Every retail business, be it eCommerce, SMEs, or those following a multi-channel approach, need to have a clear idea of closing inventory. The ending inventory of the sellable stock in the warehouse is vital for businesses to have visibility of sales, understand the value of the inventory, changes to be made in forecasting and stock levels, etc.
The closing inventory is a crucial metric for better inventory forecasting, understanding what items should be stocked more, which items don’t get as many sales, and how the business needs to reassess strategies to remain profitable.
- What is Ending Inventory?
- What is the Need to Calculate Ending Inventory?
- The Formula for Ending Inventory Calculation using Ending Inventory Formula
- 3 Different Methods of Closing Inventory Calculation With Examples
- Conclusion: How Do 3PL Fulfillment Companies Help Manage Closing Inventory for eCommerce Businesses?
- Ending inventory FAQs
What is Ending Inventory?
At the end of an accounting period, the ending inventory is the stock value of finished products in sellable condition. The closing inventory includes mentioned assets on the balance sheet. Taking note of the closing inventory is necessary for accurately calculating taxes and estimating the total business value.
Closing inventory calculates the total value of the good, not the inventory volume or number of units available.
What is the Need to Calculate Ending Inventory?
Calculating ending inventory is important to identify what products are fast selling and need greater importance and which items take a longer time to sell. By understanding which products take longer to be sold, businesses can improve their forecasting and production strategies and decide if their production or sourcing volumes need to be shortened or lengthened accordingly. Visibility on closing inventory is important to:
Match Recorded Inventory with Actual Stock Levels
This provides insight into any stock discrepancies between the recorded and physical inventory in the warehouse/fulfilment centers and matches it with the sales made. If the physical inventory is less than what is recorded, it is known as ‘inventory shrinkage‘. The cause for this discrepancy could be accounting errors, theft, or various other concerns.
Know the Revenue Being Generated
Calculating the business’s net income becomes easier with the starting inventory and ending inventory. This can also help provide clarity on the pricing strategy. Suppose the recorded inventory and physical inventory prices don’t match up, it can indicate that the sold items are not profitable as the initial purchase or production will be more expensive than the sale price. You can see how to calculate average revenue here.
Improve Forecasting and Inventory Management
When you calculate the ending inventory, it considers the starting inventory during the beginning of the accounting period. This, of course, is a cycle. Having the closing inventory details paints a clear picture of which items sell better than others, the ideal volume of items in the inventory, and how soon items need to be replenished. This also improves the forecasting capabilities for future inventories, discounts etc.
The Formula for Ending Inventory Calculation using Ending Inventory Formula
It is important to calculate the closing inventory correctly to keep taxes and accounting in check. For every new accounting period, the starting inventory is calculated from the closing inventory of the previous period. This makes it even more crucial to have the right data to achieve better inventory management. Having accurate calculations also ensures no unexpected shortage or shrinkage in the physical inventory compared to the recorded inventory.
The ending inventory calculation formula is:
Ending inventory (EI) = [beginning inventory + net purchases] – cost of goods sold (COGS)
Here’s what each term means:
- Beginning inventory is the closing inventory from the last accounting period.
- Net purchases include all items that have been additionally bought and added to the inventory.
- Cost of goods are the total costs involved in sourcing, procuring, manufacturing and getting the finished product ready for sale
Various variables come into play. We arrive at different values based on the calculation method when ending inventory is calculated. Note that only the estimated value of the inventory changes as the units in hand is constant. You will find these 3 methods for ending inventory calculation.
3 Different Methods of Closing Inventory Calculation With Examples
A physical inventory count is the easiest approach for ending inventory calculation. However, doing a physical check may not be feasible, especially if you have a huge volume of inventory to track. There are a few different ways to calculate the closing inventory. Because there are various methods for calculating EI, it’s advisable to stay with one every year to minimise discrepancies in subsequent reports. Let’s see the different ways to calculate closing inventory:
Last in First Out (LIFO)
This method of inventory calculation considers that the most recent stocks were sold first. The older stocks become part of the closing inventory and the newest inventory is noted as the COGS.
For example, you purchased 100 books at Rs.5 per unit, making beginning inventory (100×5=500). When the books needed to be replenished after sales, the per-unit price increased to Rs. 7. During the accounting period, let’s assume that 125 books were sold.
In this method, your cost of purchasing the latest inventory was higher than the older stock. So, COGS will be (100×7=700), which is the cost of purchasing the replenishment stocks + (25×5 =125) which will be the additional 25 units you sold from the old stock. This comes up to Rs.825
After using the ending inventory formula is;
EI= Rs.500 (beginning inventory) + Rs.700 (net purchases) – Rs.875 (COGS)
The value comes up to Rs.325.
First in First Out (FIFO)
This second tracking method calculates by assuming that the oldest inventory gets sold first. So, the older stocks become part of COGS, and the newest inventory is added as ending inventory.
For example, you purchased 100 books at Rs.5 per unit. During replenishment, the per-unit price increased to Rs. 7. During the accounting period, let’s assume that 125 books were sold.
So, COGS will be (100×5=500), which is the cost of purchasing the replenishment stocks + (25×7 =175) which will be the additional 25 units you sold from the new stock. This comes up to Rs.675.
After using the ending inventory formula;
EI = Rs.500 (beginning inventory) + Rs.700 (net purchases) – Rs.675 (COGS)
The value comes up to Rs.525.
Weighted Average Cost (WAC)
This calculation method takes COGS as an average of the cost of inventory purchased during the accounting period and divides it by the total units in hand. For WAC, all inventory units are assigned the same value.
For example, you purchased 100 books at Rs.5 per unit. During replenishment of the next 100 books, the per-unit price increased to Rs. 7. During the accounting period, let’s assume that 125 books were sold.
For WAC, the total cost of both orders will be added (500+700=1200) and will be divided by the total number of units in hand (200). This gets the price per SKU as (1200/200) which is Rs. 6.
So, COGS will be (125×6=Rs. 750), the cost of the weighted average of a single SKU x the total units sold.
After using the ending inventory formula;
EI = Rs.500 (beginning inventory) + Rs.700 (net purchases) – Rs.750 (COGS)
The value comes up to Rs.450.
Conclusion: How Do 3PL Fulfillment Companies Help Manage Closing Inventory for eCommerce Businesses?
Understanding and calculating ending inventory are critical to your company’s success. However, the process might be complicated, which is where technology-enabled 3PL eCommerce logistics companies can help. When the time comes to file business taxes, having the correct inventory management solution will save you a lot of time and trouble.
Some of the benefits of having a 3PL fulfilment company to manage order fulfilment include:
- Managing inventory levels, order data, and billing
- Flexible scaling based on seasonality, order velocity, and other factors
- Easy to view dashboards for orders, shipping, and returns
- Reduced shipping and return label creation
- Shorter delivery timeframes and lower freight costs
- Seamless integration and collation of data from warehouses, customers’ warehouses, and retail outlets
- Real-time tracking to identify delivery mishaps and promptly fix problems
- Customer engagement post-sales to encourage loyalty and repeat purchases
With a fulfillment company like WareIQ, there’s no need to invest in a separate WMS, shipping aggregators, inventory management, or tracking tools. WareIQ offers end-to-end fulfillment services by combining network, technology, and knowledge. The full-stack platform allows eCommerce firms to provide same-day and next-day delivery to their consumers, comparable to Amazon Prime, but for everyone.
With a centralised platform for core fulfillment and shipping operations and post-shipping apps, WareIQ manages the entire range of complex operations in the eCommerce fulfillment process, such as inbound functions like scanning and quality checks, 100% accurate Pick and Pack, and inventory management across all channels, for a delightful experience and zero to minimal supply chain leakages.
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.
WareIQ has established itself as a dependable partner for more than 300 reputable eCommerce firms across the country, including Kama Ayurveda, Future Group, Piramal Group, Wingreens Farms, and many others, with a robust nationwide network of fulfillment centers and urban dark stores close to ending customers and subsidised access to all major national and hyperlocal last-mile couriers.
A machine learning-based prediction engine is used for optimal warehouse network architecture and innovative inventory allocation.
On a single platform, all fulfillment and shipping procedures are centralised. For a pleasant experience and fewer supply chain breaches, the post-shipping features of WareIQ are beneficial.
Sign Up Now with WareIQ today to take advantage of our excellent fulfillment technology platform and grow your online business.
Ending inventory FAQs
The value of products available for sale at the end of an accounting period is the ending inventory which is the starting inventory + net purchases less the cost of goods sold. When calculating the net purchases, deduct any return costs and discounts before calculating the final value.
WareIQ utilises an efficient WMS that aids in inventory management and is able to forecast demand levels and the supply levels needed to keep up with that demand. This helps retailers stabilize their inventory levels to mitigate losses from ending inventory.
Yes, the ending inventory and closing stock calculate the same value, the value of saleable goods at hand at the end of an accounting period.
A rising trend in ending inventory balances over time may suggest that some inventory is becoming obsolete, as the amount should remain relatively constant as a percentage of sales. A falling trend in the ending inventory balance, on the other hand, may suggest that a company’s production capacity is insufficient to meet customer demand.
Supercharge your fulfilment with WareIQ now, contact our team.
Shopify Shipping Apps Guide | 10 Best Shipping Software for Shopify in 2023
With eCommerce having gained a stranglehold on the way people choose to buy products, eCommerce sellers have been expected to adapt to fit the growing demands of their customers. India is one of the fastest-growing eCommerce markets in the world and is expected to jump to the top in the not-so-distant future. Every sector is currently experiencing unprecedented growth, especially as more potential customers get accustomed to using the internet for their purchasing requirements. The country has an interesting dynamic, with the majority of eCommerce purchases (61%) coming not from large cities but from smaller tier-2 and 3 towns. Additionally, these smaller cities saw annual eCommerce growth rates of 92% and 85%, respectively, trouncing the growth rate of large cities, which sits at just 47%. This indicates that retailers have to ship more orders to distant locations. Therefore, they need to have the shipping and distribution infrastructure in place, digitally and on the ground, to be able to successfully fulfill every order that comes in. One way to do that, especially if you use Shopify and other online selling platforms to sell your products, is to use Shopify shipping apps. In this blog, we will go into detail about Shopify shipping apps and list the 10 best options currently available. Introduction to Shopify Shopify Inc. was pioneered in 2006 and is currently headquartered in Ottawa, Canada. The company provides a platform for online sales and is designed to assist eCommerce sellers in achieving their targets. With the help of its platform, customers can open an online store to sell products on Shopify and benefit from instantly gaining access to a sizable online market. One of the biggest eCommerce companies in the world, Shopify has more than 1.7 million merchants selling their items on its channel. One distinctive feature of Shopify is that they provide a selling platform for both online and physical businesses, a market that not many other major eCommerce competitors have chosen to enter. Additionally, Shopify also has provisions for various apps and online stores, to help users engage more deeply with their prospects. [contactus_lilgoodness] What are Shopify Shipping Apps? Shopify apps in general, are designed to streamline the functionality of various eCommerce functions. Retailers can create apps for their own businesses and list them on the Shopify store, from where customers can download them to get access to enhanced, app-specific features. Shopify apps provide a variety of functions, from payment processing and promotional activity to inventory management and customer support. In the case of enhancing shipping capabilities, Shopify provides multiple shipping apps. In addition to apps, it also offers various extensions and integrations to enhance your shipping services. Primarily designed to improve the post-purchase experience of customers, Shopify shipping apps come filled to the brim with various features, such as the automation of vital shipping processes, logistics, order management, tracking shipments and much more. The best shipping software for Shopify will provide a similar experience to the interface of existing online stores to provide a unified feel across platforms. 10 Things to Consider to Help You Choose the Best Shipping Software for Shopify in 2023 User Interface The user interface of your Shopify shipping app should be intuitive and easy to use. An overtly complicated interface can lead to doubts and cause confusion amongst your staff, which will, in turn, lead to delays and disruptions further down the line. Choose an option that has all its functions laid out in a simple and well-designed way. Customer Support A major deterrent for partnering with any shipping solution that does not provide customer support is that customers could be left a long time waiting for an answer to their queries and you may not be able to get in touch with the company directly whenever an unforeseen event arises. Thus, it would be advisable to partner with one of the many Shopify shipping apps that provide comprehensive customer support. Feature Usability The main selling point of Shopify shipping apps is that they seek to streamline your shipping processes so that they will be more efficient and easy to operate. However, if you mistakenly choose to partner with an app that proves to be difficult to operate, requires a steep learning curve and needs someone with coding skills to set it right, you may be in for a world of pain. There are many options that have simple UIs that can seamlessly synchronise your existing data, so partnering with them would be worthwhile. Business Requirements Different sellers have different requirements. The type of Shopify shipping apps you choose to partner with should be closely related to factors such as the industry your business operates in, the type of products you sell, the price bracket they fall into and so on. Additionally, companies at different stages of their growth cycle need to prioritize different things when it comes to shipping so it is important to conduct some internal research to determine what would be ideal. Prior Feedback Scrolling through past reviews on their app page or other online forums can be a good indicator of the reputation that a Shopify shipping app has built with its previous and current customer base. Additionally, it would also highlight the frequency at which they respond to online feedback and whether they provide a prompt and suitable resolution to any negative inputs. Available Integrations All Shopify can definitely integrate with Shopify. The doubt in question is about whether they can integrate as seamlessly with other selling platforms and shipping carriers. If your shipping app fails to be able to integrate with the existing channels you use, it could cause massive disruptions and complications. Choose one that has a variety of integrations so you won’t need to worry about juggling multiple platforms. Future Scalability eCommerce as an industry is subject to constant change. If a new technology gets introduced that revolutionises the way orders are stored or delivered, you need to have a shipping partner that has the ability and available resources to take advantage of it. Additionally, as your company starts to grow and order volumes increase, it would be suitable to have a Shopify shipping provider that can adapt accordingly. Pricing Plans There would be no point in choosing a shipping solution that has all the features you need but charges an arm and a leg for the privilege. Some Shopify shipping apps are free, while others have free trial periods, payment requirements on a monthly basis or impose charges on each load. Choose one that makes the most sense with your business model and financial capabilities. Onboarding Process The onboarding process varies from app to app. Some apps have a short and simple onboarding process that may take you 15 minutes to complete. Others have a convoluted and cumbersome process that could result in delays and loss of functionality of your shipping processes if you aren’t able to sign up and integrate all of your data properly. Shortlist one of the many Shopify shipping apps that have simple onboarding procedures so you can start utilizing their services immediately. Available Services Every shipping app provides specific services that may be unique to them. Some may choose to focus entirely on enhancing activities directly related to shipping, such as smart courier allocation and price comparison tools, while others may supply more fulfillment-related services, such as order processing and packaging. Browse through the entire catalogue and find a set of Shopify shipping apps that closely relate to what you looking for from your shipping provider. Top 10 Shopify Shipping Apps for eCommerce Sellers in 2023 Easyship Source Payment Requirement: It is free to install. About: EasyShip is an eCommerce shipping company that was founded in 2014 in Hong Kong, It has a shipping extension for Shopify that serves as a flexible shipping option. Shipping, last-mile delivery, customer service and order fulfillment are all aided. You can have access to more than 250 international courier services using Easyship's Shopify app. By using the many shipping options offered, you can gain advantages like reduced prices. You can handle orders by integrating with your current courier partners from a single digital location. Using the offered dashboard, you can give clients simple order-tracking assistance. The items that clients have in their shopping carts are used to calculate rates. These expenses go above and beyond delivery fees. Some features that make Easyship one of the best Shopify shipping apps are listed below: It helps you connect with 250-plus shipping carriers.It can get you discounts of up to 70% for one account.It assists you in utilising your tariffs and connects your account to your courier.It enables you to view the required taxes, tariffs and courier fees upfront for any delivery, regardless of where you are delivering.It gives you accurate estimates because it is based on what customers currently have in their carts. Shippo Source Payment Requirement: It is free to install. About: Shippo is an international shipping company that was founded in 2013 in San Francisco, California, USA. It maintains an official presence on the Shopify app store. You can install and set up this app to start offering shipping and fulfillment services. It enables users to synchronise orders with Shopify and other shipping partners through an automated process. The same method enables you to handle orders quickly by printing shipping labels in bulk with pre-filled information. Businesses can choose from more than 85 international shipping companies that have partnered with Shippo. eCommerce stores can take advantage of a variety of advantages using the Shippo Shopify app. These include the option to ship orders in multiple shipments at a discount or to receive cheaper shipping prices. Some features that make Shippo one of the best Shopify shipping apps are listed below: It helps you receive immediate savings on UPS, DHL Express and USPS.It provides a tool to compare costs with up to 50+ carriers simultaneously.It assists with faster printing by ensuring that box information is pre-filled and stored.It can print batch labels to make product dispatch simpler.It has no hidden or recurring fees and you can upgrade to a preferred payment option that can be customised. ShippingEasy Source Payment Requirement: It is free to install. About: ShippingEasy is a shipping company that was founded in 2011 in Austin, Texas, USA. It is one of Shopify's best shipping automation apps. It enables eCommerce businesses to sync their orders between different platforms and carriers. Through the use of targeted emails, ShippingEasy assists with marketing in addition to managing shipping processes. It also enables automated order processing. This makes it easier to print shipping labels by eliminating the requirement for human entry. To speed up shipping procedures, shipping labels can also be printed in bulk. Regular order progress updates are also sent to Shopify and all of your other selling channels. Some features that make ShippingEasy one of the best Shopify shipping apps are listed below: It provides automated shipping that will save time, energy and human error. It helps with integrating your Shopify store with all other channels you sell on.It sends automated emails so you can increase brand recognition while recouping lost sales from abandoned cart emails.It has drastic price discounts for UPS and USPS. It allows you to compare options for carriers and providers quickly based on their prices. ShippyPro Source Payment Requirement: The base price is $49 per month. About: ShippyPro is a shipping and order fulfillment company that was founded in 2016 and is currently based in Firenze, Italy. It provides an app for managing shipments and deliveries. The original system works as a proprietary integration that provides a complete feature set. It concentrates on returns management as a Shopify shipping app. It has a provision that enables eCommerce businesses to track their goods. It is simple to send all tracking notifications to clients directly. You can prevent mistakes in shipping information by automating your distribution process with Shippy Pro's Shopify app. Additionally, it compares shipping costs for different shipping partners. Some features that make ShippyPro one of the best Shopify shipping apps are listed below: It has partnerships with more than 159 shipping carriers.It provides comprehensive returns management.It offers integrations with multiple shipping carriers, online selling platforms and external apps.It has an in-house label creation service.It provides a multi-carrier shopping API to help with the automation of logistics processes. ShipStation Source Payment Requirement: The base price is $9 per month. About: Shipstation is a shipping and logistics company that was founded in 2011 and is currently based in Austin, Texas, USA. The app is available for purchase on the Shopify app store. eCommerce companies can automate and integrate multiple tasks using this app. However, It is crucial to remember that this Shopify shipping app has a 10,000 consignment limit. With the help of sophisticated shipping rules, online retailers can automate various logistics processes. This reduces the amount of manual labour required for procedures like label creation and shipment processing. The simplicity and quickness with which it generates and prints shipping labels stand out as noteworthy features. Through a variety of shipping carriers, this app offers various shipping options for your store. You can also view current shipping carrier rates using ShipStation. Some features that make ShipStation one of the best Shopify shipping apps are listed below: It offers significantly reduced rates from USPS, UPS discounts of up to 55% off and FedEx delivery options.It enables you to save money by providing a price comparison tool.It helps you gain efficiency by collecting orders from your sales channels and streamlining order administration with a set of straightforward yet effective rules.It can connect to Shopify and more than 150 other applications.It helps you create a large number of shipping labels at once for UPS, FedEx, USPS, Canada Post and more. parcelLab Source Payment Requirement: The base price is $51 per month. About: For eCommerce businesses, parcelLab is a shipping solution whose app can be privately linked with Shopify stores and other eCommerce marketplaces. More than 150 eCommerce shipping firms are linked with it. The company was founded in 2015 and is currently headquartered in Boston, Massachusetts, USA. parcelLab employs an Operations Experience platform to assist in emailing consumers about order tracking updates. A customised "Order Status" page allows customers to interact with your company further. Customers can also view tracking updates on a variety of platforms. parcelLab is renowned for fostering brand loyalty through individualised interactions and brand-specific adaptations. Some features that make parcelLab one of the best Shopify shipping apps are listed below: It services more than 550 distinct clients across the globe.It provides customers with a centralised hub from where they can access all their important information across platforms.It provides insights into various business processes to allow for tracking and analysing.It has a large list of high-profile clients, including Bose and H&M.It allows for the automation of custom delivery notifications. ShipperHQ Source Payment Requirement: The base price is $71 per month. About: ShipperHQ is a shipping management company that was founded in 2013 and is currently based in Austin, Texas, USA. Its Shopify shipping app enables eCommerce businesses to make wise financial decisions and cut costs. It serves as a mechanism for managing shipping rates. With the help of this Shopify app, online retailers can design rules that alter shipping costs and delivery options. Additionally, conditions for dimensional weight calculation, box packing and package selection can be made. This shipping tool is especially useful during particular times of year and occasions when there are a lot of online orders. It is practical to employ throughout the holidays and in situations involving certain customers. Some features that make ShipperHQ one of the best Shopify shipping apps are listed below: It provides various delivery options, including scheduled delivery and alternate pickup.It can integrate with other online storefronts, such as BigCommerce, Salesforce, Magento and more.It has a custom API that can synchronise with your existing website and tools in addition to creating custom integrations.It offers a packaging configurator to determine the most efficient packaging solutions.It provides a price shipping calculator to compare the prices from multiple carriers. Shipway Source Payment Requirement: It is free to install. About: With its current headquarters in Gurgaon, Shipway is a young eCommerce company that specialises in shipping aggregation. It can be considered one of the best shipping apps for Shopify India. It was founded in 2015. It specialises in providing trustworthy and reasonably priced distribution facilities to online retail companies. The company provides its own Shopify shipping app. By assisting in providing your clients with the best possible shopping experience, this shipping solution frees you up to concentrate on your primary business activities, such as marketing and product R&D. Currently, Shipway works with more than 30 shipping carriers. Over 12,000 online vendors are currently served by its all-inclusive shipping automation system for eCommerce fulfillment and logistics. Additionally, it includes incredibly flexible pricing options, ultra-rapid delivery, order tracking capabilities, and the ability to automate numerous supply chain activities. Some features that make Shipway one of the best Shopify shipping apps are listed below: It enables you to automate pushback in Shopify, auto-allocate orders to your carrier, assign shipping labels automatically and much more, with just a few clicks.It lowers RTO frequency by immediately alerting clients of an unfulfilled purchase.It helps you cut your 15-day return cycle to 5 days with an all-encompassing returns management processIt provides automatic pickups with quality checks and instant refunds for COD and prepaid orders.It provides a shipping calculator so you can compare the prices of various shipping operators. AfterShip Source Payment Requirement: It is free to install. About: AfterShip is a distribution and logistics company that was founded in 2012 and is currently headquartered in Hong Kong. It operates a popular Shopify app with many features. This shipping tool, developed by Aftership, keeps track of the orders that your logistics partners have received. It enables you to control shipments and boost client interaction. On the app, tracking updates from your shipping partners are instantly received in your dashboard. Customers are informed of these order tracking alerts as soon as they are updated. On each of your selling sites, a tracking page shows these statuses as well. Some features that make AfterShip one of the best Shopify shipping apps are listed below: It provides multiple value-added features, such as an all-in-one marketing tool.It provides an in-house webpage template builder.It enables the automation of prompting feedback from customers.It provides branded tracking pages for every order that can be customized to your liking.It offers shipping insurance for every order. Vamaship Source Payment Requirement: It is free to install. About: Founded in 2016, Vamaship is a logistics and shipping business currently located in Mumbai, Maharashtra. The company, which is currently active in more than 200 countries, provides its own Shopify shipping app. It provides businesses with the option to automate several of their distribution processes in order to speed up and enhance the rate of order fulfillment, as well as help them ship their goods by air, rail, land and sea at the most affordable prices. Customers can also use it to centrally monitor the effectiveness of their shipping carriers and other related resources. Some features that make Vamaship one of the best Shopify shipping apps are listed below: It offers customized labelling where you can add your company’s name and logo for enhanced brand visibility.It sends NDR updates per case on a daily basis to build your shipment conveyance rate.It offers a large number of shipping partners.It sends personalised SMS alerts for various functions like pickup, dispatch and out-for-delivery.It provides a consolidated system for keeping track of order and inventory information. Conclusion: Amplify Your Shopify Shipping Efficiency With WareIQ Shipping and Fulfillment Shipping is one of the most complicated and risky eCommerce procedures because it involves the transportation of orders through a variety of means, such as air, rail, land and sea, to get them to their customers' destination before the promised date and time. This is the stage at which your business is most susceptible to unforeseen circumstances, such as delays, harsh weather conditions, products being damaged in transit, incorrect location and contact information provided and much more. If any of these factors are allowed to fester and cause a disruption, customers will have a poor perception of your business. Thus, employing the use of Shopify shipping apps to gain insights into your orders, track packages while they are in transit and monitor the performance of your shipping partners is vital in curtailing these factors. If you need additional assistance, beyond the need to increase basic shipping functionality, you can consider partnering with WareIQ. WareIQ is an eCommerce fulfillment company that was started in Bangalore, Karnataka, in 2019. The company has become one of the most rapidly-growing options in the country due to its use of technology to tackle a wide range of eCommerce requirements. In terms of shipping and applications that enhance business functions, the company provides the following services: Partnership With Multiple Shipping Carriers We have partnered with more than 12 of the largest shipping carriers in the nation. Additionally, we have a smart courier allocator that automatically assigns the quickest and most cost-effective option for every order. In the case of a delay with any carrier, the order will simply be assigned to the next best option. Ultra-Fast Shipping We provide ultra-fast same-day and next-day delivery services to almost every corner of the country. We also take care of last-mile delivery to ensure your customers receive their orders on the promised date and time. Branded Order Tracking We provide highly-customisable order tracking pages where you can add whatever information you want your customer to see, such as testimonials from other clients, promotions for upcoming products, social media links, information about the company and much more. App Store We provide an in-house app store with support for both 1st-party and 3rd-party apps that are designed to enhance the capabilities of various business processes. We have an app to add shipping badges to your product listings to indicate delivery speed, generate customer feedback both personally and online, provide branded tracking pages for every order and much more. Returns Management We provide complete returns management, including an RTO Shield that will protect your business and products from the harsh implications of returns and entirely handling your reverse logistics processes. Shopify Shipping Apps: FAQs What and where was Shopify founded?Shopify was founded in 2013 in Ottawa, Canada, with the goal of selling snowboarding equipment. What are the main services provided by Shopify?Shopify provides many different services. Some of the key ones are listed below:- Creating and personalizing a digital store- Managing inventory- Providing multiple payment processing options- Providing business infrastructure to physical stores- Shipping and distribution facilities What functionality do Shopify shipping apps provide?Shopify shipping apps help in the following ways:- It is free to use- It provides a choice from more than 350 shipping carriers- It integrates seamlessly with other Shopify services- It provides order tracking facilities- It supplies price configuration tools Can Shopify shipping apps help get you discounted shipping rates?Most Shopify apps do provide services to help you get discounted rates and cut down on costs wherever possible. Does WareIQ provide other eCommerce services in addition to shipping aggregation and an in-house app store?Yes, WareIQ provides multiple other eCommerce services which makes it the best shipping app for Shopify India. Some of them are listed below:- Order fulfillment- A custom WMS- Multiple online integrations, including with Shopify- Customizable packaging- A pan-India storage network
November 26, 2022
What is Return To Origin and Non-Delivery Report in eCommerce? Top Reasons For NDR in eCommerce and How To Reduce RTO With NDR Follow-Ups in 2023
The eCommerce sector has experienced tremendous growth recently, particularly in D2C businesses, because they have fundamentally altered the interaction between consumers and brands. The secure and prompt delivery of the merchandise inventory is the key priority of an eCommerce vendor. Unfortunately, however, delivery delays happen frequently. Occurrences include stopped shipments, delayed deliveries, incomplete addresses, customers unable to pay the COD amount, inaccurate addresses, or even customers who refuse to accept the delivery for their particular reason. Customers' worries may grow as a result. In e-commerce, return shipments can account for up to 20% of all shipments, according to a recent KPMG study. For orders that are paid in cash on delivery (COD), this cost increases to 40%. Even the most successful companies encounter many delivery exceptions each month. These delivery outliers may appear insignificant, but they can quickly snowball into missed deliveries and subsequent losses. There is a considerable likelihood that a delivery error will become a Non-Delivery Report in eCommerce and then an RTO. As a result, your company is left to suffer the weight of a loss that was mostly preventable. You might wonder how it might be avoided. Through management and strategic planning, as with everything in business. In more detail, let's examine the cause-and-effect cycle that delivery exceptions cause and its many attributes. What Do The Terms Return to Origin (RTO) and (NDR) Non-Delivery Report in eCommerce Shipping Mean? NDR, which stands for Non-Delivery Report in eCommerce, is a well-known acronym for B2B and D2C brands. An eCommerce business receives a notification from a courier service partner alerting them that a specific delivery has failed and providing information about the failed delivery. An order is only considered finished when it has been given to the customer after it has reached the last step of the delivery. To ensure successful delivery, the courier makes several efforts to deliver the package. First, orders are given the RTO status, which stands for Return to Origin, if they are canceled or after numerous unsuccessful delivery efforts. The order must now be returned to the original warehouse it was first sent from because, as the term implies, the purchase has effectively been reversed. It can then be reloaded in your inventory and sold once more there. In this last mile of delivery, many potential problems could arise and lead to failure. Incomplete deliveries result in a Return To Origin (RTO). In addition, customers may have a negative impression of your brand, significantly degrading their delivery experience. Because of this, firms should give Non-Delivery Reports in eCommerce much thought when planning their shipping operations. Read Here: How to Address Last-Mile Delivery The WareIQ Way. [contactus_uth] Top 8 Reasons For NDR in eCommerce Which Can Lead to RTO (Return To Origin) in eCommerce in 2023 The RTO and NDR can harm any organization's long-term growth and profitability. You now have a general understanding of how NDR and RTO operate in the eCommerce business. But to truly comprehend how each of them functions, we must understand the causes of the Non-Delivery Report in eCommerce, which might result in RTO of order. These are the principal causes of NDRs: Incomplete Or Incorrect Addresses A buyer can make a mistake when providing the delivery address. For example, a consumer may accidentally or unintentionally enter the wrong delivery address. This could make it difficult for the delivery employee to locate the customer's location, making it harder for them to finish the delivery. Incomplete Or Incorrect Customer Contact Another issue comparable to the above could arise if a customer unintentionally enters the incorrect phone number. Therefore, the delivery employee would only be able to reach the customer if and when they needed directions to the delivery location. As a result, the order would be designated as NDR. Unavailable or Unreachable customers Once the customer has received their order, it is only considered fulfilled. The order can only be fulfilled if the delivery person has any issues locating the delivery location or if the customer is there to accept the delivery when the delivery agent arrives at the customer's location. The order then needs to be fulfilled. To confirm the delivery location, the delivery person will attempt to phone the customer. However, the delivery agent would only be able to finish the delivery if the customer's contact number was reached. Rescheduled Delivery By The Consumer Customers can select a different day and time for delivery if they are present or need help to make payment at a specific time or on the day delivery is supposed to take place. This information should be given to the delivery agent at the delivery time, who would then update it as the basis of the Non-Delivery Report in eCommerce. Customer Refuses Delivery Suppose a customer is dissatisfied with the delivery process or the state of the product upon delivery. In that case, they may exercise their right to reject or refuse an order after making a purchase. This could be more pleasant for eCommerce companies, yet it frequently happens, especially with COD orders. Customers are more inclined to cancel a purchase when payment has not been made. Consumer Unable To Make The Payment With COD purchases, it's common for the customer to require additional time to prepare the delivery payment. As a result, deliveries are commonly late because delivery staff constantly interact with clients to secure the necessary payment. Also, the customer can either cancel their purchase or set an alternative delivery time. This is only possible who opt for cash-on-delivery courier services. Customer's Changing Opinion Customers can change their minds about their purchases, which is only one of the numerous benefits of digital purchasing. They can even do this after the package is delivered, which can frequently happen because customers often need to remember about their purchases until they arrive or receive a call from the delivery person. They could then proceed to cancel the order after declining the delivery in the first place. Falsified Delivery Attempt By The Carrier Agent Fake deliveries are one of the most troublesome Non-Delivery Report in eCommerce that brands come across. In this case, the order is still marked as a failed delivery even though the delivery employee did not attempt to deliver it to the customer's address. They may negatively affect the customer experience if not resolved swiftly and effectively. Suggested Read: Learn in detail about eCommerce Delivery Partners How to Reduce RTO with NDR follow-Ups to Decrease RTOs (%) in eCommerce in 2023? You already understand how damaging NDR and RTO can be to your company's brand and customer experience. Non-Delivery Reports in eCommerce must be handled carefully, with reasons previously indicated, if RTOs are to be avoided. A structured methodology and significant thought must go into handling NDRs. With the help of this procedure, you can handle NDRs autonomously, turning them into successful deliveries rather than RTOs. Implementing a basic system for NDR management follow-ups is required to manage the Non-Delivery Report in eCommerce industry. Determine Various NDR Causes There are many potential causes for an NDR (the most probable of which we've listed above). You may find out the best line of action by looking at these reasons for NDR in eCommerce. You can use it to determine which Non-Delivery Report in eCommerce have a high likelihood of succeeding and which have a high probability of repeatedly failing. Using this, you can handle NDRs accordingly. Encourage Consumer Participation Nothing irritates clients more than keeping their orders secret or needing to learn about order delivery. In addition, they want to ensure that their money has been well spent. You should contact clients based on the reason for a Non-Delivery Report in eCommerce to validate the cause and, more crucially, to gather information for a successful delivery. As a result, customers not only get to supply the necessary information directly, but they also get to feel involved in the delivery process, which can improve the experience. Monitor False Deliveries Delivery personnel who falsely mark an order as an NDR instead of attempting to deliver it are committing a sort of Non-Delivery Report in eCommerce, known as fake deliveries. These have a terrible impact on customer satisfaction and profitability because they increase the likelihood of RTOs. Due to no fault of their own, customers are left waiting for an order that never arrives and dealing with several delivery attempts. Making sure this number is maintained at a minimum can be accomplished by tracking phone deliveries among various carriers. Interact With Carriers A collaborative effort is necessary to ensure that the delivery of the Non-Delivery Report in eCommerce is successful. You must first receive notification of the NDRs from the carriers. Then, you must give the carrier the appropriate information after receiving it from the consumer for delivery. Any indirect communication with carriers or ineffective communication methods could also fail in the subsequent delivery attempt. How Can Technological Innovations Like NDR Management Software Solutions Contribute To Reducing RTOs? The four measures mentioned above are critically necessary for the fundamental management of NDRs to lower RTO%. However, you must use more sophisticated and technologically enabled resources if you want to reduce your RTO% as well as your NDR statistics significantly. You need specific features in NDR management solutions to automate the process of NDR management and quickly complete numerous follow-ups. An NDR management software solution is the first thing you need to have tied to your handy logistics toolbelt. Essentially, this system will assist you in automating and streamlining your NDR management workflow. Rapid NDR Updates Carriers are responsible for providing NDR updates, which they usually do in bulk after each business day. This implies that it takes a day to answer. Using an NDR management system with API connectors will ensure you get NDR updates in real time as they happen, which will speed up your response time. NDR Segregation With AI Support We included the various reasons for NDR in eCommerce previously. The easiest way to recognize and classify Non-Delivery Report in eCommerce to choose the most effective approaches to addressing them is through these causes. You should acquire an AI-enabled mechanism from an NDR management system that is set up to track NDRs according to the cause of the delivery failure. Automate Customer Communications The next step is to discuss these concerns with customers after you have sorted and classified various Non-Delivery Report in eCommerce according to their reasons (incorrect address, client unavailability, etc.). When NDR management software is used, clients are automatically contacted with questions about specific issues. These questions will specifically address the reason for the unsuccessful delivery. For instance, if the address is incorrect and an NDR results, a query will be issued asking for the proper address and the closest recognizable landmark. Optimizing Customer Response Time Automating these issue-specific queries can speed up the rate at which customers receive their inquiries and answers. Intelligent NDR management software will send simplified inquiries that ask for precise information, such as a backup contact number or the closest landmark to the delivery location, with multiple-choice or text-fill options. Real-Time Updating Carriers and Follow-Ups After Each Delivery Attempt You need to provide that information to the carrier as soon as you receive a customer response, and in record speed, no less. Only then can the delivery person attempt their subsequent delivery with knowledge. Your clients' responses can be automatically forwarded to carriers using an NDR management system to finish delivery. You must use equivalent caution in those rare cases where delivery reattempts fail despite following the specified Non-Delivery Report in eCommerce processes. Using an NDR management software entails following up with clients via automated conversations to find out why the delivery attempt failed and how it can go smoothly. Analytics-Based NDR Reduction Data gathering and analytics rely heavily on NDR management software. You can keep track of all your Non-Delivery Report in eCommerce over time to see what difficulties you might have overlooked and what issues the data suggests as remedies. You can detect fake deliveries by keeping track of NDRs and their causes. You can then take note of their most frequent occurrences and patterns. Then, with the help of your carrier and eCommerce NDR management software, you can start making deliberate efforts to reduce RTO with NDR follow-ups. Conclusion One challenge that is somewhat particular to Indian eCommerce operations is a high RTO percentage. As a result, brands must utilize data-driven management techniques to address specific problems. An NDR management system skillfully combines technology and logistics expertise to simplify workflow. This procedure prioritizes Non-Delivery Report in eCommerce based on their tendency to be resolved and targets NDRs according to their cause. Establishing a Non-Delivery Report in eCommerce system is fairly straightforward. Address the issues that have readily available solutions initially. Then, acquire data that will assist you in comprehending the more complicated concerns at the same time. Next, automate all predictable processes, then finish. An NDR management system, at its core, enables your company to communicate with customers more efficiently and enhance their post-purchase experience. How Does WareIQ Help Businesses Through Efficient Management of Non-Delivery Report in eCommerce in 2023? For managing Non-Delivery Reports in eCommerce, WareIQ features a reliable 3-step verification method. Verification of Non-Delivery Report in eCommerce by: IVR and SMS CallingWhatsApp Last-mile team manual verification eCommerce & D2C brands may handle Non-Delivery Report in eCommerce effectively by doing the following with WareIQ's Control Tower feature: Utilize our NDR dashboard to monitor eCommerce KPIs like NDR raised, reattempt requested, cancelled, and delivered, among others.Recognize the top 3 reasons for NDR in eCommerce and act right away.Get details for every order and respond to Non-Delivery Report in eCommerce immediately. [signup] Frequently Asked Questions What does Non-Delivery Report in eCommerce mean?A non-Delivery Report in eCommerce is a statement that includes the orders that were unable to be delivered and the explanation for why. What Does Non-Delivery Report in eCommerce mean?A Non-Delivery Report in eCommerce is created when a company receives a communication from a courier partner alerting them that a specific delivery has failed and providing information about the failed delivery. The carrier then tries to deliver the package to ensure successful delivery. How does Return To Origin and Non-Delivery Report in eCommerce operate?When processing a Non-Delivery Report in eCommerce, you must respond with "Reattempt" or "Return to Origin" and the necessary notes once the NDR has been raised. Return to Origin is the term used. An order is returned to the pickup site once the delivery service marks it as undeliverable after repeated tries. How may an NDR management system be set up in B2C and D2C eCommerce brands?Use the following methods to set up a system for Non-Delivery Report in eCommerce:1. React quickly; any delay in getting in touch with clients after the initial delivery attempt multiplies the likelihood of RTO.2. Utilize many channels to communicate with customers in NDRs, including manual and IVRS calls, emails, SMS, and notifications.3. Encourage call centre staff to turn Non-Delivery Report in eCommerce into successful deliveries.4. Choose better courier partners for upcoming orders using NDR data.5. Encourage customers to switch from cash-on-delivery to prepaid orders before delivery efforts are made.
November 25, 2022
What is a Third-Party Logistics Service Provider? Top 15 3PL Logistics Companies in India and the World in 2023
There’s an old adage that goes, “if you need help, ask”. Everyone needs assistance sometimes, especially in the strenuous and hyper-competitive environment known as the eCommerce industry. While eCommerce has taken the world by storm, a phenomenon especially prevalent in developing countries like India, eCommerce sellers have had to fend off competition from both small, local firms and gigantic MNCs alike. As more people use eCommerce to browse and purchase items they need, more people are also trying to capitalize on setting up new businesses or expanding the online presence of their existing ones. This has given rise to multiple new technologies and innovations that have changed the way we are able to use eCommerce, for the better. For instance, just a few short years ago, no one would complain if they received their orders in a week. However, in the current day and age, people have grown accustomed to getting their orders in a day and even a few hours due to the advent of ultra-fast and hyper-local delivery services. This may seem daunting if you are a budding eCommerce seller but fear not. This is where you can ask for help from 3PL logistics companies that provide dedicated fulfillment services for online sellers. In this blog, we will provide answers to what a 3PL logistics service provider is, why you should partner with one, and the 15 best options currently available in the market. What are 3PL Logistics Companies? 3PL logistics companies are firms that provide a vast swathe of eCommerce services, primarily relating to tasks such as order fulfillment, inventory management, order processing, picking and packing fulfillment service, eCommerce shipping, and last-mile delivery service. They are a good alternative to self-fulfillment or 1st-party fulfillment services, such as Amazon FBA, because they provide increased flexibility, cheaper pricing, and value-added services, such as WMS software, branded tracking page, eCommerce customizable packaging, and more. Keep in mind that the range of services may vary depending on the company but the core focus is centred around successfully delivering orders to customers safely and on time. Once you have partnered with a 3PL logistics service provider, all you need to do is receive and monitor your orders and let them do the rest. These companies provide respite from most eCommerce logistics and eCommerce fulfillment-related tasks, allowing you to focus on the main aspects of your business, such as product development and marketing. [contactus_lilgoodness] Top 5 Reasons to Partner With a 3PL Logistics Service Provider in India Reduces Expenses Since 3PL fulfillment companies take care of almost every logistics and fulfillment requirement you may have and you only pay them a specific, pre-determined amount, the result is that you end up saving a ton of money compared to if you did it yourself. Most 3PL companies have partnerships with many other companies for various tasks, such as shipping and eCommerce warehousing, and can take advantage of bulk discounts that would not be available to a single seller. This enables you to increase your profit margins on every order, saving you a significant amount of money in the long run. Offloads Important Logistics Processes When you partner with a 3PL logistics service provider, you aren’t just saving on money but on time and effort as well. Since most logistics tasks, such as transporting goods to wherever they need to be, storing products in a fulfillment center, selecting the appropriate product, packaging it and getting it ready for dispatch, shipping it to the customer's destination, and more, will be offloaded to your logistics partner, the entire post-sale process becomes more simplified and clear-cut. You only need to focus on promoting and selling as many products as you can while your 3PL provider does the rest. Gives You Access to Advanced Technology and Features Many 3PL logistics companies come readily equipped with the latest technologies and features. Some of them include WMS software, fleets of different delivery vehicles, automated inventory management, order consolidation across platforms and much more. It is important to note that most 3PLs are competing with each other in their own right, so in order to get customers to choose them over their competitors, they have to stock themselves with cutting-edge features for reduced prices. Provides Multiple Marketplace Integrations Investing in and operating a standalone WMS with no assistance can be tedious in addition to being expensive. However, most 3PL companies have their own WMS that can integrate with multiple selling platforms, website builders and shipping companies. This will allow you to store all your vital order and inventory-related data in one dashboard that can be accessed from anywhere. Additionally, you will be able to access historical data to be able to compare metrics from the current sales season to a previous one of your choosing. Amplifies Customer Satisfaction By giving your customers access to the best features and technology, you will ensure that they have a good experience with your company. This will increase positive sentiments about your company, which will become apparent in the customer feedback you receive, both personally and online. Customers appreciate services that help them get what they want with the least possible effort. Therefore, partnering with a 3PL logistics service provider that will ensure each product is packaged and delivered in the best and most seamless way will only increase your chances of receiving repeat purchases from existing customers and first-time purchases from new ones. 15 Best Third-Party Logistics Companies in India and the World in 2023 WareIQ Source WareIQ is an eCommerce fulfillment company that was established in Bangalore, Karnataka in 2019. The company provides a vast amount of logistics and fulfillment services, such as storage facilities, inventory management, product preparation, customizable packaging, shipping, last-mile delivery and much more. It has a custom WMS that can automate various warehouse tasks and can integrate with multiple eCommerce marketplaces like Amazon, Flipkart and more, website builders like Shopify, WooCommerce and more, and shipping companies for eCommerce like FedEx, BlueDart and more. The company also has a partnership with more than 12 of the largest shipping carriers in the industry and has smart courier allocation that assigns the swiftest and most wallet-friendly option for every package. Some features of WareIQ that make it one of the best 3PL logistics companies in 2023 are listed below: It has an India-wide network of fulfillment centers and dark stores that aid with efficient inventory storage and ultra-fast delivery, in addition to smart inventory placement that assigns the best facility for each SKU.It provides ultra-fast delivery through a partnership with the largest shipping companies in the nation and always assigns the quickest and cheapest option.It helps with returns management and offers an RTO Shield to offset the negative symptoms of returns, in addition to taking care of the entire reverse logistics procedure.It takes care of last-mile delivery by ensuring that once orders are transported to the same city as the customer, an on-ground delivery executive picks it up and delivers it to the customers doorstep.It offers customization options for product packaging where every aspect can be tailored according to your liking. FedEx Source FedEx is one of the most recognisable names in the logistics industry. The company was founded in 1971 in Little Rock, Arkansas, USA. To fulfill orders, the business collaborates with online stores that receive a lot of traffic. Although FedEx has a vast transportation network, it also has alliances with several other companies to provide a seamless fulfillment experience. Integrations with online marketplaces like Etsy and Walmart as well as online selling platforms like Shopify, are available through the FedEx API. Some features of FedEx that make it one of the best 3PL logistics companies in 2023 are listed below: It provides a smooth experience by allowing collaboration with external business tools, such as Xero and QuickBooks.It has a specialised eCommerce platform that enables businesses to remotely manage their inventory and orders.It provides unmatched customer service where every query is taken care of instantly.It has an online commerce platform that enables users to follow their orders and receive thorough business reports.It provides crucial 3PL services such as order fulfillment, packaging, warehousing and reverse logistics. Mahindra Logistics Source To expand Mahindra's emphasis on distribution services for customers and stakeholders, the company established a critical 3PL logistics service provider known as Mahindra Logistics, currently headquartered in Mumbai. The company offers its services in a wide range of industries and provides supply chain and transportation facilities. Distribution facilities, notably in rural and far-flung areas, and technology-driven logistics solutions are among its primary services. This distribution and fulfillment company is well-established throughout India, particularly in tier-2 and tier-3 cities and towns. Some features of Mahindra Logistics that make it one of the best 3PL logistics companies in 2023 are listed below: It accepts most significant payment processing options.It claims the biggest warehouse facility in all of India at one of its storage locations.It prioritises sustainability and has begun utilising electric trucks for last-mile delivery.It facilitates upwards of 400 distinct clients that sell a wide range of products.It is a part of a well-known multi-industry organisation. Shipmonk Source Shipmonk is a 3PL logistics service provider that is based in Fort Lauderdale, Florida, USA and was founded in 2014. The company is known for providing customised order fulfillment services. It also closely collaborates with small and midsize businesses, assisting them in easily growing and scaling their operations. Shipmonk facilitates quicker shipping by operating numerous warehouses throughout the US. Additionally, over 75 online marketplaces and stores have integrated Shipmonk. Some features of Shipmonk that make it one of the best 3PL logistics companies in 2023 are listed below: It does not impose any setup or inventory receiving costs.It provides industry-leading security to safeguard user information and privacy.It offers customised packaging services to eCommerce sellers for brand development and better client experiences.It provides a straightforward dashboard with actionable insights so users can access precise order information from their specific accounts.It provides crucial facilities like packaging, warehousing, freight administration and returns management. DHL Source DHL, whose full form stands for Dalsey, Hillblom and Lynn, is a well-known global logistics provider that was founded in 1969 in San Fransisco, California, USA, although its current headquarters are based in Bonn, Germany. The company, a subsidiary of Deutsche Post, boasts a foothold in upwards of 35 nations around the world and offers a wide range of services. DHL provides services to eCommerce enterprises and is integrated with the most well-known online selling and reselling platforms. Some features of DHL that make it one of the best 3PL logistics companies in 2023 are listed below: It also provides tailored logistics services based on the requirements of eCommerce businesses.It supplies value-added services such as product packing, assembly and direct delivery.It has a user-friendly online portal with a multi-user interface for managing orders and inventory.It provides provisions for late cut-offs and quick delivery choices.It provides complete eCommerce logistics solutions, including order fulfillment, shipping and warehousing. KD Logistics Source KD Logistics was set up in 2005 and is currently headquartered in Mumbai, Maharashtra. They prioritize client satisfaction in addition to providing third-party logistics services. The quality of every service is of extreme importance to the company. Every endeavour is seen as a chance and a launchpad for achieving new goals. Due to these tenets, KD Logistics has amassed a following of devoted customers across India. They aim to enable their clients to become leaders in their respective fields and are dedicated to giving them the most value for their money by offering top-notch service. Some features of KD Logistics that make it one of the best 3PL logistics companies in 2023 are listed below: It offers most eCommerce fulfillment services, such as a warehousing network, distribution facilities and more.It services many high-end clients, such as Kohler and P&G, just to name a few.It gives its customers access to a unified WMS and OMS system.It has a vast fleet of various types of delivery vehicles, segmented into different categories according to the nature of its operations.It currently has a distribution network of more than 15,000 pin codes in India. Rakuten Source 3PL firm Rakuten was established in 2001 and currently has its head offices in Tokyo, Japan. The Rakuten Group is among the biggest eCommerce businesses with headquarters in Japan. Operating 13 fulfilment centres across the United States, the company serves practically all zip codes there and is rapidly expanding into other markets as well. Rakuten typically works with clients that have a minimum order threshold of at least 250 orders a month and is the perfect solution for eCommerce firms with large order quantities. Rakuten provides integrations for several online selling channels and storefronts, such as Amazon, Shopify, eBay and others. Some features of Rakuten that make it one of the best 3PL logistics companies in 2023 are listed below: It offers specialised services such as kitting and subscription boxes.It has a nationwide 2-day delivery service in the US.It provides cloud-based order management monitoring software.It enables users to monitor orders through the 3PL company's shipping partners, which include UPS, FedEx and DHL, among others.It provides services such as warehousing, pickup facilities, packaging, delivery and reverse logistics. DCL Source DCL is a 3PL logistics service provider that was established in California in 1982 and is currently headquartered in the San Francisco Bay Area. The company provides pre-fabricated solutions to eCommerce enterprises and its clients include numerous significant Silicon Valley-based organisations. DCL has a number of warehouses spread out over the United States and also provides global logistical activities. To offer quicker and more effective logistics services, DCL has worked with significant shipping companies, including FedEx and UPS. Some features of DCL that make it one of the best 3PL logistics companies in 2023 are listed below: It provides same-day delivery services to a few specific locations.It offers clients tailored logistical solutions and an account manager to help with relationship management.It provides warehouse and inventory management technology to assist eCommerce enterprises with strategically distributing merchandise around the world.It provides real-time business data and analytics to better understand the nuances of your company’s activities.It provides a variety of conventional third-party services, such as order fulfilment, pick-up and shipping. Access Warehousing Source As one of India's top non-asset-based supply chain management organisations, Access Warehousing create and implement market-leading solutions in both freight management and contract logistics. The company was founded in 2013 in Bangalore, Karnataka. The company’s 200-plus member team work in several geographic aggregates in order to provide organisational excellence and workable solutions to the most difficult supply chain problems. With an enhanced focus on broad business sectors and the specific demands of the retail, automotive, oil, healthcare, technology and aerospace sectors, this organisation utilises its renowned experience in the industry to provide best-in-class services over an integrated worldwide network. Some features of Access Warehousing that make it one of the best 3PL logistics companies in 2023 are listed below: It provides many conventional services, such as storage, delivery options and more.It consists of multiple tools for warehouse management, including pallet racking, vertical forklifts and more.It can ship orders through various mediums, such as air, land, rail and sea.It provides guaranteed same-day and next-day delivery services.It offers personalised warehousing solutions. Red Stag Fulfillment Source Red Stag Fulfillment is a 3PL logistics service provider that was established in 2013 and has its main office in Knoxville, Tennessee, USA. The company centres its focus on the fulfillment of bulky items and goods that need to be assembled before shipping. With two warehouse locations in the central region, Red Stag Fulfillment provides various services throughout the entirety of North America. eCommerce storefronts and selling channels, such as Shopify, Amazon, Woocommerce and more, can all be linked with the company’s WMS. Some features of Red Stag Fulfillment that make it one of the best 3PL logistics companies in 2023 are listed below: It offers an order delivery guarantee which gives it customers increased confidence.It offers eCommerce enterprises efficient packaging solutions along with design and development services.It provides a platform for managing inventory and warehouses using cloud-based technology.It additionally provides eCommerce businesses with specialised services, including refurbishment, restocking and repacking.It offers remarkable same-day delivery times, with order cutting taking place as late as 5 PM. ShipBob Source Operating since 2014, after being founded in Chicago, Illinois, ShipBob is a top supplier of eCommerce fulfillment services. The business has operations in more than 220 nations and has a distribution network spanning Europe and North America. The platform makes use of exclusive technology created within the company to offer eCommerce firms simple, effective and time-saving fulfillment solutions. Online storefronts like WooCommerce and Shopify as well as marketplaces like Amazon and eBay, can be integrated with ShipBob’s platform. Some features of ShipBob that make it one of the best 3PL logistics companies in 2023 are listed below: It provides comprehensive reports so that its clients can get a better understanding of their own business’s performance.It enables eCommerce businesses to distribute their goods around several sites.It offers recommendations by forecasting the ideal place for product turnaround using an in-built algorithm.It gives users access to a user-friendly application for managing orders and inventory.It offers 2-day express shipping for orders in a few specific regions.It provides most fulfillment services, such as product storage, packaging and delivery. Stockarea Source Stockarea is a 3PL logistics service provider that was founded in 2019 and is currently based in Chennai, Tamil Nadu. Distributors and manufacturers all over India may create, configure, use, and duplicate inventory bases thanks to Stockarea. Using Stockarea's custom cloud-enabled solution, businesses can set up their remote Inventory base in any warehouse in their network. Sellers can also benefit from all-inclusive 3PL services that cover shipping, warehousing, fulfillment and clearing customs. To ensure that their client's goals are achieved through the distant base, Stockarea assigns a specialised contract manager to every contract. Some features of Stockarea that make it one of the best 3PL logistics companies in 2023 are listed below: It provides multiple configurations for various solutions, such as warehousing, transportation, logistics and more.It provides returns management and complete implementation of the reverse logistics procedure.It offers dedicated customs clearance facilities for international orders.It supplies value-added features, such as cross-docking and pallet-based inventory management.It offers freight-forwarding services through various air carriers. Omni Logistics Source An international 3PL logistics service provider, Omni Logistics, was founded in 2000 and is currently headquartered in Dallas, Texas, USA. It operates in most regions in North and Central America, Asia and Europe. The 3PL business provides clients from all around the world with ground, sea and air services. It also provides various other eCommerce fulfillment services, such as order fulfillment, warehousing and more. Some features of Omni Logistics that make it one of the best 3PL logistics companies in 2023 are listed below: It provides D2C and border-convergent eCommerce facilities.It provides time-sensitive freight on a global scale.It provides bespoke shipping label printing facilities.It provides value-added services such as repacking, kitting, white-glove services, small courier services and customised deliveries.It enables eCommerce companies to use the warehousing, shipping, shipment forwarding and distribution services provided by the company. Whitebox Source Whitebox is a full-service 3PL logistics service provider that was founded in 2013 and is currently headquartered in Baltimore, Maryland, USA. The company deals with small to medium-sized brands that have growing order volumes. This supplier can ship goods anywhere in the world and offers quick delivery options within the US. Whitebox offers integrations with popular marketplaces like Walmart and Target as well as online storefronts like Shopify. Some features of ShipBob that make it one of the best 3PL logistics companies in 2023 are listed below: It has sophisticated eCommerce fulfillment software with integrated tracking, forecasting, bulk ordering, inventory management and reporting features.It offers dropshipping facilities and D2C and B2B solutions for eCommerce enterprises.It provides a first-rate returns handling service that takes care of reverse logistics.It provides value-enhancing services, such as lot tracking, kitting and more.It provides order fulfillment, warehousing, quality assurance, packaging, labelling and shipping services. CityXfer Source CityXfer is a 3PL logistics service provider that specialises in the distribution of volumetric items. The company was founded in 2015 and is currently based in Bangalore, Karnataka. By revolutionising the way goods are carried between customers and businesses, CityXfer is rethinking the world of logistics through the use of innovative and cutting-edge technology. By relieving customers of all distribution problems and providing just-in-time and just-in-place delivery, the company is able to set itself apart from its rivals. This is made possible by their integrated system, which manages a fleet of highly qualified personnel in real-time. Some features of CityXfer that make it one of the best 3PL logistics companies in 2023 are listed below: It provides eCommerce fulfillment services, such as warehousing, inventory management, ultra-fast delivery and much more.It has customizable post-delivery services to enhance customer satisfaction.It utilises its own fleet of delivery vehicles, so it is able to charge much less.It offers a unified dashboard from where you can monitor and analyse vital information.It offers provisions to manage your entire supply chain. Conclusion: Why WareIQ Should be Your First Choice for a 3PL Logistics Service Provider Choosing a 3PL logistics service provider can have a significant impact on the future growth and outcome of your business. It would be prudent to identify your own current and future requirements and conduct some research about which companies fit that bill the best. There are also plenty of options in the market, so you can get one for a competitive price while also sacrificing the least amount of features. If you are just starting your eCommerce journey or are looking to expand your reach and ability to fulfill orders across the country, partnering with a good logistics partner would be extremely beneficial. While there are many good options to choose from, WareIQ sets itself apart by offering a diverse range of features, advanced technology, flexibility and transparent pricing. WareIQ is one of India’s leading 3PL fulfillment and logistics providers that consists of many different types of eCommerce services. Some of our flagship services are listed below: Inventory Control: We have a customised WMS that provides real-time updates and the ability to automate a number of tasksUltra-Fast Fulfillment: We offer solid same-day and next-day delivery options that are quickSKU Storage: we can hold your inventory wherever you need it with our India-wide selection of dark stores and fulfillment centersShipping Badges: We enable you to include shipping badges on your online product listings that offer delivery estimates, similar to PrimeApp Store: We offer a comprehensive, neatly-designed app store with a wide selection of appsBranded Tracking: We provide branded order monitoring so that you can add any information to your parcel tracking pages that you want to draw attention toPartnerships with Shipping Carriers: We work with over 12 different courier services and we automatically choose the best option for each orderOnline Integrations: We are able to link to more than 20 web development and online retailing platforms, including Amazon, WooCommerce, Flipkart and othersBranded Packaging: We offer specialised packaging solutions that can be tailored to your requirementsReturns Management: We take care of returns and protect you from any consequences that may result from them 3PL Logistics Companies: FAQs What services do 3PL logistics companies provide?3PL logistics companies provide a wide range of services. Some of them are listed below:- Order fulfillment- Picking and packing- Shipping- Last-mile delivery- Inventory management What are the factors you should consider when partnering with a 3PL logistics service provider?Some of the factors that you should consider while partnering with a 3PL logistics company include:- Pricing plans- Range of services- Network coverage- Customizability- Past performance What are some drawbacks of partnering with a 3PL logistics company?Parenting with a 3PL logistics company can be highly beneficial to your business but there are some drawbacks. Some of them are listed below:- Increase in scale- Increase in complexity- Reduced influence How can 3PL logistics companies improve customer satisfaction?Most 3PL logistics companies have access to advanced technology and services that they utilise to give your customers an enhanced fulfillment experience. Is WareIQ a 3PL logistics company?Yes. WareIQ primarily describes itself as an eCommerce fulfillment company but it also provides most logistics services that are expected from a 3PL logistics service provider.
November 25, 2022