and the lead time for producing new units is 7 days, the re-order level will be: 2500 units x 7 days = 1,75,000 units.  When the inventory level of items is left at 1,75,000 units in stock, Rajesh needs to reorder and stock more units. By the lead time the additional units arrive in 7 days, the on-hand inventory balance may have reduced to zero. Reorder Quantity VS Reorder Level: 4 Key Differences Differences Between Reorder Quantity and Reorder Level are listed down here; Comparison Chart [table id=32 /] We Hope, this table of reorder quantity vs reorder level made the concept clear. Conclusion: How Does WareIQ Help eCommerce Firms to determine their Reorder Quantity Accurately? For an eCommerce business to be managed successfully, knowing how much inventory to repurchase is the most important question to answer. With the help of the reorder quantity formula, you know that your incoming and outbound logistical workflows are being improved by ordering the proper quantity of goods. With the help of WareIQ, eCommerce businesses can manage inventory, forecast demand, pack orders, lower shipping costs, and fulfill customer expectations. We will optimize your data in real-time, automate your reordering quantity and move your inventory to relevant warehouses that are nearest to high-demand locations and transportation hubs if you choose us to store goods in our fulfillment centers. WareIQ helps brands improve their shipping strategy with a nationwide network of fulfillment facilities and technology that is integrated with the leading eCommerce platforms. Reorder Quantity Formula: FAQs (Frequently Asked Questions) How do you calculate optimal reorder quantity?The formula to calculate your optimal reorder quantity is:[{2 X (Annual Usage in Units X Setup Cost) / Annual Carrying Cost per Unit}^(1/2)] How do you calculate inventory to be reordered?The formula to calculate the reorder level of stock is:Reorder Level = Minimum Stock + Average Consumption During Normal Delivery Time What is the reorder level in inventory?The inventory level at which a company should place a buying order to top off its stock is determined by the reorder level formula. When the reorder level is determined properly, replenishment stock should arrive immediately when the amount of existing stock drops to zero. What is the reorder quantity?Reorder quantity, also known as the reorder point, is the quantity of an order to be placed for purchasing a specific item that needs to be restocked. It is based on the supplier's average replenishment period, the item's maximum usage during the replenishment interval and the need for safety stock.

June 27, 2022