eCommerce Fulfillment

8 Best Small Business Order Fulfillment Services in 2024

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

May 28, 2022

WooCommerce Marketplace Integration with WMS: How to Enable & Fulfill WooCommerce Order Fulfillment with WareIQ in 10 Easy Steps in 2024?

WooCommerce is a plugin that seamlessly integrates with websites that run on Wordpress’s platform, thus enabling users to transform them into an efficient online marketplace in just a few simple steps. Launched in 2011, WooCommerce attained global success among aspiring eCommerce retailers who needed a cost-effective and relatively easy means of selling their products online and who maybe weren’t ready to partner with existing eCommerce giants such as Amazon or eBay in order to preserve their own brand identity and to be able to direct traffic towards their own website, rather than a 3rd party one. Research shows that over 99% of all eCommerce websites that use WordPress as a primary platform have utilized the WooCommerce plugin to sell their products online and 3PL fulfillment companies to fulfill WooCommerce orders. The company currently has over 27 million downloads and installations and with the imminent acceleration of eCommerce as a selling medium, its popularity is only set to increase. How Can You Fulfill WooCommerce Orders? WooCommerce is a WordPress plugin that enables users to turn their existing website into an eCommerce marketplace. Unlike dedicated eCommerce platforms like Amazon and Flipkart, WooCommerce doesn’t offer any first-part fulfillment services. Rather, they encourage their users to partner with a 3PL fulfillment company, such as WareIQ, who will take care of all their fulfillment requirements such as inventory management, picking and packing of their products, distribution to the customer, and reverse logistics, in the event that it is needed. Users need to balance out their requirements with budgetary constraints to effectively fulfill WooCommerce orders. [contactus_gynoveda] Benefits for Retailers who Use 3PL Fulfillment Companies for WooCommerce Order Fulfillment Process Cheaper and More Efficient Shipping Ultra-fast shipping is an important requirement in the modern eCommerce landscape with most nig players providing same-day and next-day deliveries. Fortunately for users seeking to fulfill WooCommerce orders, 3PL eCommerce companies offer some of the fastest and most competitively-priced shipping in the business which results in an enhanced delivery experience for their customers, without worrying about ecommerce logistics, transportation delays, and other errors that could occur. Customised Packaging Partnering with a 3PL fulfillment company to fulfill WooCommerce orders gives users access to extremely customisable packaging. Rather than being required to conform to the rigid requirements of conventional eCommerce platforms, 3PL companies provide a wide range of materials, designs, themes, and options so that users can choose exactly what they want and can make sure that their brand is front and center when a customer opens their delivered package. Inventory Management 3PL companies help to make inventory management more simple and efficient through the wide adoption of Warehouse Management Systems (WMS) which are highly advanced software solutions that also aid in automating a significant portion of warehouse processes. This helps to mitigate any manual errors or delays and syncs your inventory count across multiple fulfillment centers and selling platforms in one place. Intelligently Located Fulfillment Centers 3PL companies usually have a vastly-dispersed network of warehouses and fulfillment centers across the country which enables users to choose to store inventory in the most ideally located ones, next to customer and transportation hubs. Additionally, paying for storage is often cheaper, with no minimum requirements and chargeability on a per-item basis, which would help companies fulfill WooCommerce orders at a cheaper rate. Flexible Operational Structure By opting for a 3PL company to fulfill WooCommerce orders, users can take advantage of all the freedom and flexibility that comes with it. These companies are not bound by the rigidity and regulations that 1st-party fulfillment services are constrained by. Users can give their inputs in terms of the handling of processes, which services they want to opt for, negotiate better deals, and customize their packaging and order-tracking services to highlight their brand image as much as possible. Order Management Users who fulfill WooCommerce orders through 3PL companies get the benefit of being able to utilise state-of-the-art order management software solutions that consolidate past, present, and future order data from multiple platforms, in one place, in addition to providing the means to manage these orders accurately. Multi-Channel Integration 3PL fulfillment companies, unlike 1st-party fulfillment services offered directly by eCommerce selling platforms, offer seamless integration with multiple other platforms so users do not have to put all their eggs in one basket. Users who need to fulfill WooCommerce orders, in addition to the orders of multiple other platforms, are able to manage inventory levels and incoming orders in a master dashboard through highly-advanced software. This means that you do not need to relegate yourself to selling on one website or only target a specific customer base and it opens up multiple options for opportunistic sellers. Cost-Effective Pricing When users are required to partner with a 1st-party fulfillment service, they often find themselves in monopolistic conditions where the eCommerce platform can call the shots and increase or add new prices on a dime, without being liable to justify these increases. Conversely, when users opt to fulfill WooCommerce orders through 3PL logistics partners, they are instantly exposed to cheaper and more transparent pricing because there are multiple companies in the same space, with all of them pining to offer the most competitive services and prices possible. This means that users can take advantage of this stiff competition and opt for the service that best fits their requirements and their financial capabilities. WooCommerce Marketplace Integration: 10 Easy Steps to Integrate WareIQ to Fulfill WooCommerce Orders in 2024 Aspiring eCommerce retailers can choose to offload all their fulfillment requirements to WareIQ, which will grant them access to facilities such as a nationwide network of fulfillment centers and warehouses, choice of courier partners and shipping aggregators, and the ability to integrate with WareIQ’s custom WMS with WooCommerce and a host of other eCommerce selling platforms to be able to consolidate all your orders and inventory management requirements in one centralized location. Sellers can integrate WareIQ with WooCommerce in just 10 easy steps for WooCommerce Order Fulfillment: Step 1: Logging In The seller can sign up at https://wareiq.com/contact-us/ & integrate WareIQ with WooCommerce for managing end-to-end fulfillment of eCommerce their business. The seller gets the user ID & password from WareIQ’s customer onboarding team to log into WareIQ’s WMS portal. Step 2: Access to WMS Dashboard Once the seller logs in, the seller gets access to the WMS dashboard with an option to set up the account. Step 3: Navigating the Dashboard Click on the three dots in the top right corner of WareIQ’s WMS dashboard. Step 4: Accessing Account Settings Click on “Account Settings”. Step 5: Adding Company Address The “Company Information” would have already been added to the portal by WareIQ’s customer onboarding team. Click on “Address”. Step 6: Adding Channels Fill up the “BILLING ADDRESS” and “DISPATCH ADDRESS” and click on “Add Channels”. Step 7: Adding WooCommerce as an Integration The seller can view all the international online marketplaces & website builders with which WareIQ’s WMS can be integrated. The platforms already integrated will appear at the top like the “Shopify” logo. Scroll over “ADD NEW INTEGRATIONS” & choose the WooCommerce logo under “Select Website Builder”. You may like: How to Sell on Shopify Step 8: Adding Credentials A screen pops up to fill channel details for WooCommerce for connecting adding WooCommerce channel with WareIQ’s WMS Step 9: Getting the Store URL and Other Information Follow the steps below to get the Store URL and fill out the other required fields to add WooCommerce channel: #1: Open Your WooCommerce Account to Get the Store URL Once you sign in with your WooCommerce account, check the URL. “wareiq.com/wp-admin/” is the store URL here. #2: Go to the WooCommerce Page & Scroll to “Advanced” Check the left navigation bar & click on WooCommerce which has been added as a plugin. Click on the “Advanced” button which is highlighted in the red box below. #3: Follow the Steps Below to Get the API Secret & API Key Click on the “REST API” once you have landed on the Advanced Section. Click on “Add Key” if it hasn’t been added. Mention “WareIQ” under Description & select Read/Write under Permissions & click on the “Generate API key” button. Once you generate API key, you get a message at the top - “API Key generated successfully. Make sure to copy your new keys now as the secret key will be hidden once you leave this page.” Step 10: Final Step for Integrating WareIQ with WooCommerce Copy the consumer key & consumer secret & update in the popup & click on Add Channel to integrate WooCommerce online store with WareIQ’s WMS. If you enable “Create Products Automatically”, then all the products listed in your WooCommerce online store automatically get listed in the Master SKU list. The process to integrate WareIQ with WooCommerce is now complete. The seller can start storing inventory for fulfilling orders from WareIQ’s fulfillment centers. Why should Merchants choose WareIQ to Fulfill WooCommerce Orders? There are a variety of factors that make partnering with WareIQ to fulfill orders with Woocommerce a smart decision for the year 2024. We provide a flawless and simplified experience to integrate WareIQ with WooCommerce, post which users can take advantage of our robust network of fulfillment services to ensure their customers get the best quality delivery around the clock. A few facilities that we provide are listed below: Start-to-Finish SaaS Delivery Service We provide full-stack fulfillment services with integrated order management, inventory planning and a shipping system that is sure to handle any and every fulfillment need that is required by your company. Standardized Warehouse Processes We provide seamless and efficient warehouse operations through our ownership of warehouse SLAs by internal WareIQ fulfillment leads in different regions, resulting in a significantly reduced amount of delays and errors. Streamlining of Distribution Processes Users can take advantage of our shipping engine which was built in-house, to be able to partner with the biggest and best nationwide and hyperlocal courier services that offer ultra-fast same-day and next-day delivery at significantly reduced shipping prices compared to other companies. Enhanced Customer Satisfaction We give our users access to our group of specialists who can offer their extensive services in the implementation of supply chain operations and planning that are superior to what SMBs can afford. [signup] Fulfill WooCommerce Orders FAQs How can retailers install the WooCommerce plugin on WordPress & fulfill Woocommerce orders?The WooCommerce plugin works in a similar way to other WordPress plugins where users can just install it and add it to their WordPress website. Does WooCommerce offer its own fulfillment services?No. WooCommerce is a WordPress plugin that enables retailers to turn their own websites into eCommerce selling platforms so users need to rely on 3PL fulfillment companies to fulfill WooCommerce orders. Is there a limit on the number of products WooCommerce can handle?Even though WooCommerce is a plugin and not a full-fledged website, users won't encounter any problems with listing an unlimited amount of products if they optimize the speed of their website, page loading time and database queries. Can you continue to sell on other platforms if you integrate WareIQ with WooCommerce for Woocommerce order fulfillment?Yes, WareIQ offers integrations with most online selling platforms so you can continue to operate selling accounts on multiple channels. What fulfillment services does WareIQ offer?WareIQ offers the entire suite of fulfillment services from storage and inventory management to delivering orders and managing reverse logistics.

May 27, 2022

Returns Management Process : A Guide for D2C & eCommerce – 7 Best Practices to Enhance Your Return Process

With a drastic increase in online purchases, especially after the health crisis of the Covid-19 pandemic, the eCommerce industry is booming like never before. Most eCommerce and online businesses focus on forward logistics and last-mile delivery to reduce the overall delivery time. But unfortunately, the majority of them miss one of the most critical aspects of the supply chain – the returns management of goods. The bad news is that almost 30% of online purchases are returned. There may be numerous reasons behind it, but customers often get discouraged from committing to a purchase if the returns management process is complicated. Statistics revealed that 92% of buyers stick to businesses if they can manage returns in a simple way. What is Returns Management? Source According to research, after-sales service, where returns management is a prominent factor, ranks as the most important metric in building customer trust. Returns management, also known as reverse logistics, is a process where a customer returns the goods they have already purchased. The company then needs to arrange a pick up of the returned items from the end buyer and take them to the warehouse. Mainly, the whole process is triggered, tracked, and controlled through software solutions or mobile applications. The process does not end here. After receiving the returned product, the company decides whether to dismantle it and keep the useful parts, recycle it, repair the product or scrap it as a whole. The decision depends on the situation and condition of the returned item. How to Manage Returns and Exchanges? The returns management process depends on the type of purchase - online or in-store. But regardless of the type, it should be simple and easy. 5 steps of returns management are mentioned below: Initiation of a Return or Refund by the Customer The process starts when the customer requests a return of the product that they have purchased. There may be several reasons for wanting to return it such as receipt of a defective product, delivery of a wrong product, improper packaging of the item, buyer’s remorse, or multiple other reasons. The buyer then requests a return through the order tracking page or by contacting customer service and needs to mention why they are initiating the return and whether they need a refund or replacement. Suggested Read: Why are return labels used? Acceptance or Rejection of the Request by the Company Depending on the company’s return policy, the dedicated personnel either accepts or rejects the return request depending on various factors such as the reason for the return and the condition of the product. Usually, the status immediately reflects on the platform, and the customer receives a notification. Pick-up and Inspection of the Product From the Delivery Address by the Seller After the acceptance, the seller mentions the expected pick-up date and time and arranges the relevant reverse logistics processes. Though it is a daunting task for the logistics team to manage the forward and reverse logistics, it is crucial for the company’s brand image and customer retention. Some companies often delegate this task to a 3PL logistics company. Delivery partners will assess the condition of the product and report the information back to the seller. Delivery of the Product to the Warehouse After collection, the returned product travels back to the warehouse or storage facility. It is then sorted and goes through a strict and detailed quality assessment. If any aesthetic or functional defect is found, further decisions are taken on whether to repair, refurbish or scrap. Else, it moves to an auditor for further analysis. Restocking the Product in the Inventory If the product passes the quality check, the warehouse stores and stocks it as per the inventory policy. The product is eligible for sale once again. How to Make the Most Out of Returns and Exchanges? Customer returns are an inevitable fact. But you need to find out how to manage returns. Here are some interesting and effective ways to utilize returns management to the fullest extent: Automatic Data Collection and Analysis To improve the process, it is imperative to collect all the data you can. Investigate the reason for the return and try to get the customer’s feedback about the return, refund and replacement process. During the analysis, consider all the demographic factors like age, gender, etc. It is helpful to identify all the possible metrics that lead to return so that those same factors can be mitigated in the future. Better Understanding of the Preferences of Your Customers An efficient returns management process can tell you about the choice and trends of your customers. The information shared by the customer during the returns management process is beneficial to understanding your buyers’ persona and assists in lead generation and refining your target audience. Construction of a Robust Return Policy Prevention is better than a cure. A customer's return request and how it is managed are indicative of whether your business is able to manage returns or not. Data helps avoid such scenarios. You can get a better understanding of the loopholes to reduce excess costs associated with it. It can highlight the weak points of the return policy and you can craft a more stringent yet customer-friendly policy to avoid losses. 6 Key Metrics to Track for Efficient Management of Returns and Exchanges in eCommerce Return rate: This is the percentage of orders that are returned, and it can help you understand the overall effectiveness of your returns process. Return to origin (RTO) rate: This is the percentage of returned orders that are not successfully resold and are returned to the supplier or warehouse. A high RTO rate can be costly for your business, so it's important to track this metric and find ways to reduce it. Return on investment (ROI): This is a measure of the profitability of your returns process. You can calculate ROI by dividing the net profit from returned items by the cost of managing returns. Customer satisfaction: Tracking customer satisfaction with your returns process can help you understand how well you are meeting their needs and expectations. You can use customer feedback, surveys, and other methods to measure satisfaction. Cost of returns: This includes the direct costs of processing and handling returns, such as shipping and handling fees, as well as indirect costs such as lost revenue and lost customer loyalty. Time to process returns: The speed at which you process returns can impact customer satisfaction and the overall efficiency of your returns process. Tracking the time it takes to process returns can help you identify opportunities for improvement. 7 Ways to Improve Your Returns Management Systems. [Best Practices in 2023] The need to manage returns is painful for every company. But it is a part of business and an efficient returns management process can help you to reduce your expenses drastically. We have summarized some key methods for you below: 1. Understand the Controllable and Uncontrollable Aspects of Returns Customer rejections are costly. If you can identify and analyze the controllable and uncontrollable parts of the returns management process, you can strategically implement the improvements that are necessary. 2. Measure the Cost of the Returns Process Customer satisfaction is one of the critical aspects of measuring a company’s success. But the ultimate goal of a business is to make money. If the cost of customer return is very high and impacts the business's bottom line, you need to think of ways to streamline it and reduce some of those costs. A refund could be a more economical option than an outright replacement. 3. Implement a Clear Return Policy A transparent return policy plays a vital role in mitigating any complications regarding returns management. It helps you to manage returns efficiently, without offending the clients. You can share it on your website, send a hard copy with the shipment, or make it visible on your selling page of every online platform you are listed on. The policy should be easily accessible to the buyers to remove any disparities that could arise later. 4. Analyze the Reasons for the Return This aspect provides the deepest insight into your returns management process. To manage returns effectively, ask your customers to mention the reason for the return while sending a return request. You can perform the analysis in different ways such as measuring the frequency of the returns of certain items, shortlisting specific geographic locations, manufacturers, etc. 5. Provide a Quick Response and Pick Up Customer retention is now the focal point of every business. In order to improve their experience, a quick response and returns management process play a crucial role. According to statistics, 88% of buyers do not prefer to buy from a company that has a late response, return or refund process. Focusing on this area helps you retain clients and is also good for better inventory management. 6. Provide a Transparent Tracking Process Just like the forward logistics during the delivery of an order, a transparent tracking system to manage returns can also help you improve efficiency. An update on the fulfillment status, delivery, and expected time of return through a digital medium or email and SMS notifications improve the trust quotient of your brand. 7. Use a Return Fulfillment Center Having a separate fulfillment center for returns is a good option if you do not have enough time to manage returns. Nowadays, several 3PL fulfillment companies provide such services. This system provides you with ample time to focus on your core business activities so you do not need to worry about returns management. Top 5 Benefits of Optimized Returns Management Process Return management is a cumbersome process. But if you can manage the customer return process efficiently, it can benefit you in several ways: Improves Profit Margins Return management is an integrated part of every eCommerce and online business. It is hard to avoid, but if one can manage returns correctly, the process can be improved to increase profit margins. You can do this by: Optimizing the transportation expenses of reverse logistics. Exploring the option of reselling rather than scrapping returned products. This will save you from a complete loss. Trying to repair or refurbish damaged products to be able to resell it. Do a detailed rejection analysis, find the root cause, and eliminate the vital issues first. That way, you can reduce the reoccurrence of similar concerns. Boosts Customer Satisfaction Returns management may be an underrated aspect from a business perspective. But it is a vital point from a customer’s point of view. If you are unable to manage returns properly, it will directly impact the customer’s feelings about your brand image. The after-sales service is more important than just ensuring your products get sold. Improves Turnaround Time A quick return process can help you get back products faster. You can then repair or resell it faster, which helps to eliminate the cost of a new purchase. Improves Inventory Management By tracking data on returns, you can gain insights into customer preferences and behavior, which can help you optimize your inventory management and reduce the risk of overstocking. Reduces Wastage Efficient returns management entails proper handling of returned products as well. You need to analyze every product and explore ways to be able to reuse or monetize it. A thorough inspection can give you an insight into which products can be resold, which can be repaired at a minimum cost and what items need to be scrapped. Conclusion It is now evident that to run a successful eCommerce or online business, you need to take returns management seriously. This does not mean that you need to spend large amounts of money on research and development. You just need to understand the importance of providing a solid returns management process as it will benefit customers as well as your business, in multiple ways. Partnering with a 3PL fulfillment company like WareIQ will give you access to advanced features at competitive prices that you may not have had prior access to. How Can WareIQ Lower Returns Management Expenses for Your eCommerce Business in 2023? Quick TAT (Turn around time) Logistic partners provide an estimated delivery timeline based on which the customers anticipate the delivery. If it fails to reach them as per this expectation, there is a risk of an RTO and the customer opting to order from a competitor. This also affects the customer retention rate. With WareIQ’s Prime-like shipping, data-driven insights, PAN-India network of warehouses and excellent supply chain management system, orders reach the customers on time as promised. This ensures a higher rate of First attempt delivery, thus reducing the breach of TAT. Higher and Efficient First Attempt Strike Rate (FASR) Delivery success in the first attempt ensures happy customers and helps in their retention. This is an important metric since lower returns imply lower logistics costs on RTO. With WareIQ’s structured incentive plans, delivery partners are encouraged to deliver maximum shipments in the first attempt thereby increasing the FASR. Improved Non-delivery Report (NDR) Conversion Knowing the customer’s intent before performing the last mile delivery can save a lot of time costs related to RTOs. This can be achieved by validating the attempted shipments by directly communicating with customers via phone calls, SMS, e-mail, WhatsApp, etc. Any change of preference or cancellation or order can be recorded and shared to the shipping and delivery partner in real-time to decide whether to “Reattempt the delivery” or “Make RTO”. Performing this manually at scale is almost impossible. With WareIQ’s innovative solutions, most of it can be automated via IVR (Interactive voice response) calling, auto-SMS, auto-mailer, WhatsApp alerts, etc. This also keeps the customer well informed and creates an impact on improving the delivery conversion percentage. In the auto NDR process, the customer will get an IVR call immediately after a failed delivery or when the NDR remark is updated by the delivery personnel. Automation makes the entire process quick and efficient. Wrong or Incomplete Address Amidst the huge traffic across the supply chain and sometimes because of consumer’s ignorance, deliveries often end up attached with wrong or incomplete addresses. This is also one of the major reasons for RTO. Address validation becomes important in this context. WareIQ ensures this authenticity with various checks on the same. This increases the chances of successful delivery. In case of an incorrect address, shipping is cancelled prior to dispatch. It allows not only for lower RTO but also avoids wasteful shipping costs. Automated Partner Pin Code Allocations With WareIQ’s cutting edge technology, pin code allocation is automated. This altogether eliminates the hassles of manual allocations thus reducing logistics costs & shipping costs & RTO as well as increasing fulfillment serviceability and speed of delivery. Making changes in allocations is complex and takes a good amount of time. The system analyzes historic RTO percentages and cost per shipment (forward + RTO) to optimize the allocation and ensure that the courier with the lowest possible cost is chosen for the given pin codes. Such efficiency and cost reductions are not possible with manual processes. This also saves a lot of time in processing and shipping the orders. RTO Shield WareIQ’s RTO Shield provides eCommerce/D2C firms with a comprehensive checkout strategy to reduce RTO losses and increase revenue. Why WareIQ’s RTO Shield? Request a refund for any RTO order that was predicted to be safe by the company. Smart COD checkout option based on technology to detect problematic customers and save on shipping costs Disable COD for untrustworthy and blacklisted customers automatically. Identification and deletion of duplicate orders Verification of shipping addresses and intelligent shipping selections based on address completeness Benefits of RTO Shield Increase conversions and decrease cart abandonment. The quickest checkout time is under 10 seconds. Identify high RTO risk consumers using data sets from telecom, banks, hyperlocal, and OTT providers. Identify scammers using previous data on their past purchasing behavior and win over them. How Does it Work? Integrate the website/application with WareIQ 3 months of historical data will be needed to train the model to predict accurately. Go live in 3 to 5 days Sign Up Now with WareIQ to avail our superior fulfillment tech platform & app store & enhance your online business growth by reducing RTOs with RTO Shield. [signup] Returns Management System: FAQs [Frequently Asked Questions]

May 20, 2022

Flipkart Integration with WMS: How to Fulfill Flipkart Orders with WareIQ in 10 Easy Steps in 2024?

Flipkart was founded in 2007 and instantly emerged as a force to be reckoned with in the still growing eCommerce industry at that time. Since then, especially with the entry of Amazon into the Indian market in 2013, Flipkart has been forced to up its game and adapt to the ever-changing trends in the rapidly-expanding Indian eCommerce market, which it has successfully achieved. It was acquired by Walmart in 2018, which has only bolstered its status as one of India’s leading eCommerce selling platforms, which can be seen in the 49% increase in its revenue in 2021, compared to Amazon’s 32%. In recent years, Flipkart has emerged as a worthy competitor to Amazon, with both of them capturing around 31% of the eCommerce retail market. In today’s blog, we will dive deeper into how you can fulfill Flipkart orders, the benefits of selling on Flipkart and how to integrate WareIQ with a Flipkart seller account. How Can You Fulfill Flipkart Orders? Retailers can currently choose between 2 options to fulfill Flipkart orders - Flipkart Fulfillment and Self Ship Fulfillment. Businesses that choose Flipkart Fulfillment to fulfill Flipkart orders can take complete advantage of all the facilities offered by Flipkart such as order processing, storage and management of inventory, order shipping, reverse logistics and customer care. The only downside is that you are not able to integrate Flipkart Fulfillment with other selling platforms so you will have to maintain different accounts for each platform. Conversely, Self Ship Fulfillment enables retailers to fulfill Flipkart orders on their own or by opting to partner with a 3PL fulfillment company such as WareIQ. There will always be advantages and drawbacks, regardless of which option you opt for. Read our article on Seller Fulfilled Prime, Fulfillment by Amazon and Shopify Fulfillment to get an idea of fulfillment services offered by competitors. Services Offered by Flipkart Fulfillment Inventory Storage Flipkart provides its users with storage facilities in warehouses and fulfillment centers. Inventory can be placed in multiple locations, depending on the type of commodity and areas with high demand for specific products. Delivery Services When you opt to fulfill Flipkart Orders with Flipkart fulfillment, you can take advantage of their delivery services to ensure that your orders are delivered to your customers on time. Product Quality Checks Flipkart ensures that all products are inspected rigorously to mitigate any deformities or quality discrepancies between units. This ensures that customers receive what they expected. Packaging Facilities Flipkart Fulfillment offers packaging services to its customers. Goods can be wrapped in standardised Flipkart packaging to make sure that products are delivered safely and securely and also look attractive in the process. Services Required from Sellers in Self Ship Fulfillment Entire Fulfillment Process If sellers choose Self Ship Fulfillment to fulfill Flipkart orders, they will have to perform all the processes that are associated with order fulfillment such as packaging, distribution and eCommerce logistics. Partnering with 3PL Fulfillment Companies Sellers can opt to partner with a 3PL fulfillment company of their choice to fulfill Flipkart orders. This ensures that they still have access to cutting edge features and technology, while also maintaining the flexibility to be able to integrate with multiple other selling platforms so that they don’t have to put all their eggs in one basket. Compliance with Flipkart’s Rules and Regulations Sellers who choose to fulfill Flipkart orders on their own or through a 3PL eCommerce fulfillment company need to make sure that they abide by all the rules and regulations that have been laid out by Flipkart. Seamless Customer Experience Since Flipkart isn’t directly involved in the D2C fulfillment process of sellers who choose to fulfill Flipkart orders by themselves, they need to make sure that retailers follow the same measures to ensure that customers have a good and speedy delivery experience. Benefits for Retailers who Use 3PL Fulfillment Companies as an Alternative to Flipkart Fulfillment Access to Custom Packaging Facilities Most big eCommerce selling platforms, Flipkart included, want to highlight their own brand the most and this is reflected in their packaging. Customers will only interact with your brand after they have torn off most of the outer Flipkart-centric packaging. However, retailers who partner with 3PL retail fulfillment companies to fulfill Flipkart orders usually have access to custom packaging facilities where they can opt from a whole host of different themes, styles and materials and can choose to highlight their own brand as much as they desire. Access to Faster and Cheaper Distribution Facilities In today’s day and age, 10-minute, same-day and next-day deliveries have become conventional and most 3PL fulfillment companies have been able to adapt to the growing demand for speedy delivery. Sellers that choose to fulfill Flipkart orders through 3PLs are able to take advantage of ultra-fast delivery while also paying way less due to the reduced prices offered by these companies. This is mainly achieved by the intelligent placing of inventory in warehouses and micro fulfillment centers that are located near areas of strong demand. Access to Strategically Placed Fulfillment Centers Retailers who choose third-party fulfillment services, gain access to a large network of warehousing facilities and fulfillment centers, scattered in different regions of the country. They can choose where they want to store specific products based on areas of high demand for those specific products and also based on things like proximity to large population centers and access to distribution networks, among many other factors. The storage facilities provided by 3PL companies are also much cheaper than the in-house storage that is offered by Flipkart. Complete Management of Inventory Most 3PL fulfillment companies offer advanced and detailed Warehouse Management Software (WMS) to enable efficient and smooth tracking of inventory, across multiple warehouses and selling platforms. These software solutions can also forecast future demand so you can optimise the storage of inventory and offer smart suggestions on inventory placement based on a variety of factors such as demand, expiry dates, perishability etc. Offloading of Order Management Retailers who partner with 3PLs to fulfill Flipkart orders, gain access to high-tech and advanced order management software where orders from multiple different platforms can be accessed and tracked in one software suite. This is in sharp contrast to Flipkart’s offering, where you cannot integrate with other platforms so you can only keep an eye on your Flipkart orders while orders from other platforms are left lacking. More Freedom and Fexibility Since retailers who opt to fulfill Flipkart orders on their own don’t have to rely on Flipkart directly for order fulfillment, they have more freedom to make their own choices in how they want to go about things, as long as they abide by Flipkart’s guidelines. They also have more flexibility in their choices by being able to choose if they want to fulfill Flipkart orders on their own or offload eCommerce fulfillment requirements to a dedicated fulfillment service. Access to Cheaper and More Transparent Pricing Retailers who use Flipkart Fulfillment to fulfill Flipkart orders are constantly at the mercy of varying prices. An increase in any of the multiple variables associated with order fulfillment can trickle down to retailers, who will then have to share some of that price increase with their customers. In addition, there are more hidden logistics costs as Flipkart needs to make sure that they can make the most money and this happens by putting the most risks on retailers. On the other hand, most 3PL fulfillment companies offer transparent and no-frills pricing in order to attract customers. They also do not have a monopoly in the market so they cannot increase their prices on a whim as that would enforce retailers to choose another company with cheaper pricing. Ability to Sell Across Multiple Channels If the retailer restricts themselves to selling on Flipkart and fulfilling Flipkart orders only, they are depleting themselves of a huge chunk of potential customers that may use other platforms. Retailers who seek to expand their business operations need to be visible in every corner of the market. 3PL fuflillment companies offer their users the service of integrating with and beauty fulfilling orders on multiple eCommerce platforms and make life easy for them by consolidating all the order and inventory information in one place to increase efficiency and mitigate any bottlenecks that could have otherwise occurred. Related read: Understanding Flipkart Video Management System (VMS) for Sellers Flipkart Marketplace Integration: 10 Easy Steps to Integrate WareIQ with a Flipkart Seller Account in 2024 When eCommerce retailers opt to partner with WareIQ to fulfill Flipkart orders and outsource all their fulfillment requirements, they instantly gain access to WareIQ’s country-wide network of fulfillment centers, cross-country courier partners and the advantage of being able to integrate WareIQ with a Flipkart seller account, which gives users access to 20+ other online marketplaces and platforms and state-of-the-art inventory and order management software. Sellers can integrate WareIQ with a Flipkart seller account in just 10 easy steps: Step 1: Logging In The seller can sign up at https://wareiq.com/contact-us/ & integrate WareIQ with a Flipkart seller account for managing end to end fulfillment of eCommerce their business. The seller gets the user ID & password from WareIQ’s customer onboarding team to log into WareIQ’s WMS portal. Step 2: Access to WMS Dashboard Once the seller logs in, the seller gets access to the WMS dashboard with an option to set up the account. Step 3: Navigating the Dashboard Click on the three dots in the top right corner of the WareIQ’s WMS dashboard. Step 4: Accessing Account Settings Click on “Account Settings”. Step 5: Adding Company Address The “Company Information” would have already been added to the portal by WareIQ’s customer onboarding team. Click on “Address”. Step 6: Adding Channels Fill up the “BILLING ADDRESS” and “DISPATCH ADDRESS” and click on “Add Channels”. Step 7: Adding Flipkart as an Integration The seller can view all the online marketplaces & website builders with which WareIQ’s WMS can be integrated. The platforms already integrated will appear at the top like the “Shopify” logo. Scroll over “ADD NEW INTEGRATIONS” & choose the Flipkart logo under “Select Marketplaces”. Step 8: Adding Credentials A screen pops up to add a few credentials of sellers like Seller ID, Location ID, Application ID etc. for connecting a Flipkart Account with WareIQ’s WMS. Step 9: Identifying Seller ID and Other Information Follow the steps below to identify seller ID and fill out the other required fields like application ID, Location ID and others: #1: Recording Location of Shelf Once you add the channel, the Smart panel's shelf location of Flipkart needs to be recorded in EasyEcom. You can do this by going to "Inventory >> Manage Listings" and selecting the "Update Listings" option. After this, choose "Flipkart Smart" as your marketplace and download the listing data. You then have to record the shelf location of every product and upload those files to EasyEcom. You can contact customer care at EasyEcom post updating the shelf location in Easy Ecom. #2 Flipkart Seller Panel details Identifying Your Seller ID To begin with, you need to sign in to your Flipkart Seller Panel and press Ctrl+Shift+i and then select network. You need to copy the Seller ID and paste it into the “Seller ID” column. Identifying Your Application ID and Secret You can start by opening this link: https://api.flipkart.net/oauth-register/login which will take you to the page below: Sign in with your account details and select “Register new application”. After this, you can copy the Application ID and Application Secret. Then you can select the “Flipkart Smart” option and you will get a popup where the information can be pasted. Identifying Your Location ID In order to identify your Location ID, sign in to your account via this link https://seller.flipkart.com/. After this, scroll to “Orders>>Smart Fulfilled Orders”. You can then copy your Location ID from the URL. Note that the Location ID always begins with “LOC”. Step 10: Syncing Channels Select the “Close” option to close the pop-up window and then select the “Sync Channels” option. The process to integrate WareIQ with a Flipkar seller account has now been achieved. The seller can start storing inventory for fulfilling orders from WareIQ’s fulfillment centers. Also read our blog on Amazon marketplace integration with WareIQ's WMS to get a better idea of competitor services to Flipkart and Amazons fulfillment. Why Should Merchants Choose WareIQ as a Fulfillment Partner to Fulfill Flipkart Orders? There are a vast number of reasons why merchants should choose WareIQ as their partner to fulfill Flipkart orders. Not only do we offer a seamless ability to integrate WareIQ with a Flipkart seller account but we also offer many more features, both in the forward and reverse supply chain, that will be sure to enrich your business with the tools it needs to tackle growing online demand and order fulfillment. We also offer cost-effective and transparent prices compared to our competitors. Here is a list of some of the features that we offer: Forward Supply Chain Smart Inventory Placement We analyze order density, SKU velocity, seasonality, & market trends by location for smart inventory placement to mitigate any delays and errors. Quality Assurance We offer services such as inbound management, coupled with rigorous product checks while adhering to Legal and Metrology compliance. Customization/ Personalization We enable through branded shipping, the creation of custom curated kits and custom packaging to meet every seller’s brand standards & requirements and help them highlight the unique aspects of their brand. RTO Shield Our in-house RTO Shield allows sellers to intelligently identify high-risk RTO orders and insures them against any RTO losses to maintain their profit margins and eliminate wasted resources. First-Mile Sourcing We offer centralized sourcing hubs to conveniently obtain all your materials and resources in one place. Prime-Like Badges Sellers can boost customer conversions by 30% using WareIQ’s Prime-like badges, which showcase varying levels of delivery speed and services offered. Smart Courier Allocation We give sellers the option to leverage data-driven insights to match them with the most suitable courier partner and the ability to ship with flat rates across each zone. Post-Purchase Experience With WareIQ’s Branded Tracking offering, sellers can deliver a premium post-ship experience. It also enables them to re-target & cross-sell thus increasing revenue and profit margins. Reverse Supply Chain Smart RVP We enable last-mile partners to verify product quality by leveraging reference checklists and images, eliminating returns of damaged or misplaced goods by customers and thus, mitigating reverse logistics expenses. Reinventorization We provide liability protections for our customers with simplified Seller Protection Fund claims and seamless settlement processes. Value Recovery We assist in recovering the value of returned goods through liquidation to the secondary market, upcycling and recycling, donation, and converting waste to energy to help businesses utlize every ounce of their capabilities and mitigate any wastage that might occur. Disposal We offer services for the sustainable disposal of products across categories such as food, apparel, electronics, health & hygiene etc. Over 300 of the fastest-growing eCommerce brands such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, already trust WareIQ with the fulfillment process of their companies, so they can focus entirely on core aspects of their businesses such as sales, marketing and R&D. You can also reap all these amazing benefits while stepping up your eCommerce game. We are tailored to every kind of business and offer the most competitive prices in the industry. Sign Up Now with WareIQ to take advantage of our superior fulfillment tech platform & accelerate the growth of your online business. Fulfill Flipkart Orders & How to Integrate WareIQ with a Flipkart Seller Account: FAQs

May 19, 2022

Amazon Marketplace Integration 2024: How to Fulfill Amazon Orders with WareIQ in 10 Easy Steps?

Amazon is often credited with pioneering the boom of the eCommerce industry and popularizing the concept of shopping online and having your orders delivered right to your doorstep instead of needing to travel to physical stores. This phenomenon has also paved the way for advancement in other technologies such as online payments and automated warehousing processes. Today, Amazon is the largest eCommerce website in the world and changed the landscape of the Indian eCommerce industry when it entered the country in 2013. Since then, it has benefited a vast number of retailers who use Amazon to sell their products, by enabling them to expand and serve an increased customer base that extends all across the country. In today’s blog, we will take a look at the advantages of selling on Amazon, how to fulfill Amazon orders and how WareIQ can enhance your selling experience as a fulfillment partner in the year 2024. How can You Fulfill Amazon Orders? There are 2 methods with which customers can fulfill Amazon orders - Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). FBA is when you offload the entire retail fulfillment process to Amazon and FBM is when you sell products on Amazon but choose to fulfill Amazon orders on your own. For all intents and purposes, these are the processes that you would need to follow to fulfill Amazon orders : Processes Required from Sellers Research of Products Research needs to be conducted for each product to figure out their demand, competition from similar products, prices customers are willing to pay and penetration of that product in the Amazon marketplace in order to optimize your business strategies. Sourcing of Materials You need to partner with a supplier who will be able to manufacture your products in the right balance of cost and quality. They can then ship the finished products straight to Amazon’s warehouses. Listing of Inventory Product listings need to be created for each type of offering with the marketable descriptions, clear photos and accurate metrics such as features and size dimensions. Promotion of Products You need to create hype around your products and market them to be as appealing to your target audience as possible so that you are able to differentiate your products from the vast amount of competitors on the Amazon marketplace fulfillment. Management of Sales You need to keep an eye on every order that comes in and manage inventory levels and listings so that the right amount of inventory is always available, depending on customer demand. Post receiving an order, you can leave it up to Amazon to do the rest. Services Offered by Amazon Management of Inventory After Amazon receives the products from your supplier, it sorts out each product based on various metrics such as their type, price, demand levels, and expiry date, among others. It is then stored in massive fulfillment centers, where processes are followed by robots or Amazon employees. Keep in mind that it is in both your and Amazon’s interest to take the best possible care of your products because if anything is damaged in the fulfillment center, Amazon will pay you the retail price of what the product is worth. Automatic Processing of Orders Amazon automatically processes order requests, as soon as they are received from a customer. The order fulfillment process is initiated with the relevant product being picked, packed and shipped to the customers' location, according to the estimated time of delivery. Management of Customer Support and Returns Amazon takes care of your entire customer support, even after the order has been delivered. This includes resolving issues related to the order, answering queries and managing the reverse logistics process in the event of an RTO request. Read our blog on Seller Fulfilled Prime to get more information on other services offered by Amazon. Why Does it Make Sense for Retailers to Use 3PL Fulfillment Companies as an Alternative to FBA? Fulfillment Across Different Channels If you relegate yourself to selling only on the Amazon marketplace, you are cutting yourself off from a large number of local customers that possibly shop on other platforms. In order for a retailer to be competitive, it needs to open as many doors as possible. 3PL fulfillment companies often integrate with multiple selling channels seamlessly, to enable retailers to carve themselves a share of customers on each platform and fulfill Amazon orders at the same time. Transparent and Simplified Pricing Plans Costs in the Amazon marketplace, especially pertaining to FBA, constantly change and evolve depending on a variety of factors such as seasons, product size and nature, duration of storage and many others. This can lead to uncertainty in the amount retailers would have to expend to fulfill Amazon orders. On the other hand, 3PL fulfillment companies often have flat rates that are agreed upon beforehand, pricing per unit and no minimum order quantity. This provides transparency and enables sellers to budget accordingly. Customized Packaging Amazon has standardised most of its processes, including its packaging. While this may seem like a good thing on the surface, it means that Amazon’s brand is highlighted much more than the retailer's brand is. There are also little to no customization options available. With a 3PL fulfillment company, retailers can customize their packaging with their brand logo, choice of materials, custom stickers and themes and much more through branded shipping, which will contribute to customers attaining much more knowledge about their own brand, while they fulfill Amazon orders. Order Management Most 3PL fulfillment companies offer software that helps them efficiently fulfill Amazon orders. In many cases, they are more simple and more intuitive to use than Amazon’s offering, which can feel overly complicated and cumbersome at times. This order management software will help you keep track of past, present and future orders and will mitigate any unexpected errors along the way. Inventory Management Gone are the days when the Amazon marketplace had a monopoly on smart inventory management services. Due to the widespread adoption of state-of-the-art technology and advanced Warehouse Management Systems(WMS), most 3PL companies are able to offer an enhanced level of inventory management capabilities to fulfill Amazon orders. This includes smart placement of inventory according to various metrics, monitoring inventory levels, forecasting demand and supply levels in the future and much more. Fulfillment Centers in Multiple Locations Most of the larger 3PL fulfillment companies offer a vast network of warehouses and fulfillment centers that are strategically dispersed across the country in areas with high demand to be able to rapidly fulfill Amazon orders. This enables retailers to offer faster shipping services at reduced rates because of smart inventory placement at locations that are in close proximity to the delivery locations of customers. In addition, these companies are not bound by the red tape of the Amazon marketplace so this results in inventory being stored at much cheaper rates. Faster Shipping for Lower Prices 2-day shipping was originally popularized in the Amazon marketplace and other retailers and eCommerce platforms had to adapt in order to compete. However, due to economies of scale and the technology behind fast eCommerce shipping becoming mainstream, there are many 3PL fulfillment companies that offer next-day, same-day and even 10-minute shipping for a fraction of the cost that Amazon charges for its fulfillment services and for companies to fulfill Amazon orders. Read our blog on how to become a Flipkart Gold Seller, Flipkart Fulfillment and Shopify Fulfillment to understand how to use competitive services. Amazon Marketplace Integration: 10 Easy Steps to Integrate WareIQ with an Amazon Seller Account in 2024 Once eCommerce sellers get onboarded with WareIQ for their D2C fulfillment requirements, the sellers, apart from having access to WareIQ’s pan-India network of fulfillment centers & national courier partners, also get the benefit of integrating WareIQ’s platform with 20+ other online marketplaces & online platforms where they might be selling. Sellers can integrate WareIQ with an Amazon seller account in just 10 easy steps: Step 1: Logging In The seller can sign up at https://wareiq.com/contact-us/ & partner with WareIQ for managing end to end fulfillment services for their eCommerce business. The seller gets the user ID & password from WareIQ’s customer onboarding team to log into WareIQ’s WMS portal. Step 2: Access to WMS Dashboard Once the seller logs in, the seller gets access to the WMS dashboard with an option to set up the account. Step 3: Navigating the Dashboard Click on the three dots in the top right corner of the WareIQ’s WMS dashboard. Step 4: Accessing Account Settings Click on “Account Settings”. Step 5: Adding Company Address The “Company Information” would have already been added to the portal by WareIQ’s customer onboarding team. Click on “Address”. Step 6: Adding Channels Fill up the “BILLING ADDRESS” and “DISPATCH ADDRESS” and click on “Add Channels”. Step 7: Adding Amazon as an Integration The seller can view all the online marketplaces & website builders with which WareIQ’s WMS can be integrated. The platforms already integrated will appear at the top like the “Shopify” logo. Scroll over “ADD NEW INTEGRATIONS” & choose AMAZON logo under “Select Marketplaces”. Step 8: Adding Credentials A screen pops up to add a few credentials of sellers to integrate WareIQ with an Amazon Seller Account and also with WareIQ’s WMS. Step 9: Identifying Seller ID Follow the steps below to identify seller ID and fill out the other required fields: #1: Sign in to the Amazon central account of your business Once you reach the website https://sellercentral.amazon.in/, sign in with your Amazon account and scroll to “Settings>>User Permission”. In this section, scroll to Apps and Services and click the “Manage Your Apps” button. After that, select the "Authorise new developer" option. #2: Enter the required information Enter “Easycom” as the developers name enter “1683-6824-8081” as the Developer ID. After that, select the "Next" option. #3: Choosing options on the checklist Once you select all the check-boxes, click on the “Next” button. After you select the “Next” option, you will be directed to the below web-page: After the retailer has provided all the information in the pop-up, select the “Connect Amazon.in” option. Step 10: Syncing Channels Select the “Close” option to close the pop-up window and then select the “Sync Channels” option. The steps to integrate WareIQ with an Amazon Seller Account and also WareIQ's WMS are now complete. The seller can start storing inventory for fulfilling orders from WareIQ’s fulfillment centers. Why Should Merchants Choose WareIQ as a Fulfillment Partner for Fulfilling Amazon Orders? There are multiple reasons why merchants should choose WareIQ as a partner to fulfill Amazon orders. Not only do we offer a seamless ability to integrate WareIQ with an Amazon seller account but we also offer many more features and cost-effective prices that are competitors don’t. Here is a list of some of the features that we offer: End to End SaaS Delivered Solution We offer a full-stack fulfillment platform with inbuilt inventory planning, order management & shipping system that are guaranteed to take care of every fulfillment requirement your business has. Efficient In-house Warehouse Operations Ownership of warehouse SLAs by internal WareIQ fulfillment leads for each region provides assurance on the stability and efficiency of warehouse operations to mitigate any unwanted errors or delays. Shipping Optimization Our custom inbuilt shipping engine allows access to all major national & hyperlocal couriers at discounted rates to offer same/next day deliveries at increased efficiency and reduced prices. Customer Success Led Model Our team of experts offer their experienced capabilities in supply chain planning & operations execution far beyond what SMBs can afford. WareIQ is one of India’s leading and fastest-growing full-stack eCommerce fulfillment companies that offer a variety of services from same-day and next-day delivery, shipping badges and RTO Shield, to state of the art technological solutions such as our custom WMS and our intuitive, well-designed app store. We can take care of your brand’s entire fulfillment requirements and ensure that you and your customers get the best order fulfillment in the country and have a hassle-free experience and raise satisfaction levels to new heights. Over 300 of the fastest-growing eCommerce brands such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, already trust WareIQ with the fulfillment process of their companies, so they can focus entirely on core aspects of their businesses such as sales, marketing and R&D. You can also reap all these amazing benefits while stepping up your eCommerce game. We are tailored to every kind of business and offer the most competitive prices in the industry. Sign Up Now with WareIQ to take advantage of our superior fulfillment tech platform & accelerate the growth of your online business. Fulfill Amazon Orders & Amazon Marketplace Integration: FAQs What is Amazon marketplace integration?Amazon Marketplace Integration is a feature by which 3PL platforms can integrate with Amazon Seller Central to automate incoming orders and inventory levels into their custom software to enable data and insight about past, present and future orders to be stored in one place. What is Fulfillment by Merchant (FBM)?Fulfilled by Merchant is one of 2 fulfillment methods offered by Amazon, the other being Fulfillment by Amazon. As the name suggests, retailers who sell on Amazon are responsible for selling and fulfilling their own orders and this can be done in-house (direct fulfillment) or through a partnership with a 3PL fulfillment company such as WarfeIQ. What are the charges involved in FBM?Amazon's FBM operates on a subscription-based structure and consists of 3 main fees: referral fees, monthly subscription fees and a fee for each item sold. How can WareIQ's 10 step integration with Amazon benefit your business?WareIQ's easy 10 step integration with Amazon offers multiple benefits to businesses such as being able to consolidate orders from Amazon along with other online selling platforms in one place, automating order processing, transparent pricing and much more. How long does it take to integrate WareIQ's WMS with Amazon?The entire process of syncing WareIQ's WMS to Amazon can be done in less than 15 minutes.

May 17, 2022

14 Best Ways to Reduce RTO Charges in eCommerce in 2024

Businesses these days are involved in cut-throat competition, mainly on online selling platforms. They try to offer all the services they can to create a better online purchasing experience for their customers. One of them is the return option for buyers. One of the painful realities that online retailers must accept is that there will be customers that seek to return their orders. In order to reduce RTO frequencies, sellers employ a variety of tactics. If a retailer wants to be profitable in the eCommerce space, they need to reduce RTO costs. If not, their profit margins will fall or it may also start creating difficult scenarios. It is widely known that it’s impossible to reduce RTO requests to zero but taking care of a few things can optimize and reduce RTO charges to a certain extent. To achieve significant RTO reduction, you need to first understand it in detail. What is RTO or Return to Origin? The term return-to-origin or RTO is often used in the eCommerce industry. The initiation of the return of a product and its return to the seller's warehouse is referred to as RTO. A package may be returned to the vendor for various reasons. An eCommerce business will incur more costs as a result of this. Setting strategies to reduce RTO costs is vital for the business to maintain its profit margins and not incur extra costs. [contactus_lilgoodness] What is RTO Related Costs? When an online seller or selling channel provides the facility of free shipping, they add the shipping charges to the final selling price of the product. In certain cases where the sale is done but the product is in the process of being returned, all costs associated with the returns process are known as RTO-related costs. For a seller, RTO reduction equals higher profitability. Let us understand the different RTO related costs and how to achieve RTO reduction. Charges for the Shipment to be Delivered and Returned Product delivery is chargeable for sellers, which they account for in the final selling price. If an RTO is initiated, it costs the seller twice the amount which they will not make back during the sale. Therefore, sellers need to find ways to reduce RTO costs. Costs for Repackaging Products are packed after picking them from the shelves of a warehouse, godown, or fulfillment center. Products are customized with multi-layer packaging and the invoices are posted on the outer packet which includes the receiver's address, barcodes, order number, etc. In the event of an RTO, this packaging needs to be removed and put back in the inventory. Later when the same item is ordered again by another customer the seller needs to pack it again. Thus, sellers need to find ways to reduce RTO packaging costs. Cost Incurred due to Product Damage Through online selling, order fulfillment is done by achieved by traveling large distances. These products are picked up and kept with hundreds of other products, which could cause damage if they are not placed in a proper manner. This could result in an initiation of RTO because of product damage before it has even reached the buyer. Companies need to analyse how to reduce RTO caused by product damage. Costs During Handling of Recalled Inventory Storing and managing inventory carrying costs a huge amount of money to a seller. Holding a product for a while can proportionately increase the cost, to the amount of time and addition of new products being added. Sellers seek to reduce RTO storage costs by investing in better inventory management facilities. Costs Incurred due to Expiration The passing time makes a lot of products redundant. Christmas trees are mostly sold during the Christmas season. It applies for most festive seasons so if the product is delayed in transit, it may lose its importance and value due to which a seller will have to store it for a long period which may result in it becoming old-fashioned and irrelevant. Practices That Can Help Sellers for RTO Reduction You can have the best products and most efficient eCommerce fulfillment strategy but you will still get RTO requests. RTO reduction can be achieved but it can never be entirely mitigated. To reduce RTO charges, sellers can keep a few things in mind: Store Inventory Near High Traffic Order Placement Locations: It will not only help a seller in saving shipment charges but also reduce RTO costs as distances to fulfill orders will decrease. Covering less distance is also effective in terms of limiting product damage. Choose Logistics Partners with Competitive Freight Rates: Freight rates in the supply chain matter a lot. Dynamic increases in fuel prices, and not using optimized vehicles can double the freight rate. If your logistics partner offers cost-effective rates, it can reduce RTO charges. Opt for RTO Insurance: This is a recent concept where eCommerce logistics companies and fulfillment companies give sellers an option of RTO insurance. If an RTO occurs, these fulfillment companies will bear the cost instead of the retailer, resulting in an RTO reduction. Choose a Third-party Fulfillment Partner: Third Party fulfillment companies give all-in-one solutions to a seller. It stores your inventory at the best location with high order traffic at the cheapest freight rates, provides individual buyer RTO rates, gives the option of RTO insurance, and provides facilities like RTO shields. All these factors can reduce RTO costs. How to Reduce RTO Charges & Frequency in eCommerce? 14 Proven Ways in 2024 To make your business more profitable, you can apply some tricks to reduce RTO charges. These tested tricks will help you reduce RTO in the year 2024: Optimize Product Descriptions In online selling, people always complain about the difference between a product’s appearance on the website versus reality. When a customer buys a product, they read the product descriptions to get an exact idea of the product. So try to write a good description of the products with accurate facts and figures about their features and dimensions. Provide Order Tracking Many times, ordered products are not received by a buyer because the buyer is not present at the location. If the seller provides order tracking and order scheduling facilities, the buyer can plan and receive it accordingly. Offer Multiple Modes of Payment These days, people are more reliant on UPI or card payments. So if the placed order is COD and the receiving person does not have cash (higher chance in the case of expensive products), the delivery partner should have multiple options of payment available. Convert Returns/Refunds into Exchanges If the seller turns the returns into exchanges, a buyer who often requests for RTOs will have to receive the parcel or they will not get the paid amount. In the case of COD, they can be noted and deprived of the COD option in the future. Check Customer Availability Before Attempting Delivery Most of the time, last mile delivery partners deliver products during the day which may be working hours for the buyer and they may not be present at the given location. So for the delivery, the delivery partner can first check the availability of the customer and schedule a time or change location after verifying the details. This will reduce RTO frequencies significantly. Alert for Consumers with High Initiation of RTOs These days with the help of technology and software, sellers have options to get the numbers of RTO frequency of individual buyers. If a person has a high rate of RTO requests, a seller could ban or restrict them from placing certain orders. Locations are also blacklisted by a few selling platforms as per bad fulfillment experiences. Offer Faster Shipping (Same/Next-Day Shipping) When a buyer orders a product, they expect to get it as soon as possible. They may find some other way to obtain it sooner or buy it from an offline market and when the order finally arrives, an RTO request gets sent. So, a seller should ensure to deliver products on the same day or the next day after the order has been confirmed to reduce RTO requests. Offer a Branded Post-Shipping Experience When a buyer reads the feedback about certain products and brands, they invariably find some feedback related to a bad delivery experience. Chances are that many customers may not have received their orders due to similar problems. The solution to reducing these kinds of RTO requests is to provide a branded shipping experience to your customers. Pick and pack it nicely, send confirmation messages, Message them the tracking ID/number, allow buyers to choose a favorable time to receive it and finally ask them to write a review. Reduce Cash on Delivery Losses Data shows COD orders are mostly converted to RTO requests and from a customer's point of view, they don’t want to pay before they get the product. In this scenario, a seller has multiple options to reduce RTO requests: Verification of Shipping Address A seller can verify the shipping address before dispatching the product to a logistics company. In case it is incorrect, which can turn into an RTO request, the seller or the logistics company can instruct the buyer to correct the eCommerce shipping address to achieve a successful delivery. The address can be verified with a address proof documents of the buyer. Profiling of Risky Orders Make a database of risky fulfillment and mark them according to different parameters. Then choose whether you want to give them an option for COD or ask them to pay before the order delivery. Providing Dashboard Analytics Discover indications that contribute to your RTO losses by getting RTO information at a state/city/pincode level. To better understand delinquent behavior and implement the learnings into your business plan, get full-order review reports. This will reduce RTO requests that are fraudulent. Customization of Business Model Learn algorithms, evolve, and localize the learnings over time to continually increase accuracy based on your company's demands. To make it even more flexible, you can create your own flagging rules. Furthermore, blacklist specific persons based on email addresses, phone numbers, and other factors to reduce RTO costs. Automation of Important Processes As your eCommerce firm expands, automation becomes increasingly important. Set up automated workflows to automatically accept or reject red-flagged orders based on risk factors, saving time and money in the process. To maximize your business and decrease operating expenses and reduce RTO charges, automate order confirmations, payment collections, and other operations. Conversion of Risky COD Orders to Prepaid Orders: If there are higher chances of RTO requests with an individual customer, only give them the option to pay before order placement. Prepaid orders result in RTO reduction and if an RTO request still occurs, allow an exchange instead of a refund. Optimizing Website Experiences in 5 Ways to Reduce RTO in eCommerce You may have observed that brand appearance matters a lot in its positioning. In online selling, the appearance of a brand depends upon its website. Websites increase brand value and with good brand value, RTO reduction of a product can be achieved: These are some ways to make your website more effective: Implement a Return Policy For eCommerce businesses, return policies should be a set of rules created by a retailer or a selling platform to manage returns and exchange unwanted merchandise that a customer has purchased. It should tell the buyers what items can be returned and for what reasons, according to a timeframe over which returns could be initiated. Enhance Product Illumination When a product fails to meet the standards set out on the business’ website, it is a key contributor to product returns. It's disheartening to receive a shipment after waiting weeks for it, just to open it and discover it's not what you expected or required. Ways to reduce RTO requests in this regard are: Create an attention-grabbing headline summary.Summarize the product definition with a bulleted list of key characteristics and features.Use a paragraph to expand on what makes the product unique. Instead of focusing on describing benefits, focus on giving a solution.To persuade the consumer to buy, end with trust, social truths, urgency, and a call to action. Value Consumer Reviews If you have a high number of RTOs then there must be some reason why the majority of customers are not accepting the delivery. You can try to get feedback from the buyer who didn’t accept the delivery or read reviews of buyers who have written about their post-order experience. Read all and then try to provide a solution. Introduce Product Videos If customers are returning items because they don't meet the product description's expectations, you might want to consider adding a video function to your product detail page. Brand films are now a highly effective technique for increasing conversion rates, and reducing RTO requests and more individuals determine that after watching a product commercial, they can better imagine themselves using the product. Provide a Post-Purchase Confirmation Message Sending a post-purchase message(mail) to your customers can be a very effective way to reduce returns. Reduce objections that lead to refunds and keep customers enthused about what they just ordered by informing consumers about the product between order and shipment. Strategies to Decrease RTOs in eCommerce with WareIQ According to a recent study by KPMG, return shipments can make up to 20% of total shipments in e-commerce. This rate climbs to 40% in the case of Cash on delivery (COD) orders. Return to Origin (RTO) is a nightmare for sellers as it significantly increases the logistic costs. RTOs rates are expected to increase even further in India with demand surges in tier 2 and 3 cities. Given the situation, reverse logistics has become an integral part of a business plan. Given the convenience of online shopping and the lack of risk, buyers can frequently return items without second thoughts. RTO logistics become extremely important to decrease this trend as well as the costs involved. The sheer amount of revenue lost by companies through return items is about 20% of the sale, and that’s exactly where WareIQ pitches in to help you save the costs. We optimize your return order logistics and improve overall efficiency with the help of insights derived from customer data, customer retention metrics and return policies. How Does WareIQ Help eCommerce Businesses in Reducing RTOs in 5 Ways? Quick TAT (Turn around time): Logistic partners provide an estimated delivery timeline based on which the customers anticipate the delivery. If it fails to reach them as per this expectation, there is a risk of an RTO and the customer opting to order from a competitor. This also affects the customer retention rate. With WareIQ’s Prime-like shipping, data-driven insights, PAN-India network of warehouses, and excellent supply chain management system, orders reach the customers on time as promised. This ensures a higher rate of First attempt delivery, thus reducing the breach of TAT.Higher and Efficient First Attempt Strike Rate (FASR): Delivery success in the first attempt ensures happy customers and helps in their retention. This is an important metric since lower returns imply lower logistics costs on RTO. With WareIQ’s structured incentive plans, delivery partners are encouraged to deliver maximum shipments in the first attempt thereby increasing the FASR.Improved Non-delivery Report (NDR) conversion: Knowing the customer’s intent before performing the last mile delivery can save a lot of time and costs related to RTOs. This can be achieved by validating the attempted shipments by directly communicating with customers via phone calls, SMS, e-mail, WhatsApp, etc. Any change of preference or cancellation or order can be recorded and shared with the shipping partner in real-time to decide whether to “Reattempt the delivery” or “Make RTO”. Performing this manually at scale is almost impossible. With WareIQ’s innovative solutions, most of it can be automated via IVR (Interactive voice response) calling, auto-SMS, auto-mailer, WhatsApp alerts, etc. This also keeps the customer well informed and creates an impact on improving the delivery conversion percentage. In the auto NDR process, the customer will get an IVR call immediately after a failed delivery or when the NDR remark is updated by the delivery personnel. Automation makes the entire process quick and efficient.Wrong or Incomplete Address: Amidst the huge traffic across the supply chain and sometimes because of consumer ignorance, deliveries often end up attached with wrong or incomplete addresses. This is also one of the major reasons for RTO. Address validation becomes important in this context. WareIQ ensures this authenticity with various checks on the same. This increases the chances of successful delivery. In case of an incorrect address, shipping is cancelled prior to dispatch. It allows not only for lower RTO but also avoids wasteful shipping costs.Automated Partner Pin Code Allocations: With WareIQ’s cutting-edge technology, pin code allocation is automated. This altogether eliminates the hassles of manual allocations thus reducing logistics costs & shipping costs & RTO as well as increasing fulfillment serviceability and speed of delivery. Making changes in allocations is complex and takes a good amount of time. The system analyzes historic RTO percentages and cost per shipment (forward + RTO) to optimize the allocation and ensure that the courier with the lowest possible cost is chosen for the given pin codes. Such efficiency and cost reductions are not possible with manual processes. This also saves a lot of time in processing and shipping the orders. RTO Shield WareIQ's RTO Shield provides eCommerce/D2C firms with a comprehensive checkout strategy to reduce RTO losses and increase revenue. Why WareIQ’s RTO Shield? Request a refund for any RTO order that was predicted to be safe by the company.Smart COD checkout option based on technology to detect problematic customers and save on shipping costsDisable COD for untrustworthy and blacklisted customers automatically.Identification and deletion of duplicate ordersVerification of shipping addresses and intelligent shipping selections based on address completeness Benefits of RTO Shield Increase conversions and decrease cart abandonment.The quickest checkout time is under 10 seconds.Identify high RTO risk consumers using data sets from telecom, banks, hyperlocal, and OTT providers.Identify scammers using previous data on their past purchasing behavior and win over them. How Does it Work? Integrate the website/application with WareIQ3 months of historical data will be needed to train the model to predict accurately.Go live in 3 to 5 days [signup] Reduce RTO FAQs What is an RTO or Return to Origin?When an order is not delivered due to some issue or is delivered and is sent back to the seller for a particular reason, the process of return is called RTO. It impacts the seller because it is an extra expense that has to be incurred by the seller. How does RTO impact an eCommerce seller?It negatively affects an eCommerce business due to loss of money, time, energy and increases the chances of product damage. If an order offers free delivery and an RTO is initiated, the entire delivery and return logistics costs are borne by the seller. How can a seller reduce RTO costs?There are several ways to reduce RTO costs such as optimizing logistic costs, partnering with fulfillment centers, verifying addresses, promoting COD orders, marking higher individuals with high rates of RTOs, using an RTO shield, etc. How does WareIQ help eCommerce brands reduce RTO via RTO Shield?WareIQ's RTO Shield or Return to Origin Shield gives eCommerce and D2C businesses a complete checkout strategy and helps reduce RTO losses and increase revenue.

May 16, 2022

What is D2C Fulfillment? 10 Reasons Why D2C Brands Need a Fulfillment Partner

Nowadays, e-Commerce logistics businesses are more convenient for both customers and sellers, and the modern world has already started to adopt this means of selling. In 2022, the benefits of D2C fulfillment by selling directly to the consumer are well known, such as better supply chain exposure, stronger customer relationships, and no middlemen involved. Also, there are numerous positive stories about D2C brands that have succeeded in getting a fast start. However, the quicker your company grows, the more critical it is to ensure that your D2C fulfillment operations can scale efficiently and capitalize on growth opportunities. What is D2C Fulfillment? D2C fulfillment, also known as direct-to-consumer fulfillment, is an e-commerce shipping model in which a merchant sells directly to the end consumer through digital channels rather than relying on intermediaries such as retailers, distributors, or wholesalers to reach their target market. The involvement of these intermediaries may reduce your profit level and take more time to get your targeted customers. D2C brands are responsible for handling their stock and micro fulfilling and shipping orders that they can do in-house, such as through dropshipping or by outsourcing the process to a 3PL. [contactus_gynoveda] What are the Processes Involved in Direct to Consumer Fulfillment? The process begins when a customer places an order and concludes when they receive it. If the buyer needs to return a product, direct-to-consumer fulfillment will also handle the return logistics procedure. Here is the list of processes in direct to customer fulfillment: Receiving Inventory The initial step in the D2C fulfillment process is receiving inventory from the company warehouse or whole sellers. You should be very careful in counting the incoming stock lists to avoid future issues. Once you count the entries of the inventory, you need to inspect the quantity and quality of merchandise to ensure that you have received the proper amount of stock. Bar codes on incoming products are used in the receiving and storage processes and later, in the retrieval of goods from internal storage. Storing Inventory When goods arrive at the fulfillment center, they are inventoried and distributed immediately or sent to short-term or long-term storage. The next phase would be the proper storage of inventory. It is a good practice to store the appropriate goods, concerning their demand, instead of hoarding vast amounts of inventory in the anticipation of future sales. Processing the Order The picking and packing process of a product is dictated by an order processing management system for every newly received order. Order management software integrates with an eCommerce website's shopping cart to automatically initiate order processing in the online marketplace. Picking the Relevant Product One of the most important processes in direct-to-consumer fulfillment is picking the right items ordered by your customers. The process of picking the required item will either be automated or performed by a dedicated picking team, based on the packing slip's instructions. Product size, color, and number of units are some of the metrics mentioned in the packing slip, that is used to determine the right product to be picked Packing the Order The next interesting process after picking the required items is packing them properly. The packing team or robots will select the packing materials. Because space on delivery trucks is limited, optimizing the dimensional weight (or DIM weight) is critical for expediting transport while potentially lowering shipment costs. Return shipping material will be included by the packing teams when customers want to exchange or return the item for a refund. Shipping the Order The order is routed through a transportation channel or shipping aggregator before being delivered to the customer. Shippers and carriers calculate the billable costs of freight based on the volume. Even if the actual weight is low, as in the case of garments or other similar products, packing it to achieve the least DIM is often worth it to keep the packaging from significantly increasing the overall package weight and thus, the cost of the entire shipment. Delivery to the Final Customer The final process is delivery which means handing over the product to the customer. Shipping routes frequently use multiple carriers. For example, the carrier may pick up a package at the fulfillment center that will later be delivered to the customer's home by another carrier. These hybrid shipping methods are used for a variety of reasons such as delivery estimates and costs provided by each carrier. Why do D2C Brands Need a Fulfillment Partner? Top 10 Reasons The final stage of supply chain management is D2C fulfillment. Direct to Consumer fulfillment enables products to be delivered to the desired location. Below is the list of benefits that D2C brands experience by collaborating with a fulfillment partner: Enhanced Customer Satisfaction DSC Fulfillment companies devote their efforts to providing quick and efficient order fulfillment services. Working with a fulfillment company provides you with skilled staff and warehouse management systems. Your orders will be expertly packed and shipped, resulting in increased customer satisfaction. Obtaining Valuable Business Expertise Companies need to value insights offered by their D2C fulfillment partners to be successful. When you find the perfect fulfillment partner and build a strong working relationship, the fulfillment company can be critical to the growth of your business. Furthermore, your partner is a valuable resource for queries about inventory planning, packaging, shipping, and other fulfillment-related topics. Adaptable Warehouse Space Expansion and growth are crucial for any eCommerce company. However, the sudden increment in demand and supply may force you to scramble for additional warehouse space and fulfillment capacity. When you work with a direct-to-consumer fulfillment company, especially one that uses a variable cost model for the fulfillment, you can quickly and easily scale up or down your fulfillment requirements, based on demand. Differentiation From the Competition In today's competitive market, it is nearly impossible for D2C brands to differentiate themselves just based on pricing or product offerings. However, by focusing on providing a stellar customer experience during the fulfillment process, your brand can differentiate itself from the competition and establish a much stronger emotional bond with its customers. Increasing the Value of Your Offerings Every touchpoint in the order fulfillment process, especially the moment of delivery, must be streamlined if you want to be perceived as a premium service. It is much easier to justify high-end pricing when buyers believe they're getting an exclusive experience. According to a study, more than 75% of customers are willing to spend more at a company that provides a superior customer experience. Increasing Your Scalability The most difficult aspect of D2C fulfillment is scalability. Order fulfillment services are a fantastic way for brands to improve customer experiences, but they also pose one of the biggest obstacles in 2C fulfillment, because eCommerce shipping firms with a high volume of orders face unique challenges. D2C brands have a big edge over traditional stores through their ability to manage the entire consumer experience. Improving Customer Service It is often simpler to keep customers than it is to find new ones. Most order fulfillment companies offer phone or email support 24 hours a day, seven days a week, allowing for simple returns and exchanges. A D2C fulfillment partner can also provide you with assured delivery dates or same-day delivery services. It helps to improve the overall customer experience. Minimizing Operating Costs It is expensive to ship your packages, hire employees, buy packaging supplies, sustain quality control, and rent space. You can avoid these overhead costs by partnering with a D2C fulfillment company and sharing resources and space with other sellers. In short, 3PL fulfillment services will minimize your operating costs by outsourcing fulfillment for D2C businesses where you wouldn't hire or supervise any staff or worry about fulfillment logistics. Reducing Shipping Costs Many people will ignore outsourcing fulfillment requirements because they perceive it as an additional cost. However, D2C fulfillment service companies can save you money in various areas, including shipping costs. To begin with, a direct to consumer fulfillment partners may have fulfillment centers and shipping partners located throughout the country and even abroad. They ensure that your goods are closer to your buyers by balancing your inventory across this vast network of fulfillment centers. Accelerating Delivery Speed The impact of being able to access numerous warehouses scattered across the country extends to reduced shipping times. Outsourcing fulfillment lets you deliver faster by locating inventory closer to your buyers. It is a huge benefit for retail businesses. Most consumers expect their purchases to arrive in two days or less. You may need a strong D2C fulfillment partner to meet those high demands and compete with the country's largest chain retailers. What are the Key Services Offered by D2C Fulfillment Companies? Inbound Logistics Products are delivered in bulk to the warehouse, and inventoried, according to their demand, expiry date, and other metrics. Warehousing Storing inventory is mandatory to deliver them securely to your customers. Your products are stored at the fulfillment center until they are shipped to the consumer. Inventory Management Once you have stored your inventory in a D2C fulfillment provider's warehouse, they will manage it for you. They will monitor and maintain optimal inventory levels to avoid understocking and overstocking. Distribution Centers or Direct to Consumer Fulfillment Centers D2C Fulfillment companies will offer distribution center services where the required goods will shift from the warehouse to these distribution centers to initiate the delivery process to the end customers. Packing and Moving Sending orders in generic, lifeless brown boxes creates an unpleasant and impersonal client experience. The D2C fulfillment partner takes care of this by efficiently packing the orders securely with premium materials and attractive designs so that they can be shipped as soon as possible. Last-Mile Delivery Customers prefer to have their orders delivered to their homes rather than shopping in large crowds and queuing for payment, particularly during the pandemic. As a result, this requirement forces online retailers to invest in last-mile delivery management software to manage their last-mile delivery services, which are provided by d2c fulfillment partners. Returns and Outbound Logistics Returns, also known as reverse logistics, are an essential component of direct-to-consumer fulfillment. Shippers and carriers pick up packages from the warehouse and deliver them to customers. Setting up an efficient returns process for your customers will increase your sales and reduce wastage. Route Planning and Optimization Evaluating the most cost-effective route and mitigating any roadblocks and delays is known as route planning. It is more difficult than simply determining the shortest path between two points. D2C fulfillment companies also offer this effective service. Tracking Solutions Customers who shop online expect real-time updates on the status of their orders. D2C fulfillment partners invest in cutting-edge technology to provide tracking solutions. It assists in ensuring efficient order mapping and timely communication with customers via fulfillment statuses. Centralized Delivery Planning Fulfillment companies put a lot of focus on providing centralized delivery planning. Centralized delivery planning entails making decisions holistically at a higher level rather than independently at the local level. Automation Automation eradicates the need for manual data entry, resulting in a more streamlined order fulfillment process that can process higher volumes of orders with fewer people involved. Four Different Ways of Fulfilling Direct-to-Consumer orders There are various ways to fulfill the demands of the D2C brands, and here is a list of the 4 most prominent solutions: In-House Fulfillment In-house order fulfillment, also known as self-fulfillment, occurs when a merchant completes all the steps of the fulfillment process internally without the assistance of a drop shipper or fulfillment company. At this stage, in-house fulfillment typically consumes a significant amount of valuable time that could be spent on obtaining more customers, developing new products, and launching marketing campaigns. Both warehouse space and warehouse management are required for in-house fulfillment. Fulfillment Through an External Partner Fulfillment through an external partner is when a third-party order fulfillment company handles the shipping, storing, and order or refund processing. Employees of the fulfillment company will take on the entire fulfillment process, from receiving inventory from manufacturers to delivering products to the end customer. Inventory is stored in a 3PL-controlled warehouse, which means that companies that use outsourced fulfillment do not need to invest in their warehouse facilities. Companies that do not have enough storage space or personnel may opt for this option. Independent 3PL Fulfillment Third-party fulfillment companies are experts in direct-to-consumer fulfillment. When you work with a 3PL, you have complete control over the entire process. You can select which 3PL warehouse locations you should use for storage and shipments. Your products can be shipped in your own brands' packaging, and your 3PL can add package inserts to customize and personalize the customer experience. Furthermore, fulfillment centers also provide various services to assist you in growing your business. Hybrid Model A hybrid fulfillment model is used by a company that uses a combination of the above order fulfillment options. A company, for example, may process some orders in-house, such as specially made items or easily perishable goods. Some businesses use drop-shipping for infrequently purchased items or that they would not want to store in-house, such as huge or expensive items. It is ideal for businesses requiring more flexibility or experiencing rapid growth. Factors to Consider when choosing a D2C Fulfillment Service You cannot randomly choose a D2C fulfillment service for your business, and the wrong choice may bring a poor reputation and significant losses to your brand image. There are a few factors that you should consider when choosing a D2C fulfillment service, and these are listed below: Price Hard-earned money is extremely, especially for a budding eCommerce retailer., As a business owner, you need to think about your requirements and available budget while choosing a D2C fulfillment service. Fulfillment services are a huge process for your business, and it is necessary to enquire about charges for various services. Try to compare the prices of 2 to 3 companies and pick the more reasonable and cost-effective option. It is not a good idea to opt for the cheapest service which may not be professional. Operational Network Apart from price, you need to consider various other things, including investigating their shipping network. If you plan on expanding your business operations, you would need a fulfillment company that already provides services in locations that you would want to expand to. Flexibility and Location Customers have grown accustomed to same-day delivery as even more eCommerce businesses strive to reduce the time between ordering and receipt of the product. When choosing a fulfillment service, the goal is to ensure that the products arrive at their destination as soon as possible and their services are flexible. The shorter the required time for delivery, the happier your customers will be. As a result, location is important when selecting a provider for your company, and don't forget to consider their flexibility. Inventory Management and Daily Reporting The next essential factor to consider is their inventory management and daily reporting services. Details about inventory levels are necessary for your business, and it is the D2C fulfillment provider's responsibility to analyze and report them daily. Look for a fulfillment provider who handles inventory management and provides regular and accurate reporting on your inventory levels to save time. It allows you to easily manage your stock levels and ensure a smooth order flow. Quality of Fulfillment Quality of fulfillment is an unavoidable factor to consider when selecting a fulfillment service provider for your business. There is a study that shows after having a bad delivery experience, 72.7% of poll participants claimed they are inclined to stop shopping at an online store. They expect to have a smooth delivery, customer support, and return options, which are not possible in self-fulfillment. Check the quality of the D2C fulfillment service by enquiring about previous client encounters, quality control procedures, etc., and choose the provider once you feel satisfied with their quality control levels. Existing Client Base The final factor to consider by you for choosing a fulfillment service provider is their existing client base. Knowledge about the experience that previous and current customers of the fulfillment company can equip you with all the tools that you need to determine if they are the right fit for your requirements. Why Should You Choose WareIQ as a D2C Fulfillment Partner? Delivering the orders to your customers directly without intermediaries is not an easy task without the help of a fulfillment service. If you want your D2C brand to shine better in this competitive world, hire the best fulfillment service company after considering the factors involved in developing your business. D2C trends in 2022 are peaking. Check every detail listed above, such as the process involved and the benefits of hiring the fulfillment service company. WareIQ stands apart from the rest as one of the best D2C fulfillment partners for businesses of every size and domain. WareIQ, a Y-combinator-backed startup, has rapidly grown to be the leading 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. WareIQ has customized 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”. WareIQ’s next-day delivery and same-day delivery services are helping eCommerce businesses set new standards concerning 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. [signup] Direct to Consumer Fulfillment FAQS What is D2C Fulfillment (direct-to-consumer)?DTC (direct to consumer) is a way of marketing items directly to customers. The intermediary is either totally or partially removed from the sales process when using DTC. Suppliers offer their items directly to clients, with no merchants or wholesalers involved. Why are D2C Fulfillment products becoming more popular?D2C Market is the new Retail Market. Some of the important factors that lead to D2C brand growth are lowering the prices of products, focusing on customer-related policies, quality assurance, consumer engagement, supplying products on demand What are the core benefits of D2C Branding?D2C Fulfillment companies have more data at their disposal to help them better understand what their customers want and why. The D2C business model gives brands more control over the brand image. D2C Brands can form direct relationships with their customers, and on-demand delivery which increases the quality of sales. How does D2C Fulfillment contribute to the supply chain network?Products are normally stored in a central site or a few satellite locations in a D2C firm. D2C businesses deliver things in packages directly to customers. As a result, shipping and handling is an important aspect of the supply chain. Why do customers like the D2C business delivery model?D2C businesses provide the most streamlined, convenient, and easy buying option, making them an appealing alternative to visiting a physical location.D2C is the new trend, more than 80% of active buyers consider buying online, and then the product is made available to buy through the d2c business model. What is the difference between B2C and D2C?The main difference in B2C and D2C business models is that D2C companies sell their product directly to their customers via outlet or website without any middleman or wholesaler or retailer. On the other side B2C businesses sell their products to end consumers through any sales channel. What is the reason that D2C brands fail?When properly marketed, D2C brands can generate massive demand, but without a logistics partner in place, they would struggle to make a profit. Major reason being, D2C brands not having the time or resources to set-up new warehouses or hire staff/labor to fulfill a high volume of orders. Does WareIQ offer D2C fulfillment?Yes, WareIQ provides direct to consumer fulfillment service. WareIQ stands apart from the rest as one of the best D2C fulfillment partners for businesses of every size and domain. Is D2C the same as eCommerce?Depending on the products sold on its platform, an eCommerce website may or may not be a D2C business. For instance, Flipkart is not a D2C eCommerce website on the other hand KamaAyurveda’s own website is D2C.

May 09, 2022

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

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

May 03, 2022

What is Seller Fulfilled Prime(SFP): Advantages, Requirements & Comparisons for 2024

Amazon Prime, a paid subscription service allows its members for availing services like two day shipping, video streaming, etc. Prime members are more engaged with Amazon as compared to non-prime members. This trend has been increasing for several years, and not only has it remained unaffected by the pandemic, but its demand has been further boosted by it. Seller Fulfilled Prime (SFP) is one of the primary services offered by Amazon. Read further to understand what it is and how it could be helpful for your business. In 2015, Amazon launched their Seller Fulfilled Prime order fulfillment service, which enabled high-volume sellers to sell under the Prime label, provided they meet certain requirements needed by the service. In fact, with 200 million Prime members, as reported by Amazon in April 2021, and worldwide spending at an average of $1,400 a year — compared to the $600-per-year average spent by non-members — the Prime subscriber pool offers a significant opportunity to reach ready-to-spend buyers. Thus, sellers cannot ignore the benefits of selling to Amazon Prime members. What is Seller Fulfilled Prime? Amazon Seller Fulfilled Prime is a program that allows a seller to deliver products to Prime customers from their own warehouse or third-party (3PL) logistics order fulfillment companies that they partner with. With this, the seller gets to display the Prime badge. Joining Prime also means fulfilling orders with two-day delivery at no additional charge for Prime customers. Since 2005, Prime has ensured two-day deliveries on all orders to their customers for a flat fee paid annually. Certain items are also delivered to customers in a few zip codes on the same day. Hence, products qualifying for the Prime badge are recognized by the 200+ million Amazon Prime subscribers worldwide and are deemed to be more trustworthy and inspire more demand. Amazon says that a 2015 sales analysis recorded a 50% increase in Prime sellers’ sales. [contactus_gynoveda] Suggested Read: How Trust Badges Improve eCommerce Sales? What are the Services Offered by Seller Fulfilled Prime? 1 and 2-day shipping The one and two-day premium shipping service to Prime customers are the standard criterion set by Amazon to be met by all Seller Fulfilled Prime sellers. They ship the Prime orders directly to the Prime customers from their warehouse or 3PL. In some zip codes, Prime shoppers receive same-day shipping for particular items. It is also necessary that the Prime seller uses only Amazon-approved shipping companies and must adhere to Amazon’s set benchmarks. Free shipping A Seller Fulfilled Prime seller displaying the Amazon Prime badge on his listings commits to offer premium one or two-day shipping with no extra charges for prime customers. This free shipping completely depends upon program guidelines. Same-day order processing Orders received must be processed and shipped by 2 PM at the Seller Fulfilled Prime seller’s time on the same day per the program guidelines. Same-day order processing means the Prime order must be checked for various information and sent to the warehouse closest to the delivery location. Pickers must pick up the item, pack, and hand it over to the shipping carrier the same day. Saturday delivery and pickup Seller Fulfilled Prime sellers offer Saturday delivery and pickup. This delivery and pickup came into being because Amazon recorded less than 16% of orders being delivered to Prime shoppers within two days by Prime sellers as promised. Fewer orders were delivered because most sellers did not work during the weekends. Order tracking Order tracking helps the stakeholders monitor all orders received at every stage through fulfillment status – processed, fulfilled, shipped, and delivered. Order tracking also communicates the regular status updates and ETD (estimated time of delivery) to the stakeholders, including the customer. 99% timely deliveries Gartner says businesses lose 71% of customers because of poor customer service and on-time delivery is the most important metric for customer satisfaction in the shipping industry. Thus, on-time delivery is a key metric and is part of the Seller Fulfilled Prime program requirements. Which Types of Business is Seller Fulfilled Prime for? There are many eCommerce products, ranging from conventional retailing and private labeling to big brands selling direct, retail, selling stocks & shares, real estate, and selling second-hand or used items. While all these products can benefit from the Prime features, it is usually the retailers who have the most to gain. Retailers compete with countless other businesses and stock hundreds if not, thousands of product lines. With the Prime badge on their products, retailers can command more demand than their competitors and achieve massive sales. Seller Fulfilled Prime can benefit brand owners who already manage their shipping to customers. It can also help new brands build up their businesses using Amazon and can encourage them to become multi-channel sellers. Businesses that fulfill their orders are often reluctant to join the Fulfillment by Amazon (FBA) program. It doesn't make sense for companies who have put in the investment and hard work into shipping effectively to then outsource order fulfillment for fulfilling Amazon orders. The Amazon Seller Fulfilled Prime Program makes even more sense for perishable goods or products, such as vitamins and supplements, with low shelf life or specific storage restrictions. FBA warehouses are not climate controlled and need to ship such cargo right away to avoid expiry or damage. Below is a list of products that are suitable for Seller Fulfilled Prime. Although sellers also handle a few items in the below list via the FBA program, the list is for reference only and is by no means exhaustive. Appliances and furniture items High-value products or fragile items Seasonal items that will sell for a few months in a year Perishable items have a low shelf life or have specific storage restrictions such as being climate controlled Products having unknown demand variation Fast-changing fashion items such as clothing and apparel Slow-moving items/products Products shipped in multiple boxes What are the Requirements to Qualify for Amazon Seller Fulfilled Prime in 2024? Amazon takes exceptional care and pays a lot of attention to their Prime members during the purchasing period and product delivery, as it is one of their highest priorities. Hence, Amazon has strict requirements for sellers to qualify for the Seller Fulfilled Prime program. Here are a few of the basic qualifications for the Seller Fulfilled Prime program to be met by the seller: Eligible sellers or their 3PL partners must go through the Seller Fulfilled Prime trial period and meet the following requirements on a minimum of 50 Amazon Prime trial orders. Sellers register for a 90-day trial period. Seller’s listings DO NOT have the prime badge during this trial period. Sellers need to complete 200 orders in 90 days. Sellers need to use the free Prime shipping template and must offer Premium one-day to two-day delivery options. Sellers must use shipping services that offer Saturday or Sunday Pickup and Delivery. Sellers should ensure that at least 99% of all Prime orders must be delivered on time. Sellers should provide a valid tracking ID for at least 97% of premium shipping orders. Sellers should achieve a cancellation rate of less than 0.5% of pre-fulfilled Prime orders (by the seller). Sellers should use Amazon Buy Shipping Services for at least 95% of orders (this is when you purchase shipping labels in Sellercentral, and tracking information is automatically added). Sellers should process orders the same day that they are received. Sellers should ensure that orders are shipped out the same day if they are made by 2 PM in the seller’s timezone. Sellers should achieve a feedback rating of 4.5+ to be sustained over a 30-day rolling period. Sellers must offer one-day shipping to 30% of page views of potential buyers for standard-size products. Sellers must offer one-day shipping to 17% of page views of potential buyers for oversize products. Sellers must offer two-day shipping to 74% of page views of potential buyers for standard-size products. Sellers must offer two-day shipping to 63% of page views of potential buyers for oversized Products. Sellers should answer all product queries. Sellers must follow Amazon's return policy. The seller is auto-enrolled in Seller Fulfilled Prime on completing the trial successfully, and the product listing will then display the Prime badge. To continue to be eligible for prime services, the seller must consistently meet all the requirements on a rolling 7-day basis. Sellers unable to adhere to the Seller Fulfilled Prime requirements will no longer be a part of the Seller Fulfilled Prime program. They may, however, continue to sell their products on Amazon. Top 6 Advantages of Amazon Seller Fulfilled Prime The advantages of Seller Fulfilled Prime are as follows: Increased sales Increased product exposure in the marketplace leads to higher sales. Amazon claims that Seller Fulfilled Prime sellers increased their sales by 50% when they displayed their Prime badge over their listings. Access to the Prime badge gives sellers the opportunity to reach Amazon’s Prime members, whose annual spending is twice that of average shoppers; Forbes says that 46% of Prime subscribers make weekly purchases, versus only 13% of non-Prime members. Displaying the Prime badge ensures the same Buy Box privileges as FBA Sellers. Inventory control By joining Seller Fulfilled Prime, sellers need not send stock to Amazon. For FBA services, sellers need to send the products to Amazon's order fulfillment centers, thereby losing control and visibility of the product. It allows the seller to ship their product from a non-Amazon warehouse, giving them more control of their inventory. This control is especially advantageous if the company is a mature business with multiple sales channels or has a seasonal product that spikes during the holidays. Cost control By using Seller Fulfilled Prime, sellers can do away with order fulfillment and shipping costs to ship their inventory to the Amazon warehouse, thus reducing costs. Such cost control is not possible with FBA, where sellers need to pay both the order fulfillment and shipping charges. Storage rates control Seller Fulfilled Prime gives sellers control over their own warehouse costs. Unlike FBA, where sellers have no option but to pay Amazon’s ever-increasing storage fees, It gives sellers who manage their supply chain efficiently and forecast their sales accurately the opportunity to save big on storage costs. Product flexibility Product changes or upgrades could lead to last-minute customization of the packaging, which is impossible at Amazon fulfillment centers. Sometimes, the seller may wish to include a booklet summarising the features of the upgraded product or maybe change the labels on the box. Seller Fulfilled Prime sellers manage inventory at either their own warehouse or their 3PL partner's warehouse, giving them more control over their products and customization. Free trial of Seller-fulfilled Prime One signs up for the Seller Fulfilled Prime trial period free of cost. Amazon FBA fees charge the cost of storing the products in Amazon's fulfillment centers, picking, packing, shipping, and customer service for the products sold. In addition, Amazon takes a commission on every item sold. Sale of products ineligible for FBA Certain items that are not eligible for FBA can be sold through the Seller Fulfilled Prime program. However, one must ship and sell products per the country’s rules and regulations. A few items that one cannot sell on FBA are perishable products, large or bulky products, such as furniture, fragile items, and fashion products, such as clothing. Control over returns and refunds CNBC reported that the retail industry loses $50 billion per year by mismanaging the reverse logistics process which results in increasing logistics costs. Customer returns and refunds have been a serious drawback of the FBA program. The seller must put in a claim with Amazon for a refund. To make matters worse, correctly linking specific items to specific returns despite tracking IDs is a challenge. With Seller Fulfilled Prime, the seller handling his returns can design his own system to stay on top of it. Seller Fulfilled Prime or Fulfillment by Amazon: What is Right for Your Business in 2024? Both programs allow one to sell on Amazon Prime; however, the similarities end there. FBA and SFP are different, each having its pros and cons. The key differentiation between the programs is as follows: [table id=13 /] Conclusion: Should You Choose Seller Fulfilled Prime for Your Business? Seller Fulfilled Prime generally works for the following businesses: Businesses with established order fulfillment capabilities meet the stringent requirements for participating in the Seller Fulfilled Prime program. The seller might own a warehouse and have the necessary staff to manage it or have an outsourced 3PL and is looking to outsource order fulfillment processes. Businesses selling heavy or oversized items. Businesses selling products require temperature/climate-control storage. Businesses having slow-moving products that could incur hefty FBA storage fees. Businesses that are able to keep tight control over the returns and refund process. It is challenging for small or new businesses to meet the Seller Fulfilled Prime program requirements and the costs incurred for managing one’s order fulfillment. Small businesses would be better off associating with the FBA program initially since they wouldn’t have the economy of scale that larger sellers enjoy for managing order fulfillment internally. If the seller saves money on a transaction level by joining the Seller Fulfilled Prime program, the seller must then review the cost savings and see if it is worthwhile to continue. The seller must consider all the pros and cons and the associated value, benefits, and risks of participating in this program. The sellers that leverage their inventory across multiple marketplaces instead of depending only on Amazon benefit the most. Selling higher volumes across multiple marketplaces does make up for any costs incurred through Seller Fulfilled Prime. Here are a few tips and tricks for Seller Fulfilled Prime sellers: One can shorten the trial period by using one’s fastest-moving stock-keeping units (SKUs). Keep track of one’s customer reviews to ensure customers aren’t confused by anything on your listings. Also, ensure to collect feedback from every customer in the form of a review. Set up Ship by Region to reduce the shipping cost, thus allowing one to offer Seller Fulfilled Prime to particular parts of states. Review one’s performance. Monitor all three Seller Fulfilled Prime-eligibility metrics to enhance the Prime experience for customers—request the defect report from Seller central to see which of the metrics is underperforming. If you are looking for the services provided by Amazon Seller Fulfilled Prime to outsource your order fulfillment requirements, in addition to many more technologically advanced facilities, WareIQ can be the solution for you. Seller Enablement Services_WareIQ 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’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 eCommerce warehousing, and data-driven decision making. WareIQ also undertakes strict safety precautions at its warehouses and complete ownership of the operations, thereby minimising the risk exposure of WareIQ customers. Thus WareIQ will definitely prove to be a more reliable and trusted long-term fulfillment partner compared to dropshipping and conventional 3PL companies. [signup] Seller Fulfilled Prime FAQs (Frequently Asked Questions)

April 30, 2022

What is Fulfillment by Amazon (FBA)? How Does FBA Work in 2024?

Fonts must be clear. Labels must not be faded. A direct thermal or laser printer must be used. Only certain types of packaging material are allowed …. And the checklist on how to prepare inventory for FBA or Fulfillment By Amazon goes on and on. Amazon ships 35 items a second and that’s because FBA runs like a well-oiled machine. But it can be a mind-boggling overload of instructions and information for vendors. Failing to comply with FBA preparation requirements may result in being charged for non-compliance, and products being returned, disposed of, or blocked from future shipments. And that’s not a situation any vendor wants to be in. A fulfillment center for FBA prep services can lift the weight off your shoulders. Using the right service, like the one offered by WareIQ for instance, will ensure your inventory is prepared according to Amazon’s regulations and standards and delivered to Amazon. WareIQ is a software-only platform that connects and centralizes a nationwide network of fulfillment centers and last-mile couriers partners. Once products are sent into a fba prep service, you can focus on other aspects of your business, like sales, marketing, and scaling up for instance! Let's first understand what is FBA & how it works in 2024. What is Fulfillment by Amazon (FBA)? The Fulfillment by Amazon (FBA) program offers sellers the ability to ship products directly from Amazon to their customers worldwide, saving them time and money and providing more flexibility in their selling practices. It helps sellers with storage and packaging, too. How to Register Your Business on Amazon FBA? To register as an Amazon seller, go to the Seller Registration page and click the ' Register Now ' button. During the Amazon seller registration process, you will need to provide basic information such as the business entity's name, the company's address, and the company's phone number. Business entity name You should register as a Limited Liability Partnership (LLP), One Person Company (OPC), or Private Limited Company (PLC) when becoming an Amazon seller partner, as these entities offer limited liability protection and are simple to start. Business promoters who sell products through online eCommerce platforms like Amazon could theoretically be sued or held liable by vendors/customers. Hence, it is important to have limited liability protection. Either the entity’s name or the proprietor’s name should be entered. Contact details: Office address and phone number Registration requires you to provide the entity's registered office address or business address and a phone number, which can be a mobile phone number, for voice calls or SMS verification. GST registration information GST registration is not required for sellers selling certain products not covered by GST. However, all other sellers selling products for which GST is applicable must provide a GSTN number to begin selling their products on Amazon India. Bank account information Amazon India requires potential sellers to provide the following information regarding their bank account to complete the seller registration process: Bank Account Holder’s Name Bank Account Number Bank IFSC Code Account Type Once Amazon receives the above information and the compulsory Amazon Partner Quiz is taken, you can start selling on Amazon India. A seller's dashboard on Amazon India offers complete information about listing products and managing listings. [contactus_gynoveda] How Does Amazon’s FBA Work? Source FBA on Amazon’s platform is easy and direct. First, list all the products you want to sell on Amazon’s marketplace. You will get a notification after a customer makes a purchase, requesting you to ship them the product. You may initiate the delivery of the chosen product to the customer and confirm shipment or allow Amazon to fulfill the order for you. After this, Amazon will credit the funds to your bank account after necessary deductions, such as its fees. How Does FBA Work on Amazon? In short, after you have been accepted to Amazon's FBA program, you will need to register Amazon's fulfillment center as an additional place of business with the tax authorities. Then, you will need to list your products and unit quantities in advance to be fulfilled. Prepare and label products or product lists and packages for shipping. Ship the products to Amazon. Amazon receives and stores product units in Amazon's fulfillment center. Orders are shipped directly from one of Amazon's many fulfillment centers to the end customers. Source What are the Benefits of Using Fulfillment by Amazon or FBA Services? FBA allows your products to be listed on Amazon and makes them eligible for several eCommerce-related benefits. Grow your business by putting Amazon's world-class fulfillment technology to work and delight your customers with excellent customer service. Buyer and End-user Confidence Having Amazon associated with the seller's products makes the buyer feel more confident and makes the seller more attractive to them. One benefit is having Amazon's name associated with the product. Most customers will appreciate Amazon’s quality stamp, making them more comfortable buying from the seller. Unmatched Customer Service FBA provides excellent customer service and efficient delivery without charging the end customer. It also has a 24/7 support team that handles every aspect of selling – from recorders to providing customer service on the sellers’ behalf. Amazon’s customer service team also handles FBA sellers' product return management. Lower Shipping Fees Because of Amazon's relationship with shipping aggregators, sellers can offer shipping at a lower cost than if they delivered their items from their individual accounts. They can also offer free shipping. Multichannel Fulfillment Amazon's fulfillment centers allow FBA sellers to store inventory, ship it quickly, and manage stock outside their own marketplace across multiple channels. These warehouses allow FBA sellers to safely store their inventory in Amazon fulfillment centers, which efficiently ship products quickly from multiple channels. Standardized Shipping Process When a buyer orders an item from Amazon, the product is picked up from its inventory, suitably packed, and dispatched. The shipping process is standardized – customers' orders are dealt with in the same way for all products, whether they are Amazon products or third-party FBA products. Wide Product Range Sellers can scale operations more flexibly without investing in an additional warehouse when selling with Amazon, as it can handle a wide selection of products and large volumes without a lot of growing pains. Amazon fulfills the following categories of products: Books Beauty Consumer electronics Cameras Video games Digital accessories, such as mobile and PC accessories Jewellery Luggage Mobile phones Movies Personal care items Appliances Toys, etc. No Minimum Cut Off Required FBA does not require a minimum number of items to use it. Side Hustle In today's world, one of the key reasons people are setting up eCommerce businesses is to earn passive income by outsourcing major business tasks to Amazon. You can automate the rest of the processes by using Amazon software. Income can be generated from anywhere in the world. Huge Storage Space and End-to-end Order Fulfillment Amazon outsources space for storage. This means you can store your inventory in Amazon's fulfillment centers, and they will fulfill your orders on your behalf – you won't have to worry about order fulfillment. In contrast, if you choose the Fulfillment by Merchant option, you'll have to bear the cost of storage and shipping. These costs can be cumbersome, especially if your business has a small budget or no space for storage. Massive Customer Base and Great Brand Image There are over 300 million active buyers on Amazon. Selling on the platform gives you access to all these people. FBA will also boost your chances of increasing sales through branded shipping. You will be selling products with the Amazon logo and packaging material, making customers instinctively trust you and they will be more inclined to buy from you. Ease of Use Amazon FBA is the best option in terms of convenience – you don’t have to handle a shipment, dispatch an order, or deal with packing materials, returns, or customer service issues. What are the Expenses Associated with Fulfillment by Amazon (FBA Fees)? FBA (Fulfillment by Amazon) fees charged by Amazon are: Standard Seller Fees: About 15–18% of a product's price becomes the seller's fee. Amazon charges 15% on certain products. However, hidden costs – for example, refunds – increase the overall charge to the seller. Fulfillment Fees: Fees are determined by unit size, shipping, service, handling, and purchase returns. Referral Fees: This is paid for each item sold and can range from 8–15% based on the product category, such as consumer electronics, home/garden, and personal computers. Storage or Inventory Fees: These are charged depending on the product size tier, the average volume per day, and the calendar month. Besides monthly inventory fees, Amazon fulfillment centers charge for inventory units kept for more than one year, called storage fees. The FBA dashboard's reporting section allows you to see what fees you're paying to Amazon as part of the FBA program, which covers settlement fee reports and stranded inventory reports. Amazon keeps it transparent, which helps calculate costs associated with FBA and make important inventory decisions. International Shipping: Using FBA, with Amazon's 150 million square foot storage space and over 29 million units shipped worldwide, sellers can now export their inventory globally. Amazon offers domestic and international shipping options by air and ocean shipping modes. Fees are charged for these services provided by Amazon for individual accounts. Your products are stored in Amazon fulfillment centers, with increased visibility on Amazon. It picks and packs your products when a customer orders them, ships your products to them, and offers support for Amazon-sold products. Read our article on logistics costs to understand what they are and how to mitigate them. Suggested Read: How to Choose the Best Amazon Pricing Strategy? Why Should You Choose Fulfillment by Amazon? International Shipping: FBA allows the seller to receive inventory that originated in another country, and sellers will have to arrange the customs clearance and other paperwork and arrange for the delivery shipment to the Amazon facility. This changes the game for international product shipping and eCommerce fulfillment. Your products are sent to a district Amazon warehouse, which will be decided by Amazon. Amazon reserves your stock in its warehouse following all safety protocols. Once a customer makes a buying decision, Amazon handles the entire process, from payment to inventory updates and customer support, including dealing with returns and refunds. Amazon credits the profits you receive from your sales every two weeks into your registered bank account. Essentially, Amazon FBA mimics having your own storage space, packaging unit, and logistics partners, providing the same benefits. Amazon takes care of dispatching orders and handling all email correspondence from your customers, including informing them when their order has been shipped and when it will reach the end customer. It takes credit card payments and handles shipping for you as well – all you must do is provide the products. Amazon's Brand Advantage and Reputation: Amazon is a world-renowned and trusted brand. Orders from Amazon are guaranteed to be delivered. Also, customers love the return policy. This is a huge factor in making a purchase decision. Super-fast Delivery: Sellers can ship products to their customers more quickly because Amazon offers a superior, technology-driven online ordering system that provides faster processing and delivery of products and also provides fulfillment status information and tracking facilities for both the buyer and the seller. This provides a better ranking on the Amazon website and better visibility of products. When a seller isn't using FBA, products show the total price (the price and shipping costs together). However, FBA sellers show only price, which is lesser than other sellers, enabling them to rank higher in the search results. Read our blog on micro fulfillment centers to understand how they can contribute to super-fast delivery. Reduction of Overheads: FBA makes it possible for you to focus on increasing your sales and profits without worrying about staff, storage, or administration. Increased Productivity: The biggest benefit of this program is a surge in productivity. In this way, you can spend time improving your business rather than chasing after returns, inventory management, packing, and transportation of products. Flexibility to Run Your Business Anywhere: Regardless of where you live, you can earn consistent income as a seller with FBA. Your orders will be handled by Amazon 24 hours a day. Fewer Customer Queries and Customer Service: With FBA, Amazon handles your customer service. A buyer can contact Amazon's customer service department if they have a problem with their order rather than you. You’ll avoid unnecessary stress and frustration by not needing to speak directly with customers. Amazon Prime: Another feature is that products sold via FBA are automatically eligible for Amazon Prime. When a business becomes a Prime-eligible seller, it can also sell to Prime subscribers, which can double their sales. Vast network: Amazon currently operates in India through several technologically advanced fulfillment centers across Maharashtra, Karnataka, New Delhi, Haryana, Tamil Nadu, Gujarat, Rajasthan, Punjab, Telangana, and West Bengal. Amazon has end-to-end, advanced fulfillment solutions along with a massive network. Great Partner for Business Expansion: As an example of how Amazon FBA can be beneficial to you, consider the following situation: you have conducted your research, sourced your products, and have two or three hot items all selling well on Amazon. Your business is definitely doing well. As a seller, you are probably thinking about buying more stock at this point, but you lack the storage space to store it. You are also concerned about how long it will take you to dispatch more orders. Amazon FBA can do wonders for you to expand the business and ship products to almost any geographic location. Seamless, End-to-end Fulfillment Service: As Amazon's Fulfillment Service is designed to be so seamless, customers usually aren't aware that they are buying from a third-party seller using Amazon FBA. It is so streamlined that when customers purchase from Amazon, they will usually be completely unaware that they are buying from a third party. Purchasing directly from Amazon and through Amazon FBA will be almost identical to each other, with the same delivery options, return and refund policies, and excellent service. Therefore, as you might expect, this solution can be very beneficial to Amazon sellers and can certainly eliminate a lot of time-consuming tasks, but it will require effort to implement, just like any other business strategy. By using the Amazon fulfillment network, Amazon has solved one of the biggest problems in the eCommerce industry: how to make the eCommerce shipping process easy, quick, and simple? Wow Factor: Amazon FBA is a great service, especially for those who want to avoid the hassle of managing their own distribution and fulfillment networks. Customers trust products labeled "Fulfilled by Amazon" products. The "Prime" checkbox or the "FREE Shipping on eligible orders" note in the search results is what people look for when they're trying to meet Amazon's free shipping requirement. Free Shipping: In the past few years, Amazon has built a great reputation for free shipping, and FBA allows you to use that to your advantage. Currently, free shipping is such an important part of Amazon's businesses that if you do not offer it (either through FBA or on your own), many people will look for a competitor that does. Using FBA makes it easy to offer free shipping. Its shipping rates for products sold on Amazon will be much lower than your own rates, so you can offer free shipping to your customers. "Free" shipping is a way of life for many buyers now across all geographic locations. Reverse Logistics: Reverse logistics is no more a hassle with FBA doing all the work, not to mention offering customer service and answering queries. Amazon's "free returns" are not free to the business but only to the customer. If an item is returned through this service, the business must still pay a return processing fee. It's a lot cheaper than hiring a customer service team, but it definitely isn't free. Ease of Use: Anyone can make FBA work for their business. It takes the hassle of dealing with shipping logistics or processing returns from customers away from the business so that one can concentrate on their main business. It does come with a few issues, but they can be calculated and worked out to be a plus for the business. Therefore, looking at the huge customer base and great reputation that Amazon as a brand has built, the answer to whether selling products on Amazon is worth it is for you, as a business, to decide. Related Article: What should you choose FBA or FBM? Who are the Chief Competitors of Fulfillment by Amazon in 2024? Online retailers are vying for customers in India, which is expected to become a $1 trillion digital economy by 2025. Foreign-funded companies cannot hold eCommerce inventory in India at the moment. While Amazon had hoped that those rules would be relaxed, the proposed policy calls for harsher controls – even on the phantom sellers that Amazon and Flipkart use to circumvent the rules. That means the eCommerce giant and its preferred resellers will not be able to offer great discounts on its items. These are Amazon’s main competitors in India. WareIQ Source WareIQ is a startup founded recently in 2019 but has quickly grown to be a great alternative to Amazon’s FBA. It combines the latest software technologies and platforms to give the customer a great fulfillment experience. The low cost and transparency of same-day and next-day delivery make it accessible to everyone. WareIQ provides its customers with a nationwide network of fulfillment centers and ecommerce warehouses close to their location. Moreover, it has tie-ups with numerous couriers, making same-day and next-day delivery cheap and possible for all customers, whether large-volume or small-volume. With the latest cutting-edge technologies and platforms, WareIQ’s WMS offers: Shipping management services Printing of labels and packing services in a technologically advanced manner to make it easy to use for any seller Latest technology to handle failed deliveries and redeliver them Order management services Services to point out where exactly the order is, which phase it is in, and its estimated time of arrival Inventory management services WareIQ can disperse inventory boosting for speed, location, and low cost Warehouse management services It takes full ownership of the inventory and provides safety to the stock – a chief reason behind WareIQ’s success The WareIQ platform consolidates both national and local couriers, thereby cutting costs and increasing delivery time. This cut in cost is passed on to sellers, even those selling minimum quantities. This is a big benefit to small-scale and new sellers. WareIQ RUSH is a same-day delivery program that has taken the fulfillment industry to another level. Even small eCommerce sellers can reap economies of scale, low costs, and high-speed delivery, however small the quantities shipped. Many brands, such as Future Group to Kama Ayurveda, have trusted WareIQ as their fulfillment partner. Flipkart Source Amazon's biggest competitor in the Indian eCommerce market is Flipkart, which continues to grow. It was founded in 2007 and is one of India's leading online eCommerce sites. Amazon and Flipkart have similar business models. Flipkart's revenue is increasing steadily, with a reported 12% increase every year. Plus points Low prices Flipkart Fulfillment lets you utilize its latest state-of-the-art fulfillment centers at extremely low prices. Safety protocol Inventory is stored with all safety procedures followed so that the business does not incur any loss. Huge warehouses all across the country Flipkart stores all inventory in warehouses, so sellers don’t have to worry about their stock once it reaches Flipkart’s fulfillment centers. Quality testing All stock and inventory are checked for quality. Packaging and bubble-wrap Flipkart makes sure that the products are packaged and sent to customers in proper condition. ShipBob Source ShipBob is a 3PL logistics and eCommerce fulfillment company that delivers orders with next-day delivery to brands that serve direct-to-consumer customers. It was founded in Chicago in 2014. Plus points With 2-day shipping at affordable prices, this company is transparent and affordable. It manages eCommerce fulfillment from start to finish, which is a huge relief for sellers. The reason for its success is an easy API that integrates with the seller’s platform, providing leverage in terms of speed as well as cost. The seller's platform can easily integrate with ShipBob’s platform and use its highly advanced software to provide the best services to the end consumer. The user interface is simple and provides ease of use A large network of warehouses located in different locations Providing order management services when a product is out of stock Minus points Its pricing is not easy to understand or calculate, which has been reported by a few sellers. Customer support is not top of the line. Cooling and refrigeration are not possible in ShipBob warehouses. Deliverr Source Deliverr, a San Francisco-based company founded in 2017, provides comprehensive solutions for small business order fulfillment. It provides a 2-day delivery service which has been a major hit with eCommerce logistics companies with a relatively smaller scale of operations. Its goal is to provide customers with an enjoyable and hassle-free experience, including transparent pricing, seamless ordering, and a good customer experience. It provides live data tracking feature which offers an accurate date of fulfillment. It also services direct-to-customer businesses with next-day delivery options. Plus points Pricing is transparent. It provides adequate customer support to its clients. Deliverr provides integration of its platform to the seller’s eCommerce platform, providing the best services to the end customer. Minus points It does not provide international fulfillment services, only local services. No telephone support is offered to customers. Shopify Source A multinational eCommerce company based in Ottawa, Canada, Shopify Inc. was founded in 1998. Retail point-of-sale systems and eCommerce platforms for online stores are an added feature of Shopify. Plus points Shopify allows for creating a business and enabling its online operations from scratch. It helps you build a website from scratch, backed by powerful tools to find customers, create sales, and manage the business. With Shopify’s latest technologies used in its Point of Sale technology, selling products to anyone and shipping to any location is easier than ever. Shopify is spread across 175 countries worldwide and has garnered a business of $200 billion, making it very profitable for small-scale and independent business owners to make profits using its platform. Business owners and companies can easily manage orders, shipping, and other services from any location by using just one dashboard. Pricing is also managed from the same dashboard, making it a one-stop-shop solution. Great customer support is provided by Shopify 24 hours a day, all seven days of a week. Its powerful platform provides much-needed insights into the business, which is fully managed by Shopify Fulfillment. JD Source JD's B2C operation and logistics infrastructure are renowned. Approximately 1,300 warehouses spanning roughly 23 million square meters comprised the company's network as of September 30, 2021. The company is not only a competitor to Amazon but also Alibaba.com, as both of them offer bulk purchase options. It is the largest online retailer in China by revenue. What are the Various Challenges of Using Fulfillment by Amazon? Fees Charged by Amazon FBA The cost of Amazon storage fees can add up if your inventory doesn't sell as quickly as you would like. To minimize storage fees, you should ensure your stock moves quickly, and you are generating sales, so you don't need to worry about additional fees. This is one of the major challenges of using FBA. Amazon has revised their prices, effective from 10th May 2024, which has resulted in a marginal increase in their prices and has put undue pressure on sellers who rely on FBA for their fulfillment services. There is now an 18% increase in Pick Pack Fees, a 25% increase in Closing Fees, and a 25% increase in weight handling fees. Read more about the updated fee structure. Labeling Amazon will give you access to their guidelines on preparing and shipping your items once you register for Amazon FBA. The guidelines are very strict, and if the inventory is not properly labeled, it will be rejected by the warehouse. This can cause delays and frustration, besides extra work. Instructions are to be followed carefully. Product Packaging Has the Amazon Logo and Not Your Brand’s Amazon FBA dispatches all orders using their own packaging. So, when your customers receive their order, the packaging will sport Amazon's branding, making it harder for you to build your unique reputation through brand awareness since your brand is not visible on the packaging. Therefore, if brand awareness is a crucial factor for you, you may not benefit greatly from FBA. An Increase in Returns after Using FBA Since Amazon's returns policy is so easy, there is the possibility of receiving a higher number of returns from customers once you use Amazon FBA. However, you can minimize this risk by always supplying quality products. Sales Tax Issues Using a fulfillment service like FBA makes calculating sales tax even more difficult. When items are sold and shipped directly, calculating sales tax becomes interesting enough. But with FBA, product items are manufactured, shipped, and sold in different regions, resulting in further complications in tax issues. Inventory Management You, as the seller, are responsible for keeping track of your FBA inventory and ensuring that it is restocked as needed. If you don't do this properly, you risk accepting orders that can't be fulfilled because the items aren't in stock. Amazon Fee Structure Amazon will deduct all fees owed to them before paying you, so you cannot use the next sale to pay for the last one. That means a seller will require a credit card to pay off all fees owed to Amazon, and these fees cannot be carried forward. Product Handling Issues You may lose or damage inventory in the fulfillment process, and most often, Amazon is the one who made the error, not you, the seller. In these cases, Amazon will reimburse you. Nevertheless, some cases might go unnoticed, and sellers' money is lost due to damaged inventory. Thus, sellers should keep shipping records in case Amazon short-delivers inventory. Complicated Calculations Involved In addition to the FBA calculator, Amazon offers a chart for its fulfillment fees for FBA sellers. A chart for fulfillment fees can be found on Amazon's website along with its FBA calculator, which allows you to decide if an item is profitable enough to sell on FBA or if you should use another method. This requires foresight and a lot of calculations. Not every seller is well-versed in these complicated calculations. Strict Guidelines The Amazon fulfillment centers have specific requirements for certain products (i.e., poly-bagging and bubble-wrapping) to ensure that inventory is in good shape. A per-item fee can also be charged for Amazon to handle the preparation for sellers. Stickerless Merging of Similar Products Amazon's default inventory setting collects the same products from a manufacturer at the same time, so if a seller sells the same product as another seller or retailer, the inventories will be mixed. This leads to low-quality products from different sellers mixing with superior-quality products, leading to fraud and account suspensions. You must be aware of this as a seller. You can also read different alternatives to Amazon FBA. Boost Your Fulfillment Strategy with WareIQ's Seller Flex Services While Fulfillment by Amazon (FBA) offers a robust solution for sellers looking to streamline their logistics, integrating WareIQ's Seller Flex services can further enhance your fulfilment strategy. This innovative approach allows sellers to maintain control over their inventory while benefiting from the advantages of Amazon's extensive marketplace. The Benefits of Combining Seller Flex with FBA 1. Greater Control Over Inventory Management With WareIQ's Seller Flex, sellers can manage their inventory from their own warehouses or utilise WareIQ’s network of fulfilment centres. This flexibility allows for: Responsive Stock Management: Quickly adapt to changes in demand without the constraints of Amazon's storage limits. Optimised Inventory Placement: Strategically position stock in locations that minimise shipping times and costs. 2. Enhanced Delivery Speed In today's fast-paced e-commerce environment, timely deliveries are essential. WareIQ's Seller Flex services complement FBA by: Reducing Shipping Times: By leveraging a nationwide network of fulfilment centres, products can be dispatched from locations closer to the customer, ensuring quicker delivery. Maintaining Prime Eligibility: Products fulfilled through Seller Flex can still carry the Prime badge, providing the same level of customer trust and satisfaction associated with FBA. 3. Streamlined Returns Management Returns can be a significant challenge for sellers. WareIQ simplifies this process by: Efficient Returns Handling: WareIQ manages returns on behalf of sellers, reducing the administrative burden and allowing sellers to focus on growth. Quality Control: Utilising an in-house QC app, WareIQ ensures that returned items are documented accurately, streamlining the claims process and minimising disputes. Addressing Common Challenges of FBA with WareIQ’s Seller Flex While FBA offers many advantages, it also presents challenges that can impact seller performance. WareIQ's Seller Flex services help mitigate these issues: Avoiding Compliance Pitfalls The intricate requirements of FBA can be overwhelming. WareIQ ensures that inventory is prepared according to Amazon's standards, reducing the risk of non-compliance penalties. Cost Management FBA fees can accumulate quickly, especially with storage and fulfilment costs. By using WareIQ’s Seller Flex, sellers can lower their overall fulfilment expenses through optimised logistics and reduced reliance on Amazon's pricing structure. Integrating WareIQ's Seller Flex services with your Amazon FBA strategy offers a powerful combination that enhances operational efficiency and customer satisfaction. By providing greater control over inventory, faster delivery options, and streamlined returns management, Seller Flex empowers sellers to navigate the complexities of e-commerce confidently. As you elevate your fulfilment strategy, consider the advantages of incorporating WareIQ's innovative solutions alongside Amazon FBA to achieve sustained growth and success in the competitive marketplace. Conclusion: Why is WareIQ a Better Option than Fulfillment by Amazon in 2024? There are many ways in which Amazon FBA can benefit your online business without having to invest in expensive storage facilities and staff. However, these services can end up being quite expensive and may not offer the exact services that you are looking for. A company like WareIQ offers the same services as FBA, and much more, while also being flexible by giving customers a choice as to which services they need and allowing them to opt for those specific services only. In addition, we offer integrations with a multitude of the biggest eCommerce platforms such as Shopify. WareIQ's prices for similar services are cheaper and more transparent than Fulfillment-by-Amazon with a negligible amount of hidden expenses. We utilise local resources which help to keep costs down. WareIQ offers flexible solutions to labeling. You can either opt for your own custom packaging and labeling to increase awareness of your own brand or you can opt for our standardised packaging, which is well-designed and will make your product stand out from the crowd. All in all, it is a win-win. You can opt for our entire suite of fulfillment services which includes inventory management. If you do, you will not need to bother about the hassle to maintain your inventory levels and keep track of what needs to be restocked as our custom management software will take care of everything. 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”. We also offer multiple services relating to the preparation of inventory to meet Fulfillment by Amazon requirements such as: Pick & Pack by WareIQ: WareIQ's fully automated order fulfillment system guarantees efficient and accurate picking & packing and also has the capacity to fulfill 1 to 10,000+ orders each day. In addition to this, you are only chargeable for the services that you use. So if you ship only 1 order a day, you will only pay a pick & pack charge for that 1 order. Amazon Product Compliance with WareIQ: Amazon has very strict guidelines that retailers need to comply with in order to avoid refusal, disposal, or return of inventory, and charges for noncompliance at the fulfillment center. WareIQ offers services such as repacking and labeling, to make sure that your products abide by all these regulations before it is sent to an Amazon fulfillment center. Smart Tech by WareIQ: WareIQ’s smart technology ensures maximum efficiency by offering API integrations, automated mapping of SKUs across multiple sales platforms, and the ability to bundle products without the requirement of tracking, regulating inventory levels, or handling fulfillment. Hub & Spoke Transport by WareIQ: This important process involves the streamlining of the entire supply chain and results in the reduction of costs, across the entire process. Our most utilized service is the transport of inventory to our warehouse, relabelling of the product, and reorganizing it for delivery to multiple locations. We also take advantage of shipping discounts through consolidations and deconsolidations to ensure a seamless shipping experience. Fulfillment by Amazon FAQs (Frequently Asked Questions)

April 27, 2022

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