eCommerce Fulfillment

The Ultimate Guide To FBA Prep Services in 2024 and How WareIQ Can Help

The Ultimate Guide To FBA Prep Services in 2024 and How WareIQ Can Help

For all online sellers, order fulfillment is a difficult task. Fortunately for Amazon sellers, this job is made easy by Amazon's intricate network of fulfillment centers and transport facilities through Fulfillment-by-Amazon (FBA). However, its FBA prep services can be challenging for certain sellers who may struggle to meet the requirements. In this blog, we take a look at FBA prep services, the processes involved in it, why it makes sense and key metrics to keep an eye on. Let's take a look. What are FBA Prep Services? FBA prep services are the processes involved in getting a seller's products ready to be sent to Amazon warehouses so that they can eventually be sold and fulfilled. Amazon takes the onus of order fulfillment, which can get tricky and challenging for the seller. The process might sound simple but involves many steps before you push the consignment out of the manufacturing unit. Amazon expects all its sellers to follow specific standards and procedures for packaging and labeling. Some of these requirements are specific to product categories. Moreover, if international shipping is involved, you are expected to comply with additional practices. [contactus_gynoveda] 6 Processes Involved in Amazon FBA Prep Picking & Packing Picking the order from the storage and packing it as per Amazon guidelines is the most crucial step in FBA preparation services. Although you may be using automated software to manage this step, the task becomes more demanding as your orders keep increasing. Here are some of the instructions for packaging issued by Amazon: All packages must have scannable barcodes and labels.They must be packaged to safeguard them from any damage.All packages must have a unique FNSKU.You need to remove old barcodes present on the outside of each order.You must ship all products to the Amazon warehouse in an assembled state.Different items must be packaged separately.All edible products must have an expiration date.No items should have any pilferage-prevention gadgets enclosed. Cross-Docking This procedure transfers items directly from the manufacturer to the customer or retailer with minimal or no storage. Cross Docking occurs at a terminal with mostly truck docks and the least storage capacity. As the name suggests, it refers to moving the goods through an inbound dock to an outbound dock without any halt in the movement of goods. This is one of the FBA prep services that help streamline logistics and reduce expenses incurred between the origin and point of sale. In addition, it acts as a huge time-saver and lowers delivery timelines. Amazon stresses this step to ensure customers receive their parcels on or before time. Using Advanced Software Robust technology helps optimise every stage involved in Amazon FBA prep. For instance, it enables you to bookmark sales with every customer order, automate mapping and track all deliveries and returns. Amazon's FBA platform has also undergone frequent changes to make tasks easier for you. It allows you to track the inventory and every order as it is shipped. Amazon expects you to use a combination of the FBA Seller App and an online account for the complete experience. Their software can capture and process information relating to your inventory and orders. Amazon's Inventory Performance Index helps map each seller's inventory performance and storage. It shows your level of efficiency in managing your FBA preparation services. Having accurate inventory information enables you to make more informed decisions. Implementing Smart Storage Storage of inventory and finished goods demands a lot of planning that leads to timely deliveries. You need to store the products safely and in an organised manner. To do so, Amazon has smartly designed its storage system to enable speedy processing and dispatch to customers. For example, it introduced Network Commingling (NetCo), wherein a seller can choose to activate order fulfillment from an Amazon center closest to the end user. So the customer receives the order from a nearby fulfillment centre irrespective of the seller's proximity. Amazon virtually swaps the order received by a seller with another NetCo authorised seller. Doing so saves time, effort on handling and label fixing expenses. The inventory stored in such a case is called stickerless inventory. Meeting Amazon Product Compliance Amazon is very firm about its guidelines for FBA Preparation services. Any discrepancy can result in your product being rejected before it is dispatched to the customer. While Amazon allows most products for sale on its portal, there are some strict requirements for shipments to be eligible for FBA. For example, the expiration date and temperature-sensitivity handling information must be in place. Information about dangerous goods, hazardous materials or any other product restrictions must be prominently visible. The product you send must not be on the FBA prohibited products list. Hiring Happiness Engineers Any eCommerce business needs the support of experts to run smoothly. These happiness engineers act as problem-solvers and guides in case of queries and crises. Well-trained happiness engineers can be employed as shipping experts who can guide you on critical matters like achieving a high Inventory Performance Index score. A few things indicate that you need a happiness engineer or that you need to consider collaborating with an agency that knows the job. For example, not knowing how to start your FBA business, being unable to optimise operations, dipping sales or simply wanting to continue the success story of your business are some of the reasons why you would need one. Why Does it Make Sense to Outsource FBA Preparation Servicesin 2024? You can manage FBA Preparation Services in three ways: do it yourself, get Amazon to do it on your behalf for a cost or hire a third-party professional to undertake the tasks. The third-party providers know their job well and can guide you on the best way forward. Here are a few reasons that you may consider outsourcing Amazon FBA Prep Services: Access to Experts Professionals know the rules of Amazon FBA Prep. They have a deep knowledge of Amazon's product packaging and labelling checklists. Hiring them makes them responsible for getting the order accepted by Amazon and can also remove the burden from you of trying to comply with the long list of rules Saves Time and Money Third-party experts are quick at completing the processes faster than you can because of the sheer amount of advanced technology and resources they have access to. Secondly, these third-party providers can better handle discrepancies or changes in orders. You can save time and money and rather, spend it on expanding your business. Improves Business Productivity When you can avoid rejection costs, outsourcing FBA prep services provide value for money. Plus, 3PL companies act as consultants whenever you need guidance and take on all the tasks to get your products ready, enabling you to spend more time focusing on core business activities and thus, promoting business productivity. Avoids Leasing Storage Space Storage space adds a considerable amount to your overall expenses. An experienced service provider can guide you on how to streamline your processes and optimise costs, including warehousing. Cross Docking is a practice that can help save money but needs high operational and workforce efficacy. Your third-party service provider can tell you how to prevent such expenses without putting an additional burden on other resources. Streamlines Selling Processes Your service provider can help optimise your resources and reduce the time taken by every order to travel from your location to Amazon. This scenario highlights better performance and leads to enhanced sales. 3PL companies are often equipped with the resources needed for you to streamline various aspects of the supply chain, leading to more efficiency. Returns Management Handling returns can get troublesome and can involve a lot of additional expenses. Your FBA Partner will usually handle returns on your behalf, thus taking a huge responsibility off your shoulders. They can receive the returned product and share the returns management data with you regularly. Suggested Read: Alternatives to Amazon FBA Services Key Metrics to Choose the Best FBA Prep Services Pricing Selling online is expensive. Your bill keeps expanding and before you know it, you start incurring losses. That's why it is critical to trim every possible cost. For example, some companies may charge you for packaging and storage while others may have additional costs like consultancy fees to pass on to you. While selecting your FBA prep services provider, look at their pricing structure. For example, see if they charge a wholesome amount on set intervals like a fortnight or a month or if they bill you per each item that is sold. You must pay per usage, based on your inventory size for higher business productivity. You may want to consider the monthly pay-out if you deal in many orders daily. On the other hand, if your daily sales are manageable, you can opt for the per-item payment method. Either way, your aim should be long-term profitability rather than short-term success. Location Significant distances between the prep service centre and your transportation facilities can add unwanted costs, which could be a substantial loss-making deal for sellers with fewer shipments or smaller packages. Your FBA prep services company should be located close to the shipping area to avoid delays and additional transportation expenses. Your service provider must be able to guide you on this. Plus, the climate and weather conditions where the prep center is located can affect delivery timelines. You should take advantage of your service provider's expertise to avert such crises. Taxes Different countries have varied tax scenarios that impact business operations and profitability. Therefore, your service provider must have deep knowledge of the tax liability for your business in the nation of operation. Moreover, sales tax happens to be the most significant component in the slab. If your service provider operates in a country with a high sales tax percentage, hiring them can be expensive for your business. Storage Facilities Many sellers use FBA prep service centers as warehouses so that their stock stays in the Amazon fulfillment center and doesn't incur additional storage costs elsewhere. By doing this, sellers can directly send their products to FBA for dispatch and delivery on receipt of the orders. This step also reduces the risk of rejection if the consignment is directly sent to FBA. Amazon usually returns damaged and rejected goods to the seller in around a fortnight. However, once received, the seller needs to run quality checks while incurring extra costs for re-packaging and labelling. So while finalising the service provider, ensure you know all about their storage facilities. Processing Time For every service provider, a key performance metric is time management. A proven service provider can process your orders in the shortest possible time with minimal errors. And if you are selling high-demand products, time plays an even more prominent role in effective customer service. Fast-moving goods need to be processed quickly without any damage. You can opt for a performance guarantee for your FBA Prep Services provider. Customer Experiences The eCommerce industry thrives on customer experience. Your success depends on the type of customer service that is offered by your FBA prep services provider. Check previous customer feedback, reviews online and inquire directly with prior and existing customers of the company to verify the positives and negatives and see of they balance out. Services Offered Before signing up, ascertain the list of services your FBA prep services partner will provide. It needs to include efficient quality checks for all your orders. Poor quality products affect your reputation and customer feedback. Any shortcoming can trigger a negative response from Amazon and initiate a returns procedure. Your FBA preparation services provider must offer multiple layers of quality checks to ensure no loophole goes unnoticed. Doing so is important to save time and costs in managing returns. Conclusion: Why Should You Choose WareIQ for Your Amazon FBA Prep? To take advantage of Amazon Prime membership, your FBA prep services provider must have in-depth knowledge of FBA. An incompetent service provider on board can bring in many losses, including costs for non-compliance or rejections. Additionally, they will help streamline processes, reduce costs and provide an enhanced experience. One company that offers FBA prep services is WareIQ. WareIQ's automated software and team of specialists can provide smooth FBA prep services. Here are a few criteria that make WareIQ the ideal choice: We offer superior tech including a custom WMS for automated picking and packaging. WareIQ can handle more than 10,000 orders a day!We expect you to pay only for what you use. WareIQ charges you on a per-item basis and has no minimum order requirements.You can avoid the hassles of rejections at Amazon fulfillment centers. WareIQ can prepare your inventory and run ample quality checks to protect you from such unwanted scenarios.WareIQ's API integrations with various sales channels allow you to map your storage units across the nation from one dashboard.We help streamline your logistics with WareIQ's 'Hub and Spoke Transport'. WareIQ takes care of the consolidation needs for your shipments for an optimised supply chain. A proficient FBA preparation servicer like WareIQ can take some load off so you can concentrate on expanding your business and polishing your offerings. In your series of business decisions, selecting the right partner is one of the most critical. FBA Prep Services: FAQs What is FBA?FBA or Fulfillment-by-Amazon is Amazon’s first-party fulfillment service that enables retailers to fulfill orders by taking care of aspects such as shipping, delivery, storage and much more. What is FBA prep?Amazon has a rigid set of guidelines to enable retailers to make use of FBA. The process of meeting these requirements for every product is known as FBA prep. How can WareIQ help?We offer services that are tailored towards getting your products ready to be fulfilled by FBA. If you do not want to opt for FBA, we also offer a variety of fulfillment services that are compatible with Amazon and more than 20 other eCommerce selling platforms.

July 18, 2022

10 Best Amazon FBA Alternatives and Competitors for eCommerce Retailers to Fulfill Online Orders in 2024

10 Best Amazon FBA Alternatives and Competitors for eCommerce Retailers to Fulfill Online Orders in 2024

The eCommerce industry is growing at a rapid rate, especially in a developing market like India, where more people are gaining access to the internet, and the conveniences offered by it, on a daily basis. Logically, the number of retailers striving to capitalize on all these new internet users is also expanding and with a plethora of eCommerce marketplaces, that cater to a variety of different budgets and product types, online sellers are spoiled for choice as to which one fits their requirements and audience the best. An opportunistic company would try to sell on as many of these platforms as possible, to gain as much visibility to potential customers as they can, and many of them do.  One of the biggest factors in the boom of eCommerce retail in India was the entry of Amazon, the world’s largest eCommerce selling platform, into the country in 2013. Since then, India has become one of the biggest markets for Amazon, especially after losing out on market share to local competitors in China. The company has committed itself to a vast expansion in every sector of the country, with landmarks such as the opening of the largest Amazon campus in the world in Hyderabad in 2019 and the then CEO and co-founder, Jeff Bezos, explicitly stating the company’s goals of making India its number one focus. While this has had a positive impact on the entire eCommerce industry as a whole, there are many retailers who abstain from selling on Amazon and would rather focus their efforts on homegrown platforms such as Flipkart and Myntra. In addition, Amazon’s first-party fulfillment service, Fulfillment by Amazon (FBA) levies many restrictions and additional expenses on sellers such as some of the highest commission charges in the industry, rigid packaging guidelines and minimum monthly sales targets, among others. Read our blog on FBA Vs FBM to find out which one is right for your business. Although it offers some of the best fulfillment services and use of technology in the country, this lack of flexibility can lead many retailers to search for Amazon FBA alternatives, some of which offer just as many services, cheaper pricing plans and more freedom to position their brand in the way that they want, while still taking advantage of selling on Amazon’s eCommerce platform. In this blog, we will take a look at the reasons companies search for alternatives to Amazon FBA, the 10 best Amazon FBA competitors in the country and how WareIQ can be of assistance. Read along. Top 5 Reasons Companies Search for Amazon FBA Alternatives Reduced Branding Capabilities If retailers use FBA to fulfill Amazon orders, they have to abide by Amazon’s packaging standardisation, which essentially means the first thing that customers will see when they unbox their order is Amazon branding, front and center. This is a conscious effort by Amazon to let the customer know where the product was ordered from and who fulfilled it, as opposed to highlighting the brand of the seller, who has done the hard work of researching and manufacturing the product, and who has generated a sale for Amazon. If a retailer wants to highlight their own brand instead of Amazon’s, which already has more than enough name recognition, they are better suited to find alternatives to Amazon FBA. Complicated Payment Structure Amazon FBA’s payment structure can be extremely complicated to figure out, especially for retailers who don’t have much experience with using the platform’s services. There are a vast variety of different expenses, some of which are fixed, variable or circumstantial. There are 3 main fees that Amazon imposes on its sellers - Seller fees which is a standard fee to use their services, fulfillment fees which encompass warehouse operations such as picking, packing and shipping for each order, and storage fees which is a based on the amount of storage space your inventory occupies. Additionally, the charges can vary depending on different seasons, events, flash sales and other factors and Amazon is notorious for charging penalties for minor infractions. Sellers who want to have simple and transparent payment plans often seek to find Amazon FBA alternatives. Merged Inventory With Similar Products The large number of sellers that utilise FBA for storing multiple products and variations means that not every product will get access to its own, separate storage location in the warehouse. Similar products from different sellers are often clubbed together and assigned a single slot, from where they are picked and packed, whenever an item is ordered. This results in the increased possibility of the wrong products being selected and shipped, resulting in customer dissatisfaction, a negative impression of the brand and the hassle of dealing with product returns for the seller. If a retailer wants their own designated storage space for the entirety of their product line-up, it would benefit them to look for Amazon FBA competitors. Limited Inventory Control Retailers who require strategic control over their inventory would be better off finding alternatives to Amazon FBA, due to the increased difficulty of adding and removing products that are stored in FBA warehouses. Continuing with the theme of penalizing retailers for minor offences, Amazon imposes a penalty fee if inventory is stored for a longer period than the predetermined date, which limits the ability of retailers to effectively forecast market demand and order and store products accordingly since they have no room to make the necessary changes and additions to their inventory. Partnering with FBA requires retailers to order and store all their inventory in one go, which makes it difficult to achieve the right product quantities and can result in wastage and losses, which sellers will have to incur. Rigid FBA Prep Guidelines Amazon's ultra-strict guidelines can be a benefit for consumers but a challenge for retailers to follow extensively, as there are many regulations to follow in order to get their products prepared to be fulfilled by FBA. FBA prep refers to the rigid instructions set by Amazon in regard to packaging, labelling and safety standards. One example is the need to follow the Amazon Standard Identification Number System (ASIN) where each product has to be labelled separately and split into multiple different shipments before being dispatched to an FBA warehouse. This ultimately increases the expenses and storage costs for retailers as one product is effectively split into multiple shipments, taking up more storage space in the process. If retailers do not want to be subject to harsh requirements and penalties, they can opt to find Amazon FBA competitors. Related Article: Amazon Pricing Strategy 10 Best 3PL Alternatives to Amazon FBA in 2024 WareIQ Source WareIQ is a rapidly expanding eCommerce fulfillment company that was founded in 2019 and is currently headquartered in Bangalore. Making good use of the advanced technology services it has at its disposal, the company offers a comprehensive tech stack that includes a state-of-the-art WMS which can integrate with more than 20 of the biggest eCommerce marketplaces including Amazon, an app store that consists of a variety of easily downloadable apps that functions in a similar way to conventional mobile app stores such as the Google Play Store and Apple App Store, branded order tracking that can be fully customized and much more. Additionally, the company has partnered with more than 20 of the biggest shipping aggregators in the country to provide ultra-fast same-day and next-day delivery to most pin codes across India. Some of the features of WareIQ that make it one of the best Amazon FBA alternatives are: Offers a pan-India network of Fulfillment centers and dark stores, enabling eCommerce sellers to store inventory closer to customer Has 20+ shipping partners enabling same/next day deliveryProvides easy integrations with 20+ eCommerce marketplaces & online platformsOffers a fulfillment platform with a unified OMS & WMS viewHas an inventory planner for smart inventory placement to reduce overstocking & avoid stockout situationsProvides a shipping recommendation engine to choose the most cost-effective last-mile delivery partnerProvides packaging facilities that are highly customizableOffers branded tracking facilities that can be tailored to every retailer’s requirementsProvides industry-leading pricing plansDoes not impose any minimum order requirementsHighly capable customer success team for 24x7 customer support [signup] FedEx Source FedEx is a multinational eCommerce giant that offers eCommerce fulfillment solutions, supply chain services and shipping facilities across many different industries such as healthcare, electronics, retail and much more. The company was founded over 50 years ago, in 1971, in Little Rock, Arkansas, United States and currently has its headquarters in Memphis, Tennessee. The company operates in upwards of 220 countries globally and offers features to eCommerce retailers such as being able to sync their order details and inventory lists across multiple selling platforms, in a single location. The company is one of the most experienced in the field of eCommerce fulfillment and will be sure to handle any task with ease. Some of the features of FedEx that make it one of the best Amazon FBA alternatives are: Offers ultra-fast delivery and returns management facilitiesProvides a vast fulfillment network for deliveryProvides users with a simple and intuitive technology platformProvides integrations with a variety of eCommerce marketplacesOffers a worldwide network of services ShipMonk Source ShipMonk is an eCommerce fulfillment company whose primary focus is to make tech-based eCommerce services readily available to a wide audience of retailers, across industries. The company’s headquarters are located in Fort Lauderdale, Florida and since its inception in 2014, its services and operations have expanded rapidly. ShipMonk offers a wide variety of services ranging from packing services, pick and pack operations, and warehouse management to customer support and much more. It currently has 100 plus digital stores and assigns dedicated account managers to every customer for onboarding assistance. Some of the features of ShipMonk that make it one of the best Amazon FBA alternatives are: Offers a digital billing portal to customersHelps with the automation of warehouse operationsHas a wide variety of branding and customisation servicesProvides decreased pricing for bulk orders and tax benefitsDoes not impose a setup or inventory receiving fee DHL Source Dalsey, Hillblom, and Lynn, abbreviated as DHL, is a global eCommerce juggernaut in the eCommerce fulfillment industry. Founded in 1969 in San Francisco, California, and currently headquartered in Bonn, Germany, the company has grown immensely and provides courier and shipping services in India and to more than 220 countries across the globe. While the company is split into many sectors, its distribution branch offers door-to-door delivery and transportation of freight through air and sea. A significant advantage for retailers who ship internationally and use DHL for their requirements is the company’s ability to clear customs without any hassle and seamlessly tackle any other challenges that could arise, while also offering insurance on every package. Some of the features of DHL that make it one of the best Amazon FBA alternatives are: Offers integrations and inventory optimisation across multiple eCommerce marketplacesProvides effective logistics managementProvides a wide range of B2B and B2C fulfillment servicesOffers next-day delivery in 80-plus cities and towns in IndiaProvides a central tech platform for inventory management, order fulfillment and other procedures Rakuten Source Rakuten is a world-renowned fulfillment company that offers various eCommerce-related services such as packaging, shipping, kitting and returns management, among many others. Founded in 1997 in Tokyo, Japan, it also maintains its global headquarters there. It has provisions to enable retailers to track shipping metrics to be able to streamline and enhance their shipping operations to reduce expenses and increase delivery speeds. Additionally, the company offers a service called XParcel, which is targeted at small and medium-sized companies, to make their fulfillment requirements easier and cheaper. Some of the features of Rakuten that make it one of the best Amazon FBA alternatives are: Offers specifically-tailored services for eCommerce retailersProvides integrated marketing solutionsOffers same-day and next-day delivery in the USRuns specialised fulfillment centersOffers subscription box and kitting services BlueDart Source BlueDart is an Indian logistics and courier operations company that was founded in 1983 and is currently headquartered in Mumbai, Maharashtra. The company is one of the largest and longest-operating Indian eCommerce fulfillment providers that also offers global operations in more than 220 countries in addition to the more than 35,000 serviceable pin codes within India. Along with the conventional array of eCommerce services, they also offer some unique facilities such as allowing customers to choose their preferred delivery date and time by selecting schedules and time-slots. It also offers an API that can provide specialised services such as weather-proof packaging, automated proof-of-delivery updates and much more. Some of the features of BlueDart that make it one of the best Amazon FBA alternatives are: Provides local as well as global operationsProvides most major payment optionsOffers specialised services such as weather-proof packagingAllows scheduled delivery at specific dates and timesHas a vast amount of experience in the industry Ekart Source Ekart was originally founded in 2009 as a subsidiary of Flipkart but has since changed ownership and has expanded its range of services to offer fulfillment to a wide variety of other eCommerce marketplaces, including Amazon. Headquartered in Bangalore, Karnataka, the company has garnered popularity due to its relatively low prices and provision of ultra-fast delivery. They currently offer same-day delivery in 13 cities and next-day delivery in 50. The company also offers a tracking API that provides status updates on orders, the printing of labels, and much more. Some of the features of Ekart that make it one of the best Amazon FBA alternatives are: Provides reverse logistics servicesHas an API that gives real-time order and inventory updatesOffers some of the lowest rates in the industryIncludes most major payment optionsHas a pin code coverage of around 4,000 Ecom Express Source Founded in 2012 and currently headquartered in Gurugram, Haryana, Ecom Express is a logistics and courier services company that offers eCommerce fulfillment services. One of their unique selling points is their ability to successfully ship high-value commodities such as jewellery and electronics, by providing additional security and safety features. The company operates 7 days a week and on public holidays, while also offering guaranteed delivery within 72 hours of the order being confirmed. Similarly, they also provide a 72-hour guarantee for returns. Some of the features of Ecom Express that make it one of the best Amazon FBA alternatives are: Provides enhanced security features for all ordersOperates 24/7 and on public holidaysProvides 72-hour guarantees for every orderProvides reverse logistics servicesServices more than 27,000 pin codes Shadowfax Source Founded in 2015 and currently headquartered in Bangalore, Karnataka, Shadowfax is an eCommerce fulfillment and logistics company that offers both domestic and international operations. The company provides a variety of delivery options including marketplace pickups, warehouse pickups, and first-mile and last-mile delivery, in addition to hyperlocal and ultra-fast delivery. The company also provides value-added services such as in-transit storage and on-demand pickup, and has gained recognition for its fast delivery services. Some of the features of Shadowfax that make it one of the best Amazon FBA alternatives are: Services more than 7000 pin codes in IndiaProvides facilities like in-transit storage and on-demand pickupAccepts most major payment methodsOffers a variety of delivery optionsProvides both first-mile and last-mile delivery DTDC Source DTDC is one of the earliest eCommerce logistics providers. Since its founding in Bangalore in 1990, the company still operates its headquarters there. It has a customer base of more than 10,000, 75% of which consists of eCommerce businesses. It services more than 17,500 pin codes in India and provides additional facilities such as warehousing and a tracking API that can provide order updates and issue non-delivery reports, and much more. It also offers a variety of different delivery options including ultra-fast delivery, hyperlocal delivery, scheduled delivery and slot-based delivery, in addition to the conventional options of same-day and next-day delivery. The company also differentiates itself from the competition by being able to fulfill orders for a wide variety of commodities including high-value goods, bulky goods and even hazardous goods. Some of the features of DTDC that make it one of the best Amazon FBA alternatives are: Accepts all major payment optionsProvides specialised delivery for high-value, bulky and hazardous goodsOffers a tracking API with real-time tracking facilitiesServices more than 17,500 pin codesProvides express delivery Feature Comparison Table of Amazon FBA Competitors [table id=39 /] Suggested Read: Amazon vs Flipkart Sales During Festive Season Conclusion: Why is WareIQ One of the Best Alternatives to Amazon FBA in India in 2024? The eCommerce retail industry is extremely competitive and a competent fulfillment service can mean the difference between a retailer acquiring success or failure. Order fulfillment is one of the most important aspects of online selling as it determines the kind of experience a customer will have and the impression they will carry about the company that they ordered from. Most retailers are required to sell their products on Amazon, simply because it is one of the largest, most recognised and technologically advanced fulfillment platforms in the world. It opens up a vast amount of opportunities and access to customers that they simply couldn’t get otherwise. Retailers, especially those who aren’t well-versed with the order fulfillment process, often opt to fulfill their Amazon orders with FBA, mainly out of convenience and because they perceive it as the best option. However, partnering with a 3PL fulfillment company like WareIQ, can often grant them access to even more facilities, better service, fewer restrictions and cost-effective pricing. WareIQ is one of India’s emerging eCommerce fulfillment providers that use advanced technology to tackle the multiple challenges associated with the order fulfillment process. We ensure that we provide the best experience to our users, by providing enhanced and flexible services, that are easy on the pocket. Some of our industry-revered services include: Country-Wide Network of Dark Stores and Warehouses Offers an intuitive plug n’ play setupHas integrations with Flipkart Assured, Amazon Seller Flex, Myntra, and other online marketplacesOffers local sourcing hubs to lower first-mile costsOffers in-house inventory management Efficient Warehouse Management and Network Planning Offers industry-leading AI models for demand forecasting and triggers for automatic replenishmentProvides bundling of commodities based on type (regular, non-regular, seasonal etc.) to improve the generation of sales Vertically-Integrated Fulfillment Tech Stack Provides integrations with more than 20 top-selling platforms and D2C channelsProvides integrations with hyperlocal, regional and national shipping aggregators, covering more than 27,000 pin codesProvides an individual unified technology stack for WMS and OMS App Store With Easy-to-Install Apps to Enhance Productivity Uses an RTO Shield which offers 100% protection from returnsAmplifies post-purchase satisfaction through custom branded tracking pagesSends notifications on order updates to customers through Whatsapp, SMS and EmailHelps in customer feedback generation  Super-Fast Delivery Through WareIQ Rush Offers same-day delivery with no minimum order requirements Increases revenue conversion rates by 30%Offers near-zero RTO%Provides NDR & COD verification through WhatsappDecreases Cost per Shipment (CPS) Amazon FBA Alternatives: FAQs (Frequently Asked Questions) What is Amazon FBA?Amazon FBA is Amazon’s first-party fulfillment service. Retailers can opt to deliver their orders through FBA for additional fees and have to prepare their products to meet its various requirements. What are some alternatives to Amazon FBA?Some popular alternatives to Amazon FBA include:1. Fulfillment by Merchant (FBM)2. Fulfillment by Third-party (3PL) like Ekart3. Dropshipping4. Self-fulfillment Can sellers opt to fulfill their Amazon orders through 3PL companies?Yes, Amazon allows retailers to fulfill orders on their own or through a 3PL company of their choice if they opt for the Fulfilled by Merchant (FBM) program. What is the primary goal of 3PL fulfillment companies?The main goal of 3PL fulfillment providers is to offer a vast variety of eCommerce-related services to retailers that they may not be able to do on their own, including order fulfillment, reverse logistics, inventory management, and much more. Is FBA the only way to sell on Amazon?No, FBA (Fulfillment by Amazon) is not the only way to sell on Amazon. You can also use an alternative fulfillment method, such as merchant-fulfilled shipping, where you handle the storage, packing, and shipping of products directly to customers. Which are the top Amazon FBA competitors in 2024?It's difficult to determine the exact top Amazon FBA competitors in 2024 as the e-commerce market is constantly changing and new players are emerging. However, some popular alternatives to Amazon FBA include:Shopify: A popular e-commerce platform that allows businesses to sell products online, in-store, and on social media.Walmart Fulfillment Services: Walmart's fulfillment program, which provides storage and shipping services for merchants selling on Walmart.com.eBay: An online marketplace that allows businesses to sell products to customers worldwide.Rakuten: A Japanese e-commerce company that operates one of the largest e-commerce platforms in the world.Newegg: A leading technology-focused e-commerce company that provides a platform for merchants to sell technology-related products.It's important to note that these are just a few of the many options available and the best choice for you may depend on your specific needs and goals. Is FBA better than FBM?Whether FBA (Fulfillment by Amazon) is better than FBM (Fulfillment by Merchant) depends on the specific needs and goals of a business.Advantages of FBA:•Access to Amazon's vast customer base•Improved visibility and credibility for products on Amazon•Hands-off fulfillment process•Amazon handles customer service and returnsAdvantages of FBM:•More control over the fulfillment process•Ability to offer unique packaging or branding options•Lower fees and storage costs compared to FBA•No limitations on product size or weightUltimately, the decision between FBA and FBM depends on factors such as the size and scale of your business, the type of products you sell, and your overall business strategy. It may also be helpful to use both fulfillment methods for different products or to test and compare their performance. Why should you choose WareIQ as an alternative to Amazon FBA?WareIQ uses advanced technology to provide the best, fastest and most cost-effective eCommerce services to customers such as order fulfillment, inventory management, reverse logistics and much more. We also provide unique features such as storage facilities across a country-wide network of fulfillment centers, an advanced WMS that aids in the automation of multiple processes and an app store, where users can download popular apps to increase the productivity of various services.

July 13, 2022
Dropshipping vs Order Fulfillment: 5 Key Differences in 2024

Dropshipping vs Order Fulfillment: 5 Key Differences in 2024

In this day and age, where competition in the eCommerce space is rife, online sellers have to do everything in their power to ensure that their customers have an exemplary order-to-delivery experience to ensure they return and have a favourable view of the company. In order to ensure an ultra-smooth delivery process, small to medium-sized businesses can opt between dropshipping vs fulfillment, after analysing their own capabilities and requirements. In this article, we go through the differences and pros and cons of dropshipping vs order fulfillment so that you can make a more informed decision as to what would be right for your business. What is Dropshipping Order Fulfillment? Dropshipping Order Fulfillment is a retail fulfillment process where the buyer (e.g., a retailer or an eCommerce firm) doesn’t store the products they sell.  Instead, they purchase the products directly from a third party and ship order directly to the customer that has purchased them, in short they dropship products to direct customers. Therefore, the seller does not directly handle the product. As explained in greater depth below, the greatest difference between Dropshipping and order fulfillment is that the seller does not own, or even stock, any inventory. Instead, it is purchased from a third party (e.g., manufacturer or wholesaler) to fulfill the orders as required. Why does a dropshipper not show up as a stakeholder in the supply chain?   The simple answer is that dropshipping order fulfillment is a service and not a role. Additionally, any of the three pillars that typically form the supply chain i.e manufacturer, wholesaler, and retailer, can play the role of a drop shipper. For example, suppose a manufacturer ships its goods directly to your customer. In that case, they are conducting dropshipping on your behalf. A retailer can also offer to do the same on your behalf. However, remember that the competitiveness of the end consumer pricing would depend on who the dropshipper is. Typically, a wholesaler or a manufacturer would hold the advantage here.  [contactus_uth] What is an Order Fulfillment Company? Order Fulfillment is defined as the chain of receiving orders, processing them, and delivering those orders to the customer. By extension of the definition above, an Order Fulfillment Company is a third-party firm that executes this process on behalf of its client companies that receive orders directly from its customers. Examples of such clients for an Order Fulfillment Company include an online eCommerce portal or a chain of offline retailers dealing directly with the end customer. The starting point of this process is when a customer places an order, and the order information is delivered to the inventory storage location or a warehouse facility. The line items in the order are located, packed, and dispatched in a timely manner so that it reaches the customer’s doorstep on time, thereby completing the order fulfillment process.  In cases of order returns, the return process and transactions are also managed by the Order Fulfillment Company.   Although the end customer doesn’t see any of this behind-the-scenes activity, the many parts of executing order fulfillment are crucial in achieving the most critical metric of a successful business, i.e., customer satisfaction.  Essential Requirements for Dropshipping vs Order Fulfillment From a Warehouse Quite naturally, each buyer has different needs for their order fulfillment based on their business requirements. Buyers are dependent on their suppliers to provide them with accurate and timely information to enable them to satisfy client expectations. Typical data points and information required include goods and item data, inventory levels, legal and financial documents, shipping details (etc).   Some Common Requirements for Electronic Trading of Dropshipping Fulfillment Centers are: To have a setup to receive electronic ordersTo have comprehensive information about products to effectively sell the supplier’s (wholesaler, manufacturer) products onlineTo contain updated information about inventory and stock levelsTo possess the ability to furnish order confirmations, provide ETAsTo be able to manage order cancellationsTo be able to manage varied shipping documentation including packing slips, tags, shipping labels, retailer’s brands, logos, and information about shipment tracking.To be able to handle invoices electronicallyTo be able to handle order returns and manage financial and re-order-related transactions Some Common Requirements for Order Fulfillment to a Warehouse or Storage Facility: To have comprehensive product informationTo receive, acknowledge, manage, and process orders electronicallyTo be able to handle invoices electronically To be able to hand scale and rapidly expand operations as orders increase quickly, manage cyclical peaks, e.g., holiday season orders and promotion-led demand.   Dropshipping vs Order Fulfillment Services: Key Differences [table id=6 /] Dropshipping vs Order Fulfillment Services: 4 Tips to Consider Which Option is Best Suited for Your Business in 2024 Determine the Nature of Your Products and Vendors To help you determine whether you should make use of dropshipping vs fulfillment, you should consider the nature of your products and the services offered by your supplier or manufacturer. Not all vendors offer dropshipping services so if yours doesn't provide them, it immediately disqualifies dropshipping as an option. Similarly, if you deal in goods that require special storage facilities such as cold storage facilities, not all fulfillment services would qualify. You need to make this decision based on the types of goods you offer and the requirements you need to store and transport them to the customer in the safest and fastest way possible. Identify Your Customer Base It is in every retailer's best interest to identify their customers and it should be no different for you. Depending on the products you have, the audience that will have interest and eventually convert that interest into a purchase will vary vastly. You need to identify your customer base, which regions they are located in, and which delivery option, whether dropshipping or order fulfillment, would be the best to deliver their orders swiftly and reliably. Shortlist the Technology Needed You, as an eCommerce retailer, need to make use of advanced technology in order to provide the best service to your customers and keep up with your competitors. Whether it is a WMS, advanced transportation systems, or inventory management, you need to determine your needs and which dropshipping or order fulfillment company can meet your requirements. Fulfillment companies are generally better in this regard as they have to keep up with the crowd, but different retailers will have varying technological requirements. Determine Your Profit Margins You need to determine the number of financial resources you have at your disposal. Prices vary when it comes to dropshipping vs order fulfillment, but prices charged by fulfillment companies are generally higher, due to the fees associated with storage, transportation, and technological solutions. Conversely, dropshippers mostly only charge you for the shipping of products that are already sold, so this is convenient if your sales volumes are lower and far between. You need to check how much you are willing to spend and balance it out with your requirements to make the best decision. Dropshipping vs Order Fulfillment Services: Advantages & Limitations Dropshipping vs order fulfillment companies meets different needs of eCommerce sellers. Depending on your business needs – and as they change with time – you could outsource your fulfillment to either, or both types, at different points of your business journey. Remember, one isn’t exclusive to the other, and you can use both simultaneously. For example, 3PL fulfillment centers can be used for stable products and a drop shipper for testing or launching new ones.  Advantages of Dropshipping Maintenance of Broader Product Lines You could sell various lines of products with greater choice since you can tie up with numerous drop shippers. Maintaining a wider product line is more feasible since you aren’t purchasing or carrying inventory. Trying New Products Dropshipping allows you to test new products with minimal risks since your financial costs and risks are minimized. You can test out product innovations, logistics innovations, and new trends that could potentially become cash cows of the future.  Lower CapEx Needed With drop shipping, the only significant investment is to get your eCommerce portal up and running since you aren’t buying or stocking inventory. This eliminates any significant CapEx needed to get you off the ground. Limitations of Dropshipping Limited Profits Using drop shipping fulfillment companies excludes you from the advantages of bulk discounts since you buy one product, or a limited number of them, in small quantities per order.  Limited Control of Inventory Supply With a drop shipper partner, you are dependent on them for inventory. They may distribute their available stock based on preferences that exclude you. For example, during holiday sales, you may not get as much supply as you could potentially sell. Slower, Costlier Shipping You don’t control fulfillment locations or the speed of order processing when you partner with a drop shipping company. Delayed or failed orders could cause severe, even irreversible, damage to your company's reputation.  Advantages of Order Fulfillment Centers Maintain Inventory Control Perhaps the most crucial strength of using a 3PL fulfillment company for your business is that you can track your inventory levels closely, eliminate (or at least minimize) out-of-stock opportunity losses, and maintain an optimal mix of product inventory.  Get Orders Out Faster Partnering with a 3PL fulfillment company with conveniently located warehouse facilities (both central and satellite) enables your parcels to reach in 2-days (or less) since this is now the delivery standard. This keeps your fulfillment-cycle competitive with industry benchmarks. Storage Cost Becomes a Convenient Variable Expense There isn’t any need to maintain fixed storage space since you can rent out only the amount that you need. This ensures a healthy cost structure for the business.  Limitations of Order Fulfillment Centers Limited by Inventory Held You are limited to selling only the inventory you have bought and stored. This burdens you with the risk of unsold inventory, increased carrying costs, sudden obsolescence, etc.  Suggested Read: How to reduce Inventory Carrying Cost? Blocked Capital While this business model yields a higher ROI, it also needs a higher CapEx. It also means that your funds stay locked till you can turn it around by liquidating the current inventory.  Cost of Damaged Inventory While 3PL fulfillment centers tend to have a 10% allowance for damaged or lost items, you still risk losing money on unusable items. A drop shipper always owns and maintains the stock, and therefore, damaged goods aren’t your liability.  What’s the Verdict for Dropshipping vs Fulfillment?  Dropshipping vs fulfillment may seem like an easy choice. However, both satisfy different client needs. They should be used judiciously to serve different product lines at different stages of a company's life-cycle and, importantly, should be used in tandem. Both can grow client businesses in different ways. Analyzing your business requirements – adjusted over changing times and scenarios – will enable you to decide on the type of fulfillment service best suited to you. Top 5 Dropshipping Companies WareIQInventory SourceOberloImportifySaleHoo Top 5 Fulfillment Companies WareIQShipBobRakuten Super LogisticsFedEx ExpressFulfillment by Amazon Dropshipping vs Order Fulfillment: Conclusion   As is evident, comparing dropshipping vs order fulfillment companies is necessary, not only because they operate on different business models but also offer a different set of advantages and limitations. Depending on your business needs, company, product life-cycle and target customers, you should choose the option best suited for you. WareIQ provides a whole host of products including same-day order fulfillment, warehousing, and everything in between where customers can choose exactly what they need, which proves to be a more cost-effective option. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services in India for some of the most reputed brands that spans more than 300 e-commerce brands such as Kama Ayurveda, Future Group, Piramal Group, Wingreens Farms and many more due to the ability to help them accelerate online sales with next day delivery and same day delivery service. WareIQ contributes to client success by not only providing 3rd Party fulfillment but also helping businesses store their inventory closer to their customers using our platform connected to a nationwide network of fulfillment centers and last-mile couriers - billed entirely on usage. We offer a comprehensive centralised platform that assists you in your eCommerce operations. In addition, we also provide an ML-based prediction engine for strategic warehouse network design, smart inventory placement, and integrated shipping apps to offer transparent ETAs, branded tracking experience, RTO risk insurance, and NDR control.  We help you not only to reduce your logistic costs but also your delivery timelines – this could be the game-changer for your business needs!  [signup] Dropshipping vs Order Fulfillment FAQs (Frequently Asked Questions) What are the top 3 fulfillment methods?• Merchant Fulfillment• Third-party Fulfillment • Dropshipping What should you avoid when dropshipping?• Worrying About Shipping Costs. • Keeping Too Much Faith in Vendors. • Looking for Quick Cash • Making Order Information Difficult to Access. • Not Enough Brand Display. • Not Managing Order Changes and Cancellations Properly• Mishandling Damaged or Lost Items • Return Issues What are some ways to avoid copyright dropshipping?When dropshipping, make sure to avoid any products that imitate protected brands. When you are dropshipping true branded products, you must present an authorization document from the brand supplier, or customs will refuse to let the products pass. Is dropshipping insurance required?To secure both your dropshipping business and yourself, you'll need business insurance. Business insurance is a plus as it helps to ensure that your dropshipping business continues to deliver goods to customers for years to come. Do you have to pay taxes when you drop ship?Yes, dropshipping does require payment of taxes. It's a little off-putting, because dropshipping is supposed to improve revenues. But the truth is if you don't pay taxes, you're putting your company at risk and its reputation at stake. Can I avoid the fulfillment process with an eCommerce fulfillment business?If you choose to start the ecommerce fulfillment route, it doesn't mean you have to spend hours packaging and shipping orders yourself. Various fulfillment service companies and centers are available to handle this for you, just choose a reliable one as it does add up to your overall budget. Dropshipping vs Order Fulfillment: Which one is the more common option for eCommerce retailers?Order fulfillment is generally the more widely adopted option because of the flexibility and additional services involved in it, compared to dropshipping. While each method has its own users, most eCommerce companies opt to partner with 3PL companies.

July 07, 2022
B2B Fulfillment: A Detailed Guide Including Definition, Processes, Differences with B2C Fulfillment and Use Cases of B2B Order Fulfillment in 2022

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

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

July 06, 2022
What are Fulfillment Services for eCommerce? A Detailed Guide in 2024

What are Fulfillment Services for eCommerce? A Detailed Guide in 2024

To understand what fulfillment services are, why it's essential in 2024, and their benefits for your business, we need to first talk about the supply chain issues faced by many eCommerce retailers. Since the pandemic began, we've all been experiencing problems with shipping aggregation and the supply chain. The challenges we have experienced began with pandemic-related restrictions and shutdowns. Without supply chains that can keep up with current demand, vendors have had trouble getting the supplies and goods they needed. This negatively impacts customers, as they waited for their products to be delivered. The delays were worsened by other factors such as weather, lack of warehouses, labour shortages, etc. These factors were compounded when they created a flow that caused delays. This was a trend across eCommerce enterprises and affected all parties involved. Many fulfillment services that deliver goods suffered cash flow issues due to the pandemic. The customer’s impression of your company is determined by how they feel while receiving their order. Successful fulfillment platforms and branded shipping improve customer satisfaction and build a better brand presence. For customer satisfaction, streamlining and optimising your fulfillment services is critical. The online and offline elements of the business should work together to ensure that customers are satisfied with the service they receive, both in-store and through the shipped product. What is eCommerce Fulfillment? eCommerce fulfillment is the process of completing online orders. If someone orders your product via one of your online stores, you must deliver it quickly and at a reasonable price. An eCommerce fulfillment service deals with the process of customer orders, specifically receiving, storing, and shipping. It is also responsible for processing orders and dealing with customer returns. A well-planned and professionally managed eCommerce fulfillment service saves both time and money and is only one of the necessary parts of an extensive eCommerce business. The core feature of successful online retail are well-executed fulfillment services that help you expand your market reach and build customer loyalty by improving your efficiency. [contactus_gynoveda] What are the Steps Involved in the eCommerce Fulfillment Process?  Product Receiving The first operation included in fulfillment services is receiving. When your products are delivered to the fulfillment center, they are entered into inventory and placed on shelves where they are ready to be shipped. It is useful to organise these products according to their delivery dates. You can accept and fulfill requests manually. Or, if you switch to using software to do it, you can integrate your cart or marketplace that will automatically look for orders based on the inventory. Inventory Management Proper inventory management means systematically tracking all products so that if and when you run out of goods, they are immediately replenished (know more about stock replenishment). The IMS can store and manage products in your inventory, meaning you won't have to worry about the logistics costs of product handling. Continuous processes such as audit functions should be performed regularly to avoid complications in fulfillment services. Inspect your stock to ensure that items are in good shape, and discard any damaged items. If you're missing an SKU, refer to your inventory or CRM software to track it down. One of the main challenges that retailers face is inventory management because they may not know what their customers want and need. Partnering with a competent fulfillment service provider, being organised, and staying informed about inventory levels can solve this issue. Order Fulfillment An eCommerce business can self-fulfill their orders or hire fulfillment services to do it for them. This includes the following three activities: Picking: It can take days for a company to fill an order. Selecting the product to be fulfilled is the first step in the process. You can pick from a single location or multiple locations across your warehouse if you have different products at each site. To quickly fulfill orders, find reliable staff that can handle the logistics at your warehouse. If your business receives many orders, it will be best to have staff dedicated to this process. The speed increase with this methodology is significant. Faster and hassle-free automation as well as partnering with fulfillment partners can be implemented to improve the pick and order process. Automation can create smaller orders and send them to the consumer in one batch. Packing: Once all the items in an order have been picked up, they must be adequately and attractively packaged. Packaging is an essential aspect of order fulfillment services because it is a physical reflection of your brand presence. Hence, you should concentrate on various packaging plans and choose what works best for your brand image. You should make sure that your packages are labeled and ready to be shipped. In either case, you should use a good packing strategy to ensure the safety of your package. Custom packaging could also be made available.  Shipping: Logistics is crucial in order fulfillment services. Having a timely shipping experience can boost the experience of your customers and make any trouble or delays with shipping, less likely. The transport of goods often includes selecting a transport company and fulfillment services. Reverse/Return Logistics Reverse logistics is about tackling all the items that were returned. Rising competition in the market means that return orders are inevitable. Any company must manage this process efficiently. If your fulfillment service processes your items faster, they will quickly process the refunds. This would lead to the items and the refund being completed faster. Many fulfillment service providers allow you to automate your non-delivery report and handle the refund of orders. Since they take responsibility for all rebates, they can also dramatically lower the number of returns you may have to process. What are Some Common Misconceptions About Fulfillment Services?   Warehousing and Fulfillment are Interchangeable Terms This statement is false. The terms warehousing and fulfillment are not the same. Warehousing refers to storing products in a particular place until they are ready to be distributed. Fulfillment refers to the entire process of delivering a product to the end customer. A distribution center created by 3PL fulfillment services is traditionally used only for order fulfillment and inventory management. Fulfillment centers, however, also take on order management duties and fulfill orders given by purchasing departments.  The Fulfillment Center Should be Closer to the Business Location Shipping can become more expensive if you're shipping to your location (business) rather than your customer's location. You have to pay for the extra cost of having items shipped from the fulfillment center closer to your location. It can be challenging to maintain inventory and storage, as you will have to make compromises on-site. You need to try and have your fulfillment centers located closer to the customers to enable faster delivery. Self-Fulfillment is the Cheapest Way to Fulfill Orders Automation is beneficial if you ship out less than ten orders per day. But if you ship more than 20 to 30 orders each day, we recommend taking a shot at outsourcing your needs to fulfillment services. Training facilities and resources are necessary for a business's success. Without these, it would be hard to innovate and update products quickly. It Will be Much Cheaper if a Fulfillment Center is Located in a Tier-2 or Tier-3 City It can be challenging to maintain inventory and storage, as you will have to make compromises at the location. It might be cheaper in the short run to store your products in a remote, out-of-the-way place and deal with slower shipping, but you need to research the area of your target audience to avoid higher combined shipping costs. Try to have your fulfillment centers closer to the customers to reduce costs. What are the Benefits of eCommerce Fulfillment Services? Focusing on Core Business Outsourcing can free up time spent on mundane tasks. Rather than wasting time taping boxes, invest your time in growing your business. As a business grows, order fulfillment becomes more complex and risky. You can lower your risk of delays by outsourcing the shipping process to a third-party eCommerce fulfillment service. It will give you the time and resources to focus on other tasks like designing your products, marketing them, and selling them. Lowering Shipping Costs You won't benefit from the negotiated shipping rate if you ship orders yourself. Fulfillment services have warehouses all over the country and divide your inventory, so you don't have to pay for distribution in one location. They utilise tools to compare rates with couriers to reduce shipping fees. By partnering with a 3PL eCommerce fulfillment partner, you can get your inventory to the customer's door quicker and cheaper. By shipping from more than one location, you can maintain bulk items closer to customers, which leads to faster delivery. Increasing Shipping Speed Outsourcing fulfillment services will allow you to provide faster delivery. You can place inventory closer to your buyers and have warehouses all over the country for efficiency. Retailers need to be able to ship products quickly to customers and meet demand. An eCommerce fulfillment partner can help you do just that by meeting expectations and competing with big stores. Establishing Fulfillment Infrastructure It can be a nightmare to deal with the storage of orders if you handle them on your own. Storage entails a lot of eCommerce warehousing and operating tasks, which can be solved using asset and inventory management software. To have a fulfilling infrastructure, you need to have people working for you and providing storage and security.  All of this comes at a significant monetary investment. When you outsource to a 3PL eCommerce fulfillment service, you will have access to improved storage space and won't be penalised for your usage. If you have fluctuations in sales volume, they have plenty of resources to deploy according to your order demands. WareIQ's Fulfillment Solution Keeping Buyers Up-to-Date Online buyers need consistency and transparency when buying products to trust the company they are purchasing from. If you use fulfillment services or outsource your needs to a third-party eCommerce fulfillment service, you can provide accurate delivery confirmation at the checkout page. They have an experienced workforce, and the capacity to deliver on time. Reducing Operating Costs Moving fulfillment services to an external location can be costly, but businesses often overlook the fact that self-fulfillment also has costs. Inventory storage is a significant expense and will continue to grow as eCommerce retail evolves. Additionally, outsourcing fulfillment services often lead to high rental fees for warehouse space. Outsourcing to third-party eCommerce fulfillment providers can save overhead costs by only paying for necessary items. You are also insulated against seasonal changes in sales volume. Expanding Your Reach You can receive orders from any state or country with an exemplary eCommerce fulfillment service. Organised and efficient fulfillment will help you reach your business goals. It can be intimidating to understand complicated international shipping and customs rules when managing orders on your own. International shipping rates are even more complex because they are governed by different regulations and currencies. As a result, many retailers keep their shipping options local or regional. But outsourcing fulfillment services can help you get your products to more people. Many fulfillment services have the infrastructure for shipping around the world. Accessing Superior Technology With a tech-enabled 3PL eCommerce fulfillment service, you can gain access to periodic inventory reports and crucial metrics that can assist you in making strategic decisions. A 3PL will provide you with real-time access to essential data such as insights on inventory and orders, forecasting, determining zones for distribution, and performance reports.  What are the Costs Associated with Fulfillment Services?  When calculating the costs of an eCommerce fulfillment service, different models need to be considered. There need to be calculations on the warehousing and fulfillment services and the channels and types of distribution.  Self-Fulfillment When it comes to self-fulfilling orders, you need to take out loans due to the excessive use of resources. Staff needs to be trained in picking and packaging, and storage space and shipping services must also be obtained. 3PL Fulfillment 3pl Fulfillment services are a great way to scale your business up. It is a cost-effective solution, as it allows people to avoid all sorts of expenses, including labour costs and other miscellaneous costs. You only need to find a 3PL eCommerce fulfillment service and choose the fees you want to pay. Customers must pick 3PL fulfillment services closer to their location for an optimal experience. Dropshipping Early in a business, you don't have to invest any real money. Instead, your suppliers cover all the manufacturing, storage, and shipping costs with very little administrative or customer interaction. However, as your business grows, it can be hard to scale up if you need to maintain relationships with multiple channels. Fulfillment by Amazon Fulfillment by Amazon is when an Amazon.com seller sends their products directly to Amazon fulfillment centers. It's only for products on Amazon that have Prime status, and it's the most expensive option when selling on Amazon. With Seller-Fulfilled Prime (SFP), Amazon shipping can be outsourced to different sellers who are trustworthy. Sellers can receive their orders within two days with FBA. FBM, which has a lower cost, renders all Fulfillment services through the seller and is responsible for purchasing and maintaining inventory and handling customer service but provides no Amazon packaging. Which Types of Businesses are Best-Suited for eCommerce Fulfillment Services?  One way for businesses to sell products more efficiently is by using an eCommerce fulfillment service. It can be beneficial for some industries, such as eCommerce retail. Accessories Fulfillment Source If you sell accessories, you can rely on more efficient third-party fulfillment services by automatically fulfilling any orders at the time of purchase. Beauty & Makeup Fulfillment You want to make sure that your makeup is shipped carefully so your customers can conveniently pick it up. Make it a point to consider the ease of transmission - even if you're sending a small package. Apparel Fulfillment Source Delivery of your clothing items is integral to running a successful garment outfit. With discrepancies in sizing, colour, and styles, working with 3PL fulfillment services that competently coordinate order volume is essential. A 3PL eCommerce fulfillment service should also offer the provision of a return, mainly when customers try on their order before purchase. Diet & Supplement Fulfillment The US FDA doesn't regulate dietary supplements, but for a rapidly growing market, it is essential to be able to ship and track inventory. 3PL fulfillment services ensure that this innovative business can expediently deliver products. Electronic Appliances Fulfillment Customers often need customer service when they order items online. Ensure your company offers customer service in addition to quality products and proper storage. Toys Fulfillment Selling toys is unpredictable unless you forecast and plan. Inventory and forecasting tools work better with 3PL fulfillment services with software to manage the process. Pets Accessory Fulfillment Source Customers are trusting when they purchase pet accessories from a company. They have high expectations for transparency during the purchases of your brand's products. 3PL fulfillment services are necessary to create and fulfill consumer desires. Collectibles Fulfillment eCommerce brands need help storing inventory and fulfilling orders. Etsy and Facebook Marketplace are some companies that cover the growing market for other items people are willing to buy. Home & Kitchen Appliances Fulfillment Kitchen appliances are constantly being developed, with people looking for the following new and innovative products that can be bought on the internet. Luxurious Goods Fulfillment Luxury goods can be vulnerable and fragile, so 3pl fulfillment services take excellent care to ensure your items are finely handled throughout storage and processing. They have virtually no cases of broken or damaged luxury goods. Games Fulfillment If you have an excellent idea for a game, the eCommerce market is the best place to sell it. However, the industry can be competitive, so optimising your retail fulfillment process is one way to stand out. Equipment Gear & Outdoor Fulfillment You need a reliable logistics eCommerce fulfillment service infrastructure to survive in the outdoor equipment and gear eCommerce industry. Cymatic offers a warehouse distribution network with drop gate technology that can help you compete in this saturated market. Healthcare Fulfillment It is critical to have the proper eCommerce fulfillment service when expanding your online store. Without the correct location or team, it isn't easy to fulfill an order on time and manage inventory efficiently. Home and Household Goods Fulfillment Source eCommerce homeowners and brands can now receive high-quality eCommerce fulfillment service support from 3PL fulfillment services, which have highly skilled fulfillment experts. It will save you time and money as you scale your brand, but it will also help optimise your supply chain. F&B Fulfillment Customers rely on eCommerce businesses to get food and beverages delivered more than ever. Consumers expect food and drinks to be fresh and perishable. Food that is provided by an eCommerce business needs to be stored and supplied carefully. Should You Outsource Operations to Third-Party eCommerce Fulfillment Services in 2024? If you're fulfilling orders for your business and see a significant influx, it's time to reach out about scaling. Use fulfillment services to help ship and process these orders quickly. If you are not using technology to optimise operations, your business will grow inefficiently. To do so, be sure to have an eCommerce fulfillment service that provides software that will suit your needs and the company's growth. Here are some questions to help determine if you should outsource your fulfillment requirements to 3PL fulfillment services. Do You Struggle in Determining How to Plan for Storage and Inventory? If the answer to this question is yes, consider outsourcing your inventory and warehouse management to third-party fulfillment services. Do You Spend Too Much Time Fulfilling Orders? If you can fulfill orders on your own, then there is no need to invest in fulfillment services for your business. However, if you are unable to do that, it may be worth looking into an eCommerce fulfillment service for any excess orders. How Do You Check Your Customer's Shipping Preferences? If you want to store products closer to home, take advantage of fulfillment services How Do You Plan to Grow the Business? If your business is projecting enormous growth, it's time to switch to 3PL fulfillment services. Conclusion: Is it Worth Partnering with an eCommerce Fulfillment Company in 2024? There are many advantages and benefits that come with partnering with 3PL fulfillment services. A few of them are listed below: Improved Time Management Saving time on fulfillment through fulfillment companies can help grow your business. Outsourcing it to a more conveniently located company will ensure timely delivery and better rates for shipping. Cost Benefits Upfront costs of in-house fulfillment come with seasonally shifting overhead expenses that require employing a full-time staff team. Outsourcing gives you more flexible, stable prices and better deals on storage and insurance. Improved Technology Outsourcing fulfillment requirements to an eCommerce fulfillment service can help utilise their existing technology and infrastructure, freeing up your time and money for other uses. Integrating your eCommerce platform with that of fulfillment services is a smart option.  Business Growth Outsourcing your fulfillment responsibilities can help you focus on other aspects of the business and provide higher-quality service to customers. Market Reach Choosing an eCommerce fulfillment service can help your business reach global audiences without you having to deal with the logistics. You can focus on what's important for your business, like marketing and sales, knowing that your partner will handle the other tasks. If you are seeking to benefit from all the advantages of partnering with fulfillment services and much more, WareIQ can be of great assistance. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfillment centers, micro-fulfillment centers & urban dark stores near their customersAccess to all major national & hyperlocal last-mile couriers at discounted rates for making same/next day deliveries possibleEasy integration across multiple online platforms & marketplaces enhancing multi-channel sellingHorizontal marketplaces: Flipkart, Amazon, etc.Vertical marketplaces: Nykaa, Myntra, etc.D2C platforms: Shopify, Magento marketplace, WooCommerce, etc.Social commerce platforms: BikayiAccess to a superior centralised tech platform for eCommerce operationsML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfillment & shipping operationsPost-shipping apps for a delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next-day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realize significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in eCommerce warehousing, and data-driven decision-making. WareIQ’s WMS, a centralized tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. [signup] Fulfillment Services: FAQs What are the different types of fulfillment?They are as follows:• In-House• Outsourced• Dropshipping• Hybrid What is meant by fulfillment activities?Order fulfillment services refer to the processes taken by a firm between receiving a new order and delivering it to the customer. The process includes warehousing, picking and packing the product, shipping it and notifying the consumer by automated order tracking that the purchase is on its way. What is a 3PL fulfillment service?3PL or Third-party fulfillment is an outsourced fulfillment option in which you hire a fulfillment service company to store items, pick and pack orders and handle logistics on your behalf.  What does the fulfillment cost mean?The fulfillment fee or cost is linked with receiving and storing products along with processing orders from handling to shipping and any other activity that order fulfillment encompasses. How to hire WareIQ for eCommerce fulfillment services?You can contact and request a quote here. Does fulfillment drive revenue?Fulfillment is responsible for transporting goods to customers whenever orders are confirmed. Without fulfillment, companies would not be able to generate revenue because customers would not be able to receive their orders. Additionally, efficient fulfillment processes can lead to customer satisfaction, thus creating positive feedback which will ultimately lead to new and repeat customers which will drive up revenue even further.

June 23, 2022
7 Best eCommerce Fulfillment Services to Streamline Fulfillment and Shipping Operations for Enabling Same Day and Next Day Delivery in 2024

7 Best eCommerce Fulfillment Services to Streamline Fulfillment and Shipping Operations for Enabling Same Day and Next Day Delivery in 2024

Have you wondered how eCommerce market leaders achieve exemplary growth and customer satisfaction metrics? As the eCommerce boom continues and customer preferences change rapidly, powered by the plethora of options available to end customers, differentiation in offerings will be the key game-changer for eCommerce businesses. This differentiation can be achieved through the selection of the best eCommerce fulfillment services, more specifically, a reliable partner that offers the most recent trends in fulfillment, such as same-day delivery and next day delivery services. Keep reading to better understand how you can select the best eCommerce fulfillment services for your business and how WareIQ can be the best fulfillment partner in your growth journey. What are Fulfillment Services? Fulfillment services are similar to third party (3PL) logistics service providers that take care of preparing an order and shipping it to the end consumer on behalf of the seller and also provide a multitude of related services such as taking complete responsibility for receiving, managing and completing the order. As customer expectations of same day delivery and next day delivery grow at an ever-increasing and unimaginable pace, eCommerce fulfillment services are fast evolving as the preferred choice for eCommerce businesses across the globe. The best eCommerce fulfillment services enable businesses to reliably, accurately and efficiently fulfill their customer orders while minimising capital expenditure. While fulfillment services vary with regard to their exposure to the value chain, they mostly act as a command center for handling the entire order preparation and dispatch process as well as doubling up as a buffer inventory for holding the clients’ products. [contactus_uth] What Does an eCommerce Fulfillment Provider Do? An eCommerce fulfillment service provider takes up a broad span of responsibilities ranging from receiving stock, storing it in warehouses, order processing, shipping and transportation. The success of any eCommerce business largely depends on setting new expectations for customer experiences and fulfilling them effectively. With the eCommerce boom, customers have started expecting same day delivery and 2 day delivery as a general standard. However, for any eCommerce company, handling so many things single-handedly becomes cumbersome and the team starts losing focus on their core business processes. There is heavy capital investment, manpower hiring and management bandwidth allocation that is involved. Hence, outsourcing these requirements to the best eCommerce fulfillment services has proved to be a simple but very effective way of addressing this issue while riding on the growth engine along with competitors.  An eCommerce fulfillment service’s task begins as soon as an order is placed by the customer and continues till the order reaches the doorstep of the customer or is returned due to some unavoidable reason. The best eCommerce fulfillment services give the seller access to a more dynamic eCommerce warehousing space, help negotiate more favourable terms with shippers, prevent stockouts and provide real-time tracking information of the order consignments. What are the Factors to Consider while Choosing the Best Fulfillment Services for eCommerce? While selecting the best eCommerce fulfillment services, a number of factors should carefully be considered and it can be a big burden for retailers to determine them. The decision depends both on the business objectives and personal preferences of the decision-maker. Broadly, the following factors must be taken into account while selecting the best eCommerce fulfillment services provider: Spectrum of service offeringsScalabilityFlexibility with respect to same day delivery and next day deliveryCost structure, pricing plans and price transparencyEase of onboardingEfficiency of customer service and reachabilityeCommerce and startup friendlinessIntuitive business intelligence dashboard for real-time monitoringExtent of integration and security Micro eCommerce Fulfillment: The Move to Same Day and Next Day Delivery Same day delivery and next day delivery are rapidly becoming the most preferred delivery models for customers globally. According to some recent survey reports, over 60% of eCommerce shoppers consider delivery speed as a significant factor in their purchase decisions and 80% of shoppers are likely to turn to a competitor brand if they encounter long delivery periods. Let us take a look at the meaning of each: When an item is delivered to a customer within 24 hours of it being ordered, usually on the day on which it was ordered, it is referred to as same day delivery. To accomplish this humongous task, the item must be delivered from the inventory, also called a micro fulfilment center, located as close as possible to the consumption clusters. Next day delivery, on the other hand, means that the customer receives the item at their doorstep on the following day from when it was ordered. It involves bundling multiple orders throughout the day destined for a given region of distribution and making scheduled delivery stops by the shipping partner. However, there are multiple challenges to this micro fulfillment revolution such as heavy capital expenditure on numerous warehousing facilities, investment in robotic product handling, rapid order processing and packing, and lack of transport infrastructure in remote locations. Hence the micro fulfillment model used by eCommerce fulfillment services is fast evolving to provide a more customised experience for eCommerce sellers with same day delivery and next day delivery offerings. 7 Best eCommerce Fulfillment Services Offering Same Day and Next Day Delivery in 2024 We have listed down the 7 best eCommerce fulfillment services that offer same day delivery and next day delivery services, which will boost customer satisfaction, leverage loyalty and increase online sales for eCommerce businesses. WareIQ  Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfilment tech solutions for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same day delivery and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone.  WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfilment centres & urban darkstores near their customersAccess to all major national & hyperlocal last mile couriers at discounted rates for making same/next day deliveries possibleEasy integration across multiple online platforms & marketplacesHorizontal marketplaces: Flipkart, Amazon etc.Vertical marketplaces: Nykaa, Myntra etc.D2C platforms: Shopify, Magento 2 , WooCommerce etc.Social commerce platforms: BikayiAccess to a superior centralised tech platform for ecommerce operationsML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfilment & shipping operationsPost-shipping apps for delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfilment tech companies in the world that have same day delivery offering for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from inbound operations such as scanning and quality checks through 100% accurate pick and pack to inventory management across all channels. WareIQ’s next day delivery and same day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing and data-driven decision making. WareIQ’s WMS, a centralised tech platform, is its core offering, with the following functionalities: Shipping Management Integration to all major national couriers and same-day delivery partners through WareIQ's platform with discounted ratesGeneration of bulk shipping labels & invoices in a few clicksOffering a branded tracking page and sending auto-alerts to inform customers of their shipment statusReduction in RTO % (Return to Origin) by automating cases of failed delivery attempts (NDRs) by the shipping or delivery partnerPreemption of COD frauds through an integrated AI engine flagging risky orders Orders managementTracking of orders across multiple channels Filtering of orders by statusSearching for specific ordersQuick timeline view of where the order is in the fulfillment process (e.g. when an order is picked, packed, or shipped)Shipping-related information (e.g. weights, dimensions or carrier service) Quick snapshot of any orders that require actionSyncing WareIQ’s out-of-the-box integrations with sales channels to eliminate manual importing of data and triggering all the necessary notifications to the end-customers Inventory managementTracking of inventory levels across multiple locations & sales channels including websites and marketplacesUsing WareIQ platform to distribute inventory to multiple locations optimizing for speed & cost/orderSetting reminders to proactively replenish inventory, bundle products for promotions, make inventory transfer requests and much more Warehouse managementManaging multiple warehouses and offline stores on WareIQ's platform100% inventory accuracy ​​​with scan-based operationsAutomated reconciliation tool which helps to keep track of returns and unsettled invoicesIntegrations with all major ERP & Accounting systemsAssured tag on Flipkart without physically dedicating inventory to them The central platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. More than 300 companies such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms have trusted WareIQ as a reliable partner in their growth journeys. No minimum order quantity requirements make it suitable even for eCommerce firms having low order quantities to take advantage of the latest trends such as same day delivery and next day delivery. The onboarding process is simple, convenient and less time-consuming, while the pricing policy is clear and transparent. WareIQ also undertakes strict safety precautions at its warehouses and complete ownership of operations, thereby minimising the risk exposure of customers. ShipBob Source ShipBob was founded in Chicago in 2014 as a global logistics, technology, and eCommerce fulfillment services company that fulfills orders for D2C brands with next day delivery. With a claimed accuracy rate of 99.95% and serving more than 7000 customers worldwide, ShipBob provides end-to-end solutions for eCommerce fulfillment. It offers 2-day shipping at affordable and transparent prices, along with a robust software platform that allows integrations to the eCommerce providers’ own platform with a developer-friendly API. According to independent customer review reports, ShipBob ranks high with respect to: A broad network of warehouses across distant locationsA superb easy-to-use user interfaceThe ease of integration with other platforms However, customers have reported dissatisfaction on the following issues with ShipBob: Difficult to understand pricing plansNot-so-active customer supportNon-availability of refrigeration facilities for perishable productsInflexibility for B2B operations Shipbob also provides predictive analytics to eCommerce customers to better handle stock-outs during peak sales periods. ShipMonk Source Also established in 2014, ShipMonk is based out of Florida and serves medium and small-sized eCommerce companies with comprehensive fulfillment solutions including warehousing, smart inventory management, subscription box fulfillment and campaign fulfillment. ShipMonk’s warehouses are located strategically across the USA and it has plans to establish warehouses in Europe, so as to provide more customised fulfillment, including 2-day delivery and next day delivery to D2C eCommerce brands. ShipMonk is equipped with robust and eco-friendly modern technologies such as locus robots, kardex machines, cubiscans and software that integrates easily with 75+ marketplaces and shopping carts. It offers customised packaging solutions and delivery protection schemes for willing eCommerce companies. ShipMonk allows a convenient pricing model that allows customers to pay on a per-unit basis for 1 to 10,000 fulfilled orders per day. It also enables customers to better understand the returns management process with accurate and real-time data and round-the-clock customer support. ShipMonk has a respectable mindshare among its customers with respect to: Heavy discounts and affordable shipping ratesComplete paperwork and claims settlementZero setup feesZero inventory receiving feesEasy integration with eCommerce platformsAbility to handle international orders and subscription boxes effectively However, Shipmonk’s software is not integrable with eCommerce company websites hosted on Wix. Amazon Source Amazon has been the pioneer in the eCommerce fulfillment space with same day delivery and next day delivery services for Prime members across a long list of cities. To add to customer delight, Amazon has gone to the extent of fulfilling certain eCommerce orders within a few hours of placing the order. Amazon makes it possible through a very carefully placed network of fulfillment centers, comprising of warehouses and phantom godowns, close to the sites of maximum orders, based on their past order data and projections. The same day delivery concept evolved from the 2-day delivery promise that Amazon inherently made to its Prime members. While most eCommerce companies, especially small and medium businesses, admit to having benefited largely from the same day delivery offering of Amazon, the associated costs have been heavy for eCommerce companies having less frequent and uneven rates of orders. Moreover, the same day delivery and next day delivery services of Amazon are available only for registered vendors and sellers of Amazon; external parties selling through other platforms cannot avail of these services, thereby restricting their reach. Deliverr Source Established in 2017 in San Francisco, Deliverr provides superior fulfillment solutions to small eCommerce companies, with a 2-day delivery service. Transparent pricing, badges similar to Amazon Prime or flipkart badges and a hassle-free experience stand at the core of Deliverr's services. eCommerce companies can leverage the live data tracking options of Deliverr to predict their future fulfillment performance and even next day delivery for D2C customers located in close proximity of the warehouses. Deliverr ranks high on the following parameters: Online Customer supportEase of onboarding and integrationTransparency in pricingMulti-platform integration for companies The primary disadvantages of Deliverr are: Unavailability of International deliveryTelephonic customer supportNon-adaptability with subscription boxes Rakuten Super Logistics  Source Originally established as a 3PL company in 2001, Rakuten Super Logistics has established its strong foothold in the eCommerce fulfillment domain since 2013. A nationwide fulfillment network helps eCommerce companies minimise shipping periods, control costs and increase accuracy in eCommerce order fulfillment. RSL has partnered with some of the leading shipping carriers to handle a diverse range of parcel sizes for eCommerce platforms. While currently offering only next day delivery, it plans to introduce same day delivery services in the very near future to compete with Amazon. Rakuten customers have reported a plethora of advantages including: Dedicated customer support managers, available through phoneTwo-way inventory management and address verificationSpeciality fulfillmentDiscounts with bulk orders The main barrier for smaller eCommerce companies in partnering with Rakuten Super Logistics is its minimum order quantity of 250 monthly orders, although the company plans to shred down this limit in future. The other disadvantage is that eCommerce websites hosted on Wix cannot integrate with the API of RSL directly. Also, Rakuten Super Logistics does not offer a live chat feature and 24*7 customer support. FedEx Source FedEx, formerly Federal Express Corporation, was founded in 1971 as an urgent delivery services company. Over the years, Federal Express has grown and evolved as a multinational eCommerce fulfillment provider, serving diverse sectors such as healthcare, transportation, D2C, B2B and B2C eCommerce fulfillment solutions. Having operations across 200+ countries, FedEx has many large multinational conglomerates among its customer base and continues to innovate supply chain solutions to meet changing customer expectations. Moreover, FedEx offers the convenience of shipping pre-ordered consignments without storing them in a warehouse. However, the main disadvantages are that FedEx does not ship oversized and overweight products and it does not integrate with Amazon - an essential requirement from any eCommerce fulfillment service. Conclusion So, by now, you must have gained a fair understanding of the importance of having a strong fulfillment services partner, which is capable of providing same day and next day delivery services, which will boost the ability of your eCommerce company to become more customer-friendly. There is no standard one-size-fits-all approach for selecting the best eCommerce fulfilment services. So, it is best to trust WareIQ, the fulfillment company that provides you with the right flexibility with respect to order size and pricing. WareIQ has been constantly working on incorporating feedback from customers and strengthening the focal points in the fulfillment chain to provide you with a consistent improvement in customer satisfaction. We help you not only to reduce your logistic costs but also your delivery timelines – this could be the game-changer for your business.  [signup] eCommerce Fulfillment Services: FAQs What is an eCommerce fulfillment service?The part of your eCommerce business that involves operations after receiving an order is known as fulfillment. These tasks include picking of a product, packing, shipping and delivering it to the customer's door. What is the difference between eCommerce fulfillment and drop shipping?eCommerce fulfillment is a business model that involves purchasing items in wholesale quantities, selling them online and fulfilling each order in-house. Dropshipping involves retailers selling items where they do not have to keep inventory in stock. As and when customers place orders, the merchants purchase products from suppliers & directly ship to end customers. When should you go ahead with an eCommerce fulfillment service?If you don't want to have to deal with shipping or if you've grown beyond your existing warehousing capabilities to a point where you can't ship items manually anymore, you should opt for a fulfillment service. Read our blog on outsourcing fulfillment services to know more. What is a fulfillment partner?For an ecommerce business, a fulfillment partner (like WareIQ) provides ecommerce fulfillment services such as order processing, warehousing and shipping of orders. Fulfillment partners can help eCommerce businesses save money by getting shipments to customers faster with same day or next day delivery options without having to rent a warehouse, buy equipment, recruit a workforce or manage the day-to-day operations of eCommerce fulfillment. Many eCommerce fulfillment companies not only pick, pack and ship orders but also provide technology and data to help eCommerce businesses make better supply chain decisions. In how many locations does WareIQ have fulfillment centers?WareIQ has a pan-India network of 40+ fulfillment centers in all major metros & 30 other cities that helps you store your inventory closer to your customers for faster delivery and managing returns. Which is the best eCommerce fulfillment service in India?WareIQ has rapidly grown to be the leading provider of full-stack eCommerce fulfillment tech services for some of the most reputed brands in India. WareIQ is amongst the best in the industry as it enables Amazon-like same-day and next day delivery to customers using the seller flex-compliant fulfillment centers owned and operated by WareIQ across India. How do eCommerce fulfillment services make money?eCommerce fulfillment services have various pricing plans, subscription models and minimum order requirements that vary between companies. Companies such as WareIQ do not have any minimum order requirements and customers only pay for the facilities they use. Shipping charges are as per the shipping company you choose and order volumes.

June 22, 2022
What is Direct Fulfillment? How is it Different from Amazon FBA?

What is Direct Fulfillment? How is it Different from Amazon FBA?

eCommerce retailers are constantly striving to offer the best services to their customers at the most competitive rates to out-shine their rivals. There are many important decisions to be made, especially in terms of order fulfillment because that is the most visible aspect to the customer and they get to experience it first hand. There are many different methods of order fulfillment and today we take a look at one of the more unconventional ones - direct fulfillment. Read further to understand what it is, how it works and if it would be the right fit for your business. What is Direct Fulfillment? Direct fulfillment is the process of shipping goods ordered by a customer directly, using the company’s own facilities and resources, and not relying on a 3PL fulfillment company for any aspect of the fulfillment process. Another process is that wholesale sellers make a large number of product purchases, obtained from the producer, after which separation of the goods into distinct categories occurs, in magneto order to sell to retailers. The distributor then sells the products to the end consumers. This is known as Indirect distribution. Fulfillment By Amazon (FBA) is a service provided by Amazon that helps their clients with storage, packaging, shipping guidelines, and other aspects of the B2B fulfillment process. This reduces the burden on sellers. Sellers ship their products to an Amazon fulfillment center, where the products are stored in warehouses, according to their demand, expiry date, etc. The products are then shipped whenever they are needed. When an order is placed, the employees in Amazon are always physically getting ready to prepare, package, and ship the products. [contactus_uth] What are the Benefits of Direct Fulfillment? There are many benefits in the process of direct order fulfillment, especially during the inception of an online retailer, where customers would be fewer and demand would still be on the lower side. A few benefits of direct order fulfillment are Ability to consolidate important information on client purchasing habits.Ability to separate yourself from the competition.First-hand look as to the performance of certain products and client feedbackFaster supply of your goods to your customer'sRemoval of payments and credit to a third-party distributorDirect relationship with your clientsExpanded number of ASINsBuy request no neededUnavailable assuranceHassle-free reverse logisticsNo outbound delivery costs How do I get started with Direct Order Fulfillment? Direct order fulfillment starts with the following steps: The online retailer gets client requests and orders.The company checks stock and by the same token, acknowledges or dismisses the order request.The company initiates the fulfillment of each order from the area allocated by Amazon (commonly a stockroom) and drops the request if they don't have stock in that area.The company satisfies the order request by utilizing the chosen transporter and transport strategy during the arrangement. If you are currently an Amazon vendor 1. If it's not too much trouble, record a help case in your Vendor Portal mentioning the desire to be set up on Drop Ship Central and Direct Fulfillment. If you are not currently an Amazon vendor Train your onboarding contact that you would like the "DF (Direct Fulfillment)" box checked during arrangement on Vendor CentralDuring the Vendor Central arrangement process, you will get a challenge to pursue Drop Ship Central, the administrative entry for dealing with your immediate satisfaction queries.As a component of the guided setup process, you will be asked to (1) pick your conveyance name preference (utilize Amazon's transportation mark as opposed to giving your delivery name); (2) provide your fulfillment warehouse data; (3) provide your hours of operations, occasion, and termination plans; and (4)select a transporter.In around 48 hours, you will get the last guidance to transfer your stock feed data into Drop Ship Central. What are the Advantages and Disadvantages of Direct Order Fulfillment? Advantages Of Direct Fulfillment You can oversee your own branded shipping, stock, and orders.As long as you have the space, can print address names, pick and pack, and stand in line at a mailing station, you can satisfy orders on your behalf.It functions reliably, assuming your clients are nearby, the operations are sensible, and the transportation costs are negligible, particularly when order volumes are relatively low.Rather than most 3PLs, you can store and transport transitory or perishable merchandise, such as blossoms or lithium batteries.You can be located closer to your clients since this choice accompanies more client contact.  Disadvantages Of Direct Fulfillment This strategy requires a lot of staff to oversee customer service and other eCommerce fulfillment processes. This is likely removing diverting your attention away from developing the business.You need to have adequate warehouse space to store items.To ensure quick international shipping, would require a lot of capital and resources than partnering with a 3PL fulfillment company.Human blunders can happen when orders expand in size and complexity, particularly on the off chance that you are not utilizing automation to assist in dealing with your stock. Read our blog about Seller Fulfilled Prime to get a better understanding of other services Amazon has to offer. What are the Main Points to Keep in Mind while Choosing Direct Fulfillment? Fulfillment companies new to direct order fulfillment and multi-level marketing (MLM) organizations for marketplace fulfillment might battle with one or more of the extraordinary prerequisites needed to successfully serve their customers. Nature of Business Retailers with expanding business operations are best suited to benefit from direct order fulfillment. Such businesses have the monetary means and available manpower to take on the process of fulfilling customer orders on their own, without needing to bank on Amazon’s fulfillment services. Retailers that seek to reduce their order fulfillment and logistics costs can do so by distributing to customers directly and don’t need to pay any fees to a 3PL fulfillment company. Reduced Delays Retailers who rely on Fulfillment by Amazon frequently face challenges relating to inventory receiving times. The receiving process, which would initially take 5 days, can now take upwards of 30 days. This lengthy delay can severely reduce the availability of inventory. By independently taking care of order fulfillment processes, companies can make use of their entire inventory, which would result in an increase in sales. Benefit to small businesses Small businesses generally find Fulfillment by Amazon to be a useful tool and can adopt Amazon’s offerings as their main fulfillment strategy with Direct Fulfillment as a backup. Retailers who make use of Fulfillment by Amazon have access to standardized shipping devoid of any hassles. Amazon takes care of the storage of inventory, packing, and shipping aggregation for all orders that come in. Smaller businesses can also use direct order fulfillment as a backup option to transfer more of their products. Fulfillment by Amazon (FBA) vs Direct Fulfillment: What are the Differences? Given the benefits, it shouldn’t shock anyone that most third-party sellers on Amazon utilize its Fulfillment by Amazon (FBA) service. With FBA, sellers' items automatically qualify for Amazon Prime and Super Saver Shipping. They can likewise exploit Amazon's customer service experience, and this all means acquiring more deals than contending with non-FBA sellers. Notwithstanding, not all that sparkles is gold. Amazon's FBA has its disadvantages as well, and numerous sellers frequently select to deal with this aspect of eCommerce logistics themselves.  If you're a third-party seller deciding on direct order fulfillment, you might need to enlist external assistance to help you in dealing with the logistical portion of your business. Fulfillment, direct or otherwise, has become well known and has progressed as necessities have ascended over the last ten years. Innovation is a major tool in terms of dealing with the entire cycle and monitoring individual shipments as well as the stock in the warehouse. For the vast majority of businesses, the goal is to get to the same level of assurance that Amazon Prime offers in terms of reliability and quality. The differences between direct fulfillment and FBA are listed below: [table id=5 /] Conclusion Direct order fulfillment facilitates your enterprise to manage expenses and mitigates dangers while at the same time enhancing your capacity to serve customers. You get all the recognition for providing professional services but conversely, you also get all the blame if something goes wrong. It is a primary step and doubtlessly, a hard one. If you feel that your business needs to outsource its fulfillment requirements to a 3PL company, WareIQ can definitely be of service. WareIQ, is a full-stack eCommerce fulfillment company 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. Why You Should Choose WareIQ's Fulfillment Centers for FBA Prep Service? Comply with Amazon’s scheduled delivery Prep services ensure proper packaging and preparation which helps to reduce delays in receive time. Taking scheduled appointments in the Amazon Fulfillment Center is a hassle because of the complex checklist of items to be executed. There are chances of missing the time slot leading to stock rejection. Stock preparation needs to follow Amazon guidelines which is a thorough process that WareIQ staff is trained in. WareIQ offers FBA prep services that ensure quality control, streamlining and adherence to Amazon standards whether it comes to fragile item preparation, repackaging thousands of SKUs to simply labelling products correctly with barcodes. WareIQ’s automated order fulfillment system ensures efficient and accurate picking and packing. Save operational costs Keeping track of a lot of different stock keeping units or SKUs that require different prep services can be tricky. You have to ask yourself if your business can afford to have its products returned or be billed a non-compliance fee for failure to meet FBA standards. Outsourcing FBA prep is a cost-effective way to move inventory. With WareIQ’s smart technology, SKUs are mapped across sales channels for efficient fulfillment. Also, with WareIQ you’ll only pay for what you use, which means if you ship only one product in a month, you’ll only pay a pick and pack fee for that one. WareIQ books slot for clients on their behalf and offer bulk shipping with multiple sellers thereby ensuring cost efficiencies. Save space FBA doesn’t just take up mind space, it takes up a whole lot of physical space as well. De-palletizing and repackaging, and storing packing materials such as poly mailers, fragile item wrapping, or labels can take up a lot of space, which most vendors do not have. In this case, a fulfillment center may be a great option. WareIQ has the bandwidth to fulfill 1 to 10,000+ orders each day. Save on resources Think about what you could be doing with the resources it takes to manage FBA prep. Outsourcing to a fulfillment centre can help you focus on growing your core business. [signup] Direct Fulfillment FAQs (Frequently Asked Questions) What does direct fulfillment order mean?The term "direct fulfillment" refers to sending an order directly to the customer. Direct fulfillment is when your eCommerce company sells D2C (direct to consumer) and ships orders to your customers. However for wholesalers, if you are selling products to other online retailers, you will ship the orders of your products in large quantities. What are direct fulfillment centers?A direct fulfillment center is a site where products and orders are shipped directly to customers  or individual shoppers. These multi-million-square-foot warehouses store products, pick and pack orders, ship orders, and manage product returns. What is Amazon’s direct fulfillment program?Amazon Direct Fulfillment is a backend service of Amazon fulfillment. A vendor that is a part of the Amazon direct fulfillment program can ship products directly to consumers when Amazon runs out of product. What is the difference between FBA and Direct Fulfillment?In FBA, Fulfilled by Amazon, You ship a portion of your inventory to Amazon fulfillment centers, where it is held until a buyer decides to purchase it. However,  in the case of Direct Fulfillment, vendors ship their products directly to the customers.

June 09, 2022
Magento 2 Order Fulfillment & Shipping: 8 Easy Step Integration of Magento 2 Marketplace with WareIQ [2024]

Magento 2 Order Fulfillment & Shipping: 8 Easy Step Integration of Magento 2 Marketplace with WareIQ [2024]

Magento is an eCommerce platform that is open source and is coded using PHP, which aids in it being highly customisable by programmers who want to create their own eCommerce marketplaces and fulfill Magento orders. It was released in 2008 and has since been utilised by multiple household names around the world such as Samsung and Nike.  Magento was acquired by Adobe in 2018 for $1.68 billion, which helped the platform grow at an even faster pace. The site has garnered popularity due to its easy-to-use, open-source nature and currently has over 100,000 active users and over 2.5 million downloads of the performance code. Magento roughly has a 2.32% share of the eCommerce market. In 2015, Magento released version 2.0 of its platform which consisted of multiple changes and improvements such as security and performance gains using PHP version 7+, minimised data table locking errors, company-grade database scalability, and much more. Read further to get a better understanding of Magento 2 order fulfillment, integrating WareIQ with the Magento 2 marketplace, and how WareIQ can benefit your business. How Can eCommerce Sellers Enable Magneto 2 Order Fulfillment & Magento Shipping? While Magento 2 doesn’t offer solutions for all the processes that order fulfillment encompasses since it is essentially a software platform that enables customers to build websites, users can fulfill Magento 2 marketplace orders by performing tasks such as order processing and automating processes through API integrations. To have a more cohesive experience, we recommend partnering with a 3PL fulfillment company like WareIQ, which offers the entire suite of fulfillment services such as inventory management, picking, and packing, delivery to the customer, and reverse logistics, in one centralised platform. In addition, users can also integrate WareIQ with the Magento 2 marketplace for a seamless experience. Users need to identify their requirements and financial abilities to partner with a fulfillment company that is best suited to them. [contactus_lilgoodness] Benefits for Retailers who Use 3PL Fulfillment Companies for Magento 2 Order Fulfillment Ultra-Fast Delivery In the current eCommerce landscape, ultra-fast delivery such as same-day and next-day services has become a right rather than a privilege. To stay on top of their competitors, most 3PL companies constantly try to identify ways to provide the fastest delivery at the most competitive rates and the party that can take the most advantage of this are retailers and their customers. Brand-Specific Packaging If you utilise the fulfillment services provided directly by an eCommerce selling platform such as Amazon, chances are that they would want to abide by certain standardised packaging processes that highlight their brand, as opposed to the retailer. However, with 3PL fulfillment companies, users can choose from a vast array of materials, themes, logos, and other customization options that will make their brand stand out from the crowd. You can view other channels such as Direct Fulfillment. Order Management Order management is the bread and butter of 3PL fulfillment companies. Facilities ranging from high-tech order management systems where past, present, and future orders from various eCommerce marketplaces can be tracked and updated to smartly pairing orders with the closest and fastest shipping aggregator to enable the most rapid delivery to the customer are offered by most 3PL companies. All these services make order management more seamless and efficient. Transparent Payment Plans Due to the monopolised nature of most 1st-party fulfillment services, retailers are often surprised by new costs and more expensive services that they have to incur. However, since there are a vast number of 3PL fulfillment providers, all pining for your rupee, they are forced to offer the best services at the cheapest possible rates and also expose the fine print of every expense, upfront. They understand that if a customer has a bad experience, it’ll reflect poorly on them. Involvement in Decision Making 1st-party fulfillment services offered directly by eCommerce marketplaces often lack flexibility and do not include retailers in important decision-making tasks. Conversely, 3PLs treat retailers like exactly what they are - paying customers. This helps sellers become more involved and can tailor every aspect of every service according to their liking. Multi-Channel Selling Retailers need to make their products and services visible to the most amount of potential customers as possible, in order to get conversions. They cannot do this by just selling on one platform and it becomes a lot harder to manage different accounts and update inventory and track orders, individually. However, retailers need not fret because most 3PL companies offer integrations with most large eCommerce marketplaces and offer software solutions to be able to track and manage orders and inventory in one master dashboard. Inventory Management 3PL companies are usually equipped with state-of-the-art Warehouse Management Software (WMS) to be able to organise and manage the inventory of their users. These highly advanced systems are able to perform tasks such as forecasting demand and supply levels for future dates and recommending the smartest placement of inventory to reduce delays and damage to the products. Smartly Located Fulfillment Centers Most 3PL companies have fulfillment centers and warehouses scattered in different locations of the country, specifically near areas of high demand or in close proximity to transportation facilities. Retailers who partner with them can choose strategic locations to store their inventory to enable themselves to offer the fastest possible delivery to their customers and mitigate any delays or errors. Enable Magento 2 Order Fulfillment & Shipping: 8 Easy Steps to Integrate WareIQ with Magento 2 Marketplace in 2024 eCommerce sellers who seek to provide Magento 2 order fulfillment with WareIQ can immediately utilise our advanced portfolio of facilities such as a pan-India network of fulfillment centers, country-wide courier service partners, and the ability to integrate WareIQ with the Magento 2 marketplace fulfillment so that you can have access to our WMS from where you can manage inventory and track orders across multiple other marketplaces. Sellers can integrate WareIQ with Magento 2 Marketplace in 10 simple steps: Step 1: Logging In Once you get onboarded as WareIQ’s customer, you can log in to WareIQ’s OMS (Order Management System) “https://wareiq.com/login/” using the login credentials shared with you by WareIQ’s customer success team. Step 2: Access to OMS Portal Once you log in to WareIQ’s OMS portal, you can see the dashboard that reflects important business metrics of your small business fulfillment like orders, revenue, shipments delivered, returns, etc. The time period can be chosen as per your choice. Step 3: Adding Channels Click on the “Settings” button in the left navigation bar. Click on “Channels” to add or edit channels. The channels already added to OMS will show in the list. Click on “Add Channels” to add Magento 2 from the list of channels available for integration to WareIQ’s OMS. Step 4: Integrating with Magento 2 Go to Magento 2 & click on the “Integrate” button to proceed to the next step of Magento 2 marketplace integration with WareIQ’s fulfillment platform. Step 5: Getting Details from Magento 2 Follow the step-by-step instructions given on the page to get the “Store Name”, “Store URL” & “Access Token” from Magento 2’s account. Step 6: Going to Magento 2 Admin Login Page Enter the store URL in the browser. The Store URL is the URL that would have been specified during the installation. The default Admin URLs resemble this -  “https://www.yourdomain.com/admin” Enter Store Name & password. Step 7: Generating the Access Token from Magento 2 Steps to be followed to generate the access token from Magento 2’s account: Log in to Admin and click System > Extensions > Integrations to display the Integrations page.Click Add New Integration to display the New Integration page. Source Enter a unique name (WareIQ) for the integration in the Name field. Then enter your admin password in the Your Password field. Leave all other fields blank. Click the API tab. Select the Magento resources the integration can access. You can select all resources (recommended), or select a custom list. Source Click Save to save your changes and return to the Integrations page.Click the Activate link in the grid that corresponds to the newly-created integration.Click Allow. The access token needs to be filled in the Access token field on WareIQ. Source Step 8: Enabling Fulfillment with WareIQ Copy & paste the access token, enter the store name & store URL and click on the “Submit” button to enable Magento 2 shipping & order fulfillment with WareIQ. Why should Merchants Choose WareIQ as a Fulfillment Partner to Fulfill Magento 2 Marketplace Orders in 2024? WareIQ has a large amount of experience in the fulfillment and eCommerce space and also offers the services and technology to back it up. Equipped with a custom WMS, fulfillment centers across the country, partnerships with the biggest eCommerce shipping and courier services, and integrations with multiple online platforms, we can make your job of outsourcing fulfillment and order management a whole lot easier and cheaper. Some services that we offer are listed below:  Vertically Integrated Full Stack Fulfillment Platform Other fulfillment and 3PL logistics players in the market have separate OMS & WMS. This is an issue for eCommerce businesses because there is a delay in syncing of orders in both platforms that creates a lag of 12-14 hours on order/inventory status in the 2 separate platforms. WareIQ is one of those fulfillment companies that provide an integrated OMS (Order Management System) +WMS (Warehouse Management System). This removes the 12-14 hours lag in inventory/order status to sync & hence removes the ambiguity in order status that ultimately leads to faster shipping as soon as the order is placed. Forward Supply Chain Assurance of Quality Facilities such as inbound management, coupled with rigorous product checks while complying with Legalities and Metrology ensure that quality levels are maintained. Intelligent Placement of Inventory We analyze factors such as the velocity of SKUs, the density of orders, seasonal demand & trends in different regions for intelligent inventory placement to reduce any errors or delays. RTO Shield Our custom RTO Shield limits the damage caused by return order requests by identifying orders of high risk and insuring them against losses to sustain the profit levels of customers. Personalization of Services We offer special branding kits and unique packaging, specifically tailored to follow the requirements and brand image of each retailer’s company. Reverse Supply Chain Re-Stocking of Inventory We protect retailers by protecting them from liabilities through Seller Protection Fund claims and simple settlement procedures. Intelligent RVP We help last-mile delivery services to check product quality by leveraging reference to-do’s and images, removing misplaced or damaged products, and thus, reducing reverse logistics expenditures. Smart Disposal We assist in sustainably disposing of items in various segments such as electronics, apparel, food, etc. Recovery of Value We help in recovering the value of goods that are returned through upcycling and recycling, liquidation to the secondary market, donations, and converting waste to usable energy which helps customers save money, time, and resources. [signup] Magento 2 Order Fulfillment FAQs How can you get started on the Magento 2 marketplace?You can follow the below settings to use the Magento 2 marketplace for your business:- Make a note of Magento 2's server necessities- Opt for an online host and domain name- Download and Install Magento 2 on your computer- Customize your administrator settings- Download a theme you like and install it. What kind of businesses can create a website using Magento 2?Magento 2 is specifically tailored to work well for small businesses who don't have large tech teams at their beck and call. Additionally, you can always make changes whenever you desire and there is a lot of flexibility and customization built into the system. Does Magento 2 offer its own fulfillment services?The magento 2 marketplace has plugins and APIs that offer various fulfillment capabilities. However, to get the best and most cohesive fulfillment services, it is best to opt for a 3PL company if you need Magento 2 order fulfillment. Can you still sell products on other platforms if you integrate WareIQ with the Magento 2 marketplace?Yes. WareIQ offers integrations with a host of eCommerce selling platforms and integrating with the Magento 2 marketplace doesn't inhibit that. What services can you expect when you use WareIQ for Magento 2 order fulfillment & Magento Shipping?WareIQ offers a whole slew of features ranging from inventory management and storage to order delivery and reverse logistics.

June 02, 2022
FBA vs FBM: 6 Factors for Amazon Sellers To Consider Before Choosing Between Fulfillment by Amazon(FBA) and Fulfillment by Merchant(FBM) in 2024

FBA vs FBM: 6 Factors for Amazon Sellers To Consider Before Choosing Between Fulfillment by Amazon(FBA) and Fulfillment by Merchant(FBM) in 2024

Ecommerce is expanding at an alarming rate and has experienced a significant uptick in recent years. As per online shopping statistics by Tidio, there were more than 2.14 billion digital buyers worldwide in 2021, and the trend is expected to continue in 2024 with global eCommerce revenues expected to reach $7.4 trillion by 2025 providing eCommerce fulfillment services is a thriving business, and online marketplaces like Amazon, Flipkart, and many more are at the epicenter for selling. As a result of the mentioned stats above, small company owners, investors, and individuals working 9-5 jobs are all coming up with online selling businesses each year, many are now flourishing. Since its inception, Amazon has added various features to its ever-expanding platform, for instance, Fulfillment by Amazon and Fulfillment by Merchant, we will talk in detail about FBA vs FBM in this article. In 2021, Amazon had 3 million active sellers, based on Jungle Scout’s 2021 State of the Amazon Seller Report. In the eCommerce fulfillment industry, fast and safe order delivery is critical in e-commerce for both active sellers and purchasers. Individuals and businesses that use the Amazon marketplace to sell their items have alternatives for fulfilling their client orders, which are commonly referred to as Amazon order fulfillment models.  Introduction to Fulfillment by Amazon and Fulfillment by Merchant (FBA & FBM) However, deciding to sell on Amazon is simply the first step. Online businesses will also have to choose one of Amazon's several fulfillment options to utilize. In addition to the well-known Fulfillment by Amazon technique, e-commerce companies can also choose Fulfillment by Merchant or Merchant Fulfilled Network (MFN). As perplexing as it may appear, in addition to these models, there are further alternatives to employing Multi-Channel Fulfillment (MCF) by Amazon and Seller Fulfilled Prime (SFP). So, to make things as clear and accessible as possible, this article focuses on the two most common solutions - FBA and FBM. If you are selling or wish to sell on Amazon, you have two basic options for storing, handling, and shipping your products: Fulfillment by Amazon and the Fulfillment by Merchant or Merchant Fulfillment Network. In this article, after discussing the fundamental concept of the two, we will emphasize the benefits and drawbacks of these two fulfillment models. Finally, we will make it simple for you as to which one is the greatest fit for you. [contactus_uth] Fulfillment by Amazon (FBA) Source In this fulfillment model, the online sellers themselves advertise their products for sale on Amazon in this arrangement, but Amazon is responsible for keeping those products and completing shipping orders. Sellers do not need to rent or own a place to keep their items, nor do they have to ship orders to their clients. The Amazon Fulfillment approach does necessitate payment to Amazon for its services and also sending items to Amazon so that its employees can fulfill orders. However, from a risk management standpoint, it is a far easier decision. To work at a fulfillment center or run a fulfillment network, you do not need to recruit employees. You can simply depend on Amazon's existing connections to send your items to their destination However, there may be insurance needs and vendor agreements to deal with If all of this sounds pretty good, you may very well be wondering how fulfillment by amazon (fba) works. How Fulfillment by Amazon Works According to Jungle Scout, there are more than 3 million active sellers, out of which 57% are using FBA only, making it the most common fulfillment method for third-party Amazon merchants. It manages your items and handles customer service concerns like refunds and returns. But it doesn't mean Amazon FBA will do everything for you. As an FBA seller, you're in charge of listing, selling, and keeping your items supplied at Amazon fulfillment centers. If your inventory runs out, Amazon will be unable to fulfill orders because they cannot resupply your items. Sellers must do the following to keep FBA working smoothly: 1. List their items as Amazon fulfillment. 2. Prepare their items for shipment to Amazon fulfillment facilities while adhering to Amazon picking and packaging specifications as well as shipping and routing criteria. This is all explained in FBA prep services. 3. Ship inventory to fulfillment centers to ensure that items are in stock and ready to sell. Fulfillment by Amazon can provide much-needed relief for large third-party sellers who lack logistics, have high-turnover items, or can outsource fulfillment to Amazon at a lower cost. However, as predicted, its benefits come at a cost.  To utilize Amazon Fulfillment services, sellers must pay Amazon platform charges which include Amazon referral fee, closing fee, storage, and warehouse management fees, label service fee, and return and processing fee. Significant Advantages of Fulfillment by Amazon Customer Base Prime delivery is available on items fulfilled by FBA. This implies that buyers who have an Amazon Prime subscription will receive their goods with free 2-day delivery (even 1-day shipping in some areas). Because Prime users are anxious to take advantage of the fast delivery timeframes, this boosts the sales potential of your merchandise inventory. To put the scale of the possibility in context, there are over 200 million Prime users worldwide. They are far more inclined to buy something with the Prime label than something with ordinary delivery. Concentrate on Selling Rather than Fulfilling When it comes to managing your fulfillment, the list of obligations is vast. Hiring, training, keeping track of inventory, negotiating carrier prices, procuring branded shipping materials, sending on time, shipping the proper things... It's difficult to run a well-oiled shipping and storage organization. Amazon has a cutting-edge fulfillment infrastructure in place to process and dispatches your items quickly. Furthermore, because sellers do not need to increase employees or warehouse capacity as order volume varies, the Fulfillment by Amazon program allows them to grow simply. Many Amazon sellers would rather concentrate on product development, marketing, and sales. They are content to let Amazon handle their fulfillment operations on a day-to-day basis. The Amazon Buy Box When competing with other Amazon sellers offering the same goods, getting your offer inside the Buy Box is critical. On a product page, the Buy Box is where the "Add to Cart" and "Buy Now" buttons are situated. A sale made using the Buy Box is only granted to one seller at a time. The Buy Box accounts for 85 percent of all sales. One of the most critical factors Amazon examines when selecting which vendor gets the Buy Box is fulfillment. Basically, the better your shipping and delivery are for the consumer, the faster, cheaper, more convenient, and more trustworthy it is. Amazon Warehouses Access to Amazon's warehouses is arguably the most compelling reason to use Fulfillment by Amazon. When a seller uses Fulfillment by Amazon, their goods are sent to an Amazon warehouse and stored there until the order is placed. When customers submit orders, Amazon handles all packing, shipping, customer care, and returns, not the vendor. While Amazon handles all delivery, the merchant can focus on offering high-quality items and processing sales. Because Amazon handles shipment, you'll find that your shipping costs are lower than previously (especially if you're selling tiny, light products). Service to Customers Amazon handles all customer support and returns processing for your item when you use Fulfillment by Amazon. While you may lose out on opportunities to communicate directly with your clients, it will reduce the support costs that online merchants must bear. Amazon Search Engine Optimization Amazon has been tight-lipped about its A9 search algorithm's inner workings. While Amazon won't say it publicly, it's widely assumed that Fulfillment by Amazon is a ranking element in the search algorithm. In terms of search, FBA offers are likely to outperform FBM offers if all other factors are equal. FBA, according to Amazon, has near-perfect scores in all of these areas. As a result, FBA may significantly boost your earnings. Significant Disadvantages of Fulfillment by Amazon Costs Associated with Fulfillment You should not underestimate the fulfillment costs as an FBA vendor. Amazon is a major e-commerce operator, and they will accept your payment. Every product you sell will be charged for picking, packing, packaging, shipping, returns management, etc. In most circumstances, the prices will be greater than working with a 3PL service provider. Storage Expenses The same may be said about storage expenses. Cubic meters or cubic feet are the units of measurement. Be aware that storage fees, particularly for lengthy periods, might be prohibitively expensive. Also, keep in mind that Amazon charges extra Q4 storage costs for the final quarter of the year. Even though Amazon straightforwardly communicates this, many sellers do not account for these additional fees and are astonished when they are charged. Additional Fees High fees are one of the biggest disadvantages of utilizing Fulfillment by Amazon. It must be factored into your profit margins and, as a result, will diminish your earnings. As a result, Fulfillment by Amazon is more suitable for tiny and lightweight objects. All of this is on top of the standard Amazon costs that every seller must pay to conduct business on the platform. On top of that, there are inventory storage expenses, amazon referral fees, closing fees, storage, and warehouse fees, label service fees, and return and processing fees to consider. These are the fees you must pay to Amazon to have your items stored in one of their fulfillment centers. It depends on the length of time you plan to keep your stuff as well as the size of the item. Absent Administration While it's great that your purchases are delivered quickly, you lose control of your inventory and other crucial aspects of running an internet business. If you offer things that are pricey or not self-explanatory, you should think twice about whether or not to utilize Fulfillment by Amazon. One of the reasons for this is that Amazon will repay consumers without first determining whether or not the claims are true. For online merchants, this can be quite costly; nevertheless, Amazon's objective is to get customers to return to Amazon, therefore they don't care whether returns are costly for the seller. You may like: Amazon FBA alternatives Fulfillment by Merchant (FBM) Source Fulfillment by Merchant, also known as Merchant Fulfilled Network (MFN), is a fulfillment method in which an Amazon seller is responsible for the order fulfillment of the items offered on Amazon. This procedure, which includes storage, picking, packaging, and labeling, can be handled in-house or by a third-party logistics (3PL) partner. In addition, 3PL firms frequently incorporate returns management and customer support services in their packages (to assist merchants with parcel clarifications, among other things). How Fulfillment by Merchant (FBM) Works? This route isn't as common as the FBA route, with only 43% of Amazon merchants preferring it to fulfill orders. Fulfilled by Merchant is exactly what it sounds like, the merchant fulfills orders when their items are offered on Amazon, either through self-fulfillment or through a third-party fulfillment center. Because Fulfillment by Amazon needs a few approvals, shows inventory turnover, and takes time to set up, FBM is generally the sole fulfillment method available to new merchants selling on Amazon. Small businesses are more likely to fulfill orders personally, but bigger merchants are more likely to use a logistical network. Here are a few steps to Fulfillment by Merchant setup and get it running : List Your Products on Amazon You may start listing your items once you've created an Amazon Seller Central account. Using the correct graphics, videos, language, and more, be sure you provide the information needed on your listings to assist enhance your chances of conversion. Make sure you have an Amazon marketing plan in place. Many Amazon sellers are cutting back on ad spending in these uncertain times, which might be a chance for your marketing money to go a lot further. Store items at your fulfillment center. You may be able to distribute your items to strategic places to save on shipping costs and minimize your average shipping zone, depending on the number of fulfillment centers you have at your disposal. If your company is still tiny, a storage facility or even your house might serve as a temporary warehousing option. Start getting orders and Deliver through your own eCommerce logistics network When you get an order notice, you must send the product within the customer's specified delivery window. On the offer and checkout pages, Amazon shows consumers an approximate delivery time so they know when to expect an item they purchased from you. This takes into account handling and transportation delays. To properly set client expectations, you can change your shipping and handling time and transit time. You may order shipping labels from Amazon or print them yourself. In any case, you must always give the consumer eCommerce order tracking. Finally, for all Fulfilled by Merchant orders, make sure you update your Amazon selling account with acceptable eCommerce return instructions. When you authorize a buyer's return request, Amazon sends them a return label with your default return address, which must be legitimate. Significant Advantages of Fulfillment by Merchant Multi-Channel Approach Online shops may better execute and coordinate a multi-channel approach by fulfilling orders directly or with the aid of a 3PL firm. E-commerce enterprises may use FBM to coordinate many channels other than Amazon while still keeping track of stock and inventory. As a result, inventory from both online and offline channels may be merged, allowing for better storage, selecting and packing, shipping, and returns management. Cost-cutting The cost reductions are, without a doubt, the most significant advantage of FBM. Merchants with competence in selecting, packing, and shipping may discover that they can handle all logistics for less than what Amazon charges. The cost savings per order might not be considerable, especially if the items are little and/or light. For huge and bulky products, on the other hand, the benefit may be readily apparent. Similarly, cost reductions may pile up quickly over time. Complete Control Over Marketing, Merchandising, and Branding Some retailers may place a high value on branding. They might utilize their packaging materials, which are branded with the company name, to promote the product more. This is not an option available through Amazon FBA. Branded packaging adds to the company's marketing efforts. Most buyers aren't aware of the added benefit of having packaging that is tailored specifically to the items being offered. They like the attention to detail and are more inclined to use a product with branded packaging in the future. The widespread practice of emphasizing purchases on the internet has given branded packaging a whole new meaning. Unboxing videos are still popular. On social media, photos emphasizing purchases are widespread. The marketing value of a basic brown box is incomparable to the marketing benefits obtained by dynamic packaging.  Changes in Regulations Can Be Avoided Amazon has been known to update its rules and restrictions regularly. By utilizing Fulfillment by Merchant, the company may avoid regulatory changes that could cause service disruptions. If Amazon changed its labeling standards, for example, a retailer would have to rethink how it handles delivery. Every modification Amazon makes can cost the merchant extra time and money, whether they label their items themselves or outsource the process to a third-party logistics provider. Fulfillment by Merchant Prime Shipping  It is a feature given by Amazon to Fulfillment by Amazon sellers. However, there is a program called Seller Fulfilled Prime that you may enroll in. A merchant must commit to and verify that they can supply two-day shipping at no additional cost to qualify for Seller Fulfilled Prime. A Seller Fulfilled Prime seller must complete a trial period to demonstrate that they can keep up with Amazon's fulfillment center alternatives. The conditions are stringent and severely enforced: Picking orders on the same dayThe order cancellation rate is less than 1%.At least 95% of orders are delivered on time. Easy To Launch Business and Generate Better Revenue Generation FBM users establish their Amazon enterprises faster than FBA sellers, according to the most recent assessment on the condition of the Amazon seller in 2020. The apparent answer is that Fulfillment by Merchant vendors have greater freedom to operate as they like and are subject to fewer constraints. In the end, it's all about the money (most of the time). As a result, many sellers choose Fulfillment by Merchant. FBM vendors reported better profit margins than their fulfillment by amazon rivals. They also mentioned higher lifetime profits. The key reason for this is that the fulfillment option has cheaper Amazon costs. Significant Disadvantages The Absence of a Buy Box It's uncommon for fulfillment by merchant order to appear in the Amazon Buy Box. Without a highlighted item, a merchant is nearly certain to lose a sale to a firm that uses Fulfillment by Amazon. Seller Fulfilled Prime is the only legitimate way for a seller that fulfills orders themselves to be included in the Buy Box. However, this is a tough procedure that may be almost as expensive and time-consuming as Amazon FBA. Lower Search Engine Rankings Customers can choose to disregard any goods that are not part of the Amazon Prime program, as previously mentioned. Merchant sellers who provide fulfillment may find themselves omitted from client searches. Even if the merchant has lower pricing and superior quality, potential shoppers may never notice it. A paucity of search results might also be due to poor search engine optimization. Amazon sellers benefit from the company's search engine optimization. Even if the site user hasn't ruled out non-prime products, they will nearly always appear before things supplied by an Amazon merchant. Returns and Customer Concerns Fulfillment by Amazon allows Amazon to handle all aspects of customer service, including returns. If you don't want to use Amazon FBA, you'll have to handle any customer complaints on your own. This may be a good thing. When an Amazon seller has control of CSR, they may establish a reputation based on customer service and happiness. If clients are dissatisfied with their service, the Amazon seller can make the required changes. With Fulfillment by Merchant, this is not feasible. Unfortunately, the merchant will almost certainly spend far more time and money training and employing employees than if they had paid for Amazon FBA from the start. A vendor may also opt to work with a third-party CSR business. FBA vs FBM: Major Differences Between Amazon FBA and FBM Definition Before talking about FBA vs FBM, let's know about their basic meaning. Fulfillment by Amazon is an order processing mechanism in which Amazon accepts responsibility for all client orders for a merchant's product. Picking, packaging, shipping, and customer service are examples of typical Amazon actions in this regard. Under this approach, the merchant has no involvement in order processing. Fulfillment by Merchant, on the other hand, refers to the procedure in which the merchant keeps the merchandise himself (in their home or a leased warehouse) and handles the packaging and shipment. Under the Fulfillment by Merchant approach, Amazon is not involved in order processing. Controlling and storing inventory Inventory is held in Amazon fulfillment centers under FBA, whereas inventory is stored at the merchant's own or rented warehouse in Fulfillment by Merchant. As a result, the merchant has very little control over his product inventory, but an FBM merchant has more control. Customization of the packaging Fulfillment by Amazon entails Amazon taking care of the packing, which is normally standard for all of the items it distributes. However, under Fulfillment by Merchant, the seller is responsible for the packaging, which implies that the merchant can personalize a package to make it more appealing to the client. Product Shipping Under FBA, the merchant delivers his product inventory to Amazon's warehouse, and Amazon then ships the items to customers after receiving an order from him. The merchant, on the other side, sends things directly to clients under fulfillment by the merchant. Customer Service In the FBA model, Amazon handles customer support, exchanges, and returns, whereas, in fulfillment by the merchant model, the merchant is responsible for all of these operations. Fees and Other Related Expenses Amazon charges FBA sellers an order handling/fulfillment fee as well as inventory storage fees. FBM merchants are not required to pay these fees to Amazon; instead, they must cover their expenditures, such as employee salaries, warehouse rent, and shipping costs. Customers' Favourability Customers are more inclined to purchase items that carry the Amazon Prime logo and are delivered by Amazon because of the free two-day shipping. Because FBMs are fulfilled by the merchant, they are less popular and take longer to deliver. As a result, fulfillment by the merchant may miss out on several clients who normally choose items labeled as prime. Dimensions and Weight of the Product When selling on Amazon, product size and weight are two of the most important things to consider when choosing an order fulfillment plan. Because Amazon normally charges additional storage, handling, and shipping fees for items that are heavier and bigger in dimensions than Amazon's standard product weight and size, the Fulfillment by Merchant may be a preferable alternative if the product is heavy and large. For lightweight and small-dimension items that don't surpass Amazon's regular weight and size constraints, Fulfillment by Amazon may be a better option. Factors to Consider Before Choosing The Fulfillment Model in 2024 Dimensions of Package The cost of shipping is higher for heavier items. This should be a big consideration when determining which route to take, depending on the size and weight of your things. You'll have to bear the costs in fulfillment by the merchant and have to pay for shipping, handling, or packing, while FBA sellers pay the charges as a whole which include shipping, handling, and packing. FBA users are charged based on the size and weight of their things, which makes it perfect for smaller items like books. However, if a seller is selling something heavier and bulkier, such as a couch, fulfillment by the merchant will almost certainly be more profitable. Controlling and managing the customer experience Although one approach is more hands-on than the other, both allow you to improve customer experience in distinct ways Fulfillment by the Merchant gives you greater control by allowing you to communicate directly with your customers. Fulfillment by Amazon, on the other hand, allows you to brag about customer-pleasing features like the Prime badge and the "Fulfilled by Amazon" label. Feedback From the Seller Customers may browse reviews and comments from others who have purchased your goods using Amazon's "seller feedback" function More than 80% percent of customers examine reviews before making a purchase choice since the fulfillment done by the merchant is more actively involved in their online consumers' experiences. As a result, they will have more control over their client's comments. Rate of Product Turnover Your choice of tactics will be influenced by how rapidly you sell things. If an FBA seller has a higher turnover rate, they may be charged long-term storage fees, which will reduce their profit margins. As a result, many vendors with higher product turnover rates opt for Fulfillment by Merchant to avoid the additional expenses. Expenses  The costs for Amazon FBA cover the services Amazon provides for you, such as inventory warehousing and order fulfillment. Various fulfillment and storage costs become business expenditures for FBM sellers, who are responsible for managing them. Logistics Picking, preparing, and delivering products for an Amazon e-commerce firm can take a lot of resources, processes, and personnel. Some vendors prefer to manage it themselves, while others prefer to have Amazon handle it. Differences Between FBA and FBM- Tabular Comparison [Updated 2024] [table id=24 /] When should you Utilize Fulfillment by Amazon? Fulfillment by Amazon might be the ideal road for you if you don't mind investing a little money to get your Amazon business off the ground (or keep it running smoothly). In return for paying (possibly costly) Amazon fees, FBA is for individuals who wish to get rid of their company's process of preparing items for delivery and replying to consumers. To put it another way, It is ideal for sellers who want to outsource the majority of the complex process of online selling. Furthermore, this model is better suited for selling on Amazon, their website, or marketplaces that do not prohibit FBA use. FBA sellers are more likely to lack their warehouse, facilities, and employees to properly package, ship, and provide customer care. As a start-up, using Fulfillment by Amazon may be both dangerous and beneficial and on the one hand, it facilitates the start of your e-commerce profession (with eCommerce logistics already in place) However, if your items don't sell quickly or you decide that this fulfillment model isn't for you, you risk losing money. When should you Utilise Fulfillment by Merchant? Fulfillment by the Merchant is ideal for sellers that want complete control over every aspect of their business (from product packing to customer experience) and are willing to invest additional resources to compete with sellers who dominate the purchase box. Sellers that use Fulfillment by Merchant may find it simpler to diversify their e-commerce platforms because there isn't any constraint on the specific marketplace for selling. In the end, you're taking on more responsibility, which might lead to higher FBM rewards. FBM is likely the best option for you if you prefer better profit margins over Fulfillment by Amazon fees or monthly membership charges in return for more flexibility. FBA vs FBM- What is right for your e-commerce business? So, what's the verdict on the FBA vs FBM or Fulfillment by Amazon vs Fulfillment by Merchant debate after all of this? The answer is that it is dependent on your company and plan. Fulfillment by Amazon is best suited to tiny, lightweight items that sell rapidly and in large numbers because of its price structure. It may also be appropriate for enterprises that lack the necessary storage, handling, shipping, and customer support capabilities. Amazon will handle everything while you focus on other aspects of your business, such as online marketing and sourcing. Remember that seller ratings are crucial to Amazon Marketplace's success, so if you can't supply these services efficiently on your own, choose Fulfillment by Amazon. For large, heavy products with tiny margins, fulfillment by the merchant is the best option. It's also a good idea for one-of-a-kind or limited-edition items. Fulfillment by the Merchant will also avoid Amazon's storage costs if inventory turnover is slow. Shipping and customer service are likely to be in place for well-established enterprises selling through several channels. They can simply invest in specialist support software to increase productivity. The fulfillment done by merchant option is also available to start-ups who wish to develop their independent brand. It might be difficult to decide whether or not to employ Amazon fulfillment services. Use a fulfillment cost calculator to assess your prospective Amazon Fulfillment fees if you're still undecided in this discussion. Alternatively, you can register for both and manage your online selling in parallel. Fulfillment by Merchant in collaboration with WareIQ As a Fulfillment, WareIQ has ready-to-use connectors that can be set up in minutes. Other benefits of employing WareIQ fulfillment services for Amazon merchants include: Possibility of using branded packaging as a highly effective branding and marketing strategyMore profit margins and fewer feesLow shipping prices, since 3PLs, have a lot of negotiating leverage with carriers because they bulk their clients' shipmentsFulfilling orders easily if the Amazon merchants are selling on other marketplaces tooEasy integrations of WareIQ fulfillment platform with 20+ other marketplaces to fulfill Amazon orders as well other marketplace ordersIncreased autonomy and flexibilityHaving access to a global logistical networkPrime options have the same delivery speed as Prime optionsAmazon FBA prep services The best thing is that Fulfillment by Merchant sellers who use WareIQ fulfillment services don't have to handle a single package, ensuring a hassle-free fulfillment solution while still having the opportunity to establish a strong brand. Staying flexible and being able to establish a strong e-commerce brand while not devoting too much time to fulfillment and shipping provider discussions will result in a bullet-proof business solution for merchants, ready to scale up your e-commerce firm. [signup] FBA vs FBM FAQs (Frequently Asked Questions) Is it possible to execute both fulfillment models at the same time?Absolutely. In reality, as per Jungle Scout's statistics, 34% of Amazon sellers offer both FBA and FBM. If you have a significant amount of products, you might want to use both to get the perfect combination of both fulfillment models. FBA vs FBm: Is FBM superior to FBA?If all other circumstances are equal, FBA bids will win the Buy Box over conventional FBM offers. By offering Seller Fulfilled Prime, FBM merchants may increase their chances of winning the Buy Box. Just keep in mind that FBA will still have a little advantage over SFP in the Buy Box, but SFP is far superior to normal FBM. How Amazon SFP does operate?Seller Fulfilled Prime is a Prime program that allows you to deliver directly from your own warehouse to domestic Prime consumers. By displaying the Prime emblem, you agree to fulfill orders with Two-Day Delivery for Prime members at no additional cost. How do I switch from FBA to FBM?By accessing a listing page and tapping the "Offer" tab, you may manually modify the fulfillment type of a listing. The "Fulfilled By" box may be found under "Listing Details." To choose between FBA and FBM, use the dropdown menu. All you have to do now is click "Save & Publish," and you're done! Is drop shipping the same as Amazon FBA?In layman's terms, the main distinction is stock ownership. You don't own any product when you dropship, and you operate as a middleman between suppliers and purchasers. Using Amazon's FBA program, on the other hand, requires you to invest in product and keep it in Amazon's warehouse.

May 31, 2022
10 Best Small Business Fulfillment Companies In 2024

10 Best Small Business Fulfillment Companies In 2024

The e-commerce industry is experiencing the same surreal growth as the Indian economy as a whole. Small businesses fulfillment companies have arrived to help them flourish, as they have tended to be the slowest to adopt the growing trend of online ordering and fulfillment. Many of them lack the necessary finances and resources to make it big in this business. In this article, we take a look at the disadvantages small businesses may face, the benefits of small business fulfillment companies, and why it would make sense for them to partner with a fulfillment center for small businesses to be successful. Why Use Small Business Fulfillment Companies? You may wonder why small businesses (e.g., eCommerce startups) would want the hassle of working with a fulfillment company in India. Wouldn’t it be a lot easier – and more efficient – in doing it themselves? The answer is easy: While self-fulfillment may appear cheaper and more hassle-free in the beginning, a small business quickly realizes the time, effort, resources, and expertise required in managing the logistics and distribution involved in a successful business. It quickly dawns upon them that they’re better off outsourcing this task to an expert. It saves money, brings best-in-class expertise, and saves real estate. Therefore, the benefits of small business fulfillment services are endless!  Some Leading Advantages of Fulfillment Centers for Small Businesses Inventory managementWarehouse outsourcingBenefit from 3PL economies-of-scaleBest in class technology, software systems & data analyticsReduced number of employeesOrder processingReturn-order processing [contactus_lilgoodness] But Why do Fulfillment Companies Reject Small Business Clients?  The barrier that new clients (e.g., eCommerce startups, D2Cs) face in finding a fulfillment center for small businesses is primarily related to order volume. Fulfillment is a high-volume business with low margins. And, unless clients promise a MOQ (Minimum Order Quantity), the fulfillment companies simply won’t find it profitable. Therefore, while the benefits are evident, small businesses must also carefully select the type of small business fulfillment companies to partner with. Weighing all the factors carefully in choosing the right fulfillment center for your businesses ensures a suitable match for both sides.  Are There Any Exceptions? The timing of tying up with a fulfillment center for small businesses is an important one. You may want to get off the ground first and then partner with one, or if you are entirely cash-crunched, you’d like to wait till you have sufficient funds. Also, outsourcing may be unfeasible for manufacturing firms that use a JIT (just-in-time) supply chain. However, these are more of an exception than the norm and in most cases, using small business fulfillment companies brings immense value to those businesses.  Significance of Small Business Fulfillment Services Small businesses, eCommerce startups, newly launched offline companies, and rapidly growing fledgling businesses are consumed with a host of frenetic daily business activities to manage their operations. And, when these companies are trying to achieve scale rapidly, such activities become greatly amplified.  Under such a scenario, a small business is much better off focusing its efforts on business growth and customer-satisfaction-related activities against spending the time and effort needed to execute the logistics and distribution function.  That’s not to say that the logistics process isn’t an essential part of managing the business – in fact, quite the contrary! In today’s times of global and borderless marketplaces, managing your delivery and logistics is an even more vital tool to achieve customer satisfaction. Often, a company’s differential advantage arises from this aspect. Therefore, all the more reason why the team is better off outsourcing this function to experts - like a fulfillment center for small businesses - is so that they can be reassured that it is in good hands.  How do Small Business Fulfillment Companies Deal with Minimum Order Requirements for Fulfillment Services? A fulfillment center for small businesses manages your inventory, processes, and dispatches your orders on your behalf.  Since they have several clients (online & offline), they need to know the order volumes they can expect from each platform to plan their operations, invest in resources, and create workforces accordingly.  As a result, they set limits, both minimum and maximum. This enables them to plan their resources and provide the best possible service to their clients. It also helps them calculate their critical internal metrics such as the number of vehicles, loaders, suppliers, storage space, MIS, full-time and part-time employees, drivers, slab-based pricing for various clients, etc. Read on to know more in detail about how order fulfillment services for small business here. Typically, small business fulfillment services use the following metrics to bracket clients: Minimum Monthly-Order-Quantity (MOQ), e.g., less than 500, 500-1000, 1000+Minimum Monthly-Order-Value (MOV)Minimum monthly-fulfillment fees. If your bill doesn’t hit the minimum (e.g., Rs.50,000), you would still be billed that amount.A minimum number of trucks/ pallets/ tonnage (etc.) is sent out every month.  New or growing businesses like eCommerce startups must carefully calculate their requirements while negotiating with a fulfillment center for small businesses. This helps them to get the best rates and service from 3PLs. Given below are essential metrics for small-business clients to consider while committing to MOQs: Forecasting demand: Start with demand forecasting, i.e., the recorded demand for your products. Provide for scale, cyclical demand, seasonality, competitors, etc.Calculate your break-even point: This requires a solid understanding of your business model, including: Number of units sold to make a profit that covers operating-costNumber of units sold to make a profitOther costs, e.g., inventory carrying costs, overheadsUse MOV (Minimum Order Value): If you sell a basket of products, you could commit to a monthly MOV to your small business fulfillment company, i.e., you may not meet the MOQ for each product, but if you achieve a combined MOV, they would still give you reasonable rates and service. Collaborate with other same-space players: Combining with other companies in your ecosystem that use similar supply-chain, raw materials, etc., will help you reduce your operating costs. This allows you to earn more profit, grow your business faster, etc.Leverage the new business angle: Explain to your small business fulfillment company that you are still setting up and testing market conditions, demand, etc. And after gauging the results, you would gradually increase the quantity. Often, small business fulfillment services will be agreeable. Benefits of Using a Fulfillment Center for Small Businesses 1. Rapid growth: Small-business owners and teams must rapidly focus on growing their businesses by logical extension of the section above. And, you certainly wouldn’t want this growth to be restrained due to poor fulfillment. Partnering with a 3PL with a vast range of resources ensures your fulfillment partner matches your speed and enhances it.  2. Seamless integration of eCommerce platforms: Instead of grappling with integrating various individual systems, you’re better off using an experienced 3PL to integrate all your eCommerce platforms for a unified, comprehensive solution. This setup is guaranteed to reduce cost and time.  3. 3PL discounted rates: Small business fulfillment companies serve numerous clients and operate at a tremendous scale. Therefore, they can command bulk discounts from shippers like UPS, BlueDart, & FedEx on rates and get better terms of service. Thus, when you use 3PLs, you can avail of these bulk-discount rates and facilities – despite not reaching that scale yourself.  4. Own warehouse not needed: Using a fulfillment center for small businesses means you don’t need to own and manage your warehouse. This is very expensive, but it also requires massive resources and adherence to stringent practices to be effective.  5. Ease of selling internationally: When you sell across borders, dealing with various tax regimes, travel zones, international laws, customs, duties, and documentation becomes a significant challenge. It is common knowledge that a significant bottleneck of expanding internationally is dealing with global fulfillment. Using an order fulfillment service for startups reduces that burden.  6. Leverage 3PL expertise: Experts are good at what they do. And small business fulfillment companies are experts in providing 3PL fulfillment services. So, it is in your interest to outsource all your inventory and fulfillment activities to them, leaving you to concentrate on your company's growth. Related Article: 3PL Warehousing Companies Top 10 Small Businesses Fulfillment Companies and Startups in 2024 WareIQShopify Fulfillment NetworkRed Stag FulfillmentShipMonkeFulfillment ServiceShipBobFedEx FulfillmentWhitebox ShipheroSaltbox The following 3PLs have a reputation of being conducive to small businesses, can work without minimum order quantities or even with small amounts, and have received positive reviews from small-businesses owners. Source WareIQ Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfilment 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 has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfilment centres, micro-fulfillment centers & urban dark stores near their customersAccess to all major national & hyperlocal last-mile couriers at discounted rates for making same/next day deliveries possibleEasy integration across multiple online platforms & marketplaces enhancing multi-channel sellingHorizontal marketplaces: Flipkart, Amazon etc.Vertical marketplaces: Nykaa, Myntra etc.D2C platforms: Shopify, Magento, WooCommerce etc.Social commerce platforms: BikayiAccess to a superior centralised tech platform for eCommerce operationsML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfilment & shipping operationsPost-shipping apps for delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfilment tech companies in the world that have same-day delivery service for their customers under their product WareIQ RUSH. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfilment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses (there are different types of warehouses for different requirements), economies of scale and scope in warehousing and data-driven decision making. WareIQ’s WMS, a centralised tech platform, helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. 300+ brands, such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, have trusted WareIQ as a reliable partner in their growth journeys. No minimum order quantity requirements make it suitable even for eCommerce firms having low order quantities to take advantage of the latest trends such as next day delivery and same day delivery. The onboarding process is simple, convenient and less time consuming, while the pricing policy is clear and transparent. WareIQ also undertakes strict safety precautions at its warehouses and complete ownership of the operations, thereby minimising the risk exposure of WareIQ customers. Source Shopify Fulfillment Network It was launched in 2006 in Ottawa, Canada and was specifically targeted at small-business clients. It is an excellent option for small businesses but still provides ample space for clients to expand into enterprises. Its platform is utilised by over 1.7 million businesses in over 175 countries. Clients can ship fewer than 10 orders or exceed a 1000 orders, daily. It suggests locations for inventory storage. Locations are vetted by Shopify and facilitated by a panel of fulfillment services across Canada and the USA. They have flexible contracts and customized pricing. They offer a custom API to track order progress and insights. Some features offered by Shopify are: Mobile commerce ready: Online Shopify stores contain an in-built, mobile commerce shopping cart. Customers can shop from the seller's store digitally, through a smartphone or tablet. Automatic carrier shipping rates: Shipping rates can be received automatically through major shipping carriers like UPS, USPS, and FedEx. Flexible shipping rates: Shipping rates can be set up according to fixed-price, tiered pricing, weight-based, and location-based rates. Customer profiles: Sellers can get more information about their customers and their preferences. Their personal information such as contact info and order history can be found in one place. Digital products: Customers can order and download digital products right from the seller's online store. Red Stag Fulfillment Source It is conducive for small businesses and maintains numerous fulfillment centers. Hence, it offers quick delivery times and reduced costs. A 30-day trial is also offered. The company has tie-ups with market leaders like WooCommerce and Shopify. As per statistics, 100% of orders are shipped on time and to an accurate location. Typically, the MOQ is set at 200 orders per month, but fewer orders can be shipped. It works with Amazon Prime and ships internationally. Some features offered by Red Stag Fulfillment are: Warehousing: 3 existing warehouses in the US are available for inventory storage and 3 more warehouses are expected to be added to their fulfillment network in the near future. Order fulfillment: Red Stag's fulfillment process consists of specialized training, handling, packaging, and shipping deals and makes it a unique proposition for merchandise that requires special handling. Same-day fulfillment with quick cutoff times, and heavy-duty packaging are also available. Shipping: Red Stag partners with the biggest names in distribution - UPS, USPS, FedEx, Amazon, and OnTrac - most of which offer discounted rates. Integrations: Red Stag offers integrations with eCommerce shopping carts and seller marketplaces. Special services: Unique services offered by Red Stag include kitting, custom packaging, bundling, reverse logistics, international shipping, and more. Source Shipmonk It offers services to all eCommerce firms. Fees are based on monthly order volumes, and no MOQ is set. Inventory storage fees are fixed depending on the size and scale. Provide discounted rates from all leading shippers. Picking fees gradually reduce as your order pickups increase. In addition to Amazon Seller fulfillment, it also fulfills orders from non-conventional marketplaces like Groupon and Etsy. Some features offered by Shipmonk are: Multiple Warehouses: Shipmonk offers multiple warehouses, located all across the country. Free Integrations: Shipmonk has over 100 shopping cart and marketplace integrations, usually with free setup. Transparent Billing: Their billing process offers a precise breakdown of costs in the portal so customers can maximise on budgeting efficiency. Freight Management: A specialised engineer can help in case you need to import inventory by guiding you through the process of filing the correct documentation and coordinating freight. Returns Management: Shipping labels for customers can be created directly in your account and alerts are sounded when a return enters back into the warehouse. Source eFulfillment Service You don’t need any long-term contracts. There are no MOQ requirements or setup costs for initiation. The company offers competitive pricing and an efficient cross-docking facility, i.e., orders shipped out upon arrival, cutting out any holding or storage costs. It is a good option for crowd-funded firms to test the market fit for new products by shipping them to promoters and backers. Some features offered by eFulfillment Service are: Simple, affordable pricing: There are no setup fees, long-term contracts, minimum order requirements, hidden fees, or fine print. Friendly terms for e-commerce startups: They provide outsourced fulfillment that is specifically targeted at startups. Integration with global distributors: They have integrations with every big name in distribution services such as DHL, Fedex etc. Order Fulfillment technology: They offer things like custom tracking software and customisable alerts to keep customers updated about the fulfillment status of their order. Best-in-class security: Their secure technology infrastructure ensures that your data is kept safe and protected. Source ShipBob Ship Bob is popular with eCommerce firms and is used by more than 5,000 online businesses. There are no MOQ requirements and its pricing plans are simple and transparent. It offers a growth plan service that suits fledgling start-ups with less than 400 orders per month. There are zero onboarding charges, payment is as per usage and it implements a self-service model. It is useful for flash sales and is integrated with BigCommerce, Amazon and Shopify. It offers a global shipment network and claims an impressive on-time delivery and accuracy rate of 99+%. Some features offered by ShipBob are: Large fulfillment network: ShipBob has multiple warehouses and fulfillment centers that enable sellers to manage their inventory by keeping a certain amount of stock in multiple warehouses. Web-based platform: ShipBob’s web-based platform helps you to keep an eye on logistics, manage, edit, and customize orders, track real-time stock levels from any location, and receive notifications whenever inventory needs to be restocked. Guaranteed 2-day shipping: ShipBob offers a 95% plus 2 day shipping fulfillment plan, regardless of where the order has to be delivered. Omnifulfillment: ShipBob fulfills orders for both online and offline channels to help provide a consistent customer experience, regardless of where people buy your products. B2B fulfillment: With ShipBob, you can easily connect to retailers for EDI-automated wholesale and retail workflows, and print retailer-compliant packing slips. Source FedEx Fulfillment It is a fulfillment company that is attractive for small businesses due to its one-stop fulfillment. It is a reputed, credible brand that is now hugely popular with start-ups because of its comprehensive one-stop solution. There are no onboarding charges. Their services include fulfillment, inventory storage, shipping, and packing. Clients benefit from its scale (like receiving significant shipping discounts) since its 3PL business is tied with its parent company. They do have a MOQ of 400 orders, but many benefits are offered in return. Some features offered by FedEx Fulfillment are: Warehousing: FedEx consists of 13 warehouses in the US and 1 international fulfillment center, that are all connected to FedEx's comprehensive transportation network. Order fulfillment: Through automation and process streamlining, FedEx Fulfillment ensures a reduction in the number of people handling each order, which increases efficiency and reduces the scope of errors. Shipping: FedEx Fulfillment only supports FedEx shipping services, but the offers worldwide fulfillment in over 200 countries. Reverse logistics: FedEx Fulfillment is a just a tiny portion of all services offered by FedEx’s extensive logistics business, so users have access to all of FedEx’s other services, including industry-leading return management services. Integrations: Integrations are offered with Shopify, WooCommerce, Magento, eBay, Walmart, Etsy, and a many more. Source Whitebox It is popular with sellers on Amazon as well as other B2C sellers. It offers several services to facilitate sellers operating on Amazon. It differentiates itself from it’s competitors since it offers marketing services in addition to order-fulfillment, making it convenient for clients. There is a flat monthly fee for using its platform which includes inventory storage, software, account handling, shipping, receiving, and processing. It does have a MOQ of 1,000 orders but has several success stories of small businesses that started with them and grew to become much larger firms. Some features offered by Whitebox are: eCommerce software: Whitebox uses its proprietary technology, Omnifi™ throughout the entire lifecycle of order fulfillment. This gives sellers access to insights and metrics about their customers and order fulfilment process. Marketplace management: Sellers can access tools to automate and simplify the management of online marketplaces, including review alerts, order tracking, reseller tracking and more. Warehouse and Inventory Management: Whitebox offers a flexible warehouse management system that gives brands valuable live insights into inventory. Optimised packaging and shipping: They offer recommendations about the best type of packaging for different types of products to help reduce damage and maintain a great customer experience. National and international coverage: Strategically located warehouses result in cost-effective shipping wherever the customer is located. Source Shiphero It has zero setup charges and offers two solutions – fulfillment and warehouse software. These are very helpful for eCommerce firms and start-ups. The order-fulfillment service is completely automated and runs across hundreds of company-owned warehouses. It is a very popular small business fulfillment company and is used by over 5,000 brands. Some features offered by Shiphero are: Order fulfillment: They smartly distribute and store your inventory across a country-wide network of warehouses, which offers faster delivery at a lower cost. Diverse Integrations: They are integrated with leading eCommerce, marketplace, shipping and robotics platforms. Mobile pick & pack: The order pickers are sent into the warehouse with mobile tech that makes picking faster and more efficient and cuts error rates by 99.99%. Rate Shopping: Using ShipHero’s real-time ship rate shopping enables you to save on postage. The cheapest carrier will always be suggested. Reporting: Built-in reporting features cover everything from COGS to Picker/Packer Efficiency to Replenishment. Custom reports are available as well. Source Saltbox It is a fulfillment company that is suitably designed for start-ups and small-business clients. There are no MOQ requirements. The company provides discounted shipping rates from leading shippers like FedEx, DHL, & UPS. It offers warehousing and workspaces, which is unique and helpful and is integrated with WooCommerce, Shopify and Etsy, among others. Some features offered by Saltbox are: Reduced transit time: They offer local drop-off which results in a reduction in both time taken to deliver the order and cost. Guaranteed inventory replenishment: They offer 24-hour guaranteed dock-to-stock on inventory Same-day fulfillment: They offer same-day shipping fulfillment for orders received by 3 PM Free packaging: They offer standard packaging at no additional cost. No penalty fees: There are no setup, onboarding or any other type of penalty fee that is applicable. Top 5 Factors to Consider While Selecting Your Small Business Fulfillment Company Firstly, select a small business fulfillment company that suits your business requirements. Just like players in any industry have their focus areas, so do 3PLs. Some are specialized, while others offer general logistics. Typically, 3PLs are classified into two categories:  General Purpose 3PL: Services range from transportation to storage. Generally handle cargo that doesn’t need any special care, packing, etc., and is fairly inexpensive.Niche-Specific 3PL: Serve specific markets and categories, e.g., eCommerce, certified 3PLs for special products, perishable goods, etc. Also, Consider the Following Points to Analyze which 3PL Suits Your Small Business Requirements Technology Only through modern technology like cloud storage, AI, ML, IoT, Data Analytics (etc.) can a 3PL provide you with real-time, transparent, and efficient services. Scalability While you still may be a small business, you would undoubtedly be looking to scale. Unless a 3PL has resources that can serve you as you expand, it isn’t the correct one for you. Financial Strength Select a financially stable 3PL since you will be dependent on them for an essential function of your business – you certainly don’t want customer packages held up because your 3PL is facing cash-flow issues or is going out of business! Industry Expertise This is a critical consideration. When a 3PL is experienced in your industry, they bring knowledge and experience. Since a small business is only just starting, this expertise is valuable.  Transparent Rate Structure While various 3PLs have their rates and tariff structure, you must select one whose tariff card is easy to calculate and understand. This is important for estimating your operating costs, breakeven points, and profitability. Typical cost-heads include storage, shipping, onboarding, order processing, etc.  Additionally, consider points like a 3PL’s management skills, warehouse locations and maintenance, work culture, and disaster preparedness. Finally, look for 3PLs that typically don’t ask small businesses to commit to long-term contracts or command hefty fees upfront. Limitations and Challenges in Dealing with Small Business Fulfillment Services Small businesses that partner with 3PLs may likely have to opt for those willing to work with small businesses in the first place. This could mean using a second-rung small business fulfillment company or accepting that the fulfillment center for small businesses will not immediately assign their best resources to you since you aren’t a cash cow for them (at least not immediately).  As a result, several challenges exist in the working relationship between small businesses and their small-business fulfillment company. Some areas of possible friction or inefficiency are mentioned below: 1. Limited warehouses and shipping locations: With increasing Ecommerce competition, delivering customer parcels at the earliest (and cheapest) is now a critical function. The location of your 3PLs fulfillment centers directly determines your delivery times. Unless your 3PL has an elaborate network of warehouses and fulfillment locations, both central and satellite, they will not be able to achieve optimized delivery times. 2. Complicated fulfillment systems: 3PLs use the latest and modern technologies to manage their logistics and distribution operations. These elaborate back-end platforms power their businesses and seamlessly integrate with clients’ MIS. However, given that such fulfillment systems are vast in their scope, a small business may find it overly complicated and difficult to understand or negotiate. Remember, small businesses like eCommerce sellers are still boot-strapping or only just finding their feet. Therefore, assigning precious resources to a task that is outsourced for its convenience in the first place is counter-productive. 3. Inefficient handling of order returns: Order returns are omnipresent in eCommerce – they will be a part of your daily operations. When you use a 3PL, your logistics are set up for order returns to reach their warehouse directly. However, suppose your 3PL isn’t set up to handle this efficiently and to the customer's satisfaction, including replacements, refunds, discounts on future orders, credit notes, restocking, returns to the manufacturer, etc., you will not only bleed profits but also create irate customers that will probably never return!  You May Read: Contract Logistics vs 3PL Logistics 4. Customer Service: It is much more difficult to retain a customer than get a new one. Unfortunately, eCommerce firms lose billions of dollars every year due to poor customer relations and processes handling. With new firms trying to sell to the same audience, you must provide good – if not excellent - customer service. 5. Stock-out problems: This occurs when an item isn’t available because demand is outstripping supply. Again, while this is never a pleasant situation, it is something that the supply-side will have to deal with forever – the solution is to minimize its occurrence and, therefore, mitigate its damage.  For that, suppliers and 3PLs need to understand historical order patterns across products, customer segments, high and low demand periods (etc.) and use this to predict future buying trends.  Conclusion: Should you use a Small Business Fulfillment Companies for Your Fulfillment Needs? The benefits of using a fulfillment center for small businesses like an eCommerce startup are evident. The trick, however, is for the small business to understand their business model and consumers comprehensively so that they can make well-calculated projections and commitments to the 3PL while entering into a contract and negotiating terms and conditions. This will benefit the 3PL by getting the best rates, but it will also help them plan and implement their small business fulfillment services in the best possible way. One such company that offers small business fulfillment services is WareIQ. WareIQ is a category-defining, best-in-class full-stack eCommerce fulfillment tech platform (with inbuilt inventory planning, order management & shipping system) for modern brands to accelerate online sales/ expedite revenue growth & profits with same/next day delivery. We not only help you reduce your logistic costs but also your delivery timelines – this could be the game-changer your business needs!  WareIQ offers a centralized tech platform for your entire eCommerce operations. ML-based prediction engine for efficient warehouse network design & smart inventory placementCentralized platform for core fulfillment & shipping operationsPost-shipping apps for a delightful experience & zero to minimum supply chain leakages [signup] Small Business Fulfillment Companies FAQs (Frequently Asked Questions) Which are the 5 best fulfillment companies for small business?• WareIQ• Shopify Fulfillment Network• Red Stag Fulfillment• ShipMonk• eFulfillment Service Why is the right time to hire order fulfillment companies for small businesses?Each owner decides at a different time and often for different dominant reasons as every business is unique. Generally the need for a fulfillment company arrives when one’s ecommerce business is booming and they want to expand their capacity without adding warehouse space or personnel. Startups/small businesses should make sure if they have a running website, and their business is well-documented and has a regulated structure. What are the main factors to look for in the Best Fulfillment services for small businesses and startups?• Location of the warehouse• Fulfillment service software used• Affordability • Security management system • Order Damages and Insurance Which location is best for fulfillment options?Deciding on the location for fulfillment services is crucial and is a major task. For instance if your inventory is based out of the country then you should make sure that your warehouse choice is placed nearby your business center.

May 28, 2022