eCommerce Fulfillment

What is a Fulfillment Center? Top 10 Benefits of Using Fulfillment Warehouse for eCommerce Businesses in 2023

One of the most prominent challenges facing businesses looking to expand into the eCommerce space is identifying where to store inventory and how to implement a strategy to ensure that incoming orders are located, packed and shipped as soon as possible. While many big MNCs have tons of staff to help on this front, small businesses, oftentimes, do not have that same luxury. This is where a fulfillment center would make life tremendously easier for these companies. What is a Fulfillment Center? A fulfillment center forms a critical part of the supply-chain network and executes the entire process of order fulfillment, from receiving an order, locating it in the warehouse and processing it right through to its packing, loading, dispatch and transportation. It acts as a logistical hub, transporting goods from the seller to the customer. Fulfillment centers are used by both 1st party fulfillment services such as Amazon FBA and 3rd party fulfillment services, such as WareIQ. A Fulfillment center works efficiently to deliver orders received by online customers within the stipulated time. In doing so, it manages the fulfillment process on behalf of eCommerce firms which is critical for their success. A fulfillment center is a warehouse or distribution center that is used to store, pick, pack, and ship orders for e-commerce businesses. These centers are essential for the efficient and timely delivery of products to customers, and play a crucial role in the success of e-commerce companies. There are several types of fulfillment centers, each with their own unique features and capabilities. Some centers focus on small, lightweight items that can be easily shipped, while others specialize in handling large or fragile items. Some centers are fully automated, with robots handling the picking and packing of orders, while others rely on human labor. [contactus_lilgoodness] How Does a Fulfillment Center Operate? As mentioned above, a fulfillment center acts as a hub for all logistical activities needed to transport a seller’s goods to their customer – this is referred to as the order fulfillment process. Since numerous factors are involved in fulfilling orders and warehouse management, the minutia is often swept under the carpet and ultimately causes severe problems such as supply-chain bottlenecks.With 3PLs, the inventory is stored in its fulfillment center. Upon receiving an order from a customer, the products are selected, packed and shipped. B2C orders are delivered directly to the customer’s address, while B2B orders (large volumes, mostly) are shipped to large-sized retailers.When a seller outsources its requirements to a 3PL fulfillment company, it can focus on other critical business functions. In contrast, a 3PL handles its inventory and ecommerce logistics, including order-receiving, packing, loading, shipping, negotiating transport rates, reducing fulfillment costs, managing order returns, warehouse management and handling scale efficiently. Top 10 Benefits of Using a Fulfillment Center for eCommerce Businesses Listed below are 10 significant reasons why eCommerce businesses should use a fulfillment center: Ability to Focus on Core Business Although the tasks of order management and shipping are crucial for success, they can be easily outsourced to a 3PL fulfillment center. Not only can clients benefit from the expertise of the 3PL but they now have more time to focus on their core business tasks such as marketing, expanding their product portfolio and refining existing ones, without the burden of having to manage customer orders on their own. Benefit from 3PL Fulfillment Expertise Collaborating with a fulfillment company makes your entire process seamless – they are the experts in the field and outsourcing your inventory storage, packing, loading, dispatch (etc.) helps you gain from their expertise. Logistics and distribution, especially in today’s global markets with complex ecosystems and processes, is a challenging and, often an overwhelming task for any seller. Outsourcing this to 3PL experts that handle these complex processes efficiently on a daily basis, is the correct way to go – your business will gain immensely from their expertise and know-how. Utilize Inventory Outsourcing & Reduce Operating Costs Unless a seller operates a company of some scale, the task of managing an entire warehouse becomes expensive and cumbersome. Outsourcing this task to a fulfillment center is far more efficient. eCommerce firms almost always start small and have limited space e.g. garages, basements etc. Outsourcing your inventory to a fulfillment center helps to reduce operating costs. Online businesses get access to inventory space without any upfront investment in infrastructure. Often, the prudent time to make the shift is also once scale starts kicking in. Benefit From an Increase in Scalability 3PL company and their fulfillment centers are connected with global supply-chain networks and equipped with significant resources to manage scale. With the number of online shoppers only slated to go higher, you benefit from their international expertise and can scale your business globally. With this scale, you can also take advantage of storing your inventory in as many fulfillment centers as you require and can efficiently manage your inventory across all of them using the tools that 3PL companies often provide. Benefit From an Extensive Network of Warehouses 3PLs have an elaborate network of warehouses and fulfillment centers and often follow a hub-n-spoke model. This means they are closely located to your customers. Therefore, the lesser distance your cargo has to travel, the lesser the delivery time and cost. Don’t forget that customers today are bred on super-speed shipping, free shipping and discounted shipping. Access to a larger network of fulfillment centers means that you can strategically store your inventory closer to areas of high demand or near transport hubs for easy shipping. Access to Modern Technology Quite expectedly, 3PL companies that operate fulfillment centers invest big dollars into cutting-edge software systems to improve their efficiency. eCommerce firms benefit from this without the CapEx required or hiring resources to operate it. These advanced software solutions can track and manage inventory across platforms and selling channels, and can automate multiple processes involved in warehouse management to mitigate any errors or miscalculations that could occur. You can also read on warehouse automation technology. Utilization of Economies-of-Scale Fulfillment warehouses operate on a tremendous scale, manage hundreds of clients and work across multiple shippers and transporters. Therefore, they also benefit from economies of scale and can negotiate discounted rates across their operations including packing materials, assets, warehouse space, software and staffing, not to mention shipping rates, which account for up to 70% of fulfillment costs. Access to Bulk Discounts Since 3PLs operate on a global scale, they benefit from it - bulk delivery discounts, zone-based shipping rates and frequent pickups are just some advantages of scale. Additionally, 3PL firms like WareIQ partner with multiple shipping providers and always suggests the fastest and cheapest options so firms can consistently save money on a massive scale. This provides an incentive for firms to partner with 3PL companies and use all the advantages that come with it. Access to Professional Customer Service While customer services is an important aspect of eCommerce retail, sellers can also take advantage of better customer service when they opt for a 3PL fulfillment center. If sellers face any issues, they are just a call, message or email away from getting them resolved. Additionally, many 3PL companies offer outsourcing facilities for customer support so sellers can transfer this enhanced customer support to their customers which will result in increased satisfaction. Access to Customized Packaging eCommerce customers only experience their product when it arrives at their doorstep and a damaged or messy package isn’t going to cut it. Fulfillment centers offer customized packaging solutions that keep packages attractive and fresh - an important element in building customer satisfaction. Sellers can choose how they want their packaging to look and can highlight their brand rather than sending shipments in a bland box or package. Access to Data Analytics Modern logistics management software used by 3PLs tracks, collects and mines data that is generated across the entire fulfillment process. This results in deep insight for managers who can use this as the bedrock for decision-making, thereby leading to more efficient planning and implementation. These tracking facilities are generally available across multiple fulfillment centers and a variety of selling platforms to keep sellers well informed about their inventory at all times. Also read: Hot to choose fulfillment center for E-commerce? Fulfillment Centers vs Warehouses: Differences and Myths Busted There are innate differences between the two and the roles each plays in fulfilling customer orders. While a warehouse simply stores inventory, a fulfillment center manages the process of ordering and delivering products to customers on time to ensure customer satisfaction. Sellers stock their inventory in 3PL fulfillment centers, situated across numerous locations. This reduces delivery times and costs. Long-Term vs. Short-Term Storage The main objective of a fulfillment center is to manage the entire process from customers placing orders till the order is successfully delivered whereas a warehouse is a storage location that is just one piece of the entire gamut of operations that a 3PL conducts. Ideally, inventory should not sit in a fulfillment center for more than 30 days since this is long-term storage and attracts higher storage fees. The seller and 3PL must communicate regularly about stock levels, re-order levels, and maintain appropriate levels of inventory based on the frequency of orders and time taken to reach customers so that out-of-stock problems don’t arise. Range of Operations While a warehouse often remains inactive since it is used primarily for stocking inventory, a fulfillment center provides comprehensive solutions and is constantly abuzz with activity, including: Receiving, packing, loading and dispatching ordersReceiving and stocking inventoryPreparing order documentation and shipping labelsKitting products (if required)Processing order returns Comparatively, activity in a warehouse is limited to receipt and dispatch of inventory. Order Pickup Frequency Since a fulfillment center gets out orders immediately on receipt, they work with several shipping companies so that goods are picked up at least once a day and often more. This ensures order delivery within the time windows promised to the customer. Often, the orders have specified delivery times (e.g. same-day, 24-hr, 2-3 days etc.) and an eCommerce fulfillment center will have various cut-off times based on order details. Warehouses, however, schedule less frequent pickups regardless of the delivery speed specified by the customer since this enables them to stay cost-effective. They also use freight companies that adhere to pre-defined pickup windows. This can often cause delays and is also inflexible. Why Do You Need a Fulfillment Center for Your Business in 2023? It's difficult to provide recent statistics on fulfillment centers for ecommerce, as the industry is constantly evolving and changing. Here are some general statistics that can prove why fulfillment centers are important for your business in 2023: According to a 2021 survey by eMarketer, around 57% of global ecommerce sales were fulfilled through third-party logistics providers, such as fulfillment centers.In 2021, the global fulfillment center market was valued at around $155 billion and is expected to grow at a compound annual growth rate of around 10% through 2026.In the United States, the ecommerce fulfillment market is expected to grow at a compound annual growth rate of around 15% through 2025, driven by the increasing demand for online shopping.According to a 2021 survey by eMarketer, the most popular fulfillment method for ecommerce businesses was shipping orders from their own warehouse (used by 49% of respondents), followed by using a third-party fulfillment center (used by 32% of respondents). Few of the reasons you need an eCommerce fulfillment center are mentioned below: Speedy Delivery Since a fulfillment company works with several shippers, their shipments are picked up at least once daily, ensuring timely deliveries. Complete Automation Modern fulfillment centers use updated technology throughout the fulfillment process so that their ecommerce clients can track order processing, inventory movement (etc.) in real-time. Improved Scalability While scaling up is the goal of every business, its mismanagement can have disastrous results. Today’s fulfillment centers are modern giants with numerous resources that tackle scale comfortably and professionally. Focus Retention Managers in eCommerce firms must focus on strategic tasks that scale the business and maintain profitability e.g. product management, marketing and customer service. Tasks like order fulfillment and inventory handling can be easily outsourced to 3PLs. Best Tips for Inventory Management Using Fulfillment Centers Modern eco-systems and borderless markets exert inordinate pressure on online resellers. 3PL fulfillment warehouses are masters at optimizing inventory management. Some of the best ways you can use them are suggested below: Reduce Costs via Cross-Docking & Wave-Picking Using cross-docking decreases handling as well as storage time and enables firms to manage warehouse inventory seamlessly. Wave-picking is another method of tackling complex shipping systems. Both reduce carrying costs and shipping costs. Stay Atop Your Supply Chain Several glitches can often disrupt an otherwise smooth supply chain. While events are sometimes unavoidable, understanding your supply chain enables you to stay on top of mishaps that sometimes throw things off-kilter. Re-Modify Your Floor Plan Often overlooked due to their simplicity, efficient floor plans are still a proven strategy to increase efficiency. However, supply and demand are forever fluctuating and floor plans should be adapted according to the situation. Minimize Pilferage Employee monitoring and security measures help minimize pilferage, and the results are often highly beneficial. This enables companies to minimise inventory shrinkage and loss due to such incidents which can have a negative impact on the company. Track Product Success Optimized inventory management means you can track sales of each product. Using this data, firms gain insights into their inventory movement. For example, the bestsellers can be stored in places where it is easier to locate, replenish, and ship out. You can follow a similar method to monitor your top clients and their orders. Similarly, you can identify your laggards and minimize their stock levels or even phase them out entirely. Utilize Inventory Management Systems If you are still using legacy inventory software, you are bound to struggle. The modern, automated software systems of today, with their large data-crunching abilities, cloud connectivity, real-time data processing and insight-generation using AI and ML tools, enable you to manage your inventory quickly and efficiently. Minimize Shrinkage Shrinkage is a fancy term for breakage, damage and theft. Select a fulfillment company that offers a zero-shrinkage policy which means that once the fulfillment center confirms and records your products, all items will be accounted for. If products go missing or get damaged on their watch, they have a reimbursement policy. What Are the Top Challenges with Fulfillment Centers and How To Solve Them in 2023? Delayed Shipping With eCommerce behemoths like Amazon increasing customer expectations with their same-day delivery and free shipping, all eCommerce companies are expected to match up. If your warehouse or fulfillment center or your specific business model cannot do so, you risk customer dissatisfaction. Due to capacity constraints and labour shortages, fulfillment centers may struggle to keep up with the increased demand for storage and shipping. Solution: Partner with multiple last mile delivery companies Customers expect fast and reliable shipping, so it's important for fulfillment centers to have multiple shipping carriers and routes available to ensure timely delivery. Regularly reviewing and improving fulfillment processes can help to ensure that orders are accurately and efficiently picked, packed, and shipped, leading to a better customer experience. Limited Locations If your eCommerce company doesn’t have an elaborate network of strategically placed fulfillment centers that minimizes the distance and time taken for deliveries, it will result in extended delivery times. The resulting customer dissatisfaction would be inevitable. Solution: Partner with third-party logistics (3PL) providers Working with a 3PL fulfillment provider can help to alleviate some of the challenges that fulfillment centers face concerning slow delivery or free shipping, as they have a wide network of warehouses and fulfillment centers spread across the country that allows them to store inventory closer to the customes Complicated Fulfillment Software While using modern, automated fulfillment software is a great strength of using a fulfillment center, they can often be complex and intimidating for eCommerce companies to deal with. Poor integration will also confuse and the results are potentially disastrous. Solution: Use a fulfillment software like WareIQ that offers a unified experience WareIQ's smart fulfillment platform allows eCommerce companies to manage all logistics operations directly from a single platform. WareIQ's fulfillment software also provides easy, plug and play integrations with 200+ eCommerce softwares. Quality Control Ensuring that orders are accurately and efficiently picked, packed, and shipped can be challenging, especially for centers with high volumes of orders. Any errors or mistakes can lead to customer dissatisfaction. Solution: Focus on quality control Implementing quality control measures, such as regular training and inspections, can help to reduce errors and mistakes in the fulfillment process. Damaged Goods & Return Inefficiency For eCommerce firms without physical locations, returned or damaged items are received back at their fulfillment center. But, if your fulfillment center doesn’t efficiently manage the order-return process, the costs are tremendous e.g. irate customers, restocking expenses and inventory losses. Solution: Implement returns management processes Developing clear and efficient processes for handling returns can help to streamline the returns process and reduce the burden on fulfillment centers. Labor Shortages Fulfillment centers often rely on large numbers of workers to pick, pack, and ship orders. If there is a shortage of available labor, it can lead to delays and reduced efficiency. Solution: Invest in automation Automation can help to improve efficiency and reduce the reliance on labor, which can help to address capacity constraints and labor shortages. Inept Customer Service We live in uber-competitive times and customer satisfaction is the most important metric in building a sustainable eCommerce business. When you use a fulfillment center, they are typically responsible for your customer service. However, if they don’t handle this efficiently by deploying omni-channel options, you risk aggravating customers. Solution: Improve customer service at fulfillment centers Fulfillment centers should have knowledgeable and helpful customer support teams in place to assist with any issues or concerns. Customers also appreciate being able to track their orders, so it's important for fulfillment centers to provide accurate and up-to-date tracking information. Out-of-Stock Costs While this will probably never go away completely, the trick is to minimize it. If not, your customers will discover other options. If your fulfillment partner doesn’t deploy the best practices in inventory management along with you in projecting demand patterns, your stock-out costs could burn a deep hole in your profits. Solution: Seek out cost-saving opportunities Fulfillment centers can look for ways to reduce costs, such as negotiating better rates with carriers or implementing energy-efficient technologies and also use inventory management software like Inventory LogIQ to reduce out-of-stock and overstocking situations. Security and Loss Prevention Fulfillment centers handle large amounts of inventory, which can make them vulnerable to theft or damage. Implementing security measures and loss prevention strategies can be costly and time-consuming. Solution: Increase security Fulfillment centers can invest in security measures, such as surveillance cameras and secure storage areas, to reduce the risk of theft or damage. You can also keep a look at the challenges faced in eCommerce fulfillment in 2023 here. Conclusion: Why is it in a Business's Best Interest to Partner with a Fulfillment Center in 2023? Ultimately, the benefits are significant for sellers that partner with a fulfillment center to handle their fulfillment. A 3PL becomes your trusted business ally and supports your business growth. The business can then focus more on refining its product and promoting it rather than worry about inventory management and order fulfillment. One such company that provides fulfillment centers and a host of other products is WareIQ. WareIQ, is the leading provider of full-stack eCommerce order fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ is one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With a superior WMS platform, WareIQ handles the entire range of warehouse operations in the eCommerce fulfillment process, ranging from inbound and outbound logistics such as scanning and quality checks, 100% accurate pick and pack, multi-channel inventory management etc. At the same time, WareIQ customers reduce logistics costs and increase shipping speed due to better negotiations with shipping partners, economies of scale, scope in warehousing, strategically placed warehouses and data-driven decision making. WareIQ’s customers save resources that are typically spent on establishing infrastructure. We offer you the flexibility to store inventory in one of several fulfillment centers as per your business needs. Our team’s expertise in logistics and our extensive warehousing network across India enables greater influence during negotiations, resulting in volume discounts for our clients. [signup] Fulfillment Center FAQs (Frequently Asked Questions) What is a fulfillment center?A fulfillment center is a facility similar to a warehouse, where 3PL fulfillment service providers store, process and ship products owned by online & offline retail businesses. They handle the logistics that are required to complete an order to the end customer's door as well as returns. What is the difference between a warehouse & a fulfillment center?A warehouse’s function is only to store products for a longer duration, whereas a fulfillment center's role is to efficiently meet customer shipping expectations starting from storing inventory, packing, shipping, managing returns etc. Does WareIQ have its own fulfillment center?WareIQ has a pan-India network of 40+ fulfillment centers, micro-fulfillment centers, warehouses & urban dark stores located close to customers. Is a fulfillment center capable of handling all types of products?No. If you're selling perishable goods, you'll need a fulfillment center with a cold storage facility. If you're selling heavy-duty tools or industrial equipment to businesses, you'll need a fulfillment center that can meet safety requirements and offer customized packaging. WareIQ provides both cold storage facility & customised packaging to its customers in the food & beverages categories like Epigamia, lil’goodness and much more & in the pharmaceuticals category like Gynoveda. Is a fulfillment center capable of handling a big volume of orders?Yes. A fulfillment center specializes in just that. Fulfillment centers are massive facilities with automated processes and a large, skilled staff to manage the needs of many eCommerce companies. Can we get real-time updates from fulfillment centers?You certainly can! When eCommerce businesses need to provide customers with real-time updates on the status of their orders, they need the fulfillment center and shipping company to do the same. WareIQ has a branded tracking page of its own where the customers get real time updates via mails, messages, whatsapp etc. Can a fulfillment center provide 1-day and 2-day delivery?A fulfillment center is capable of providing 1-day and 2-day delivery as well as even speedier delivery options, as long as the fulfulfillment companies offer these services. Do fulfillment centers handle inventory management?Yes. Most fulfillment centers, such as the ones offered by WareIQ, use advanced Warehouse Management Software (WMS) to provide inventory management and automates many aspects of warehousing processes.

December 22, 2022

Top 5 Challenges in eCommerce Fulfillment and Solutions To Overcome Them in 2023

The global eCommerce industry was estimated at USD 14.30 trillion in 2021 and is expected to grow to USD 58.74 trillion by 2028 at a CAGR of 26.55%. (2022-2028). The events of 2020 and 2021 did nothing more than stoke the flames. In the first half of 2020, eCommerce's retail market share grew at the same rate as it had over the previous five years. By 2024, global eCommerce revenues will increase to $6.4 trillion. So there is a sizable market there that could be profitable. Companies are reacting. According to McKinsey survey results, firms worldwide have sped up customer interaction digitization by nearly three years. Even some offline companies with physical stores are expanding into the online marketplace. Consequently, there is also a consistent rise in competitiveness. As they adjust to the most recent eCommerce trends and work to build a digital experience that meets customers' increasing expectations, eCommerce businesses are confronting challenges in eCommerce fulfillment. Other challenges in eCommerce fulfillment include preserving website security, increasing website traffic, and preserving client loyalty. In this post, we'll examine some typical obstacles that newly established eCommerce companies and those seeking to increase their online presence encounter. We'll focus more on how you can overcome these challenges and solutions to challenges faced in eCommerce fulfillment. What is eCommerce Fulfilment? To put it simply, eCommerce fulfillment is fulfilling online orders by delivering to the right customer at the right address. When a customer orders your goods in your online retail shop, you must deliver them within a specific time frame and at the agreed-upon price. eCommerce fulfillment includes the entire procedure of sending an order to a consumer after it has been placed online. This part of the supply chain is responsible for receiving and managing inventory, order delivery, selecting products, putting them into boxes, shipping them to the customers' preferred locations, and handling returns. Any online retail business must succeed in eCommerce fulfilment. In addition to saving you time and money, a well-thought-out and expertly-managed logistics strategy also streamline your online retail operation by increasing your market reach. Furthermore, to maintain their competitiveness and develop consumer loyalty, an efficient fulfilment system is essential for eCommerce enterprises to maintain their competitiveness and build consumer loyalty. Source Why is eCommerce fulfillment Required? The two-day (or even next-day) shipping alternatives are now standard for consumers. As a result, timely and efficient shipment is vital. Your business may need help delivering goods on time when your fulfilment procedure could be more reliable or convenient. You must get their stuff to them on time to please your customers. Consequently, the most crucial aspect of your organisation is eCommerce fulfillment. You must streamline and improve your order fulfillment chain to keep your company's online and physical components in sync if you want to deliver exceptional customer service and guarantee that clients return to your store for repeat business. What Leads to Challenges in eCommerce Fulfillment? 5 Biggest Challenges in eCommerce Fulfilment in 2023 and Solutions to Challenges Faced in eCommerce Fulfillment What are some typical problems with eCommerce fulfillment, and how can these be solved? To prevent costly mistakes and to be as effective as possible, it is necessary to deploy a cloud-based order management system (OMS) and automate all procedures involved in picking, packaging, and delivering an order. We've listed some of the most typical challenges in eCommerce fulfillment and their solutions. Inefficient Inventory Management Source With a well-organized structure, it's easier to avoid falling into the trap of satisfying every single customer's request and making unrealistic time commitments. An internal warehouse management system could result in improper product management and calculations, making the seemingly straightforward operation of fulfilling orders impossible. Your customers expect that the product is available when they place a purchase. However, if they don't get it right away, they lose faith in your organisation and stop giving you business. So try something different rather than handling things internally. With an efficiently managed inventory management system, brands can overcome various challenges in eCommerce fulfillment. Solution Take into consideration hiring a dependable partner to handle your order fulfilment needs. A fulfillment center that offers inventory management can be the ideal all-in-one solution because this is their area of expertise. The warehouse management system uses technology to track pertinent data and guarantee that your inventory is well-managed and always up-to-date, which helps overcome challenges in eCommerce fulfilment. You can use inventory optimization tools like Inventory LogIQ to mitigate the top most challenges in eCommerce fulfilment. Damaged or Lost Items During Transit Nothing is more discouraging than spending a whole week anticipating the delivery of an exciting new item only to discover a box full of wrong or damaged things inside. However, if you perform an excellent job of rectifying their condition, customers will be more willing to attempt ordering from your store again. If broken products are replaced regularly, the cost of doing so can rise quickly, and responding to customer service requests might turn into a second full-time job. In addition to providing the consumer with a replacement free of charge, you must also pay for any shipping expenses and reply to their messages politely and immediately. Try something new rather than the headache. Damaged and lost inventory are one of many challenges in eCommerce fulfillment. Solution The first step in the remedy is to make things right with the client immediately. Usually, this entails replacing their lost or broken belongings and giving them the benefit of the doubt. Additionally, you could provide future discounts to entice customers to come back and do business with you. To resolve this issue, you must enhance your packing and management best practices rather than only reducing them. Use sturdy containers to prevent the contents from being crushed. It's critical to ensure the containers you use to sustain the weight because they get stacked and tossed around. Verify that you are correctly loading pallets, adhering to the weight restriction, and not allowing products to protrude over the edge. By storing inventory in the proper condition, you can overcome challenges in eCommerce fulfillment. Inefficient Warehouse Picking Operations Source There are many reasons why warehouse picking operations can be inefficient and is a big challenge in eCommerce fulfillment: Lack of a clear system: Without a clear system in place, pickers may waste time trying to find products or may pick the wrong items, leading to delays and errors.Poor layout: If the warehouse layout is not optimized for picking, it can lead to wasted time and effort as pickers need to travel longer distances to reach products.Lack of technology: Without the use of technology such as RFID or pick-to-light systems, pickers may have to rely on manual processes, which can be slow and prone to errors.Inexperienced pickers: If pickers are not well-trained or experienced, they may be slower and less accurate, leading to inefficiencies in the picking process.Large product variety: If a warehouse has a large variety of products, it can be challenging for pickers to locate and pick the correct items efficiently.Poor inventory management: If a warehouse does not have accurate inventory records, it can lead to pickers wasting time searching for products that are out of stock or in the wrong location.Limited storage space: If a warehouse has limited storage space, it can be challenging to organize products in a way that makes them easy to locate and pick.High volume of orders: If a warehouse has a high volume of orders, it can be challenging to keep up with demand and maintain efficient picking operations. Solution Use an order picking system: An order picking system, such as a pick-to-light or pick-to-voice system, can help to streamline the picking process and improve accuracy and help in overcoming this challenge in eCommerce fulfillment.Implement zone picking: Zone picking involves dividing the warehouse into different zones and assigning specific tasks to each zone. This can help to reduce travel time and improve efficiency.Use RFID technology: Radio-frequency identification (RFID) technology can be used to track the location of products in the warehouse and streamline the picking process.Implement batch picking: Batch picking involves grouping orders together and picking them in a single pass through the warehouse. This can help to reduce the number of trips that pickers need to make and improve efficiency.Use pick carts: Pick carts can be used to transport orders through the warehouse, reducing the amount of time and effort required to pick orders.Train pickers: Providing training and resources to pickers can help to improve their efficiency and accuracy.Review and optimize layout: Reviewing the layout of the warehouse and optimizing it for the picking process can help to improve efficiency and reduce travel time.Use automation: Automation, such as conveyor systems and robots, can be used to help with the picking process and improve efficiency. Delay in Shipping Schedule Delay in shipping schedule is one of the biggest challenges in eCommerce fulfillment. According to a McKinsey study, 46% of customers abandoned their shopping carts due to excessively long delivery times or a lack of information. There are several reasons why there may be delays in shipping schedules from a warehouse: Lack of inventory: If a warehouse does not have the necessary inventory on hand to fulfill an order, it can lead to delays in shipping.Inefficient processes: If a warehouse has inefficient processes for picking, packing, and shipping orders, it can lead to delays in getting orders out the door.Limited shipping options: If a warehouse only offers a limited range of shipping options, it may be difficult to meet the needs of customers who require faster or more specialized shipping services.Poor communication: If there is poor communication between the warehouse and other parts of the organization, it can lead to delays in getting orders out the door.Incorrect address information: If an order has incorrect address information, it can lead to delays in shipping as the warehouse tries to resolve the issue.Inclement weather: Inclement weather, such as snowstorms or hurricanes, can disrupt shipping schedules and lead to delays.Labor shortages: If a warehouse is experiencing labor shortages, it can lead to delays in getting orders out the door.Equipment failures: If warehouse equipment such as conveyor systems or forklifts break down, it can lead to delays in shipping. So timely communication is good regarding delivery dates and a fulfilling experience, particularly if your buyer has consented to receive status updates on their preferred communication channel. Solution Updates on time- Let customers know when their orders are received, packed, sent, ready for delivery, and delivered. In the event of a shipping delay, make sure to inform the customer and provide the new anticipated delivery date. When the item is returned, you can ask the customer to review their shopping experience (but wait to ask about the goods). Give more than just a tracking code- Ensure the "Orders" area of the buyer's account displays the most current shipping status with timestamps. Shipping Location Limitation Finding the ideal house in the perfect location for your purposes is similar to locating a top-notch eCommerce fulfilment facility for your clients. How soon your products reach clients is significantly influenced by where your eCommerce fulfillment facilities are located. There are several potential reasons for shipping location limitations that leads to challenges in eCommerce fulfillment: Legal restrictions: Some countries have laws or regulations that prohibit the import of certain types of products. This can limit a company's ability to ship to those countries.Logistical challenges: Shipping to certain locations may be more challenging due to factors such as distance, transportation infrastructure, or customs clearance requirements.Cost: Shipping to certain locations may be more expensive due to factors such as distance, transportation costs, or customs fees.Limited distribution network: A company may only have a limited network of distributors or partners in certain locations, which can limit its ability to ship to those areas.Lack of demand: If there is not enough demand for a company's products in certain locations, it may not make financial sense to ship to those areas.Limited resources: A company may not have the resources or capacity to ship to certain locations, either due to a lack of warehouse space or a lack of staff to handle the eCommerce shipping process.Safety concerns: In some cases, shipping to certain locations may pose safety risks for employees or products, leading a company to limit its shipping to those areas. Solution To ensure that your products reach your clients as soon as possible, select the best eCommerce 3PL provider with several warehouse locations. How can you locate a partner compatible with your clients and business? Choose a fulfillment partner with warehouse locations that match your clients' areas after researching to learn more about them and this will help overcome this challenge in eCommerce Fulfillment. Remember your international customers. If you conduct international business, you require a fulfilment partner who can optimise international courier/shipping for both cost- and time-effectiveness. Working with a fulfillment facility that can ship products everywhere you need them and is near water is something we strongly advise. There are several ways that a company can address shipping location limitations: Work with a third-party logistics provider: A third-party logistics (3PL) fulfillment provider can help a company to overcome shipping location limitations by handling the logistics of shipping to certain areas.Establish partnerships or distribution networks: A company can establish partnerships or distribution networks in areas where it is currently unable to ship directly, which can help to expand its reach.Invest in logistics infrastructure: A company can invest in its own logistics infrastructure, such as warehouses or transportation assets, to improve its ability to ship to certain locations.Review and optimize shipping processes: A company can review and optimize its shipping processes to reduce shipping costs and improve efficiency, which can help to make shipping to certain locations more viable.Expand product offerings: A company can expand its product offerings to include items that are in high demand in areas where it is currently unable to ship.Utilize e-commerce platforms: A company can use e-commerce platforms to sell and ship its products directly to consumers in certain locations, bypassing traditional distribution channels.Work with a customs broker: A customs broker can help a company to navigate customs clearance requirements and other logistical challenges when shipping to certain locations. Conclusion In a nutshell, there are several challenges that companies can face when it comes to eCommerce fulfillment, including: Managing inventory: In eCommerce, it's important to have a clear understanding of what products you have in stock and where they are located. This can be a big challenge in eCommerce fulfillment if you have a large number of products or if your inventory is spread across multiple warehouses.Fulfilling orders quickly: Customers expect their orders to be fulfilled and shipped quickly, so it's important to have efficient processes in place to ensure that orders are picked, packed, and shipped out in a timely manner.Dealing with returns: eCommerce businesses need to have a system in place for handling returns and exchanges, which can be a time-consuming and costly process.Meeting customer expectations: Customers expect a high level of service when it comes to eCommerce, so it's important to be able to meet their expectations in terms of order accuracy, delivery speed, and customer service.Keeping up with demand: As an eCommerce business grows, it can be challenging to keep up with demand and ensure that you have enough inventory to meet customer needs.Managing shipping and logistics: eCommerce businesses need to be able to handle the logistics of getting orders to customers, which can be a challenge if you are shipping internationally or to remote locations.Integration with other systems: eCommerce businesses often need to integrate their fulfillment systems with other systems, such as their website, payment processors, and customer relationship management (CRM) software. This can be a challenge if the systems are not well integrated. Consumers are supreme in today's connected and technologically advanced world. They are always searching for the best opportunity they can find. As a result, eCommerce fulfilment has become an essential part of any online firm. This general word includes storage, inventory management, order fulfilment, and returns management. Effective eCommerce fulfillment implementation is required to provide excellent delivery experiences for your customers and get a competitive edge in the rapidly expanding worldwide market. How WareIQ Can Help You Solve the Challenges in eCommerce Fulfilment Services in 2023? Running an online store comes with its own set of difficulties. WareIQ does away with the requirement for logistics management to be one of them. We have teamed with several eCommerce businesses to simplify and expedite logistical procedures. WareIQ asserts that it uses cutting-edge technologies to deliver the most satisfying solutions. As a result, you may anticipate better order accuracy once we are on board, a clearer picture of the inventory and shipments with SLA badges, and more control over customer and shipping data. You may distribute your products to clients quickly and economically with the aid of WareIQ's extensive network of fulfilment facilities. A company that wants to expand should outsource fulfillment and logistics to a reputable 3PL company like WareIQ. WareIQ can provide you with complete supply chain fulfillment solutions so you can concentrate on the key growth drivers for your business. [signup] Challenges in eCommerce Fulfillment FAQs: (Frequently Asked Questions) What are the common challenges in eCommerce fulfillment?When a breakdown or blockage happens somewhere along the way, fulfillment issues develop. Before the invention and widespread usage of the Internet, businesses could frequently conceal ineffective fulfilment methods, but this is impossible with e-commerce.To summarise, the main challenges in eCommerce fulfillment include:i) Managing inventory and keeping up with demandii) Fulfilling orders quickly and accuratelyiii) Handling returns and exchanges efficientlyiv) Meeting customer expectations for service and deliveryv) Managing shipping and logistics, especially for international or remote ordersvi) Integrating fulfillment systems with other business systems such as websites, payment processors, and CRM software. What leads to challenges in eCommerce fulfillment?There are several factors that can lead to challenges in eCommerce fulfilment:i) Lack of visibility into inventory: If a company lacks a clear understanding of what products they have in stock and where they are located, it can be difficult to fulfill orders accurately and in a timely manner.ii) Poor order accuracy: If orders are not picked and packed correctly, it can lead to delays and customer dissatisfaction.iii) Inefficient processes: If a company's fulfilment processes are slow or inefficient, it can lead to delays in shipping and difficulty keeping up with customer demand.iv) Limited shipping options: If a company only offers a limited range of shipping options, it can be difficult to meet the needs of customers who require faster or more specialized shipping services.v) Lack of integration: If a company's fulfillment systems are not well-integrated with other systems such as their website and payment processors, it can lead to difficulties in processing orders and managing customer relationships.vi) Limited warehouse space: If a company has limited warehouse space, it can be challenging to store and manage a large volume of inventory.vii) Lack of scalability: As an eCommerce business grows, it can be difficult to scale fulfillment operations to meet increased demand. How can inventory management be improved in fulfillment for eCommerce?Inventory management can be improved in e-commerce fulfillment by implementing real-time tracking systems, utilizing demand forecasting tools, regularly reviewing and adjusting safety stock levels, and implementing an efficient system for monitoring and reordering products. What are the most common reasons for returns and refunds in eCommerce fulfillment?This is one of the biggest challenges in eCommerce fulfillment. The most common reasons for returns and refunds in eCommerce fulfillment include: damaged or defective products, incorrect items received, dissatisfaction with product quality, and incorrect sizing or fitting. How can delivery speed be improved in e-commerce fulfillment?This challenge in eCommerce fulfillment can be improved by optimizing warehouse and packing processes, partnering with multiple carriers to offer faster delivery options, using real-time shipping and tracking systems, and implementing a streamlined returns process to reduce delays. What are WareIQ's eCommerce fulfillment services?Outsourced logistics services involve managing one or more aspects of procurement and fulfilment activities, and WareIQ offers these services. In the business world, the term "3PL" refers to any service agreement that includes the storing or shipment of goods and WareIQ provides end-to-end fulfillment services ranging from warehousing, inventory management, shipping, seller enablement services, order tracking, RTO management, post-purchase applications etc.

December 21, 2022

When and How to Choose a Fulfillment Service for Shopify for Your D2C & eCommerce Business in 2023?

Shopify is one of the largest eCommerce marketplaces in the world. Consisting of a user base of around 2 million sellers across the world, the company provides a wide range of unique services and facilities, such as offering support for brick-and-mortar sellers, providing a vast catalogue of external and 1st-party apps and plugins that can enhance various facets of a company’s eCommerce operations, enabling well-designed websites through custom templates and editors, and much more. Additionally, Shopify offers its users the ability to opt for external fulfillment solutions for their own convenience. This is advantageous because many sellers may have an existing relationship with a fulfillment company, have all their data securely stored in their databases, and is accustomed to their prices, policies and user experience. Conversely, some sellers choose a fulfillment service for Shopify due to the multiple benefits associated with them, such as lower prices, access to vast storage networks, use of the latest technology, and more. In this blog, we will cover when you should choose a Shopify 3PL company, the benefits of partnering with them, and elements you should look at while making your decision. An Introduction to Order Fulfillment and Fulfillment Services for Shopify Order fulfillment comprises all the procedures associated with successfully delivering an order to the doorstep of the customer that ordered it. This includes identifying the appropriate product in the warehouse, packaging it, getting it ready for dispatch, shipping it to the customer’s destination and using a delivery partner on the ground to ensure it reaches its intended location. Thus, it is a big portion of the entire eCommerce process because, without order fulfillment, customers would not have any reason to purchase items online in the first place. Similarly, companies that provide all the above services and more are known as fulfillment services or 3PL fulfillment companies. Since Shopify provides 3 fulfillment options - automatic, partial, and manual - the last of which enables retailers to opt for their own Shopify 3PL company, you can choose which one would be the best option for your current business requirements. Fulfillment services can additionally provide many more services, such as a storage network, custom packaging, online integrations, and more. [contactus_lilgoodness] When Should You Look Out for a 3PL Fulfillment Service for Shopify? The top 6 situations in which you should definitely look out for a 3PL fulfillment service provider for fulfilling orders from Shopify are listed below: Erratic Sales Patterns Fluctuating demand and sales patterns can have dire impacts on even the most experienced eCommerce businesses. Sellers have to factor in many different things while choosing how much inventory they should have on hand for each SKU. If consumer demand is volatile and fluctuating constantly, you may not be able to gauge how many units you need to store, which will create uncertainty and could lead to overstocking or understocking. If you choose a fulfillment service for Shopify, you will instantly be able to monitor external conditions and utilize various tools to safeguard your inventory in such conditions. Reduced Financial Capabilities Not every business has access to a vast pool of capital. In fact, most of them have to be extremely careful with their finances. Because of this, they often get left behind when it comes to introducing the latest services and technology to their customers, which will diminish their brand’s reputation in the long run. However, if you partner with a Shopify 3PL company, you will get access to all of their features and technology, and use it effectively to fulfill orders and satisfy your customers. Periods of Excess Growth During various holiday seasons, such as Christmas and Diwali, when customers are most likely to make online purchases, your sales can flourish. However, if you aren’t prepared for the increased demand, you may find it difficult to keep up, which will eventually lead to errors and order backlogs. To actually appreciate and make use of appreciating sales, partnering with a Shopify 3PL company is a good option because they have the necessary infrastructure in place to tackle bulky orders and high demand. You can refer to this to avoid mistakes during the holiday season. Lack of Your Own Fulfillment Infrastructure Many eCommerce companies do not have access to their own fulfillment infrastructure, such as fulfillment centers, shipping carrier partnerships, last-mile delivery service personnel and more, which is obviously needed for successful order fulfillment. Most fulfillment providers supply all these options and some even let businesses choose the specific services they need. To keep up with each other, they also employ the latest technology and features, which will help your company be on the bleeding edge of eCommerce fulfillment. Difficulty in Omni Channel Order fulfillment If a seller on Shopify has a presence across multiple online marketplaces as well as traditional offline channels, streamlining the entire fulfillment process, including eCommerce warehousing, shipping, etc. or self-fulfillment becomes a difficult task to manage. Seeking to Prioritize Other Business Activities Even though order fulfillment is important, it isn’t the be-all and end-all of a company’s activities. Work also has to be done to research new products, refine existing ones, market them to the relevant audience, conduct audits and much more. For a company that is doing all these tasks on its own, it can get more than a little strenuous. Therefore, partnering with a Shopify 3PL company can alleviate the burden of order fulfillment from your plate, so you will be free to pursue more nuanced business activities. 5 Benefits of Partnering With a 3PL Fulfillment Company for Shopify Increased Efficiency 3PL fulfillment companies have the expertise and resources to handle all aspects of order fulfillment, from storage and inventory management to packing and shipping. This can help ensure that orders are fulfilled quickly and accurately, which can improve customer satisfaction and reduce the risk of returns or refunds. Additionally, every process will be streamlined and handled directly by the fulfillment company itself, so you rest easy knowing that everything is taken care of in relation to order fulfillment. Improved Scalability As your business grows and the volume of orders increases, it can be challenging to fulfill orders in-house. A Shopify 3PL partner can provide the necessary resources and infrastructure to handle the increased demand, allowing you to scale your business without having to invest in additional equipment or personnel. Make sure to choose an option that has future-proof facilities and technology, and you should be able to fulfill orders, regardless of how fast the volume increases. Reduced Costs Partnering with a Shopify 3PL service can help you save money on fulfillment-related expenses, such as storage, packaging and shipping. A 3PL can also provide bulk discounts on these services, further reducing your logistics costs and other. Additionally, outsourcing fulfillment to a 3PL can free up your time and resources, allowing you to focus on other aspects of your business that are also important, such as marketing, research and development and accounting. Enhanced Customer Satisfaction A Shopify 3PL company can provide additional services, such as custom packaging and gift wrapping, that can enhance the experience customers have with your business. They can also offer faster shipping options and provide order tracking information to customers, which can improve customer satisfaction and reduce the likelihood of returns or complaints. Most importantly, they ensure you are able to provide the most cutting-edge facilities to your customers, so you can stay relevant in relation to your competitors. Top 5 Factors to Consider While Evaluating 3PL Fulfillment Services for Shopify in 2023 Storage and Distribution Network Source It is important to choose a fulfillment service for Shopify that is conveniently located in regard to your business and especially, your customers. This will help ensure that orders are shipped and delivered quickly and efficiently, regardless of where they are placed from. Many 3PL companies have nationwide storage and distribution networks which will help you fulfill orders to remote locations just as easily as to large metropolitan areas. Range of Services Source Different Shopify 3PL companies providers offer different services, so it's important to choose one that can meet your specific criteria. For example, some providers may offer additional services like custom packaging and labeling, while others may only offer basic fulfillment services. You should also look for fulfilment services that can easily integrate into the existing framework used by other eCommerce businesses. For instance, when you sell on various eCommerce platforms, those linkages are crucial for seamless channel-to-channel logistics. This covers vendor management systems and B2B wholesale channels. Pricing Options Source A Shopify 3PL provider can have the best possible feature set and have every facility you need but if you cannot afford it or it bombards you with additional hidden costs, it may not be the option for you. Fulfillment services can vary greatly in price, so it's important to compare the costs of different providers to ensure that you're getting a good deal. Don't forget to consider any additional fees or charges that may not be included in the quoted price because they can contribute greatly to the amount you’d actually end up paying. Reputation Amongst Existing Clients It's always a good idea to do your research and read reviews from other businesses that have used the Shopify 3PL provider you are considering. This can help you get a sense of their reliability and customer service. It pays dividends to browse through their reviews on their own website and other online forums to get a sense of how they tackle existing issues and whether customers are satisfied with the resolutions they received. After all, since the company is going to be responsible for such a big part of your business, they should be answerable to you whenever you need any clarifications. Data and Analytical Infrastructure Source eCommerce, like other internet-based industries, is extremely data-driven. Data is used to identify how much inventory to order, predict future demand, ascertain the right target audience, identify which products are successful and which aren’t, determine why customers are abandoning their carts and much more. It is able to give you detailed insights that we just wouldn’t see without clear indication. Hence, it is important for you to choose a fulfillment service for Shopify that gives you access to a detailed suite of data and analytical tools so you can monitor key metrics of your business and its performance relative to where you want it to be. Conclusion: Why Should WareIQ be Your First Pick for a Shopify 3PL Fulfillment Service in 2023? Choosing a fulfillment service for Shopify can be a make-or-break decision for your eCommerce business. Shopify 3PL companies can be your gateway to increased sales, positive reviews and expansion to other markets. On the other hand, if you are struggling to tackle the increased load brought about by successfully selling and marketing your products, it may lead to negative sentiments among customers if orders are delivered incorrectly, delays occur and stockout situations arise. Shopify, one of the biggest online selling platforms on the market, can provide the publicity and visibility your business needs. However, this could work both for and against you, based on the type of experience you are giving your customers. Therefore, choose a fulfillment service for Shopify that closely resembles your desired objectives. One of the best options currently available is WareIQ. WareIQ has emerged as one of the leading eCommerce fulfillment companies in India. Having been founded in 2019 in Bangalore, Karnataka, WareIQ offers many conventional eCommerce facilities in addition to unique features that can result in skyrocketing customer satisfaction. Some of the key services we offer are listed below: Platform Integrations Shopify itself, as well as upwards of 20 other eCommerce marketplaces and online stores can be seamlessly integrated with WareIQ so you can view all of your crucial data from a single dashboard. Super-Speedy Delivery With the help of WareIQ Rush, you can deliver purchases to consumers the same day or the following day, improving their satisfaction with your business. Returns Management Returns are an unavoidable aspect of online shopping. Crucially, their detrimental effects on your company don't have to be. We fully manage your returns process and provide a number of precautions to protect your business and its products. Selection of Shipping Companies With more than 12 of the largest shipping companies in India in the nation as partners, WareIQ also provides an intelligent courier service allocator that chooses the quickest and least expensive shipping method for each order. India-Encompassing Storage Network We have a network of dark stores and fulfillment centers that spans the entirety of India. Additionally, you can manage your inventory and orders across all of them using our unique WMS. Suggested Read: Shopify Fulfillment: How to Fulfill Shopify Orders with WareIQ? Choose a Fulfillment Service for Shopify: FAQs How many fulfillment methods does Shopify offer?Shopify offers 3 fulfillment methods. They are listed below:- Automatic: The entire fulfillment process is automated.- Partial: Some tasks are automated and some are manually completed.- Manual: Most major tasks need to be done manually. What are some other popular online storefronts?There are many online selling platforms that are available. Some of them are:- WooCommerce- Magento- BigCommerce- Wix- Ecwid Does Shopify have a first-party fulfillment solution?Yes, Shopify does provide its own fulfillment services, known as the Shopify Fulfillment Network. However, it is only suitable for fulfilling Shopify orders and cannot integrate seamlessly with other platforms. How can fulfillment companies be added to Shopify?Fulfillment companies can be added to Shopify using the following steps:- Tap “Shipping and Delivery” under “Store” settings- Click “Add Fulfillment Service” under the “Custom Order Fulfillment” section- Enter the name of your custom fulfillment supplier in the form- Enter the email address of the company that handles your custom fulfillment- Press “Save” Can WareIQ fulfill orders for other online selling platforms?Yes, WareIQ can integrate and fulfill orders from multiple other online marketplaces and storefronts, such as Amazon, eBay, WooCommerce, Snapdeal, Flipkart and more.

December 14, 2022

Is FBA Profitable? A Detailed Analysis Of the Pros and Cons of Amazon FBA in 2023

Amazon is one of the largest eCommerce companies in the world. Having been initially founded during the expansive growth of the internet in the early 90s, the company has since blossomed into the international behemoth we have come to associate with. Having almost perfected its sales policies, marketing efforts and product listing procedures, the company set its sights on providing its own professional order fulfillment services, which came to be known as FBA, abbreviated as Fulfillment by Amazon. FBA inspires conflicting opinions among eCommerce sellers. Some appreciate its ease of use, taking on important fulfillment-related tasks and providing multiple services and facilities. Conversely, some also find it expensive to use and cumbersome to abide by the strict rules and regulations that are imposed on every product and seller. In recent years, with the onset of multiple 3PL fulfillment companies that provide all the capabilities and technological features that FBA provides, there is a serious question mark surrounding whether retailers should opt for FBA or an external fulfillment company. In this blog, we will provide answers to the question - is FBA profitable? - and also provide statistics to back up our findings. What is Amazon FBA? FBA, which stands for Fulfillment by Amazon, is Amazon’s first-party fulfillment service that oversees the fulfillment of every order for all retailers that have subscribed to it. FBA began offering its services in 2006 and provides multiple fulfillment and distribution-related services, such as product storage, inventory management, shipping, last-mile delivery, and more. FBA also has its own set of practices in regard to how they store products. For instance, they bundle together all products that fall into a similar category and price point. Additionally, retailers lack flexibility as to how their products are packaged, stored, and dispersed. Amazon FBA also subjects various preparatory guidelines as to how products should be packaged and readied for dispatch. If any of these guidelines are not followed, the respective items will instantly become ineligible for delivery. If the offenses are repeated multiple times, retailers can have fines and other penalties imposed on them, making it a slightly risky option for companies with few resources and small teams. [contactus_lilgoodness] Is FBA Profitable? A Statistical Summary An estimated 73% of Amazon retailers across the world use FBA to fulfill their orders.Amazon Prime members spent roughly $1,300 compared to just $700 dollars by Prime users, indicating that FBA increases the visibility of sellers by showcasing Prime badges on their listings.In India, the number of sellers using FBA increased from just 23% in 2017 to 47% in 2022.In most major countries, the amount of Amazon sellers that use Prime is steadily growing annually.There are currently more than 200 million Prime members across the world, so if you opt for Amazon FBA, your chances of generating sales from them will be higher. Is FBA Profitable? 5 Simple Ways to Ensure Success in 2023 Start Out Small The most successful way to be profitable by using Amazon FBA is to start out with small quantities of each SKU. This will allow you to test the waters and determine how much to order and store of each item. Some products may be more expensive but will be more slow-moving, requiring less of them to be ordered in bulk. Similarly, cheaper, more popular items will get sold faster, so they will require more frequent replenishment. Use Relevant Keywords Keywords are an important part of modern internet communication. It allows search engines to display the most relevant results based on your search query and is utilised by virtually all major websites and selling platforms. By using the appropriate keywords for each product, you can ensure that they rank higher than your competitors if a customer searches for that specific term or anything related to it. Prepare Your Products As mentioned previously, Amazon FBA has extremely strict and rigid protocols regarding the guidelines that products need to follow to successfully take advantage of FBA’s services. Failure to comply with these standards can result in a lot of inconvenience and even monetary penalties. Thus, it is important to go through the regulations in detail and ensure that every product meets them down to the most minute detail. Highlight Your Flagship Products Your flagship products are your company’s pride and joy. If they are targeted and promoted properly, they will be the number one earner for your business. Therefore, you should ensure that these crowned items are always in stock. You can also create additional space for them by removing slow-moving products from your inventory. You can also highlight these products on your company’s Amazon page and mention them on other products’ listing pages for increased visibility. Take Advantage of Amazon PPC Amazon PPC stands for Pay-Per-Click and is Amazon’s advertisement program. If retailers choose to opt for PPC, they will be able to run sponsored ad campaigns that will highlight any item that they choose. It is an invaluable tool to help your products stand out and gain additional visibility, especially in the hyper-competitive environment known as Amazon. Payments are imposed based on clicks rather than impressions, enabling you to win big if you have set up the ad just right. 5 Drawbacks of FBA To Assess the Question “Is FBA Profitable?” Heightened Fulfillment Expenditures Since Amazon FBA takes care of every fulfillment procedure, you will have to pay for the privilege. This includes tasks such as order processing, picking, packaging, dispatch, shipping and last-mile delivery. All these procedures together can add up, especially when Amazon imposes its own premiums on each one. Thus, for retailers on a tight budget, Amazon FBA is probably not the right option. Increased Storage Costs Inventory storage is a must for every eCommerce seller, as many companies do not have their own physical stores or offices where they can store their products. Instead, most companies rely solely on warehouses and fulfillment centers, which are provided by Amazon FBA. However, storage costs are some of the most expensive in the industry and once you opt for a certain amount of storage, you cannot instantly upgrade or downgrade your plan if you need to, adding to the increased costs. Presence of Supplementary Fees FBA is notorious for having multiple hidden costs that only plague retailers once they have actually subscribed to the service. In addition to conventional fees for fulfillment and storage, there are multiple other fees that are suddenly imposed without the discretion of retailers and if they want to continue to use Amazon FBA services, they have no other choice but to pay them. Some of these fees include referral fees, closing fees, label printing fees and more. Additionally, these fees can increase or decrease based on a variety of external factors not within the control of either sellers or Amazon. Loss of Input Due to Amazon aiming to provide a highly standardised experience for every FBA service, retailers lose most of their ability to provide their own inputs as to the way certain services and procedures are conducted. Additionally, the disputed cases of damaged or returned items, Amazon usually sides with its customers rather than its sellers, which can cause a lot of damage to smaller firms relying on thin profit margins. Reduced Flexibility Similar to the above point, sellers cannot implement any changes they desire. Everything, down to the packaging and unboxing experience a customer will have, is centred around Amazon itself and not the company the item was purchased from. Additionally, there are very few customization options and aspects that are within the seller’s control, so it can be a pretty unyielding experience. Is FBA Profitable? 5 Benefits of Using Amazon FBA in 2023 Increased Visibility Source Because FBA indicates fulfillment speeds by providing Prime badges on your listing pages, there will be increased trust and visibility amongst potential customers. Customers are often sceptical to purchase from retailers that don’t provide fast shipping or other features. Having the Prime badge next to all your product listings will instantly inspire them to purchase from your store more than if you didn’t have them, thus generating more sales. Ultra-Fast Delivery Source FBA set the now widely-used industry standard when it revolutionised order fulfillment with same-day and next-day delivery. It was so popular that in recent times, customers view it as a necessity rather than an added convenience. Through Amazon FBA, you can provide seamless same-day and next-day delivery options for every order, with the added bonus of having Prime badges displayed next to all product listings. Prime Label Source We have already spoken about the benefits of having a Prime badge next to your product listings but they cannot be stated enough. They act as an instant verification that orders will be handled and shipped within a certain time directly by Amazon. It is akin to having your order with you as soon as you purchase it because you know that it will be dispatched and shipped instantly, and given much higher priority compared to regular orders. Inventory Storage Source Amazon stores all of its FBA inventory in its own, officially run warehouses. Customers can be assured that all procedures relating to order fulfillment are handled directly by Amazon and not by any external service. Additionally, the warehouses are highly stacked with the latest technology and automation. Amazon handles processes like processing, picking, packing, dispatching, and shipping of all FBA orders. Customer Service Source Being one of the largest eCommerce firms has multiple perks for sellers that use Amazon FBA and customer service is one of them. Amazon offers some of the best customer care facilities in the industry, with highly trained personnel offering quick resolutions at every hour of the day. This will instantly make sure that your customers always have the best assistance when it comes to any query or issue. Conclusion: Why WareIQ is the Best Alternative to FBA in 2023 if FBA is not Profitable for Your Business? Amazon FBA is revered amongst many Amazon sellers that insist it has contributed to the success and efficiency of their companies but is FBA profitable? The answer can vary from seller to seller based on the industry they operate in, the types of products they sell, their business model, manufacturing costs, proximity to their customers and much more. However, Amazon FBA is widely heralded as one of the more expensive options in the fulfillment industry. This, coupled with its lack of flexibility, rigid regulations and harsh sentences for retailers that make minor errors make looking at an external fulfillment option worthwhile. They provide all the same features, more value-added services, and offer cost-effective pricing. If you need assistance with fulfilling your online orders, WareIQ can be the right solution for you. Also, you can read about how to create an effective amazon pricing strategy here. WareIQ is an eCommerce fulfillment company that was founded in 2019 and is currently based in Bangalore, Karnataka. The company provides a variety of eCommerce services, including product storage, inventory management, marketplace integrations, an in-house WMS, shipping aggregation, last-mile delivery and much more. A few features we provide that make us one of the best options to fulfill online orders are listed below: An India-encompassing on-demand fulfillment center and dark store networkA custom WMSIntegrations with 20-plus online marketplaces, including AmazonUltra-fast deliveryA partnership with multiple shipping carriersFBA preparation servicesHigher inventory turnover as a common inventory pool for sales through multiple channelsDedicated support to centrally manage returns claim management across marketplacesAvailability of inventory planning & optimization for higher product availability, and lower inventory holding costReady access to marketplace benefits such as Prime tagPick and pack servicesCustom appsAccess to Amazon’s first-party 24/7 customer serviceReturns management Is FBA Profitable?: FAQs When did Amazon introduce FBA in India?Globally, Amazon has offered FBA since 2006. However, the company only entered the Indian market in 2013 and FBA was offered straight away. What profit margins can sellers expect while utilising FBA?A profitability margin between 16% and 50% is power for the course by 52% of Amazon merchants. The majority of new Amazon FBA sellers can anticipate having a 10% profit margin. What are the various charges associated with FBA?The main fees imposed by Amazon for FBA are:- Inventory storage fees- Order handling fees- Distribution fees Can FBA be used to fulfill orders on other platforms?Yes, in theory, FBA can be used to fulfill orders on other platforms. However, the selection is extremely limited and does not have the same functionality as it does on Amazon itself. Can you fulfill Amazon orders with WareIQ?Yes, WareIQ enables you to integrate directly with Amazon and more than 20 other online marketplaces so you can import your existing data and have access to all your important order and inventory information in one digital location.

December 09, 2022

How to Sell on Amazon Without FBA? A Detailed Guide for Online Sellers in 2023

Amazon is the world’s largest eCommerce marketplace and has pioneered many of the technology and services most retailers and customers utilize and take for granted today, such as ultra-fast delivery, indicators that showcase delivery timelines, and much more. While registering to sell on Amazon is one of the main priorities of most online sellers, due to the instant visibility and brand recognition associated with it, not all vendors want to use Amazon’s in-house fulfillment solution - Amazon FBA - to deliver orders to customers. While there are many reasons for this, which we will touch on below, Amazon does provide the option to fulfill orders either by yourself or with the help of a 3PL fulfillment company. Due to the market being inundated with aspiring companies that seek to assist sellers with fulfilling their online orders, identifying and partnering with a 3PL company that closely resembles your goals and values is not a hard task. In this blog, we will touch on what Amazon FBA is, why sellers may not want to make use of it, what the available alternatives are, and a step-by-step run-through of how you can sell on Amazon without FBA. Introduction to Amazon and FBA (Fulfillment by Amazon) Amazon is a global eCommerce marketplace founded in 1994 in Belleview, Washington and is currently headquartered in nearby Seattle, Washington. Having emerged as the largest eCommerce company in the world, Amazon developed much of the technology and many of the online selling patterns that are now commonplace in the eCommerce industry. Although the business began eCommerce operations during the early 1990s internet boom, Fulfillment by Amazon (FBA), its first-party fulfillment service, wasn't offered until 2006. When Amazon first entered the Indian eCommerce sector in 2013, FBA was honed and developed a reputation for providing outstanding customer care among both sellers and consumers. But not everything is as perfect as it appears to be. Retailers are subject to frequent inspection if they are unable to adhere to all of the extremely stringent regulations and guidelines and must pay a comparatively high charge to use FBA services. Retailers who value flexibility and freedom, as well as those with the means to fulfill orders independently or through a 3PL fulfillment partner, a move that Amazon gives its sellers the possibility of doing through its Fulfillment by Merchant (FBM) service. [contactus_uth] 5 Key Deterrents to Online Retailers Using Amazon FBA in 2023 Lowered Control Over Inventory Management Due to Amazon imposing fines on merchandise that surpasses its storage timeline, sellers that store their products in FBA warehouses frequently struggle to add or remove items from their own assigned holding area. Because of FBA's rigorous storage regulations, retailers are less able to accurately predict the amount of inventory they will need over a specific time period and modify their stock levels in response to changing demand. Requirement for More Cost-Effective Pricing FBA has numerous useful capabilities but it commands a price that many merchants find prohibitive, especially smaller, more localized businesses that are already battling to retain their profit margins. It is also relatively pricey in comparison to industry standards, making it simple for sellers to identify significantly less expensive alternatives, which would be helpful if they just needed to employ the use of a few fulfillment solutions. Reduced Branding Capacity A bespoke branding experience is one of the primary ways businesses can leave an impact on their customers, in addition to the initial publicity they receive while ordering a product. However, customers will only see Amazon's logo while unboxing their products if they choose to work with FBA to fulfill your products. This allows Amazon to promote its own brand more effectively than that of its selling partners. It would be suitable to sell on Amazon without FBA if you wish to be in charge of your own packaging and highlight your own brand rather than Amazon's. Exposure to Rigid Policies Sellers are encouraged to conform to some of the most stringent SKU preparation prerequisites in the sector while using FBA. Retailers can be penalised for breaking any of the outlined rules. While it is Amazon's responsibility to regularise the delivery services offered by all sellers, standards like the Amazon Standard Identification Number System (ASIN), which requires that each product be given a separate label and be divided into multiple pallets, can lead to confusion and sharp price increases because multiple shipments require more storage space and transportation infrastructure than a single one does. Access to External Fulfillment Companies Amazon offers merchants the choice of FBM, which enables them to either complete orders independently or through a 3PL fulfillment business. Because their needs for order fulfillment are already being met by their 3PL partners, they are not required to pay additional costs to use FBA services. Due to the intense competition, these fulfillment providers encounter from other competitors, they typically offer greater facilities and flexibility than FBM, while also imposing significantly lower prices and providing more advanced technological facilities. Suggested Read: Is FBA Profitable? What are the Available Alternatives if You Want to Sell on Amazon Without FBA in 2023? Fulfillment by Merchant (FBM) A retailer can fulfill orders through Fulfillment by Merchant, which is a type of direct fulfillment option that gives retailers the chance to fulfill orders entirely on their own or through a 3PL logistics provider of their choosing. Direct fulfillment does not make use of the fulfillment services offered by the online shopping sites where sellers sell their products, such as Amazon. To give sellers more flexibility and a variety of options, Amazon’s FBM platform can be a good way to sell on Amazon without FBA. Generally, most 3PL companies offer a similar range of services as FBA, without the rigidity and red tape that make it a hassle at times. Seller Fulfilled Prime (SFP) With the use of Amazon's Seller Fulfilled Prime fulfillment option, sellers can choose to fill orders from their own warehouses and by using their own fulfillment processes. As an Amazon seller, SFP enables you to enjoy the sales advantages of having the Prime badge on your listing even if you choose to fulfill your own products, whether to maintain total control over the fulfillment and storage of your Amazon products or to avoid paying Amazon FBA and storage fees. If you choose to sell on Amazon without FBA, SFP enables you to fulfill all of your orders with quick, two-day delivery at no additional cost to the customer. Easy Ship The delivery service that Amazon provides to its sellers is called Easy Ship. eCommerce businesses can utilise Easy Ship to take care of processing Amazon orders as well as storing products in their own warehouses or by renting one. The customer's order is then picked up and delivered by an Amazon delivery executive. Additionally, Amazon handles customer service and returns for these orders. Amazon takes care of delivering orders from your warehouse to the customer. On the other hand, finding a warehouse for eCommerce retailers to keep merchandise could be challenging because it comes with additional effort and costs. Additionally, you must pick and pack orders in accordance with Amazon's strict regulations because failing to do so could result in penalties. Step-by-Step Guide to Using Amazon FBM Instead of Amazon FBA to Fulfill Orders Step 1: Choose an FBM Selling Model Source On FBM, Amazon provides two different selling plans: Individual: Every item you sell under the individual selling plan will be subject to a $0.99 share towards Amazon.Professional: For the professional selling plan, there is a recurring monthly fee that costs $39.99. Step 2: Create a Seller Account on Amazon Source Visit sell.amazon.com, select "Sign Up," and fill out the required fields with your contact information. The following list contains the details you need to create your Amazon seller account: Name of your companyCredit card informationAddress, phone number, website link (if applicable) and other contact details of your companyPAN and Aadhar card detailsBank account information for transferring sales revenueTax information Step 3: Upload Your Item Listings Source If you don't yet have the ideal commodity before you, undertake some market and product research to find lucrative products and the main demographic you can market to. You can also start directly listing your already-sellable goods on your company's Amazon channel. Use Seller Central's "Add Product" option to enter the product's details, including its title, description, keywords, images, videos, and SKU number, so that it can be traced along the supply chain and at the warehouse. Additionally, you must state that you use FBM on each and every one of your product listings. Step 4: Draw in Potential Clients Source The moment your item listings are active, you can work to increase the visibility of your products. Here are a few quick methods you can use to accomplish this: Offering Ultra-Fast Order Delivery: A merchant will be designated as seller-filled prime and display a logo on the appropriate product listing if they can deliver orders within two days. Customers' faith in the delivery process will grow as a result.Employing Sensible Pricing: Amazon offers a variety of pricing tools to assist merchants in determining the optimum price for their goods. Keep in mind that Amazon wants you to sell as many things as you can to benefit both of your accounts.Using Marketplace Promotions: Amazon gives merchants the choice to boost their product exposure through ad campaigns and sponsored product programs for a set charge. Step 5: Select Your Order Fulfillment Option Source If you've chosen FBM, you can pick between 2 order fulfillment options: In-House Fulfillment: With the help of this method, you can get all the order information directly from Amazon. After that, you must utilise your own internal picking, packaging and shipping processes to fulfill the customer's order while also making sure to include order tracking information.Outsourced Fulfillment: Order fulfillment through your chosen 3PL business is referred to as outsourced fulfillment services. They can access your Amazon order information if they have a WMS and can handle crucial tasks like storing SKUs and picking, packing, and shipping an order after it is verified. However, you should ask your chosen fulfillment partner for more information because only a select few businesses provide order-tracking capabilities on every parcel. Conclusion: Why You Should Consider WareIQ to Fulfill Amazon Orders Without FBA? Amazon has been responsible for many advances in eCommerce that have benefited retailers, customers, and other selling platforms. The widespread use of services originally introduced by Amazon is a testament to the company’s forward-thinking that was truly ahead of its time. However, the same cannot be said about Amazon FBA due to the increased amount of sellers that perceive it as inflexible and expensive. For many small and medium-sized sellers, the high costs, rigid regulations and frustrating penalties are too big a factor to be ignored and in many cases, can become deal breakers. Fortunately, the company does provide a couple of other fulfillment options that its sellers can take advantage of, so there is a respite for retailers that do not want to get entrenched in the Amazon ecosystem. If you need a fulfillment company that can enable you to seamlessly fulfill Amazon orders, among many other functions, WareIQ can be the perfect option for you. WareIQ is an eCommerce fulfillment company that was started in 2019 in Bangalore, Karnataka. One of our core differentiating factors from other providers is our comprehensive use of technology to take on most eCommerce requirements. Whether it is regarding warehouse automation to providing multiple marketplace integrations and everything in between, WareIQ’s platform is designed to make your life easier and offload strenuous fulfillment and distribution tasks over to us. We also provide various preparatory services for FBA and Seller Fulfilled Prime. Some of the reasons to partner with WareIQ to sell on Amazon without FBA are listed below: Seller Fulfilled Prime (SFP) Enablement Using Smart Technology: Utilizing smart technology, we can automatically map SKUs across different sales channels and bundle product combinations thanks to our API integrations, so you can update your item listings without worrying about eCommerce order tracking, fulfillment, and inventory levels.Avoiding Paying High Storage Fees: If your products aren't moving as quickly as you'd like, you don't have to stress about being charged long-term storage fees because of WareIQ's lack of storage penalties, unlike Amazon FBA.Taking Advantage of Using Amazon’s 24/7 Customer Support: SFP clients using WareIQ’s services will receive the same top-notch level of customer service that Amazon provides to all of its customers.Removing the Need to Split Shipments: You will no longer be required to pay a per-item fee for inventory placement services to guarantee that shipments go solely to one fulfillment center or pay to spread inventory among three fulfillment centers. Fulfillment by Amazon (FBA) Prep Services Pick and Pack: We have the capacity to fulfill 1 to 10,000+ orders per day using WareIQ's automated order fulfillment system, which guarantees effective and accurate picking and packing services. Additionally, you only pay for what you actually use so you will only be charged for 1 item if you send just 1 item in a given month.Amazon Product Compliance: Inventory could be refused, disposed of, or returned if Amazon-product preparation requirements are not followed and there may also be monetary penalties initiated for noncompliance. To avoid this, you can take advantage of WareIQ’s FBA preparation facilities so all your goods will comply with all Amazon regulations, from repacking to labelling.Hub and Spoke Transport: This method of streamlining the supply chain and lowering costs from the point of origin to the point of sale is advantageous. Our most typical arrangement involves bringing merchandise into our warehouse, relabeling it and then reorganising it for transportation to a variety of locations. We can also handle consolidations and deconsolidations to benefit from shipping discounts and make shipping generally simpler. Sell on Amazon Without FBA: FAQs What are the benefits of selling on Amazon without FBA?There are numerous benefits of selling on Amazon without FBA. Some of them are listed below:- Cheaper prices- More expansive distribution networks- More delivery options- Increased flexibility- Enhanced facilities What does Amazon charge for FBA?Amazon imposes various charges for using FBA based mainly on product categories in addition to storage capacity, shipment volumes and more. What is Amazon FBA preparation?Amazon FBA preparation is all the procedures that sellers need to follow in order to get their goods ready to be fulfilled by FBA. This includes the various regulations and requirements that are highlighted by Amazon. Any seller that fails to comply with the rules risks not having their products delivered. Can you use FBA to fulfill orders on other platforms?Yes, FBA can be utilised to fulfill orders on a select range of eCommerce platforms. Can you use WareIQ to fulfill Amazon orders?Yes, not only can you use WareIQ to fulfill Amazon orders but our custom WMS integrates directly with Amazon so you can consolidate, track and analyse all your order and inventory data.

November 30, 2022

Outsourced Fulfilment Guide: Benefits of Moving Away From Self-Fulfillment and Outsourcing Fulfilment Services To a 3PL Company in 2023

Operations related to fulfillment and logistics are among the most crucial and challenging aspects of running an online store. eCommerce businesses today face an even greater requirement to manage the fulfillment and shipping operations due to the increased complexity and mounting pressure to meet consumer expectations. Businesses frequently contract third-party logistics companies to fulfill orders (3PL). These businesses are also known as 3PL fulfillment services providers. Such businesses offer various services, including order fulfillment, inventory storage, processing, and product delivery. This frees up businesses from the concern of handling shipments and managing inventory. One method to ensure this crucial procedure runs smoothly and avoid the associated expensive blunders is outsourcing fulfillment services to a third-party logistics (3PL) company. This article overviews outsourcing fulfillment services, explains the benefits of outsourcing fulfilment services to 3PL providers, and how you can grow your business by outsourcing fulfillment services to 3PL service providers, such as WareIQ, and gain shipping expertise to streamline this crucial aspect of operating an online store. What are Outsourced Order Fulfillment Services? Outsourced order fulfillment services are services a third party provides to handle specific aspects of the order fulfillment procedure, such as inventory storage, item packaging, or order delivery to clients. In addition, other services like inventory management, kitting, reverse logistics services, and many others can be obtained by outsourcing fulfillment services to 3PL providers, depending on your order fulfilment requirements and the 3PL you choose to deal with. You must first sign a contract with a third-party logistics service provider (3PL), who will store your products for you in return for a monthly fee based on how much space they take up in their warehouse to keep them. Then you combine your eCommerce business with its inventory management system to help streamline the entire fulfilment process. When a consumer orders a product from your store, your 3PL partners get the order information to process and get it ready for eCommerce shipping. Source How Do 3PL Fulfilment Providers Operate? The order fulfilment process consists of five essential components. But first, let's examine what it is like outsourcing fulfillment services to a 3PL company. Product Receiving and Storage in Fulfillment Centers You can ship everything to your fulfillment service provider if you currently have goods on hand. After that, the manufacturer will send all upcoming inventory purchases directly to the fulfilment business. Usually, for the fulfilment company to get the items, you would provide them with your purchase order or the order confirmation from your supplier. Sorting The Received Stock Your order fulfillment service will oversee the entire inventory process after everything is set up. Receiving goods, organizing them, and storing them appropriately all fall under this category. Before transferring the goods for sorting and storage, the provider's representatives check them for damaged or missing materials. In addition, SKU numbers and barcode labels are frequently used to keep track of inventory location and levels. To ensure you maintain adequate inventory levels, inventory tracking also allows monitoring sales volumes and other information. Picking and Packaging Your products are prepared for order processing once they have been stored. Every time a consumer puts in an order, the fulfilment provider receives it and takes care of picking and packing. By integrating your POS system, order management programme, or eCommerce platform with the system of the fulfilment provider, order processing can be efficiently controlled. Processing Shipping of Orders Your customers are placing orders; the fulfillment business must now choose, pack, and ship them. They'll ensure the right things are picked and packaged securely for shipping. Your orders will arrive on time and in good shape thanks to the fulfilment company's sealing of boxes, order weighting, and box labeling services, which will reduce the number of return requests. Additionally, if your fulfilment supplier receives bulk discounts they pass along, you can benefit from lower shipping expenses. Customer Returns and Customer Support There will inevitably be clients who wish to return anything in retail. The customer must order the product from the fulfillment company for refunds. Following receipt, they will examine the package and decide whether to grant a refund. You may then choose how you want the objects handled after that. For instance, by adding it back to your inventory, you may put it on sale. Source Additional Fulfilment Solutions The majority of fulfilment companies provide the services above; however, others go a step further by providing further services like: Inventory managementCustomer serviceProduct insurance 7 Early Signs When You Should Start Outsourcing Fulfillment Services to a 3PL Service Provider Once your eCommerce firm has grown, you will need to be outsourcing fulfilment services. The question is, when should you start outsourcing fulfillment services to a 3PL service provider? Delivery Performance Is Declining First and foremost, it's time for outsourcing fulfillment services if your delivery standards are declining. Following a bad delivery experience, 56% of customers will only revisit your store. You must take outsourcing fulfilment services into account if the rise in your order volume is causing deliveries to be made late or incorrectly. Whether it's a gradual increase as your business grows or a seasonal surge because of the products you sell, outsourced fulfilment companies have the knowledge, resources, and personnel to handle an increase in orders. As a result, you are ensured flawless deliveries each time, keeping clients satisfied and devoted. High Cart Abandonment Rates Logistics is one of the main reasons why shopping carts are abandoned. However, a 3PL fulfillment service provider can stop your customers from departing because of slow delivery times and pricey shipping options by: Enabling a range of delivery cost and speed combinations; Allowing you to participate in programmes like Amazon Prime and Walmart Free 2-Day Shipping, which will enable you to satisfy clients who pay for rapid shipping subscriptions; Creating cost savings in shipping that can be applied to paying for the costs of free shipment. Your In-House Fulfilment Expenditures Are High Since the goal of operating an eCommerce business is to turn a profit, cost-cutting measures should always be considered. Your warehouse, personnel, shipping, and custom packaging costs increase along with the growth of your marketplace, inventory, and marketing fees. You can generate more revenue by outsourcing fulfillment services to 3PL service providers; delivering your goods as quickly and inexpensively as possible is a speciality of outsourced fulfillment companies, which can save you money on shipping immediately. Additionally, you'll pay less for employees, packaging supplies, and warehouse space. You Wish To Expand Your Business Ensure your fulfillment procedures are prepared for expansion if your online store is. In-house fulfilment might draw you away from these crucial jobs, incredibly when you're fulfilling more orders. In addition, managing numerous sales channels, more significant order amounts, and additional marketing activities takes time. By collaborating with a 3PL provider and outsourcing fulfillment services, you can free up more time for your business expansion objectives and eliminate the stress and time-consuming tasks associated with fulfilment. This means that when you are outsourcing fulfillment services to a fulfillment service provider, they will take care of all the operations, helping you to grow your business. You Lack Fulfilment and Shipping Knowledge You didn't establish an eCommerce business because you are an expert in fulfilment; instead, you did it because you identified a market niche, have strong selling skills, or are intimately familiar with your products. By outsourcing fulfillment services, businesses can have the expertise necessary to store, choose, and transport products most quickly and economically possible. However, while this knowledge is advantageous to your company, it can take time to acquire. You Seek To Be Qualified As Gold Seller Through emphasized fast shipping tags, preferred organic search ranking, and buy box eligibility, fast shipping programs help small business owners. Use a fulfillment service that ensures eligibility for Amazon Gold Seller and other fast shipping programs if you need help to meet the requirements for these programs internally. Fulfillment and Shipping Seems Exhausting Tasks It's time for outsourcing fulfillment services if your day consists of packaging goods, printing shipping labels, and chit-chatting with the delivery person. We've even heard tales from vendors whose partners had threatened to leave them; although uncommon, it has happened and should be avoided. By employing a small company fulfilment service to manage your shipping while you devote your focus and time to expanding your business, you can start working on it rather than just running it. 5 Benefits Of Outsourced Fulfillment Over In-House Fulfilment in 2023 Scalability is frequently the secret to a business's success. Therefore, it is crucial to satisfy growing demands without compromising quality or efficiency. B2C and D2C businesses, but particularly small ones, can expand their operations by partnering with a third-party logistics (3PL) provider to overcome operations limitations to a certain extent. For medium to large business holders, 3PL providers offer the tools and knowledge required to support organizations in increasing their capacity for sales and clientele. Your business firm can grow to the size necessary to compete in the expanding market by collaborating with third-party logistics. Outsourced order fulfillment services are becoming increasingly popular, especially among medium and larger enterprises, for several reasons listed below. Rapid Business Growth Businesses frequently hire 3PLs to fulfil orders because they need more in-house space or staff to handle the essential duties. However, a lack of internal resources (or the money to invest in them) might impede small business growth. So instead, they can grow their operations by concentrating on marketing, product development, and other activities crucial to a company's success by outsourcing fulfillment services. Reduce Expenses and Save Money When outsourcing fulfillment services, businesses can also save money. When you start outsourcing fulfillment services, you don't need to hire full-time employees, buy or rent warehouse space, or buy equipment to support order fulfilment operations. Instead, you pay a tiny fraction of the price to a supplier with the necessary infrastructure and partners to handle everything on your behalf. You can cut costs on supplies and transportation by using 3PLs and fulfilment companies. Because of the increased volume they handle, they probably qualify for bulk packaging and postal discounts. Smaller businesses that run these operations internally deal with lower volumes, which may not be eligible for volume discounts. Obtain An Edge Over Competitors You can gain a competitive edge even when up against significant competitors because you can expand your firm without investing a fortune in logistics and warehouses. For instance, reducing prices might enable smaller businesses to compete by providing consumers benefits like free delivery, two-day shipping, hassle-free returns, and other benefits. However, these benefits are difficult to implement for smaller enterprises that handle fulfillment in-house due to high prices or the amount of staff needed to fulfill orders quickly. Obtain Fulfilment Expertise While you can claim industry expertise, logistics, and order fulfilment may only sometimes fall under that scope. Businesses may take advantage of a crew skilled in all the areas necessary to keep their order processing running smoothly by working with third-party logistics providers. Expand Easily and Effectively It will be simpler for a company to adjust to market changes and seasonal demand if it can scale up and down as necessary. Therefore, utilizing fulfillment services and the adaptability and scalability that accompany them helps businesses grow and penetrate new markets. For instance, a company that wants to expand its operations to another area would need to rent warehouse space, make equipment purchases, and hire personnel to manage the facility. In contrast, a business that uses outsourced fulfilment can grow into a new location without spending money on equipment and warehouse space by locating a fulfillment service provider that provides the infrastructure and services required in the target area. Why Should You Not Outsource Order Fulfillment? Outsourcing fulfillment services can provide many benefits to a business, but there are also some potential drawbacks that should be considered. We have listed them here: Loss of control: When you outsource fulfillment, you give control over a critical aspect of your business to a third-party provider. This can lead to a loss of visibility and control over the process and may impact your ability to provide high-quality customer service.Dependency on a third-party: Your business becomes dependent on the 3PL provider to handle fulfillment accurately and efficiently. If the 3PL provider fails to perform, it can impact your reputation and customer satisfaction.Cost: Outsourcing fulfillment services can be expensive, especially if you require a large number of services or have a large volume of orders. The cost may outweigh the benefits, especially for small businesses.Data security: Sharing sensitive data, such as customer information, with a third-party provider can pose a security risk. Make sure the 3PL provider has strong security measures in place to protect your data.Integration issues: Integrating your systems with the 3PL provider's systems can be challenging and may require significant investment in technology and resources.Quality control: Quality control can be difficult to maintain when outsourcing fulfillment, as the 3PL provider may have different processes and standards. How to Choose the Right 3PL to Outsource Fulfillment? Choosing the right 3PL provider to outsource your fulfillment services can be a critical decision for your business. Here are some factors you should consider when making this decision: Services offered: Determine what services you need, such as order fulfillment, warehousing, distribution, returns management, etc., and choose a 3PL provider that offers those services.Location: Consider the location of the 3PL provider and its proximity to your customers and suppliers. This will impact shipping times and costs.Scalability: Make sure the 3PL provider can accommodate the growth of your business and increase or decrease their services as needed.Technology: Look for a 3PL provider that uses advanced technology and has integrated systems that can handle your fulfillment needs and provide real-time tracking and reporting.Reputation: Research the reputation of the 3PL provider and look for references and testimonials from their current clients.Cost: Consider the cost of the 3PL services and compare them to the cost of handling fulfillment in-house. Make sure the cost of outsourcing is justified by the benefits you receive.Communication and transparency: Good communication and transparency are key to a successful partnership with a 3PL provider. Look for a provider that is responsive and easy to work with and that provides regular updates on the status of your orders. Conclusion Finding the ideal 3PL as a fulfilment partner is one of many crucial considerations you will need to make to secure the long-term success of your company if you are thinking about outsourcing fulfillment services. The perfect 3PL partner will effectively support your company's expansion, act as an extension of your staff, assist you in navigating the logistics and supply chain complexity, and ultimately keep your customers pleased by getting their orders delivered promptly and precisely. Why Should You Outsource Fulfillment for eCommerce to WareIQ in 2023? Benefits Of Outsourcing Fulfilment Services To WareIQ As a technologically advanced 3PL, WareIQ uses its software throughout its fulfillment network to give customers real-time information on inventory levels and orders as they are chosen, packed, shipped, and delivered. Your inventory is stored at our warehouses, where the product is picked, packed, and dispatched. By contracting with WareIQ to handle your fulfillment needs, you may cut costs and time while maximizing customer satisfaction by exceeding their expectations throughout delivery. By outsourcing fulfillment services to WareIQ, a seasoned fulfilment partner, you can strategically execute inventory distribution across our locations to deliver your products faster and economically. Keeping inventory close to your customers helps reduce the shipping costs associated with shipping orders to far-off destinations. In addition, you can offer same-day or next-day express shipping options whether you ship from a single fulfillment center or a number of them. WareIQ delivers data and analytics to assist you with everything from real-time reporting to better supply chain decision-making. We do this to give you visibility into our operations and performance and to hold ourselves accountable. We provide essential information such as which FC you should stock, how long you have before running out of inventory, how promotions affect stock levels, the average cart value, shipping costs, and transit times for each shipping option, as well as your fulfillment costs per order and storage costs per unit. [signup] Outsourcing Fulfillment Services: FAQs (Frequently Asked Questions) What is the meaning of outsourced fulfillment?Employing a third party and outsourcing fulfillment services, such as inventory storage, item packaging, and order shipment, is known as outsourced order fulfilment. Why should I outsource fulfillment services to 3PL providers instead of in-house fulfillment in 2023?Using a 3PL provider to outsource fulfilment and logistics services can result in cost savings, give you access to cutting-edge logistics technology, and boost scalability, flexibility, and customer happiness. What is the difference between 3PL and fulfillment?3PL (Third-Party Logistics) and fulfillment are two different concepts, but they are closely related and often used interchangeably.3PL refers to a company that provides a variety of outsourcing logistics services, such as transportation, warehousing, and distribution, to businesses. The aim of 3PL is to help companies reduce the cost and complexity of managing their supply chain, so they can focus on their core competencies.On the contrary, fulfillment refers to the process of receiving, storing, packing, and shipping orders to customers on behalf of a company. Fulfillment services can be provided by a company's internal logistics department or outsourced to a third-party provider, such as a 3PL.The crux is a 3PL encompasses a wide range of logistics services, including fulfillment. So, a 3PL provider can offer fulfillment services as part of its overall offering, but not all fulfillment providers are 3PLs. Which is the best 3PL for outsourcing fulfillment services? The Best 3PL in terms of services and affordability has to be WareIQ. WareIQ is one of the eCommerce 3PL fulfillment companies that have partnerships with all the national & hyperlocal courier & shipping companies in India for offering same & next-day delivery to e-commerce & D2C brands. What characteristics should I check before outsourcing fulfillment services?8 criteria to consider when selecting a fulfillment company-1. Speed of shipping.2. Where the fulfillment warehouses are.3. Software for order fulfilment features.4. Visibility and transparency.5. Packing preferences.6. Management of Returns.7. Costs. How WareIQ helps in expanding your business reach with nationwide spread fulfillment centres? There are many benefits of outsourcing fulfilment services to WareIQ. As a tech-driven fulfilment partner, WareIQ helps brands of all sizes deliver excellent customer service across channels. WareIQ centralizes logistics operations to exceed customer expectations and offers integrated solutions for order fulfillment, inventory management, and speedy shipping.A strong fulfillment network, technological solution, interfaces with virtual eCommerce platforms, marketplaces, sales and social media channels, and even B2B fulfilling capabilities contribute to WareIQ's ability to manage omnichannel fulfilment.Managing products, orders, customers, and shipping across all sales channels is easy. Even better, WareIQ offers same-day delivery through WareIQ Rush, which helps reduce cart abandonment and increases sales for transactions made directly with customers.

November 28, 2022

What is Return To Origin and Non-Delivery Report in eCommerce? Top Reasons For NDR in eCommerce and How To Reduce RTO With NDR Follow-Ups in 2023

The eCommerce sector has experienced tremendous growth recently, particularly in D2C businesses, because they have fundamentally altered the interaction between consumers and brands. The secure and prompt delivery of the merchandise inventory is the key priority of an eCommerce vendor. Unfortunately, however, delivery delays happen frequently. Occurrences include stopped shipments, delayed deliveries, incomplete addresses, customers unable to pay the COD amount, inaccurate addresses, or even customers who refuse to accept the delivery for their particular reason. Customers' worries may grow as a result. In e-commerce, return shipments can account for up to 20% of all shipments, according to a recent KPMG study. For orders that are paid in cash on delivery (COD), this cost increases to 40%. Even the most successful companies encounter many delivery exceptions each month. These delivery outliers may appear insignificant, but they can quickly snowball into missed deliveries and subsequent losses. There is a considerable likelihood that a delivery error will become a Non-Delivery Report in eCommerce and then an RTO. As a result, your company is left to suffer the weight of a loss that was mostly preventable. You might wonder how it might be avoided. Through management and strategic planning, as with everything in business. In more detail, let's examine the cause-and-effect cycle that delivery exceptions cause and its many attributes. What Do The Terms Return to Origin (RTO) and (NDR) Non-Delivery Report in eCommerce Shipping Mean? In e-commerce, a non-delivery report (NDR) is a notification that is sent when a delivery attempt for an email message has failed. This can occur for a variety of reasons, such as the recipient's email address being invalid or the email server being temporarily unavailable. When an NDR is generated, it is typically sent back to the sender of the original email message with details about the failure. This can help the sender to understand why the message was not delivered and take steps to resolve the issue. For example, the sender may need to update their email list to remove invalid addresses or retry sending the message at a later time. In the context of e-commerce, NDRs can be important for a variety of reasons. For example, if a customer has not received a confirmation email or shipping notification, they may contact the retailer to ask about the status of their order. If the retailer receives an NDR for the email they sent to the customer, they may need to take additional steps to ensure that the message is delivered or to communicate with the customer through an alternative means. To ensure successful delivery, the courier makes several efforts to deliver the package. First, orders are given the RTO status, which stands for Return to Origin, if they are canceled or after numerous unsuccessful delivery efforts. The order must now be returned to the original warehouse it was first sent from because, as the term implies, the purchase has effectively been reversed. It can then be reloaded in your inventory and sold once more there. In this last mile of delivery, many potential problems could arise and lead to failure. Incomplete deliveries result in a Return To Origin (RTO). In addition, customers may have a negative impression of your brand, significantly degrading their delivery experience. Because of this, firms should give Non-Delivery Reports in eCommerce much thought when planning their shipping operations. Read Here: How to Address Last-Mile Delivery The WareIQ Way. [contactus_uth] Top 8 Reasons For NDR in eCommerce Which Can Lead to RTO (Return To Origin) in eCommerce in 2023 The RTO and NDR can harm any organization's long-term growth and profitability. You now have a general understanding of how NDR and RTO operate in the eCommerce business. But to truly comprehend how each of them functions, we must understand the causes of the Non-Delivery Report in eCommerce, which might result in RTO of order. These are the principal causes of NDRs: Incomplete Or Incorrect Addresses A buyer can make a mistake when providing the delivery address. For example, a consumer may accidentally or unintentionally enter the wrong delivery address. This could make it difficult for the delivery employee to locate the customer's location, making it harder for them to finish the delivery. Incomplete Or Incorrect Customer Contact Another issue comparable to the above could arise if a customer unintentionally enters the incorrect phone number. Therefore, the delivery employee would only be able to reach the customer if and when they needed directions to the delivery location. As a result, the order would be designated as NDR. Unavailable or Unreachable customers Once the customer has received their order, it is only considered fulfilled. The order can only be fulfilled if the delivery person has any issues locating the delivery location or if the customer is there to accept the delivery when the delivery agent arrives at the customer's location. The order then needs to be fulfilled. To confirm the delivery location, the delivery person will attempt to phone the customer. However, the delivery agent would only be able to finish the delivery if the customer's contact number was reached. Rescheduled Delivery By The Consumer Customers can select a different day and time for delivery if they are present or need help to make payment at a specific time or on the day delivery is supposed to take place. This information should be given to the delivery agent at the delivery time, who would then update it as the basis of the Non-Delivery Report in eCommerce. Customer Refuses Delivery Suppose a customer is dissatisfied with the delivery process or the state of the product upon delivery. In that case, they may exercise their right to reject or refuse an order after making a purchase. This could be more pleasant for eCommerce companies, yet it frequently happens, especially with COD orders. Customers are more inclined to cancel a purchase when payment has not been made. Consumer Unable To Make The Payment With COD purchases, it's common for the customer to require additional time to prepare the delivery payment. As a result, deliveries are commonly late because delivery staff constantly interact with clients to secure the necessary payment. Also, the customer can either cancel their purchase or set an alternative delivery time. This is only possible who opt for cash-on-delivery courier services. Customer's Changing Opinion Customers can change their minds about their purchases, which is only one of the numerous benefits of digital purchasing. They can even do this after the package is delivered, which can frequently happen because customers often need to remember about their purchases until they arrive or receive a call from the delivery person. They could then proceed to cancel the order after declining the delivery in the first place. Falsified Delivery Attempt By The Carrier Agent Fake deliveries are one of the most troublesome Non-Delivery Report in eCommerce that brands come across. In this case, the order is still marked as a failed delivery even though the delivery employee did not attempt to deliver it to the customer's address. They may negatively affect the customer experience if not resolved swiftly and effectively. Suggested Read: Learn in detail about eCommerce Delivery Partners How to Reduce RTO with NDR follow-Ups to Decrease RTOs (%) in eCommerce in 2023? You already understand how damaging NDR and RTO can be to your company's brand and customer experience. Non-Delivery Reports in eCommerce must be handled carefully, with reasons previously indicated, if RTOs are to be avoided. A structured methodology and significant thought must go into handling NDRs. With the help of this procedure, you can handle NDRs autonomously, turning them into successful deliveries rather than RTOs. Implementing a basic system for NDR management follow-ups is required to manage the Non-Delivery Report in eCommerce industry. Determine Various NDR Causes There are many potential causes for an NDR (the most probable of which we've listed above). You may find out the best line of action by looking at these reasons for NDR in eCommerce. You can use it to determine which Non-Delivery Report in eCommerce have a high likelihood of succeeding and which have a high probability of repeatedly failing. Using this, you can handle NDRs accordingly. Encourage Consumer Participation Nothing irritates clients more than keeping their orders secret or needing to learn about order delivery. In addition, they want to ensure that their money has been well spent. You should contact clients based on the reason for a Non-Delivery Report in eCommerce to validate the cause and, more crucially, to gather information for a successful delivery. As a result, customers not only get to supply the necessary information directly, but they also get to feel involved in the delivery process, which can improve the experience. Monitor False Deliveries Delivery personnel who falsely mark an order as an NDR instead of attempting to deliver it are committing a sort of Non-Delivery Report in eCommerce, known as fake deliveries. These have a terrible impact on customer satisfaction and profitability because they increase the likelihood of RTOs. Due to no fault of their own, customers are left waiting for an order that never arrives and dealing with several delivery attempts. Making sure this number is maintained at a minimum can be accomplished by tracking phone deliveries among various carriers. Interact With Carriers A collaborative effort is necessary to ensure that the delivery of the Non-Delivery Report in eCommerce is successful. You must first receive notification of the NDRs from the carriers. Then, you must give the carrier the appropriate information after receiving it from the consumer for delivery. Any indirect communication with carriers or ineffective communication methods could also fail in the subsequent delivery attempt. How Can Technological Innovations Like NDR Management Software Solutions Contribute To Reducing RTOs? Source The four measures mentioned above are critically necessary for the fundamental management of NDRs to lower RTO%. However, you must use more sophisticated and technologically enabled resources if you want to reduce your RTO% as well as your NDR statistics significantly. You need specific features in NDR management solutions to automate the process of NDR management and quickly complete numerous follow-ups. An NDR management software solution is the first thing you need to have tied to your handy logistics toolbelt. Essentially, this system will assist you in automating and streamlining your NDR management workflow. Rapid NDR Updates Carriers are responsible for providing NDR updates, which they usually do in bulk after each business day. This implies that it takes a day to answer. Using an NDR management system with API connectors will ensure you get NDR updates in real time as they happen, which will speed up your response time. NDR Segregation With AI Support We included the various reasons for NDR in eCommerce previously. The easiest way to recognize and classify Non-Delivery Report in eCommerce to choose the most effective approaches to addressing them is through these causes. You should acquire an AI-enabled mechanism from an NDR management system that is set up to track NDRs according to the cause of the delivery failure. Automate Customer Communications The next step is to discuss these concerns with customers after you have sorted and classified various Non-Delivery Report in eCommerce according to their reasons (incorrect address, client unavailability, etc.). When NDR management software is used, clients are automatically contacted with questions about specific issues. These questions will specifically address the reason for the unsuccessful delivery. For instance, if the address is incorrect and an NDR results, a query will be issued asking for the proper address and the closest recognizable landmark. Optimizing Customer Response Time Automating these issue-specific queries can speed up the rate at which customers receive their inquiries and answers. Intelligent NDR management software will send simplified inquiries that ask for precise information, such as a backup contact number or the closest landmark to the delivery location, with multiple-choice or text-fill options. Real-Time Updating Carriers and Follow-Ups After Each Delivery Attempt You need to provide that information to the carrier as soon as you receive a customer response, and in record speed, no less. Only then can the delivery person attempt their subsequent delivery with knowledge. Your clients' responses can be automatically forwarded to carriers using an NDR management system to finish delivery. You must use equivalent caution in those rare cases where delivery reattempts fail despite following the specified Non-Delivery Report in eCommerce processes. Using an NDR management software entails following up with clients via automated conversations to find out why the delivery attempt failed and how it can go smoothly. Analytics-Based NDR Reduction Data gathering and analytics rely heavily on NDR management software. You can keep track of all your Non-Delivery Report in eCommerce over time to see what difficulties you might have overlooked and what issues the data suggests as remedies. You can detect fake deliveries by keeping track of NDRs and their causes. You can then take note of their most frequent occurrences and patterns. Then, with the help of your carrier and eCommerce NDR management software, you can start making deliberate efforts to reduce RTO with NDR follow-ups. Conclusion One challenge that is somewhat particular to Indian eCommerce operations is a high RTO percentage. As a result, brands must utilize data-driven management techniques to address specific problems. An NDR management system skillfully combines technology and logistics expertise to simplify workflow. This procedure prioritizes Non-Delivery Report in eCommerce based on their tendency to be resolved and targets NDRs according to their cause. Establishing a Non-Delivery Report in eCommerce system is fairly straightforward. Address the issues that have readily available solutions initially. Then, acquire data that will assist you in comprehending the more complicated concerns at the same time. Next, automate all predictable processes, then finish. An NDR management system, at its core, enables your company to communicate with customers more efficiently and enhance their post-purchase experience. How Does WareIQ Help Businesses Through Efficient Management of Non-Delivery Report in eCommerce in 2023? For managing Non-Delivery Reports in eCommerce, WareIQ features a reliable 3-step verification method. Verification of Non-Delivery Report in eCommerce by: IVR and SMS CallingWhatsApp Last-mile team manual verification eCommerce & D2C brands may handle Non-Delivery Report in eCommerce effectively by doing the following with WareIQ's Control Tower feature: Utilize our NDR dashboard to monitor eCommerce KPIs like NDR raised, reattempt requested, cancelled, and delivered, among others.Recognize the top 3 reasons for NDR in eCommerce and act right away.Get details for every order and respond to Non-Delivery Report in eCommerce immediately. [signup] NDR Non-Delivery Report in eCommerce FAQs What Does Non-Delivery Report in eCommerce mean?NDR, which stands for Non-Delivery Report in eCommerce, is a well-known acronym for B2B and D2C brands. An eCommerce business receives a notification from a courier service partner alerting them that a specific delivery has failed and providing information about the failed delivery. An order is only considered finished when it has been given to the customer after it has reached the last step of the delivery. How does Return To Origin and Non-Delivery Report in eCommerce operate?When processing a Non-Delivery Report in eCommerce, you must respond with "Reattempt" or "Return to Origin" and the necessary notes once the NDR has been raised. Return to Origin is the term used. An order is returned to the pickup site once the delivery service marks it as undeliverable after repeated tries. How may an NDR management system be set up in B2C and D2C eCommerce brands?Use the following methods to set up a system for Non-Delivery Report in eCommerce:1. React quickly; any delay in getting in touch with clients after the initial delivery attempt multiplies the likelihood of RTO.2. Utilize many channels to communicate with customers in NDRs, including manual and IVRS calls, emails, SMS, and notifications.3. Encourage call centre staff to turn Non-Delivery Report in eCommerce into successful deliveries.4. Choose better courier partners for upcoming orders using NDR data.5. Encourage customers to switch from cash-on-delivery to prepaid orders before delivery efforts are made. How can I reduce RTO in my eCommerce business?To reduce the return to origin (RTO) in your e-commerce business, you can take the following steps:Improve your order fulfillment process: Streamline your order fulfillment process to reduce the time it takes to process and ship orders. This can include automating certain tasks, such as packing and labeling, and using real-time inventory management systems.i) Invest in reliable shipping carriers: Choose shipping carriers that have a track record of delivering packages on time and accurately. Consider using multiple carriers to increase the chances of timely delivery.ii) Communicate with your customers: Keep your customers informed about the status of their orders and any potential delays. This can help reduce the likelihood of returns due to customer dissatisfaction.iii) Offer clear return policies: Make sure your return policies are clear and easy to understand. This can help reduce the number of returns due to misunderstandings or confusion.iv) Consider offering free returns: Offering free returns can make it easier for customers to return items, which can reduce the number of returns overall.v) Use tracking and delivery confirmation: Use tracking and delivery confirmation to ensure that orders are delivered to the correct address and to track any returns that may be made.By taking these steps, you can reduce the RTO in your e-commerce business and improve customer satisfaction.

November 25, 2022

What is a Distribution Partner? A Detailed Guide Including Definition, Types of Services, Challenges Faced, and How a Distribution Company Can Help in 2023

Developing a product, researching the appropriate audience to target, and listing it on your website and other eCommerce marketplaces is only one side of the story that goes towards ensuring that you have a successful online business. Making sure there is enough stock of high-demand products on various selling channels, limiting the number of units of slow-moving products, and ensuring that orders are distributed successfully and securely is the other side. In an effort to generate buzz around a newly launched commodity or create hype for an upcoming one, retailers often neglect the value and reduced effort that an enhanced distribution process can bring. However, this approach could have many negative implications in terms of the relationship and perception customers have of your brand, and if they don’t have a seamless delivery and post-purchase experience, it could severely hamper your chances of getting a repeat purchase from them. One way to avoid this and make sure that all your eCommerce logistics and eCommerce fulfillment services are being carried out properly is to opt for a distribution partner. In this blog, we will help you understand what a distribution partner is when to look for one, what services you should expect from them, and the challenges faced in the distribution industry. What is a Distribution Partner? A distribution partner is a type of company that assists eCommerce sellers with distributing their products, not only to the end customer but also from the factory back to their storage facilities to various physical retail stores and the warehouses of the online selling platforms that they sell on. Additionally, they may also provide additional capabilities, such as marketing and the ability to resell products. You can learn more about the retail distribution process here. The sole purpose of a distribution company is to help retailers get their products to where they need to be according to the situation. In the B2B sector, this would mainly entail transferring products between different warehouses, distribution centers, and physical marketplaces. Conversely, in the B2C sector, this would dictate goods being delivered to their respective customers in a fast and efficient manner. Other services that a distribution company performs include order processing, shipping, and transitory preparation. Distribution partners are aware that most eCommerce sellers don’t relegate themselves to a single platform, so they can often integrate seamlessly with multiple online selling channels and shipping carriers. [contactus_lilgoodness] Under What Circumstances Should You Opt for a Distribution Partner? Need for Cheaper Pricing Plans Not all distribution partners will have the same impact on your wallet. Some companies provide more value-added services to command more of a premium. Similarly, companies that just focus on the basics of getting products from point A to B are often on the cheaper end of the spectrum. However, with the booming growth of eCommerce in the past decade, many distribution companies have, by sheer necessity due to stiff competition, needed to lower their prices, regardless of the services they offer, in order to successfully attract customers and compete in a highly challenging industry. So if you need a way to reduce the current strain on your wallet, partnering with a distribution partner can be the way to go. Demand for More Comprehensive Coverage Virtually all distribution partners offer their services throughout the country. However, it is the density of pin code coverage that often varies between companies. Distribution firms may offer more inclusive coverage in different sections of the country compared to their rivals. Some may service 95% of pin codes in the South but only 20% of pin codes in the North. As a seller, the onus is on you to figure out the hot spots of where your demand is primarily coming from and select a company that offers significant coverage in those areas. Requirement to Ship Products Internationally International shipping can be a complicated affair but with the right distribution company handling it for you, it doesn’t have to feel like it. If you are looking to expand your business and sell your products abroad, you will need a distribution partner that has the ability and experience to get the necessary permissions, get your documents in order and obtain discounted import duties to help increase your profit margins. Selling in foreign markets can cause severe delays and issues, so it is important to have a dedicated distribution partner that can handle any unforeseen challenges that may arise. Access to Faster Delivery These days, due to the pervasive trend of ultra-fast delivery, most customers expect their orders to be delivered within a couple of days. Many customers are also willing to pay more for the benefit of having their orders delivered instantaneously. Thus, for sellers that don’t want to fall behind the times, it is highly recommended to provide the option of ultra-fast deliveries to their customers. Most distribution companies have partnerships with multiple shipping carriers and the necessary technology to automate important processes. This ensures that there are no bottlenecks at any step of the supply chain and that orders can reach their destination on time and intact. Need for Additional Services As stated above, the list of services provided by each distribution partner differs from the next. If you are someone that genuinely needs access to features, such as customizable packaging, customs clearance, ultra-fast shipping, choice of shipping company, eCommerce order tracking, and more, there are many options available. However, it would be noteworthy to understand that many of these features do come at an additional premium, so even if you partner with a company that provides all of them, you may only be able to access them at an extra cost. Suggested Read: Distribution Metrics and KPIs for Online Businesses to Enhance Operational Efficiency How to Choose a Distribution Partner in 2023? 5 Factors to Consider While Finding a Distribution Company Large Distribution Network Having a comprehensive network of fulfillment centers, hyperlocal units and distribution facilities will help you in storing and dispersing your products wherever you need them. Some distribution partners provide nationwide storage facilities both in India and abroad, which will enable you to store your commodities in close proximity to areas showcasing the highest demand. Similarly, you can choose to prioritize which products to stock and in what volumes in specific fulfillment centers, dictated by factors, such as demand, price, size, value, and more, which help keep your inventory more organised and dispatch-ready whenever an order is confirmed. Source High-Grade Infrastructure Distribution partners need to have access to high-end logistics and fulfillment infrastructure in order to successfully coordinate all the activities that are involved in successfully delivering an item to its relevant customer. Technology, such as WMS software that can integrate with and consolidate your order and inventory data across fulfillment centers and eCommerce marketplaces, a country-wide network of fulfillment centers, access to multiple shipping partners and more, will enable your supply chain to run smoothly and efficiently while also sheltering you from needing to deal with delays and other unexpected events. Source Dependable Services Having all the services in the eCommerce world is of no use if they aren’t solidly dependable. While searching for a distribution partner, conduct some research to find out important information like their order accuracy rate, frequency of RTOs, and shipping/delivery speeds. Additionally, browse through some of their reviews online to get a sense of the experience other customers have had with the company. Complaints and negative reviews are inevitable, especially in eCommerce but look specifically for the way that they handle bad customer feedback and if customers got a fair and swift resolution to their problems. Source Ability to Adapt to Growing Volumes One of the main goals of starting an eCommerce company is to generate as many orders as possible through the use of various promotional tactics. Once demand generates an increase in your order volumes, you will have to look for a distribution company that can not only take on your company’s current sales velocity but will also have the capacity to handle more significant surges in the future. In order to determine if a distribution partner is equipped for the future, check their current order volume and the existing number of sellers that have partnered with them. Also, check if they have any expansions planned to their infrastructure and service lineup in the future. Source Size is Proportional to Your Company When looking for a distribution partner, it may be easy to assume that the biggest is always the best. While that may sometimes be the case, it isn’t always the best option, especially if you are just looking to get the ball rolling for your own company. Even if you have the funds, we recommend shortlisting options that may be of comparable size or even slightly larger than your business. For instance, if you want to fulfill orders in the hyperlocal setting, it would be better to partner with a local distributor that is based in the area. Similarly, if you require product distribution in various countries around the world, you would be best suited to find a multinational company that has international storage facilities and transport infrastructure. Source 5 Distribution-Related Challenges Faced by eCommerce Sellers and How a Distribution Partner can Help in 2023 Facing Soaring Demand On one hand, everything that eCommerce sellers do is so that more people will purchase their products. On the other, increasing order numbers can spell trouble for companies that aren’t prepared or do not have the financial capabilities to adapt. Not being able to fulfill orders can have a negative impact on the perception customers have of your business, the willingness prospective customers will have to order from you, and create overstocking and understocking situations for various products. Solution: This is where a competent distribution partner can help alleviate some of the burdens. By completely handling your distribution process, including order processing, packaging, dispatching, shipping, and delivery, your distribution company can help free up time for you to work on other core aspects of your business. Dealing With Unanticipated Disruptions No eCommerce company, no matter how large, is exempt from the uncertainty caused to natural disasters, road work or political rallies. Events like these can hinder your ability to get customers their orders on time, which will lead to dissatisfaction and negative feedback online. Solution: While a distribution partner cannot control external forces, they can help equip your supply chain with all the fail-safes and technology that are needed to predict and curtail their adverse effects of them. Ensuring Customers are Satisfied These days, it takes a lot to acquire positive feedback and opinions from eCommerce customers. Having been pampered with the latest technology and features for the past decade, they have grown accustomed to instant gratification and if even a slight delay or hindrance occurs in the purchase or delivery experience, they are bound to let you and every other potential customer know. Solution: Distribution partners are responsible for a giant aspect of a customer’s overall experience with your company. By providing short delivery times and ensuring that customers are kept up to date about every detail related to their order, you will enhance their satisfaction. Surging Transportation Costs Every person and industry has been affected by the steadily rising fuel and transportation costs. If you are an eCommerce seller, it can seriously impact the profit margins you receive for each order. However, transferring the burden of paying for the increased shipping costs is also not an option. Therefore, changes need to be made elsewhere to your supply chain to curtail the diminishing returns you get from each sale. Solution: Distribution companies have set prices for all their services and ensure that their clients do not bare the brunt of price increases for recurring expenses like transport. Needing to Utilize Updated Technology Due to the nature of eCommerce, companies are often expected to make use of emerging technologies and services. For instance, since customers are used to ultra-fast delivery, they will think poorly of a retailer that doesn’t offer it as an option. For companies with limited finances and access to research and development, implementing these new technologies can be a curveball. Solution: Most distribution partners already have the latest features and technology baked in and have the necessary infrastructure in place to implement new services as they get introduced. Conclusion: Why You Should Consider WareIQ to be Your Distribution Partner Distribution partners can be a key element in the success or failure of a company. If your business is at the onset of rapid expansion, either domestically or abroad, it would be highly beneficial to partner with a distribution company. Their entire goal is to completely manage your end-to-end distribution requirements whether it is to customers, storage facilities or other businesses. This can remove a huge burden from your shoulders and leave you with the time and resources to focus on researching and developing new products, and refining and marketing existing ones. While the services and pricing of each distribution partner can vary, you need to determine which one aligns the closest with your objectives and financial capabilities. If you do need a distribution partner that offers highly flexible and transparent pricing, and a variety of additional eCommerce solutions, look no further than WareIQ. WareIQ is an eCommerce fulfillment company that was started in 2019 and is currently based in Bangalore. Having emerged as one of the fastest-growing options in India, the company offers a variety of 3PL distribution services and fulfillment facilities. Some of the key ones are listed below: India-Wide Network of Dark Stores and Fulfillment Centers All of our fulfillment centers, which are spread out across the nation, are equipped with specialised SKU-specific amenities, such as cold storages, temperature-controlled warehouses, specialised storage materials for fragile goods and more. Additionally, we provide dark stores, which let us store and distribute products to nearby locations that need to be fulfilled in a hyper-local setting. Customizable Branded Packaging Depending on the requirements of your business, we provide specialised packaging services. With your logo and the colours of your choice, you can draw positive attention to your brand. Additionally, you can pick materials that will safeguard your goods, especially if they are fragile, like jewellery or technological devices. Same-Day and Next-Day Delivery We have collaborated with more than 20 of the top eCommerce shipping aggregators in the country to guarantee that your products are always delivered on time. Additionally, for each order, we automatically choose the fastest and most affordable alternative. In-house WMS with Multiple Integrations Our custom-built WMS can communicate with a range of eCommerce selling platforms, such as Amazon, Flipkart, eBay, and more, in order to track, store and update your inventory in real-time. All of your important data is accessible from a single dashboard. No Minimum Order Restrictions Our services are offered without any minimum order requirements. Because you only pay for the facilities and services that you use, you can only choose what you require. Distribution Partner: FAQs What is the difference between a distribution partner and a channel partner?The primary distinction between the two is that distribution partners do not integrate their marketing strategy with your company, whereas channel partners do. Channel partners also use co-branding and joint marketing. They merely promote your goods. What are some Distribution companies available in India?There are many distribution partners available in India. We have mentioned the 5 best options below:- WareIQ- Delhivery- BlueDart- DTDC- Shadowfax What are some of the services that distribution partners offer?Distribution partners provide many services. Some of them are listed below:- Order processing- Packaging- Transportation- Customs clearance- Inventory management What is a distribution partnership?A distribution partnership is an official agreement made between a distribution partner and an eCommerce seller. The agreement can vary depending on the nature and extent of tasks that the distribution partner is expected to take on. Does WareIQ offer other eCommerce services?Yes, WareIQ offers a wide range of eCommerce services in addition to distribution services. Some of them are listed below:- App store- Last-mile delivery- Product storage- Online integrations- Branded order tracking

November 23, 2022

Top 10 Shipway Alternatives for eCommerce Retailers in 2023

eCommerce is currently experiencing explosive growth in India, a country with a population of 1.4 billion people and a potential customer base in the millions. With most forecasts showcasing that this growth is only set to increase in the coming years, as more people adopt the usage of eCommerce for their shopping needs and as services and technology continue to mature, many enterprising entrepreneurs have sought to gain a foothold in untapped markets where profit potentials are high. However, many startups and even more experienced small and mid-sized companies generally lack the financial and technological prowess that is required to provide cutting-edge facilities to their customers. This is why partnering with a 3PL shipping company like Shipway comes into play. Shipway provides a variety of shipping and distribution-related services that can assist sellers who need a competent courier service to fulfill orders. However, for companies that require additional services, such as storage facilities and inventory management, there are many Shipway alternatives in the market that could be a better choice. In this blog, we will take a look at 5 reasons companies consider searching for Shipway competitors and list down the top 10 alternatives to Shipway. About Shipway Shipway is an emerging shipping aggregation eCommerce company that was established in 2015 and has its present headquarters in Gurgaon. It specialises in offering reliable and affordable distribution facilities to eCommerce businesses. The company helps deliver the finest possible shopping experience to your customers, which allows you to focus on your core business operations, such as product development and marketing. At the moment, Shipway collaborates with over 30 shipping carriers. Currently, its all-encompassing shipping automation solution for eCommerce logistics and fulfillment serves upwards of 12,000 online sellers. Additionally, it can automate multiple supply chain processes, offers ultra-fast delivery, provides order tracking facilities, and has extremely reasonable pricing plans. [contactus_uth] Why Do eCommerce and D2C Companies Want to Move Away From Shipway and Look For Alternate eCommerce Logistics Solutions? Large-Scale Storage Facilities Shipway, being primarily a shipping aggregation company that is focused on logistics and distribution, does not offer any storage facilities and lacks a nationwide network of fulfillment centers and warehouses. For companies that need to rely on their 3PL partners for the entire spectrum of eCommerce fulfillment services, including product storage, the lack of any available storage facilities is an instant deal breaker. Therefore, companies with these requirements would be necessitated to opt for one of the many Shipway alternatives that provide these services. Subsidiary Value-Added Services While Shipway does offer a few subsidiary features, such as COD fraud prevention, order tracking and returns management, they are mostly directly related to shipping and logistics. As you will see from the list of Shipway competitors further down, there are many companies that offer a diverse range of services, from app stores and intelligent inventory planning to dedicated customer onboarding and custom packaging facilities. These services can enhance the overall experience that customers have with your business as opposed to just functionally shipping them their orders. More Extensive Facilities Shipway is transparent about the fact that its main services are shipping aggregation and distribution facilities. However, if you require any other fulfillment services, such as product storage, inventory management, marketplace integrations, WMS software, and more, you would be better suited to opt for one of the alternatives to Shipway that we have mentioned. By partnering with a company that offers all these facilities, you can improve the productivity and efficiency of your business, while leaving the heavy hitting to your 3PL partner. Additional Customer Support Assistance Like most companies. Shipway does offer basic eCommerce customer service, but if you need anything additional, it would be prudent to search elsewhere. Many Shipway alternatives offer 24/7 customer support through a variety of mediums, such as email or Whatsapp, in addition to conventional phone support. If you think that you’d want to take advantage of having a dedicated customer support team at your beck and call whenever you’d need it, you can opt for some of the other options that are available in the market. More Transparent and Flexible Pricing Plans While Shipway offers modest pricing and good value for money, other alternatives to Shipway offer cost-reducing features, such as no minimum order requirements, no monthly fees, no upfront payments, granular subscriptions, and much more. Making use of these features can have a drastic reduction on the total cost you need to pay for fulfilling each product and can help increase your profit margins, which is useful if you are already running on thinner edges than you’d like. 10 Best Shipway Alternatives & Competitors for eCommerce Fulfillment and Shipping in 2023 WareIQ Source Since its inception in Bangalore in 2019, WareIQ has been among India's top-performing eCommerce fulfillment companies. In order to support a wide range of eCommerce services, including inventory management, order fulfillment, reverse logistics company, ultra-fast order delivery, customer assistance, and much more, the company uses technology as a central foundation. The company was established with the aim of offering exceptionally speedy fulfillment to every Indian pin code by building a substantial infrastructure of distribution facilities and transportation hubs. The business provides a wide range of unique features, such as an app store where users can download various apps to enhance their experience, internally-built WMS that can integrate with various online selling channels, an RTO shield to protect sellers from being riddled with undue expenses due to returns and much more. Some notable features of WareIQ that make it one of the best alternatives to Shipway are listed below: It has flexible pricing plans and no minimum order restrictionsIt can integrate with multiple selling platforms, like Amazon and Flipkart, and website builders, like Shopify and MagentoIt provides ultra-fast delivery through a partnership with more than 20 shipping carriersIt has highly-bespoke packaging where most components can be customisedIt provides branded tracking facilities for every order Amazon FBA Source In terms of eCommerce fulfillment and retail, Amazon is a well-known brand. The order fulfillment revolution was ushered in by Fulfillment by Amazon (FBA), the company's first-party fulfillment service when it made its debut in 2006. Amazon makes use of its position to provide a comprehensive list of solutions, including operating several fulfillment facilities across the globe, processing returns, offering free shipping to customers, and much more. Additionally, it aids businesses in cost management by offering free order processing, warehousing, and other services. However, it is only compatible with Amazon and other limited eCommerce selling sites, so sellers must keep that in mind. Some notable features of Amazon FBA that make it one of the best alternatives to Shipway are listed below: It provides cost-saving perks, such as free shipping and free order processingIt makes use of inventory consolidation to combine products from various suppliers that are similar in natureIt can manage orders from a select range of external selling channelsIt responds to all client inquiries and manages returns and refundsIt has no minimum order requirements BlueDart Source BlueDart is a logistics and shipping company that was established in 1983. It is one of the country's longest-continuously operating shipping companies. Its current administrative base is in Mumbai, Maharashtra. The company is one of the biggest and most experienced Indian eCommerce delivery partners, serving over 35,000 pin codes within India and doing business in over 220 other countries. In addition to a number of basic eCommerce services, they also offer some unique features, like letting customers select scheduled delivery dates they prefer by allocating predetermined time slots. It also provides an API that makes it possible to provide specialised services like automated proof-of-delivery notifications, weather-shielded packaging, and more. Some notable features of BlueDart that make it one of the best alternatives to Shipway are listed below: It enables scheduled delivery at predetermined times and datesIt uses most popular payment methods that are availableIt provides unique features, including impermeable packagingIt comprises both domestic and international servicesIt has extensive knowledge of the industry due to its 40-plus years of expertise Rivigo Source Rivigo was founded in 2014 and is currently headquartered in Gurgaon, Haryana. Since then, it has developed a reputation for being a highly-regarded and reputable logistics company within the country. It is largely a technological company with a strong presence in the eCommerce fulfilment industry. Its goal is to provide logistical support to a sizable number of eCommerce vendors. It is also employing an industry-first relay construct to tackle the tangible problem of an absence of delivery personnel in the eCommerce sector. Its recent acquisition by Mahindra Logistics is bound to inject more resources into its existing catalogue of services. Some notable features of Rivigo that make it one of the best alternatives to Shipway are listed below: It employs more than 100,000 people and more than 15,000 delivery, executivesIt provides services for 29,000 pin codes spread across more than 4,000 Indian citiesIts customer base includes leading names, like Flipkart, ITC, Maruti Suzuki, and moreIt gives customers the choice of selecting between prepaid, UPI, and COD payment options during deliveryIt features a unique API with a stellar reputation for lightning-quick delivery, including hyperlocal services ShipDelight Source A group of people with a combined 55 years of expertise in the distribution and eCommerce shipping industries formed ShipDelight in 2015 in Mumbai, Maharashtra. Because of this, unlikely events rarely deter the company. The business provides innovative services including shipment automation, ultra-fast delivery, order fulfillment, bespoke order tracking, and much more to around 26,000 pin codes in the country. The fact that ShipDelight imposes some of the cheapest rates in the eCommerce shipping sector - just ₹25 per 0.5 kilos of goods - is another reason for its success. Some notable features of ShipDelight that make it one of the best alternatives to Shipway are listed below: It offers many different logistics and fulfillment servicesIt offers services including branded tracking, order management, automated delivery, and much moreIt charges under ₹25 per 0.5 kg of merchandise, which is among the lowest shipment charges in the market It offers same-day and 1-day delivery optionsIt provides services to most regions of the country Suggested Read: Alternatives to shipdelight iThink Logistics Source iThink Logistics is a 2017-founded homegrown fulfillment and logistics business with its headquarters in Mumbai, Maharashtra. At the moment, its order capacity sits at roughly 25,000 packages on a daily basis. It is active in more than 180 nations around the world. Additionally, its technological platform presently supports more than 26,000 pin codes within India and can be integrated with most mainstream online selling channels. Some notable features of iThink Logistics that make it one of the best alternatives to Shipway are listed below: It offers the necessary tools for managing returnsIt offers Non Delivery Report (NDR) support for all its customersIt provides specialised services based on effectiveness for particular target audiencesIt offers recommendations backed by AI for the top delivery providers for every orderIt collaborates with more than 12 shipping firms Suggested Read: IThink Logistics vs Shiprocket vs WareIQ: Which is the Better Option? Vamaship Source Vamaship is a shipping aggregation and logistics company that was founded in 2016. Its current headquarters are in Mumbai, Maharashtra. Currently operating in more than 200 nations, the company offers businesses the ability to automate many of their shipping procedures in order to expedite and improve the speed of order fulfillment while also assisting them in sending their goods by land, air, and sea at most competitive pricing. Customers can also use it to oversee the performance of their distribution partners and other associated resources on a centralised platform. Some notable features of Vamaship that make it one of the best alternatives to Shipway are listed below: It has a document organizer that gathers shipping documentation and organises it in a searchable wayIt offers connections to a variety of online selling platforms, such as Amazon, Magento, Shopify and moreIt enables retailers to use it to check the prices of many shipping aggregators rapidly and choose the most economical optionIt provides a wide selection of shipping partnersIt offers a centralised system for monitoring order and inventory data Gati Source Gati offers eCommerce fulfillment services and their headquarters are currently situated in Mumbai. It started its voyage in 1989, making it one of India's oldest logistics companies. Today, it is a well-known participant in the fulfilment sector. Complete logistical solutions are offered for eCommerce fulfillment. They offer a range of service bundles from which to pick. It provides tools for managing on-ground operations, warehouse procedures, supply chains, air cargo, and online transactions. Every significant state in India has a Gati office. Some notable features of Gati that make it one of the best alternatives to Shipway are listed below: It provides a variety of services at various price pointsIt services numerous industry sectors, including B2B, C2C, and B2CIt services 99% of states and upwards of 17,000 pin codes across the nationIt lays claim to pioneering the country's first express delivery facilityIt offers services like time-scheduled delivery, bespoke packing, ultra-fast fulfillment, shipment of bulky items, and EPOD (electronic proof-of-delivery) Shadowfax Source Founded in Bangalore in 2015, Shadowfax is a domestic logistics and eCommerce fulfilment business. The company provides many different delivery alternatives, including marketplace and fulfilment center pickups, initial and final-stage delivery, hyperlocal fulfillment and ultra-rapid delivery. In addition to its quick delivery services, the company is also known for offering helpful solutions like on-demand pickup both nationally and abroad and in-transit storage. Some notable features of Shadowfax that make it one of the best alternatives to Shipway are listed below: It has ensured that roughly 7000 pin codes in the country are servicedIt offers the overwhelming bulk of commonly used payment methodsIt has numerous shipping choices available to its customersIt offers services like demand-based pickup and in-transit inventory storageIt has simplified the initial and final-leg delivery processes Shipyaari Source Shipyaari is an Indian eCommerce shipping aggregation and logistics company that was founded in 2013. Its present headquarters are in Mumbai, Maharashtra. One of its distinguishing features is its ability to handle large volumes of orders from huge organizations. The company provides a wide range of eCommerce connections and last-mile delivery options in addition to providing extensive cash-back assurances. Some notable features of Shipyaari that make it one of the best alternatives to Shipway are listed below: It offers partnerships with ten courier companies that span 25,000-plus pin codesIt provides additional services, such as RTO limitation, NDR administration and trackable metrics.It offers software for managing inventory, fulfilling orders and providing delivery services.It offers order tracking to customers through the use of API connectionsIt provides connections to well-liked eCommerce platforms, including WooCommerce, Magento and Shopify Related Article: 10 Best Prozo Alternatives Offering eCommerce Fulfillment and Shipping Solutions Conclusion: Why Should You Switch From Shipway to WareIQ If You are Looking for Shipway Alternatives in 2023? Shipway provides comprehensive shipping and logistics solutions for affordable prices. However, it does lack many key fulfillment services that are the reason you would want to partner with a fulfillment company in the first place. If you are an eCommerce seller and require assistance with many different eCommerce requirements than just shipping aggregation, it would be beneficial to partner with one of the many Shipway alternatives that we have taken the liberty of listing. There are many companies that choose to focus on different aspects of eCommerce so it is important to chalk out your own objectives and business needs, so you can make a well-informed decision that will help your business in the long run. If you have plans for further domestic and, eventually, international expansion, you need a company that can adapt and take on the extra load without any hassle. If you need a blend of every important feature that eCommerce fulfillment encompasses, we would recommend partnering with WareIQ. WareIQ has emerged as one of India’s leading eCommerce fulfillment providers that offers an in-depth array of services that can help propel sales and garner positive feedback from your customers. Some of the main offerings we provide are listed below: We as delivery partners offer blazing-fast same-day and next-day delivery thanks to our partnerships with more than 20 of the best shipping aggregators in the country. Additionally, we always select the quickest and most affordable option for every order.Each fulfilment center has access to our custom WMS, which can integrate with 20-plus eCommerce selling channels and website builders, including Amazon, Flipkart, eBay, Shopify, WooCommerce, Magento and more, and compile inventory and order information from all of them into a single dashboard.We provide an India-wide network of fulfilment facilities and dark stores along with smart inventory placement recommendations, which suggest the most practical site to store your items depending on demand and accessibility to transportation infrastructure.We offer a full RTO Shield that handles the reverse logistics process and protects all products to limit the harm caused by RTOs.We provide an in-house app store where various productivity apps can be downloaded in order to enhance the functionality of many business processes, such as branded tracking and customer feedback. Shipway Alternatives: FAQs What is Shipway?Shipway is a shipping aggregation and logistics company that provides distribution facilities by consolidating multiple shipping carriers in a simplified format so that customers can make an easy decision regarding the fastest and cheapest option. When and where was Shipway founded?Shipway was founded in 2015 in Gurgaon, Haryana. What are some services that you should look for in your 3PL partner?Some of the key facilities that you should look for while considering a 3PL include:- Order fulfillment- Storage facilities- Shipping aggregation- Ultra-fast delivery- Returns management Does Shipway provide storage facilities?No, Shipway does not provide access to any storage facilities. Does WareIQ provide shipping aggregation?Yes, WareIQ provides ultra-fast same-day and next-day delivery through a choice of more than 12 of the largest shipping carriers in the country and automatically allocates the fastest and cheapest option for every package.

November 17, 2022

eCourierz vs Shiprocket vs WareIQ: A Detailed Guide to Help You Choose the Best eCommerce Fulfillment Company in 2023

eCommerce fulfillment is one of the most complex activities in the industry as it involves the consolidation of many different processes in order to successfully deliver products to customers. As a more significant number of people grow accustomed to using eCommerce for their everyday needs, the industry grows exponentially and the facilities retailers are expected to provide go from being just an added convenience to an absolute necessity, such as free shipping, ultra-fast delivery, order tracking and more. To take advantage of the explosive expansion of the eCommerce sector in India, many burgeoning fulfillment companies have emerged to bridge the gap between large international corporations and small local sellers. However, not all fulfillment companies are created equal and there are many disparities between the services offered by each of them. To successfully make the most of the fulfillment company you partner with, you need to jot down your own expectations and requirements. In this blog, we will do a detailed comparative analysis of 3 of the leading fulfillment companies in India - eCourierz vs Shiprocket vs WareIQ - and help you understand the differences between them so you can make an informed decision. Introduction to WareIQ Source WareIQ has been one of India’s leading eCommerce fulfillment companies since its inception in 2019. Currently headquartered in Bangalore, the company offers a swathe of eCommerce solutions, using technology as the central pillar to differentiate itself from its competitors. It offers most major eCommerce facilities, such as a nationwide network of fulfillment centers, a custom WMS, ultra-fast shipping, returns management, and integrations with multiple selling platforms. Additionally, it offers more nuanced features, such as an app store, branded tracking facilities, customised packaging, and much more. The company also offers extremely transparent pricing and flexible plans where sellers can opt specifically for the services they need without having to pay for the entire lineup of facilities. Some noteworthy points about WareIQ that make it a good option in the comparison between eCourierz vs Shiprocket vs WareIQ are listed below: It provides various value-added services, such as an app store, NDR management, custom packaging, branded tracking, and much more, that help in gaining the attention of your customers.It has partnerships with more than 20 shipping carriers and automatically appoints the quickest and most cost-effective option for every package.It provides an in-house WMS that can be utilised for inventory management and can also provide access to historical order data, across platforms, in a single location, which helps with analysis and making considerations for the future.It can integrate with more than 20 of the largest eCommerce marketplaces, such as Amazon, Flipkart, eBay, Nykaa, and more, and consolidates all information pertaining to orders and inventory levels in one dashboard.It offers ultra-fast shipping to almost every pin code in the country and has provisions for dark stores to aid with hyper-local delivery. [contactus_uth] You May Like: Which One to Choose for Your Business: Delhivery vs Blue Dart vs WareIQ Introduction to eCourierz Source eCourierz is a 2015-founded fulfillment and logistics firm with its current headquarters in Chennai, Tamil Nadu. It offers shipping and courier services on both a domestic and global scale. The company offers some of the cheapest rates in the sector and adheres to stringent safety regulations to protect items while they are being transported to safeguard against unwarranted damages and returns. Currently, the corporation operates in more than 220 nations, utilizing the services of some of the biggest shipping carriers, such as DHL, BlueDart, Aramex, and more. Some noteworthy points about eCourierz that makes it a good option in the comparison between eCourierz vs Shiprocket vs WareIQ are listed below: It makes use of white labeling, which assists companies in highlighting their own brand image while utilizing eCourierz’s own technologies.It gives users access to a central dashboard from where they can monitor all their important information, across carriers and platforms.It currently collaborates with more than 18 shipping companies to provide its customers with multiple options to curtail any unforeseen delays.It sends out order tracking updates in real-time, primarily through email.It does not impose any minimum order requirements, so you can ship as many packages as you need. Introduction to Shiprocket Source Shiprocket is one of the most recognisable and experienced shipping aggregation companies in India. Since the company’s founding in Delhi in 2012, it has provided simple and easily-accessible shipping solutions to eCommerce retailers all over the country. The main draw of Shiprocket is its ability to enable sellers to make informed decisions about their shipping carriers, by providing them with a consolidated choice of most major courier services in a simple layout. Additionally, Shiprocket offers automated shipping processes, an AI-powered recommendation engine, a warehouse network for inventory storage, and much more. The company’s current order capacity sits at around 200,000 daily orders and it services more than 200 countries across the globe. Some noteworthy points about Shiprocket that make it a good option in the comparison between eCourierz vs Shiprocket vs WareIQ are listed below: It provides a consolidated dashboard from where you can monitor and analyse important order and inventory information so that you can be accurate in forecasting demand levels in the future.It gives its customers access to a shipping rate calculator, which enables them to identify which shipping company has the services and rates that are the most closely aligned with their requirements.It has partnered with upwards of 17 shipping carriers and provides a recommendation engine powered by AI that helps you make a decision between them.It can integrate with multiple eCommerce marketplaces, such as Amazon, Flipkart, eBay, and more, and enables you to keep track of important information across whatever platforms you sell on.It provides value-added services, including insuring every order, label printing, and a warehouse network, which propels it as an all-in-one solution for most eCommerce requirements. You can also check these alternatives to Shiprocket. eCourierz vs Shiprocket vs WareIQ: 10 Key Distinctions Between Their Features and Services in 2023 eCourierz vs Shiprocket vs WareIQ: Core Offering WareIQ: WareIQ’s flagship offering is its eCommerce fulfillment services which are enabled by leveraging the use of advanced technology at every stage. By using facilities such as a custom WMS, providing a nationwide network of fulfillment centers, offering a choice of courier services, and facilitating last-mile delivery, the company is able to provide solutions to most requirements that are sought after by eCommerce sellers.eCourierz: eCourierz’s primary service is centered around shipping aggregation and logistics. The company provides many convenient features relating to the aforementioned sectors, such as consolidating shipping carriers to help sellers make a simplified decision, integrating with multiple shipping companies to enable retailers to monitor all their information from a central dashboard and much more.Shiprocket: Shiprocket’s shipping aggregation facilities are a highly-valued service that the company publicizes as its core offering. This works in conjunction with its AI-powered recommendation engine and other automation that help enhance the efficiency and ease of use of eCommerce shipping and distribution (you can keep track of distribution metrics effectively). eCourierz vs Shiprocket vs WareIQ: Customer Onboarding Time WareIQ: WareIQ’s customer onboarding process takes just 7 days to be completed. eCourierz: eCourierz does not offer dedicated customer onboarding facilities.Shiprocket: Shiprocket provides speedy customer onboarding but does not mention a specific duration. Suggested Read: Nimbuspost vs Shiprocket vs Wareiq eCourierz vs Shiprocket vs WareIQ: Pricing WareIQ: WareIQ provides more economical pricing compared to other companies, in addition to expense-reducing features, such as zero down payments and charges based on usage. Additionally, since WareIQ offers services, such as a WMS and integrations with multiple shipping carriers and eCommerce platforms internally, customers don't need to spend extra money on acquiring them elsewhere.eCourierz: eCourierz prides itself on imposing some of the lowest shipping rates in the industry. Coupled with features such as no minimum order requirements, the company provides extremely affordable services.Shiprocket: In relation to industry standards, Shiprocket offers affordable prices for its distribution facilities and their clients can benefit from savings of up to 50% for various services. eCourierz vs Shiprocket vs WareIQ: Technological Features WareIQ: WareIQ delights its customers by utilising a wide range of technological tools to improve its eCommerce services. A custom WMS, order tracking capabilities via email, Whatsapp and SMS, a central dashboard to receive real-time alerts across all platforms, and much more, are all provided by the company.eCourierz: eCourierz provides a vital technology shipping infrastructure with provisions for features, such as a multi-carrier library to seamlessly search for every shipping company, integrations with multiple shipping carriers, order tracking, a central dashboard and much more.Shiprocket: Shiprocket offers many advanced technical facilities, such as NDR management, automated shipping services, order monitoring, a recommendation platform powered by AI and much more. Suggested Read: Clickpost vs Shiprocket vs Wareiq eCourierz vs Shiprocket vs WareIQ: App Store WareIQ: WareIQ provides a straightforward, well-designed and easy-to-navigate app store with a comprehensive library of readily-downloadable apps in order to improve the fulfilment experience that eCommerce sellers are able to deliver to their customers. These apps consolidate features, such as branded monitoring order tracking, suggestions to boost productivity in many areas, order alerts, RTO insurance and customer feedback. eCourierz: eCourierz does not have an app store or offer any first or third-party app support.Shiprocket: Shiprocket does not have an app store but provides a few in-built apps. However, they cannot connect with any external applications. eCourierz vs Shiprocket vs WareIQ: Services Offered WareIQ: Many traditional eCommerce services are offered by WareIQ, including order monitoring, same-day and next-day fulfillment, inventory management, SKU storage, WMS software, and more. Bespoke packaging, Flipkart preparation, Nykaa fulfilment, FBA preparation, Seller Fulfilled Prime and many other value-added services are also available.eCourierz: eCourierz mainly offers shipping aggregation and other distribution-specific services, such as having strict safety guidelines to protect orders in transit, white labelling, multi-channel integrations, order tracking software and much more.Shiprocket: In addition to shipping aggegation services, Shiprocket provides features, such as custom packaging, no minimum order restrictions, no monthly fees, API integrations and more. eCourierz vs Shiprocket vs WareIQ: Integrations WareIQ: Through its unique WMS, WareIQ offers numerous eCommerce marketplace interfaces with platforms, including Amazon, Flipkart, Meesho, and Myntra, among others. Additionally, the company provides integrations with website-building platforms like Magento, Shopify, WooCommerce, and others. This gives users the ability to manage orders after they have been verified and monitor their SKU and order data across platforms.eCourierz: eCourierz can integrate with a variety of selling platforms in addition to most major shipping companies, which allows you to access and track your data across platforms, through a single dashboard.Shiprocket: Most of the major global fulfilment platforms, including Amazon, Magento, Shopify and others, can be integrated with Shiprocket. Benefits include the ability to manage your inventory, track orders across channels, sync vital data, and much more. eCourierz vs Shiprocket vs WareIQ: Unique Selling Point (USP) WareIQ: WareIQ offers a full-stack technological platform in order to offer solutions at each stage of the supply chain. The specific services that customers require can be chosen by them, starting with warehousing, inventory control, packaging, order tracking and delivery, and whatever else may be required by their business.eCourierz: eCourierz provides some of the most cost-effective shipping rates in the industry as well as facilities to help safeguard products while they are in transit. They also offer other facilities will help improve the efficiency of your shipping operations.Shiprocket: With the help of effective distribution services, Shiprocket aims to provide affordable shipping facilities to a large customer base across the country. The organisation provides numerous automations and can integrate with multiple eCommerce selling platforms as well as shipping carriers. eCourierz vs Shiprocket vs WareIQ: Customised Packaging WareIQ: WareIQ provides customised packaging where every aspect of the package can be tailored according to the preferences of the sellers, such as the logo, materials, design and dimensions.eCourierz: eCourierz provides basic packaging facilities but it cannot be customised in any meaningful way.Shiprocket: Shiprocket offers customised packaging solutions where many aspects of the package can be tailor-made to fit your requirements. eCourierz vs Shiprocket vs WareIQ: Cold Storage Facilities WareIQ: Cold storage facilities are provided in most of WareIQ’s fulfillment centers.eCourierz: Cold storage facilities are not offered by eCourierz.Shiprocket: Cold storage facilities are offered in select Shiprocket warehouses. eCourierz vs Shiprocket vs WareIQ: Feature Comparison Table [table id=58 /] Suggested Read: Shipkaro vs Shiprocket vs Wareiq: Which is Better? Conclusion: What Makes WareIQ the Definitive Choice As an eCommerce Logistics Partner Among eCourierz vs Shiprocket vs WareIQ in 2023? As an eCommerce retailer, choosing a fulfillment company whose services, pricing and outlook coincide with your own, is of great importance if you want to give yourself the best possible chances of succeeding in a highly competitive industry. While most 3PL fulfillment companies offer a standard array of services, such as order fulfillment, shipping facilities, order tracking and more, there are some that go above and beyond to make their customer's lives as easy as possible by providing value-added services in addition to conventional operations. eCourierz is primarily a shipping and courier service, so if that is what you need, then it is a good option to consider. Shiprocket also offers mainly shipping aggregation services with a few other fulfillment options, such as a warehouse network, that give it the ability to tackle a wider range of requirements. However, if you need a one-stop solution for all things eCommerce, WareIQ should definitely be your go-to option. WareIQ is an eCommerce fulfillment company that provides solutions to almost every eCommerce requirement you may have. Some of the key facilities we offer are listed below: National Network of Dark Stores and Fulfillment Centers Offers a straightforward plug-and-play setup with no minimum requirementsProvides integrations with the eCommerce selling platforms Myntra, Flipkart Assured, Amazon Seller Flex, and othersOffers local sourcing hubs to cut down on first-mile costsManages warehouse operations internallyImproved Network Planning and Inventory ManagementProvides industry-leading AI models for predicting sales and auto-replenishment thresholdsIncreases sales conversions by conducting product segmentation depending on kind (regular, non-regular, seasonal, etc.) Stack of Vertically Integrated IT Services Provides connections to more than 20 popular channels and D2C sitesOffers integrations with over 27,000 pin codes worth of regional, national and hyperlocal courier providers.Provides a single, integrated technology stack with a custom OMS and WMS App Store With Productivity-Enhancing Applications Enables RTO Shield, which offers complete security against RTOsImproves the post-purchase experience through branded tracking that is personalised for each customerProvides consumers with email, SMS and Whatsapp notifications about the status of their ordersAids in gathering feedback from customers through our Customer Feedback app Ultra-Fast Delivery With WareIQ Rush Provides same-day delivery without requiring a minimum order amount or distance-based billingOffers up to 30% more revenue conversionHas about zero RTO%Provides NDR & COD verification via Whatsapp.Lowers the cost per shipment (CPS) eCourierz vs Shiprocket vs WareIQ: FAQs When and where was eCourierz founded?eCourierz was founded in 2015 in Chennai, Tamil Nadu. What is a 3PL fulfillment company?A 3PL fulfillment company provides eCommerce fulfillment services, such as product storage, packing facilities, shipping solutions, last-mile delivery and much more, to eCommerce retailers for a pre-determined fee. Does eCourierz have a nationwide warehouse network?No, eCoruierz is primarily a shipping and logistics company and does not offer inventory storage solutions. Do all 3PL companies provide fulfillment facilities?While all 3PL do offer varying degrees of fulfillment services, some tend to focus on just one core aspect, such as shipping or storage, while others, like WareIQ provide consolidated solutions for every eCommerce requirements. Does WareIQ provide last-mile delivery?Yes, WareIQ does offer last-mile delivery services. This means that once the product is shipping to the same city as the customer’s location, it is then transferred to the on-ground delivery executive so it can reach the customer’s destination.

November 07, 2022

PREV 1 2 3 4 5 … 8 NEXT