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Logistics Duties and Responsibilities in E-commerce

The e-commerce boom in India is changing the way we shop, with online retail sales expected to reach $120 billion by 2026, according to 2023 research by the India Brand Equity Foundation (IBEF). Behind every flawless delivery is a well-oiled logistics mechanism that ensures things move from warehouses to doorsteps. For Indian firms, understanding logistical roles and obligations in e-commerce is critical for meeting customer expectations and being competitive. This blog simplifies the major Logistics Duties and Responsibilities in e-commerce logistics, providing valuable insights for entrepreneurs, students, and small business owners around India. Let's look at how logistics drives online commerce with clarity and real-world examples.What is E-commerce Logistics?E-commerce logistics entails planning, managing, and carrying out the transit and storage of items for online firms. It includes everything from product storage in warehouses to delivery to clients. Unlike traditional logistics, e-commerce logistics prioritises speed, accuracy, and customer happiness, as online customers anticipate timely deliveries and real-time updates.E-commerce logistics in India are crucial due to the country's huge territory and diverse customer base. Companies must negotiate densely populated cities like Mumbai, isolated villages in Assam, and everything in between. Logistics personnel manage inventory, process orders, arrange transportation, and handle refunds, ensuring that things arrive on time.Logistics Duties and Responsibilities in E-commerceLogistics in e-commerce is like the foundation of a thriving online store. Each activity is critical to ensuring efficient operations and client satisfaction. The following are the primary duties and responsibilities:Inventory ManagementLogistics staff manage stock levels to ensure that products are available without overstocking. They forecast demand, do frequent audits, and communicate with suppliers. For example, a Delhi-based fashion firm monitors inventory to ensure that popular kurtas do not run out during seasonal sales.Order ProcessingWhen a consumer puts in an order, logistics workers validate it, confirm product availability, and prepare it for shipment. This entails selecting things from the warehouse, carefully packing them, and making shipping labels. Accuracy is essential to avoid sending the incorrect goods to a customer in Bengaluru.Transportation & RoutesLogistics teams plan the most efficient way to carry goods, selecting cost-effective carriers and optimising routes. They monitor shipments and guarantee compliance with regulations. For example, transporting electronics from a Gurugram facility to Chennai necessitates meticulous route planning to meet delivery schedules.Warehouse and StorageWarehouses keep things safe before they are dispatched. Logistics teams manage storage space, keep inventory records, and guarantee that commodities are safe. A Kolkata warehouse may hold spices, garments, and gadgets, each of which needs specific conditions to function properly.Reverse LogisticsReverse logistics is a crucial aspect of e-commerce. Teams evaluate returned items, inspect them for quality, and determine whether they may be replenished or require repairs. A consumer in Jaipur returns a damaged phone and relies on reverse logistics to ensure a smooth refund or replacement.Customer Service SupportConsumer Service Support Logistics personnel frequently answer consumer enquiries concerning order status or delivery delays. They provide real-time tracking information and troubleshoot issues to ensure a great experience. A logistics crew, for example, may assist a customer in Pune in tracking down a delayed item during the rainy season.These responsibilities combine to offer a flawless buying experience, from clicking "buy now" to receiving the product.How a Logistics Company Works in E-commerce?A logistics company serves as a reliable partner for e-commerce businesses, conducting the heavy lifting of supply chain duties. According to Statista, India's logistics market is predicted to increase at a compound annual growth rate of 8.8% between 2024 and 2029, fuelled by e-commerce demand. Here's how a logistics firm works:Receiving and storing goods: Products come in the company's warehouse and are checked, sorted, and stored. For example, a logistics company in Hyderabad could store mobile phones and sarees for an online marketplace.Order Processing: When an order arrives, the logistics team selects the item, securely packs it, and labels it for shipment. They ensure that the right product reaches the buyer.Transportation: The team decides on the best form of transportation (truck, bike, or plane) and plans routes accordingly. They track shipments to prevent delays, particularly for time-sensitive supplies to cities such as Ahmedabad.Delivery: The logistics company manages last-mile delivery to ensure that things arrive at clients' doorsteps. In rural locations such as Rajasthan, this may entail local couriers.Returns Management: If a customer returns an item, the logistics crew will collect it, check it, and process it for restocking or disposal.Technology plays an important part, with technologies such as warehouse management systems and real-time tracking that ensure efficiency. This technique allows e-commerce firms to focus on selling while logistics professionals handle delivery.Why Logistics Duties Matter in E-commerce?Logistics duties have a direct impact on an internet business's success. Here's why they're important for Indian e-commerce.Customer Satisfaction: Prompt and precise deliveries foster confidence. A consumer in Chennai expects to receive their item within days, not weeks.Cost Efficiency: Smart inventory and transportation planning lowers costs, allowing small firms in Surat to compete with larger competitors.Scalability: Efficient logistics enable firms to expand by handling more orders during peak sales periods such as Diwali without confusion.Competitive Advantage: Offering same-day delivery or easy returns, as witnessed in major cities such as Delhi, draws repeat clients.Poor logistics can cause delays, damaged goods, and exorbitant prices, pushing customers away. Strong logistics enable businesses to thrive in India's fast-paced e-commerce industry.Simplify Your E-commerce Logistics Using WareIQ's SolutionsAt WareIQ, we understand the challenges of e-commerce logistics in India. Our Y-Combinator-backed platform simplifies these duties, helping brands deliver faster and smarter. Whether you are a startup in Bengaluru or a growing brand in Mumbai, WareIQ’s tech-driven solutions make logistics hassle-free.Nationwide Fulfilment: Store products in over 12 cities, reaching 27,000+ pin codes with quick delivery.AI-Powered Inventory: Our Inventory LogIQ tool optimises stock levels, ensuring you never miss a sale or overstock.Multi-Channel Management: Manage orders across Amazon, Flipkart, and your Shopify store from one dashboard.Seamless Returns: Handle returns efficiently with automated processes, keeping customers happy.With WareIQ, you can focus on growing your brand while we ensure every order reaches its destination on time.ConclusionLogistics tasks and obligations are at the heart of e-commerce in India, transforming internet purchases into delivered products. These activities, which range from inventory management to delivery coordination, ensure that customers keep returning. For Indian firms, understanding logistics results in lower costs, happier customers, and a stronger market presence. With systems like WareIQ, e-commerce businesses can simplify these tasks and concentrate on what they do best: selling amazing products. Whether you're a small vendor or a large brand, efficient logistics are critical to success in India's thriving online industry.Frequently Asked QuestionsWhat are the responsibilities of the logistics department in e-commerce?To ensure flawless deliveries, the logistics department organises inventory, processes orders, plans transportation, controls warehousing, handles returns, and provides customer service support.How does a logistics company operate in e-commerce?A logistics company stores things, processes orders, arranges transportation, distributes goods, and handles returns while utilising technology for efficiency and tracking.What is the purpose of a logistics company?A logistics company prepares and executes the movement and storage of goods, ensuring that e-commerce businesses receive timely and cost-effective delivery.What are the three main functions of logistics?Inventory management, transportation, and warehousing are the three main operations that ensure products are delivered to customers efficiently.What are the seven functions of logistics?The seven functions are inventory management, order processing, transportation, warehousing, reverse logistics, customer service, and demand forecasting.How do logistics businesses make money?Logistics companies make money by charging fees for warehousing, transportation, order processing, and value-added services such as packaging and returns handling.

June 25, 2025

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Key Functions of Warehousing in Supply Chain

Warehousing is more than just storing goods. It plays a vital role in supply chain management. In a cutthroat market with numerous competitors, effective warehouse management is necessary not only for the smooth flow of goods but also to improve the supply chain by reducing costs and improving customer satisfaction. In this article, we will discuss some of the key functions of warehousing in a supply chain.What Is Warehousing?Warehousing, in simple terms, means storing goods in a specific location. It helps businesses store a large quantity of inventory based on demand. The required quantity of goods is then supplied via the warehouse. So, a warehouse is a central hub where goods are received, stored, and then dispatched according to business requirements. Key Functions of a Warehouse in the Supply ChainThe different functions of warehousing ultimately support businesses and help in the smooth flow of goods, thus ensuring robust supply chain management. The different functions and features of warehousing are explained below:Efficient Storage of GoodsWhether it is raw materials, finished products, or fragile and perishable items, the warehouse is the perfect place for bulk storage. Warehouses are designed to store inventory in a structured and efficient manner. Proper warehouse storage aims to minimise the risk of theft, damage, or even deterioration of certain goods. For instance, if perishable goods are stored in a warehouse, the temperature must be controlled. Likewise, if food items are stored in the warehouse, the warehouse must have the necessary licenses and approvals to ensure food safety. Consolidation and Break-BulkWarehousing is a central point for storing and dispatching goods. It helps consolidate goods from different sources, break them down into smaller quantities, and distribute them to different destinations.Consolidation involves combining goods from multiple suppliers and shipping them in one shipment. Break-bulk involves splitting huge shipments into smaller units that are easy to handle and distribute to multiple supply points.Inventory ManagementInventory management is one of the core functions of warehousing, which efficiently facilitates supply chain management. Warehousing helps track stock levels, manage reorder points, and prevent stockouts or even overstocking of goods.Thanks to automated warehouse management systems, businesses can now access real-time inventory data without physically visiting the warehouse.SecurityThe need for warehousing security is quite essential for supply chain management. A proper warehouse helps prevent material spoilage and unnecessary delays. With a proper security system, the goods in the warehouse are safe from theft.Order FulfilmentInstead of having multiple channels at different locations for picking, packing, and shipping the goods, they can be centralised in a single warehouse. It will help fulfil orders faster and ensure timely delivery to customers, improving customer satisfaction. Warehousing also simplifies inventory distribution and sorting.Reduced RisksSince warehouses have a large capacity for good storage, they help mitigate the risks of price fluctuations in the future. Suppliers can stock up the goods when the cost of the goods goes down.Getting insurance is an integral part of efficient warehousing. Hence, compensation can be received in case of fire, theft, or any other damage, reducing the risk of monetary loss.Value-Added ServicesSimplified warehousing also includes services like labelling, product customisation, and assembly to meet customer and regulatory requirements and facilitate the supply chain process. A warehouse houses multiple activities apart from storage, which significantly enhances the value of the entire supply management process and quality control in the supply chain.Seasonal StorageSince product demand differs from peak to off-peak season, it is essential to have a place to store all the goods according to seasonal demands. Warehouses are apt for storing goods for a long time, thus ensuring their availability whenever required.Stabilisation of PricesWhen demand is low, goods can be stored in warehouses and released when demand is high. It can significantly stabilise the market price by balancing the demand-supply relationship.How Does a Warehouse Function?Different processes take place, from when a shipment is received in a warehouse to when a shipment is dispatched. Below is a step-by-step warehouse activities:The first process is when a shipment of goods arrives at the warehouse. Then, it is checked and verified against purchase orders to ensure that the shipment meets the quality and quantity standards.Next, depending on the space, utilisation, and retrieval of the shipment, goods are systematically arranged. It is one of the core warehouse activities.Optimum storage conditions are maintained to ensure that the goods are in proper condition. The temperature and pressure for fragile or perishable goods are controlled.Next, as the order is placed, specific items are retrieved from storage.The items are then appropriately packed to ensure their safety for transportation. Labelling and documentation are also part of this process.Goods are dispatched and handed over as designated.Also check - Logistics Duties and Responsibilities in E-commerceWhy is Warehousing Important?Below are the main reasons why warehousing is necessary:Warehousing ensures product availability at all times.Warehouses streamline logistics operations, thereby reducing transit time.Bulk storage can minimise transportation costs.As warehousing ensures faster delivery, it helps to fulfil orders faster.The fast delivery and all-time availability of goods result in enhanced customer satisfaction.Optimise Inventory Management with Warehousing and Fulfilment Solutions from WareIQ.WareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade)Our solution offers:Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareI and shipping partners for last-mile delivery across 27000+ pin codesMulti-Channel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performanceInventory LogIQ: AI-led multi-channel inventory planning solution to minimize stockouts and automate replenishmentLeverage a tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claim rejections.A host of seller enablement and support—dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc.Learn Why Traditional eCommerce Warehousing Fails in Quick CommerceConclusionWarehousing is one of the most critical processes in supply chain management. Its several functions, such as storing goods, consolidating, breaking up, order fulfilment, risk mitigation, price stabilisation, etc., lead to smooth inventory management and efficient logistics. With the availability of new technologies, warehousing processes are becoming more efficient and environmentally friendly. By knowing the key functions and importance of warehousing, businesses can optimise their supply chain management for substantial growth.FAQs about Functions of Warehousing in Supply ChainWhat are the different types of warehouses?There are different types of warehouses, such as Public Warehouse, Private Warehouse, Bonded Warehouse, Automated Warehouse, and Climate-controlled Warehouse.How does warehousing help in saving costs?Warehousing involves storing goods in bulk, which substantially minimises transportation costs and helps prevent losses during stockouts.What are some of the emerging trends in warehousing?Some of the latest trends making warehousing more efficient are the adoption of robotics, green housing, micro fulfilment centres, and AI-driven inventory management.What are the challenges faced in warehousing?Some of the common challenges that businesses face in the warehouse are space constraints, inventory inaccuracy, and higher operational costs.What is the primary function of a warehouse?The primary function of a warehouse is to store the goods, maintaining their safety and availability for an efficient delivery.

June 24, 2025

B2B Returns Management: Solving the Reconciliation Problem in PO-Led Supply Chains

Why B2B Returns Are a Blind Spot in Modern Supply ChainsFor consumer brands that rely heavily on purchase orders (POs) from Marketplaces, Quick-Commerce platforms, and offline retail, returns, or Return to Vendor (RTV) have become one of the most operationally broken parts of the supply chain.These brands are typically built for dispatch efficiency, with a central approach to shipping bulk POs from mother warehouses or CFAs. But when returns start to flow from platforms like Amazon FBA, Flipkart Smart Fulfillment, or Nykaa, the system often breaks down. In this guide, we explore how to streamline B2B Returns Management and solve reconciliation challenges in PO-led supply chains.The Core Problem: PO-Led Supply Chains Struggle with ReturnsThe ecosystem involved in B2B returns is fragmented:The platform marks an RTV and generates documentationA first-mile transporter handles the pickup, often without supervisionThe receiving warehouse team is expected to perform quality checks and reconcile line items with no visibility into original shipment or product conditionThis disconnect results in:Mismatched SKUs or quantitiesDisputes between platform, brand, and CFAMissing documentation and timestampsManual data entry and multiple rounds of reconciliationThis is not just a tech problem. It’s a deeply operational issue because forward logistics is planned, trackable, and system-driven. Returns, on the other hand, are unstructured and reactive.The Reality of B2B Returns in Large Supply ChainsAt scale, consumer brands may operate across 10–20 distribution centers, servicing a mix of modern trade, eCommerce Marketplaces, and Quick-Commerce platforms. However, many operate with fewer nodes but still face similar return-related inefficiencies when the operations are heavily B2B or PO-driven.For such brands, the returns process involves:Reverse movement of cartons or entire SKUs, not individual customer parcelsPickup from distributor or platform locations, not customers’ homesAggregated returns from multiple stock points (especially regional warehouses or CFAs)Lack of consumer-facing tracking, which means visibility must be built at the transporter and warehouse levelWho Faces This Problem Most Acutely?1. Cosmetics and Personal CareHigh SKU count, leakage/damage risk, and frequent bulk returns2. Gifting and Combo PacksSeasonal kits, bundled SKUs, and high volume post-campaign RTVs3. FMCG and Non-Perishable ProductsReturns due to excess inventory or near-expiry stock, often aggregated at CFA level4. Enterprise Retail DistributionReturns from large retailers, often involving multiple CFAs and transportersThese brands don’t need return labels—they need process reliability, QC enforcement, and reconciliation tools.The Solution: A Returns Management Hub for B2B RTVsThe answer lies in building a complete Returns Management Hub tailored for B2B operations. It combines technology, trained personnel, and standard operating procedures to bring structure and accountability to reverse logistics.At WareIQ, we’ve developed a modular returns solution to address the operational and visibility gaps:Core Components of the HubReturns QC App: Captures unboxing videos, AWB details, item-level data, and grade product conditionReturns Bay Operations: Staffed bays at FCs or regional hubs where trained operators execute QC and data recordingIntegrated Camera Setup: CCTV systems with timestamp tagging for proof at the time of handoverCentral Dashboard: Real-time sync of QC outcomes, image/video evidence, discrepancy alerts, and platform-wise sortingCFA Reconciliation Toolkit: Downloadable reports, auto-generated proof bundles, and claim-ready documentationMiddleware Integration: API bridges with ERPs, CFA software, and transporter logs to auto-update status and trigger alertsThis system doesn’t just document returns—it transforms RTVs into a closed-loop process, giving brands control over every returned unit.Related - Returns and Exchanges: Best Practices in E-CommerceWhy This MattersWith omnichannel complexity rising, brands can no longer afford to treat returns as an afterthought. For categories like makeup, personal care, gifting, and long-tail FMCG—especially those that don’t process D2C orders, particularly in B2B returns without structure quickly spiral into inventory reconciliation nightmares.A QC-first model not only enables better control but also unlocks scalable, asset-light returns processing across the supply chain network. It turns what was once a cost center into a managed workflow with measurable ROI.Returns management shouldn’t be a black box. It should be as transparent and tech-enabled as forward logistics.Interested in automating your B2B returns?Download our B2B Returns Management SOP to see the process we recommend for large-scale PO-led operations.Get in touch to see how WareIQ’s Returns Management Hub can streamline your RTV operations from start to finish.

June 23, 2025

Top 10 Best eCommerce Fulfillment Companies in India to Grow Your Online Business in 2025

E-Commerce fulfillment is an important business component to ensure that orders are delivered to customers on time. Receiving inbound wholesale shipments, sorting stock, and shelving inventory for efficient picking and packaging before it gets to the customer's doorstep is all part of order fulfillment.For businesses looking to scale, choosing the right partner for ecommerce fulfillment India can make a significant difference in delivery speed and customer satisfaction. Companies like WareIQ specialize in ecommerce fulfillment India, offering end-to-end solutions to manage inventory, packing, and shipping efficiently.Order fulfillment setbacks for startups and SMEs can harm their business and operational efficiency. As the company grows and attracts customers worldwide, creating an order fulfillment system has gotten more difficult. Customer satisfaction and income can suffer if the order fulfillment procedure is inefficient. As a result, the company's reputation is also affected. Read along to understand how eCommerce fulfillment companies and dropshipping fulfillment companies can help eCommerce & D2C brands to grow their business and list of best fulfillment companies for eCommerce.Top eCommerce Fulfillment Companies (Updated for 2025)1. WareIQ Fulfillment CompanySourceWareIQ, one of the top ecommerce fulfillment companies in India is a category-defining, best- in class full-stack eCommerce fulfillment tech platform (with inbuilt inventory planning, order management & shipping system) for modern brands to accelerate online sales/ expedite revenue growth & profits with same/next-day delivery. WareIQ is one of the best order fulfillment providers.A few of the important features of WareIQ are as follows:Pan-India Fulfillment & Darkstore NetworkPlug & play with no minimumCompliant with Amazon Seller Flex, Myntra, Flipkart Assured & other marketplacesRegional Sourcing hubs to cut first mile costsIn-house managed warehouses – no outsourcingInventory & Network Planning ExcellenceBest-in-class AI models for sales forecasting & auto-replenishment triggersProduct segmentation according to product type (Regular, Non-Regular, Seasonal, etc.) to improve sell-through focusVertically Integrated Fulfillment Tech StackIntegrated with 20+ top marketplaces (national and international marketplaces) & D2C platformsIntegration with National, Regional and Hyperlocal couriers, covering 27k+ pin codesOne unified tech stack for OMS & WMSSupply Chain Productivity ApplicationsRTO Shield – 100% RTO protectionBranded Tracking – Create the BEST post-purchase experienceEngage – Alert customers on shipment status through Whatsapp, SMS, and EmailCustomer Feedback – Gather feedback, improve customer experience & trustWareIQ RushOffer same-day delivery at no MOQ or distance-based billingJump in revenue conversion up to 30%Near-zero RTO%NDR & COD Verification via WhatsappReduced Cost per Shipment (CPS)Explore - WareIQ's eCommerce Fulfillment Solution India2.DHL Fulfillment CompanyDHL Supply Chain, a division of Deutsche Post DHL, introduced the India fulfillment network (IFN) to enable businesses to power their e-commerce business models by providing access to omnichannel distribution capabilities across major markets, according to a press statement. Through additional ready-to-use hubs, their fully integrated end-to-end fulfillment solution on a 'pay per usage' basis helps firms de-risk. Some of the features of DHL IFN fulfillment company for eCommerce are:One-view tech ecommerce fulfillment platform for processing orders, inventory management, order fulfillment & delivery to the end consumersNext-day delivery in over 80 citiesRange of B2B & B2C warehousing servicesSeamless logistics managementInventory optimisation, smoothing, and synchronisationIn-plant logistics; just-in-time inventory and Kanban replenishment of raw materials/components to manufacturingVendor-managed inventoryInbound handling, consolidation, and global distribution to outstations3. ShipBob Fulfillment CompanyShipBob has no order minimums and aside from Amazon, has the largest network of domestic and international fulfillment centers on our list, allowing it to provide high-level distribution capabilities. ShipBob provides several eCommerce-related services. Businesses can obtain quick access to a variety of web integrations, eCommerce inventory features, and advanced filter capabilities. ShipBob, which has been in business since 2014, delivers great customer service and assigns each online business its dedicated account manager.Some features ShipBob has areAffordable pricingB2B fulfillment with EDI complianceItemized billing format for transparencyFDA-certified climate control and handlingFBA prep services4. DeliverrDeliverr is an excellent option for startups, especially if the majority of their customers are located in the United States. Deliverr, like Amazon Prime, offers 2-day shipping across several shopping channels. What sets them apart is their transparent pricing. Sellers may find out exactly how much their estimated spend will be by inputting product information into the cost calculator on their website. Deliverr has some drawbacks, such as the lack of return processing and subscription box kitting. Some of the features include:All-in-one fees include receiving and fulfillmentReal-time inventory and order trackingFree trials for limited SKUsFast-shipping tagsSmart algorithm to allocate inventory across Deliverr's fulfillment warehouse network intelligently5. ShipMonk Fulfillment CompanyShipMonk's platform is tailored to match the business' scalability needed to accommodate growth. But they do not provide batch fulfillment services and require a minimum of $250 in pick and pack fees. ShipMonk has been around since 2014. ShipMonk specialises in B2C eCommerce, subscription boxes, and crowdfunding projects and offers a wide range of fulfillment services. They also provide access to a vast list of integrations from which to choose while assessing the best possibilities for your business. ShipMonk is recognised for its subscription fulfillment services, but that's only a small part of what they do for customers, and its services may be customised to meet their specific needs. Key features include:Amazon seller-fulfilled prime eligibilityOnline billing portalWarehouse automationRobust customisation & branding optionsTax benefits and cost reductions for volume importersNo setup or inventory receiving feesDiscounted shipping ratesClaims managementInternational order processingPhotos of packed orders before they’re shipped6. FBA (Fulfilled by Amazon) - Amazon Fulfillment CompaniesBecause of its automatic Prime designation, FBA gives sellers better access to Amazon's over 150 million Prime subscribers. FBA is a good option for Amazon retailers since it handles all customer inquiries, administers returns and refunds, and automates order fulfillment, saving time.However, FBA's pricing and procedures are more complicated than those of many other fulfillment warehouses, particularly when selling large or heavy items, so do your study to avoid paying excessive fees. Its key features are:No order minimumsHandling all customer inquiries, refunds, and returnsFBA can fulfill non-Amazon ordersUses inventory pooling that groups identical products from different sellers7. Falcon FulfillmentFalcon is one of the leading eCommerce fulfillment & warehouse service providers specialising in health and wellness and cosmetics fulfillment and was founded in 2015. Falcon Fulfillment provides straightforward pricing and a simple platform to scale as your company grows. The company presently only covers the United States. Due to the 4,000 minimum monthly order requirement and the lack of overseas Warehouses, Falcon is a good choice for established eCommerce vendors who have their customer base in the US. Another disadvantage is that some integrations necessitate the use of ShipStation.Some of their features include:Live order editingCustom packaging optionsEco-friendly packaging optionsKittingReturns management8. Rakuten Super Logistics CompanyRakuten Super Logistics provides packaging and shipping services and is one of the best eCommerce fulfillment services suited for enterprises. They also assist eCommerce sellers with marketing. As a company that serves enterprises, Rakuten offers personalized pricing quotes and tailors services to meet the needs of the enterprises. Rakuten does not have global fulfillment centers, specialised packaging, or DHL integration, despite being a favoured fulfillment provider for enterprises. Key features of Rakuten include:Tailored services for enterprisesIntegrated marketing services at additional costs1-2 day ground shipping in the United StatesSpecialty fulfillment centersKitting and subscription box services9. FedEx Fulfillment CompanyFor international delivery and order management, FedEx Fulfillment is the best option. FedEx Fulfillment Services are modular and adaptable, allowing businesses to develop and customise options to meet their specific requirements. In the extremely competitive aftermarket and critical inventory business, FedEx Fulfillment Services offers a strategic advantage. The FedEx Global Distribution Centre (GDC) provides hub-based warehousing for both forward and reverse logistics, with the capacity, environment, and experience to store, organize, and ship orders when it's needed. FedEx, on the other hand, does not offer product-based batch fulfillment, and while there are no setup fees, it does levy account fees when orders fall short of the minimum requirement. Features of FedEx fulfillment are:Global footprintRange of eCommerce integrationsEasy-to-use platformExtensive delivery networkFast shipping and returns management10. Red Stag fulfillment CompanyRed Stag can handle a wide range of product orders, but it specialises in packing and shipping larger, heavier items. They have remarkable scalability, allowing them to fulfill the needs of both small and large businesses. Red Stag Fulfillment's extended services provide various elements that eCommerce business owners may make use of to assist them to get products to their intended destinations quickly and efficiently. Red Stag excels at handling complicated shipping requirements and heavy cargo. Key features includeVideo monitoringExcellent customer supportA pallet delivery systemSame-day shipping and order completion guaranteefulfillment warehouse networkExcellent scalabilityBest eCommerce Fulfillment Companies - Quick Comparison Company Name Key Features Specialization Locations Served WareIQ Pan-India Fulfillment & Darkstore Network, Same/Next-day delivery, AI models for sales forecasting Full-stack eCommerce fulfillment Pan-India DHL Fulfillment Next-day delivery, Inventory optimization, B2B & B2C warehousing services Omnichannel distribution 80+ cities in India ShipBob Affordable pricing, B2B fulfillment, FBA prep services Domestic & International fulfillment Global (Domestic & International) Deliverr Transparent pricing, 2-day shipping, Smart inventory allocation Fast shipping, Transparent pricing U.S. focus, global reach for eCommerce ShipMonk Amazon seller-fulfilled prime eligibility, Robust customizations, Discounted shipping rates B2C eCommerce, Subscription box fulfillment Global FBA (Fulfilled by Amazon) Prime eligibility, Handles all customer inquiries, Refunds and returns management Amazon-specific eCommerce fulfillment Global (Amazon marketplace) Falcon Fulfillment Live order editing, Eco-friendly packaging, Kitting Health & wellness, Cosmetics fulfillment U.S. only Rakuten Super Logistics Tailored services, 1-2 day shipping, Kitting and subscription box services Enterprise-focused fulfillment U.S. only FedEx Fulfillment Global distribution, Extensive delivery network, Fast shipping International delivery & order management Global Red Stag Fulfillment Video monitoring, Same-day shipping, Scalability for heavy cargo Large & heavy item fulfillment Global (U.S. primarily)What Do eCommerce Fulfillment Companies Do?E-commerce fulfillment companies specialise in order processing and delivery. This procedure includes receiving and storing goods, processing orders, picking and packing, inserting packing slips, and eCommerce shipping. These companies use software that connects to the seller's website. Companies providing eCommerce fulfillment services inspect the products, pack them, and ship them to the consumer once an order is placed. They also help retailers with inventory management and tracking. Orders are also stored at eCommerce fulfillment facilities.eCommerce fulfillment services can be performed by third-party order fulfillment companies that will manage all of the eCommerce operations when an order is placed, allowing businesses to focus on marketing and product development. Order fulfillment helps startups/small businesses, and SMEs alleviate the burden of having a physical location or a dedicated storage facility to fulfill orders.[contactus_uth]Self-Shipping vs eCommerce Fulfillment - What is Right For You?[table id=10 /]What are the Benefits of Using Fulfillment Companies?Key benefits of using Best eCommerce fulfillment companies for the order fulfillment process includeRemote inventory management: With the service provider's warehouses, businesses will not require dedicated physical storage spaces. For a flawless order fulfillment experience for the customer, fulfillment companies for eCommerce can be accessed on-demand or long-term at any preferred location.A shorter distance between source and delivery location: By shortening the distance between the product's source and the customer's location, eCommerce fulfillment centers can ensure speedier order fulfillment. Optimised storage: Businesses can easily store stock goods in areas with the largest volume of orders using eCommerce warehouse fulfillment technologies provided by the service partner. (Note that different types of eCommerce warehouses are used for different functions)Improving customer satisfaction: Positive feedback from customers about a speedy and flawless delivery process. Utilizing comprehensive order processing services can help businesses improve brand loyalty and promote repeat purchases by providing a pleasant client experience.Must-Have Features of eCommerce Fulfillment CompaniesWhen businesses partner with 3PL fulfillment companies for eCommerce order fulfillment, the following features should be provided with the help of an app integration for better order management:Warehousing: The fulfillment center should store and manage inventory and process them based on customer orders.Order Picking: When a customer places an order, the fulfillment center should promptly pick up the required order items from the warehouse to process them for delivery.Order Packaging: Once the required items are picked up from the warehouse, the fulfillment center should work on packing them appropriately to ensure that they arrive undamaged at the customer's location. If the customer has placed multiple orders, they should also work on clubbing all the SKUs to have a combined package created with a single shipping label to deliver it easily.Shipping: Once the order is packed and ready to go, they should have it shipped from the best fulfillment center to the customer's location to ensure a quick delivery. Fulfillment companies for eCommerce should share real-time tracking details with the seller and the customer for order visibility.Returns management: In case an order is undelivered or is returned by the customer, the same should be processed by the eCommerce fulfillment center and accordingly added back into the business's inventory (if the products are undamaged and unused).eCommerce platform and multi-channel integration: Integration with all eCommerce platforms is critical for eCommerce fulfillment software. This ensures that no orders are overlooked, which leads to decreased customer satisfaction.Access to a customer portal: The software of fulfillment companies needs to provide a good platform for customers. Customers that order frequently may choose to use a customer portal to alter invoicing and delivery options, track order fulfillment status, and examine prior orders. This feature also helps detect anomalies, identify frequent returners, and other factors that can be looked into to improve logistics and customer satisfaction.Technology-driven 3PLs simplify businesses to integrate their online store with their system. This creates a two-way information flow, allowing business owners to monitor inventory levels in real time. They also have access to dependable, accurate, and transparent data.Costs and Challenges of Partnering with Best Fulfillment CompanyHaving an eCommerce fulfillment partner for order fulfillment does not require any upfront capital. While the costs of fulfillment services can vary based on the provider being chosen, most of their revenue comes from long-term storage costs. However, other associated costs includeSetup feesWeight ChargesPackaging feesProcessing and Returns costsAccount ManagementCustomer Support costsAdditional one-time costs for other things may also be a part of the fulfillment center fees. Examples are order cancellations, SKU labeling, barcoding, payment card processing, marketing inserts, product assembly, etc.A few challenges that businesses can experience when partnering with an eCommerce fulfillment center areLimited inventory of what the business ownsStock replenishments to the fulfillment centerThe upfront investment for services like warehousing and distributionBad service from the 3PL partner affects the business reputation5 Questions to Ask While Choosing New 3PL Fulfillment Provider in 2025You have to consider a bunch of factors while choosing a fulfillment provider. Here are some important questions to ponder before you make your decision:Does the eCommerce fulfillment company have a PAN-India presence?It is your key takeaway in partnering with a 3PL and cannot be compromised. For instance, WareIQ has a network that can cover 90% of cities in India with over a million population for next-day delivery. That’s the kind of presence you should look for.How easy is it to scale?Traditional 3PLs that have vertical integrations face certain limits in this aspect. A decentralized inventory network that WareIQ has, allows us to scale to new demand centers quickly.Does the fulfillment provider have minimum requirements or rigid contract sizes, terms, etc?You will find that most providers would have certain criteria which may not be favorable for all parties and at all times. A good provider must be flexible with client requirements. For example, WareIQ provides the option of micro-fulfillment where you can start with something as small as a single rack.Does the provider give technology-powered value-added services?In today’s data-driven world, analytics on inventory placement and supply chain can be extremely helpful in staying efficient and cost-effective in all our operations. WareIQ is able to provide the same with its in-house software platform.How easy is it to integrate your business into the supply chain of your 3PL partner?When you are shifting to your new partner, you might not want to wait for too long before the end-to-end flow is set up. A traditional 3PL firm might take from 3 to 6 months for the same. WareIQ is able to onboard new partners within a week!Why WareIQ should be your Preferred Fulfillment Company in India for eCommerce Business?WareIQ, is a leading provider of full-stack eCommerce fulfillment services in India for some of the most reputed brands in India. WareIQ, a fulfillment company for eCommerce 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.The immediate and most important benefit you can get when you choose WareIQ as your preferred order fulfillment company is the ability to safely deliver your products across the country (including tier 2 and 3 cities) faster than ever before. It will give you the wings needed to provide an Amazon-level service. Beyond this, there are other interesting benefits of working with top order fulfillment companies.Once you hand over the management of eCommerce logistics to the right 3PL provider like WareIQ, you will be able to make time to focus on other important aspects of your business like brand marketing, launching new products, etc. The job of getting them to your customers is out of your concerns with a trusted partner.WareIQ platform is powered by cutting-edge technology that makes it super easy to track and monitor your orders in real-time.Features like smart inventory placement offered by WareIQ can further help your business drive sales on time at high-demand locations.Key Offerings:Pan-India Fulfillment Network: Over 12 WareIQ-operated fulfillment centers, compliant with Seller Flex & FAssured, providing last-mile delivery across 27,000+ pin codes.Multi-Channel Fulfillment Platform: Seamless plug-and-play integrations with major marketplaces (Amazon, Flipkart, Myntra, Nykaa), D2C platforms (Shopify, Magento, WooCommerce), WMS, and ERPs. Supports fulfillment across distributors, flagship stores, and eCommerce channels, along with advanced analytics.Inventory LogIQ: AI-powered inventory planning to reduce stockouts and automate replenishment across multiple sales channels.Tech-Enabled Returns Management: Quality control solution featuring HD media capture of damaged or missing products to prevent marketplace claim rejections.Seller Enablement & Support: Dedicated account managers, APOB/PPOB registrations, GST registration assistance, COD & NDR verification, and comprehensive seller support.[signup]eCommerce Fulfillment Companies FAQs (Frequently Asked Questions)What is an eCommerce fulfillment company?The component of your eCommerce company that involves operations after receiving an order till the delivery of that order to the end customer is known as eCommerce fulfilment. These include picking, packing, shipping, and delivery of product to the customer’s door.What are the different types of Order fulfillment?Order fulfilment is divided into four categories: in-house, outsourced, dropshipping, and hybrid.Why should you outsource fulfillment to 3PL Fulfillment Companies?· Ready Infrastructure that can handle the ups and downs of your ecommerce operation· Processing orders efficiently· Focus on your core expertise to build your ecommerce business.· Reduce costs of ecommerce delivery· Get actionable information and best technologies· Expand your geographic footprint with warehouses across India· Leverage existing integrations to your advantageWhat is the Fulfillment cost?Fulfillment costs in warehousing are the total of all charges incurred throughout the process of moving merchandise from receiving to distribution.Fulfillment costs can include:i) Warehousing and storage costs: These are the expenses associated with storing and managing inventory, including rent, utilities, and staffing.ii) Picking and packing costs: These are the expenses associated with preparing orders for shipping, including labor, materials, and equipment.iii) Shipping and handling costs: These are the expenses associated with actually delivering orders to customers, including the cost of shipping labels, packaging materials, and carrier fees.iv) Return handling costs: These are the expenses associated with processing and handling returns, including labor, materials, and any restocking fees.Fulfillment costs are a key factor to consider when running an e-commerce business, as they can have a significant impact on your bottom line. It is important to carefully manage and track these costs to ensure that they are as low as possible while still providing a high level of service to your customers.How do we calculate fulfillment costs?Fulfillment cost per order = Total warehouse cost per order – total warehouse costs divided by annual orders shipped.Are there any affordable eCommerce warehousing options for small businesses?Yes, there are affordable e-commerce warehousing options for small businesses. Here are a few options to consider:i) Self-storage units: Renting a self-storage unit can be a cost-effective way to store inventory if you don’t need a large warehouse space. This can be especially useful if you don’t have a lot of inventory or if you only need storage on a temporary basis.ii) Shared warehousing: Some companies offer shared warehousing space, where businesses can rent space on a per-pallet basis. This can be a cost-effective option if you don’t need a lot of space or if you only need storage on a short-term basis.iii) Third-party logistics (3PL) providers: Third-party logistics providers offer warehousing and fulfillment services at a lower cost than some larger fulfillment centers. They may be a good option for small businesses that need a more comprehensive solution.iv) Online marketplaces: Some online marketplaces, such as Amazon and eBay, offer fulfillment services for a fee. This can be a convenient option for small businesses that sell products through these platforms.By carefully considering your storage needs and shopping around for the best options, you may be able to find affordable e-commerce warehousing solutions for your small business.What are the best eCommerce warehousing companies?There are many e-commerce warehousing companies in India that offer a range of services. Here are a few companies that are known for their quality and reliability:i) WareIQii) Ecom Expressiii) Delhiveryiv) E-Courierv) GoJavasvi) XpressBeesvii) Aaj enterprisesIt is important to research and compare different companies to find the one that best meets the needs of your business. Factors to consider include the services offered, pricing, location, and reputation.What is the future of eCommerce fulfillment?The future of eCommerce fulfillment is poised for innovation and efficiency. With advancements in automation, AI, and robotics, we anticipate faster order processing and delivery. Sustainable practices, personalized experiences, and strategic collaborations with logistics partners will be key trends. Expect a future where eCommerce fulfillment seamlessly integrates technology, sustainability, and customer-centric solutions for a more streamlined and responsive experience.What are the three types of fulfillment centers?The three main types of fulfillment centers are eCommerce fulfillment centers, retail distribution centers, and third-party logistics (3PL) providers. Each serves different business needs based on order volume, delivery speed, and distribution channels.I sell products through multiple channels, including an e-commerce website. Can you recommend a fulfillment company?Yes! WareIQ is a reliable fulfillment company that supports multi-channel sellers. They handle storage, packing, and shipping for e-commerce businesses, helping you streamline order fulfillment and reach customers faster.

June 21, 2025

Amazon Prime Day 2025: Inventory Planning Tips to Avoid Stockouts

Behold! One of the most awaited times of the year is just around the corner. Yes, we are referring to the Amazon Prime Day sale 2025, scheduled to take place from July 8th to July 11th this year. To date, this is the longest Prime Day, spanning four days. According to Adobe Analytics, in 2024, Prime Day generated over $14.2 billion in global sales, representing a $3 billion increase from the previous year. This staggering number indicates a surge in demand due to Amazon Prime Days offers, and this could also deplete your inventory in just a few hours during the sale. A stockout in such circumstances can have adverse effects, as it will result in lost sales, a drop in your ranking, and a decline in long-term customer trust. It is, therefore, necessary to have proper inventory management and planning strategies in place to keep your virtual shelves stocked and the revenue flowing. Let us look at different strategies with which you can prevent stockouts on this prime day!What is Amazon Prime Day Sale 2025?Amazon Prime Day Sale 2025 is one of the biggest annual sales events on Amazon, specifically designed for Prime members. The first Amazon Prime Day took place in 2015, marking Amazon's 20th anniversary. People with Prime membership get good deals on Amazon Prime Day on a wide variety of products. For sellers, the Amazon Prime Day sale is a great opportunity, as the sales are quite high. It is more than a sales event; it is the time when a brand can gain thousands of customers that will come back to them again. Moreover, it is also a good time to move overstocked products. Additionally, there are various tools that will help you gather data on various aspects, such as customer behaviour and product performance, and sometimes even understand your competitors' marketing strategies.Important Dates for Prime Day 2025Knowing the Prime Day 2025 dates is important for sellers. For starters, this year, the Amazon Prime Day sale is for 4 days: from July 8th to July 11th. It is an opportunity for the seller to have a strong brand presence, increase visibility, drive more sales, and attract thousands of shoppers. For customers, the Amazon Prime Day sale starts on July 8th and ends on July 11th, but for sellers, it's not just four days; preparation and strategic planning must begin months in advance. Let us look at some dates that are critical for sellers to make the most of Amazon Prime Day 2025:DateDeadline / EventDescriptionMarch 18Deal Scheduling OpensBrands can begin scheduling Prime-Exclusive Best Deals and Lightning Deals.May 5First Day to Submit Prime-Exclusive Price DiscountsSellers may start submitting Prime-exclusive price discounts; submissions close 12 hours before Prime Day end time.May 23Final Deadline to Schedule Lightning & Best DealsLast day to set up Lightning Deals and Prime-Exclusive Best Deals before Prime Day.June 6Deal Scheduling ClosureAmazon cuts off scheduling for all deal types (Best & Lightning) for Prime DayJune 9Minimal Shipment Splits Inventory ArrivalInventory shipped via minimal splits must arrive at fulfilment centres.June 18Amazon-Optimized Shipment Splits Inventory ArrivalLast date for inventory using Amazon-optimised splits to be checked into Amazon FCs.Why Does Stockout Prevention Matter?Amazon Prime Day 2025 is not just an average sales event; it is a high-stakes and high-velocity marketplace where stockouts can significantly impact both your sales and brand reputation. Here are some reasons why stockout prevention is critical for sellers for the upcoming Amazon Prime Day 2025:Each minute that your product is out of stock is a lost opportunity to attract potential customers. Considering that independent sellers sold more than 200 million items during Amazon Prime Day sale offers in 2025, if your inventory runs out mid-event, you may forfeit your chance to tap into this huge demand.Stockouts can hurt your Buy Box eligibility and organic ranking. Also, the ASIN drops in search results. Additionally, recovery after an event can be slow and expensive due to the loss of momentum.Whether you are running a social media ad or Amazon PPC, stockouts will result in a waste of your marketing funds. It will eventually impact your ROI.Stockouts also hamper customer trust and brand loyalty. It can lead to negative reviews, cart abandonment, and also long-term loyalty loss. If a seller uses Fulfilled by Merchant (FBM), stockouts and delivery failures can lead to several account performance issues. In some cases, it can also lead to account suspension.Avoid Stockouts: Amazon Prime Day Sale Inventory StrategiesAvoiding stockouts is quite essential for the upcoming Amazon Prime Day 2025. It is achievable via strategic forecasting, apt operational control, and, more importantly, proactive logistics. Here are the Amazon Prime Day sale inventory strategies which will greatly assist sellers and ensure that they are stocked up throughout the event:1. Demand ForecastingForecasting demand is an imminent step in preparing for the Amazon Prime Day Sale. You can analyse past Prime Day sales along with the seasonal trends and real-time consumer behaviour data to get an idea about future demand and decide on products accordingly.2. Place Purchase OrdersIt is essential to avoid missing shipping windows, especially for imported goods; hence, do not delay ordering from suppliers. You can place a purchase order about 8 to 10 weeks before the Amazon Prime Day sale 2025, considering the lead times for production, customs clearance, inspection, and final-mile delivery.3. Work According to Amazon's Shipping DeadlinesAmazon has deadlines in place for inventory to arrive at fulfilment centres. Ensure that you do not miss this window. Missing the window can result in the inventory not being available for the event. Hence, it is better to ship in advance and monitor the FC check-in progress using Amazon's shipping tracking tools.4. Real-time Inventory Level MonitoringIt is ideal to have a tracking dashboard to monitor the stock levels throughout the event. Moreover, you can also set alerts for SKUs that are fast-moving so that in case there is a chance of stock out, you can replenish it quickly.You can use Amazon's restock inventory tool, as well as inventory health reports.For products that are low in stock, you can pause ads to avoid over-selling and losing the Buy Box.5. Fulfilment Channels Diversification.Although FBA is efficient, it can be risky to rely completely on it, especially during high-traffic events. You can also have fulfilment done by the merchant (FBM) as a backup option. It will help you to continue selling even if the FBA inventory is low.6. Relocation of Ads and Promotion.Depending upon these stock levels, you can reassign your advertisement budget to well-stocked ASINs. You can monitor PPC performance along with inventory.You can temporarily pause Lightning Deals for low inventory ASINs. 7. Dry Run Before Prime DayYou can opt to run a simulated inventory surge scenario around two weeks before Amazon Prime Day. It will help you identify gaps in supplier responsiveness, fulfilment readiness, and ad-spend optimisation.8. Have a Backup PlanDisruptions can occur at any time, even if you have strategically planned everything. Hence, it is essential to have a backup plan in place in case you are running low on a high-demand product. Have an emergency contact list for suppliers.FBM listings ready to activateBudget reassignmentPre-approved ad pauseActivities that Seller Must PerformSince Amazon Prime Day is quite close, it is essential to have a plan of action ready based on past results, demand forecasts, and other relevant aspects. Here is an example of how the seller can plan their days leading up to Prime Day. Date RangeTask/ActivityDetailsMay 15–20Forecast DemandAnalyze 2024 Prime Day data, identify hero ASINsMay 20–31Order InventoryPlace PO with buffer stock (50–100% over average demand)June 1–10Create Campaign AssetsBanners, ad copy, A+ Content, Lightning Deal bannersJune 5–15Submit Lightning Deals / CouponsFinal deadline: ~3–4 weeks before Prime DayJune 10–28Ship to FBAEnsure inventory arrives by Amazon's cut-off (~June 18)June 25Audit FBA Stock + Activate AdsCheck inventory status, set campaign budgets and bidsJuly 1–5Teaser Campaigns / Email ListsSend countdown emails and warm up retargeting audiencesJuly 7Final Testing / Backup SystemsCheck pricing, ad placement, FBM backups readyJuly 8–11Prime Day Campaign LiveMonitor stock levels, adjust PPC, shift traffic based on availabilityJuly 12–15Post-Event Restock OrdersRestock hot ASINs ASAP for Q3 & Early Access Prime Day (if applicable)July 15–20Performance AuditAnalyze results, returns, stockouts, ad spend, and prepare insights docBe Prime Day Ready With Alternate FBA Solutions By WareIQWareIQ has helped eCommerce brands across categories overcome these challenges using its on-demand full-stack fulfilment solution that includes:Flexible capacity fulfilment centres across 12+ cities across India – ramp up or down storage space as per order surges during the festive sales season; store inventory closest to customers to increase regional utilisation.Get Seller Flex, FAssured, and other marketplace benefits with us, as our warehouses are 100% compliant with marketplace seller programs & SLAsMinimise inventory holding costs by fulfilling orders for all channels - your website & multiple marketplaces - from one common inventory poolGet access to a central tech platform that can integrate with all your sales channels, ERP, WMS, etc., to manage all your orders, inventory, and shipments.ConclusionAmazon Prime Day Sale 2025 is a brand-defining moment for sellers. This can shape your performance for the rest of the year. Considering the competitive and dynamic marketplace, it is essential to maintain stock availability during the event. Avoiding stockouts is not just about keeping your digital shelves full; it is more about retaining buy-box dominance, maximising customer satisfaction, and building momentum that will carry through Q3 and also have a great sale the next holiday season. You need to be proactive for Prime Day. It will be immensely helpful to forecast with precision, optimise logistics timelines, stay alert for stockouts, and have backup plans ready. Strategic planning will yield positive results, and sellers cannot just ride the wave but lead it.FAQsIs overstocking a good strategy to avoid stockouts?Not necessarily. Overstocking can lead to long-term FBA storage issues and also reduce IPI scores. Accurate forecasting can help with a well-calculated buffer that can be used instead of overstocking.How much extra inventory should be carried for Prime Day 2025?As a general rule, it is best to carry 52% to 100% more inventory for top-performing ASINs.Should I run the lightning deals on products with low stock?No, it is not ideal to run a lighting deal on a low-stock ASIN, as it increases the risk of disappointing customers. It will not only damage your seller metrics but also lead to you losing the Buy Box.Is Amazon Prime Day only for Prime members?Yes, the Amazon Prime Day sale is exclusively for Amazon Prime members.

June 20, 2025

Letter of Undertaking in Shipping: What It Is and When to Use It?

Imagine being an exporter, ready to send your products to global markets, only to find yourself tangled in tax payments and blocked funds. The good news? There’s a simple solution, one that saves you time, money, and a lot of headaches: the Letter of Undertaking (LUT).This legal document is a lifeline that enables companies to export products and services without having to pay the Integrated GST (IGST) upfront. It is more than just a compliance form. LUTs increase cash flow, streamline operations, and maintain a company's competitiveness in global markets by doing away with the requirement for tax refunds.This blog covers all the essentials you need to know about LUTs – from what they are and how they’re used to their benefits and the step-by-step filing process. You’ll also learn how to steer clear of common mistakes and find expert guidance to ensure hassle-free export operations. Whether you’re new to exporting or a seasoned professional, this guide will help you unlock the advantages of GST-free exports with ease.What Is a Letter of Undertaking (LUT)?A Letter of Undertaking is a formal declaration by a business or individual to fulfil certain obligations or adhere to legal requirements under GST law. Think of it as a legally binding promise sealed with accountability.Under the Central Goods and Services Tax (CGST) Act, 2017, LUTs allow businesses to export goods or services without paying IGST upfront. Instead of blocking working capital in tax payments, exporters can use that liquidity to grow their operations.Why Is a Letter of Undertaking Important?For Indian exporters, a Letter of Undertaking (LUT) becomes crucial because it automates processes and saves expenses. Here's why it's so important:Export Without Upfront IGST: An LUT allows businesses to ship goods or provide services to international markets or Special Economic Zones (SEZs) without having to pay IGST upfront, reducing immediate financial strain.Improved Capital Circulation: Businesses can guarantee smoother cash flow and maintain unrestricted, well-funded operations by removing funds between tax payments and return expectations.Reduced Compliance: By filing a LUT, the export procedure has been greatly simplified and less time, energy, and paperwork are required for tax administration.Expanded Global Competence: By avoiding delays and tax-related challenges, exporters can provide their goods at lower rates to overseas customers and make their products more popular in global markets. Letter of Undertaking: Meaning and Legal FrameworkThe meaning of the letter of undertaking lies in its legal assurance. It’s a pledge made by exporters to the GST department, stating they will comply with all GST regulations while exporting goods without making upfront IGST payments. Essentially, it’s a trust-building mechanism between the government and businesses.Is a Letter of Undertaking Legally Binding?Yes! While an LUT isn’t a traditional contract, it is legally enforceable under GST law. Failing to meet the terms of an LUT—such as fulfilling export obligations or submitting required documents—can result in penalties or revocation of LUT privileges.When to Use a Letter of UndertakingThe shipping and logistics industry relies heavily on LUTs for seamless global trade. Here are some scenarios where an LUT is indispensable:Export of Goods or Services Without IGST Payment:Businesses shipping products outside India or to SEZs require an LUT to avoid upfront tax payments.Zero-Rated Supplies Under GST:A LUT allows exporters to make zero-rated supplies, meaning goods or services are taxed at 0%.E-Commerce Exports:Small businesses and e-commerce exporters benefit significantly from LUTs, as they reduce tax compliance burdens and free up working capital.Freight Forwarding and Logistics Companies:LUTs streamline operations for logistics firms involved in international shipping, reducing operational costs.Benefits of Filing a Letter of Undertaking in GSTIf you’re still wondering whether filing an LUT is worth the effort, here’s why it’s a no-brainer:No IGST Payments:Filing an LUT eliminates the need for upfront IGST payments, freeing up funds for other business operations.Enhanced Cash Flow:Exporters don’t need to wait for GST refunds, ensuring better liquidity and smoother operations.Simplified Processes:The LUT filing process under GST is straightforward, reducing administrative burdens.Competitive Advantage:Avoiding tax-related delays helps exporters maintain competitive pricing in global markets.Operational Focus:Exporters can spend less time on tax refunds and more on scaling their business.Related - How to export from IndiaHow to File a Letter of Undertaking in GST: Step-by-Step GuideFiling an LUT might sound intimidating, but it’s actually a simple and straightforward process:Log in to the GST Portal:Visit the GST portal and log in with your credentials.Navigate to User Services:Go to the “Services” tab, select “User Services,” and click on “Furnish Letter of Undertaking (LUT).”Select Financial Year:Choose the financial year for which you’re filing the LUT.Upload Previous LUTs (If Applicable):If you’ve filed an LUT in prior years, upload the previous certificate as part of the application process.Fill in the Form:Enter the required details, including GSTIN, business name, and the names and addresses of two witnesses.Preview and Verify:Review the application form to ensure accuracy.Sign and Submit:Use a Digital Signature Certificate (DSC) for private companies or an Electronic Verification Code (EVC) for proprietorships.Download Acknowledgment:Once submitted, download the acknowledgement form for your records.Documents Required for Filing a Letter of UndertakingTo file an LUT, the following documents are typically required:GST registration certificatePAN card of the businessIEC (Import Export Code) certificateThe Aadhaar card of the authorised signatoryCancelled cheque of the exporter’s accountPrevious LUT certificate (if applicable)Power of attorney or authorisation letter for the signatoryDifference Between a Letter of Credit and a Letter of UndertakingPeople often confuse an LUT with a Letter of Credit (LC). Here’s a quick comparison:AspectLetter of Undertaking (LUT)Letter of Credit (LC)PurposeAvoid IGST payment for exportsGuarantee payment to sellersIssued ByExporterBankLegally BindingYesYesUse CaseGST compliance for exportsTrade transactions between buyer/sellerCommon Mistakes to Avoid When Filing a LUTEven a small oversight can lead to complications. Here are some mistakes to steer clear of:Submitting Incorrect Information: Double-check details like GSTIN, names, and witness information.Missed Deadlines: LUTs are valid for one financial year. Make sure to file a fresh LUT on time.Failure to Comply: Not fulfilling the obligations under an LUT can lead to revocation of privileges.Pro Tips for Smooth FilingAlways maintain a digital copy of LUT acknowledgement forms for audits and future reference.Update the authorised signatories annually to avoid delays in approvals.Work with GST experts for error-free applications and compliance.Optimise Your E-Commerce Exports with WareIQ’s Tech-Driven Fulfillment SolutionsAs an exporter or e-commerce seller, managing logistics, inventory, and compliance alongside navigating GST regulations like filing a Letter of Undertaking (LUT) can feel overwhelming. That’s where WareIQ, a Y-Combinator-backed e-commerce fulfilment platform, steps in to streamline your operations and help you focus on scaling your business.WareIQ offers a tech-enabled, full-stack fulfilment solution tailored to meet the unique needs of e-commerce brands. Whether you sell through D2C platforms like Shopify and WooCommerce or on marketplaces like Amazon, Flipkart, or Myntra, WareIQ’s multi-channel fulfilment platform seamlessly integrates with your storefronts, ERP, or WMS systems, enabling centralised management of orders and inventory.Key features include:Pan-India Fulfillment Network: Operate through WareIQ’s fulfilment centres in 12+ cities, providing Seller Flex and FAssured compliance for faster delivery across 27,000+ pin codes.AI-Driven Inventory Management: Use WareIQ’s Inventory LogIQ to minimise stockouts, automate replenishment, and optimise inventory placement closest to your customers.Tech-Enabled Returns Management: Handle returns seamlessly with HD media evidence of returned goods, ensuring marketplace claims are not rejected.Seller Enablement Services: Get support for GST registrations, catalogue listings, APOB/PPOB registrations, and more, enabling effortless compliance and hassle-free operations.With WareIQ, you don’t just ensure smooth logistics—you gain the competitive advantage of faster deliveries, optimised inventory management, and compliance support so you can scale your export business and stay ahead in the global market. For exporters leveraging LUTs to save on IGST, WareIQ ensures the backend logistics match your financial efficiency.Also check - What Is a Letter of Credit? A Key in International PaymentsConclusionThe Letter of Undertaking (LUT) is a game-changer for exporters, enabling seamless global trade without the financial burden of upfront IGST payments. By streamlining tax compliance and freeing up cash flow, LUTs empower businesses to focus on growth, competitiveness, and operational efficiency. Whether you're an experienced exporter or just starting, understanding and utilising LUTs is crucial to maximising your potential in the global market. Combined with smart logistics solutions like WareIQ, exporters can ensure smooth operations, faster deliveries, and compliance, setting the stage for long-term success in international trade.Suggested - Bill of Entry Status: How to Check and What It Means in Customs?FAQs About Letter of UndertakingWhat is the validity of an LUT?An LUT is valid for one financial year. A fresh LUT must be filed every year.Can LUT filing be done offline?No, the process is entirely online through the GST portal.What happens if I fail to comply with an LUT?Non-compliance can lead to penalties and revocation of privileges for tax-free exports.

June 19, 2025

Net Weight vs Gross Weight: Key Differences Explained

Net weight and gross weight sound similar and are often confusing. These two terms are used widely in weight measurement and significantly impact various processes such as shipping, logistics, and pricing. However, the meaning and application of these terms are very different. Understanding the difference is essential, especially when it comes to shipping. In this article, we will explore net weight vs gross weight and how they can be calculated. What Is Net Weight and Gross Weight?What Is Net Weight?Net weight refers to the weight of the product itself, excluding any packaging. The weight of containers or boxes that the product comes in is not considered while calculating net weight. It represents the quantity that a consumer can use. Some examples to understand net weight are as follows:A bag of potatoes weighing 4 kg net weight means that the potatoes weigh 5 kg. The weight of the bag is not counted.A 1-litre bottle of milk represents that it contains 1 litre of milk. The bottle's weight is not counted.What Is Gross Weight?Gross weight means the total weight, including the packaging or any other additional content with the packaging, like a straw or spoon. It is the combined weight that is shipped or sold. Some examples of gross weight are explained below:A box of oranges weighing 5 kg gross weight represents the complete weight, including the weight of the box and other packing material.A bottle of orange juice weighing 1-litre gross weight means the complete weight, including the bottle and the straw that comes with it.What Is the Difference Between Net and Gross Weight?The main difference between gross and net weight is that the calculation of net weight excludes packaging, while the calculation of gross weight includes packaging. Net weight is essential for consumer goods, while gross weight is essential in shipping and logistics.AspectNet WeightGross WeightDefinitionWeight of the product alone, excluding packagingTotal weight including product and all packagingIncludesOnly the usable productProduct + packaging materials (box, bottle, straw, etc.)Examples1L milk means 1L of milk only, not the bottle1L juice includes the juice, bottle, and strawUsed inFood, manufacturing, retailShipping, logisticsImportanceFor fair pricing and consumer transparencyFor calculating shipping cost and logistics planningCalculation FormulaNet Weight = Gross Weight – Tare WeightGross Weight = Net Weight + Tare WeightKey Industry RelevanceRetail, food, and manufacturing where exact product quantity mattersLogistics and transport where total load weight is criticalChallengesDistinguishing net from gross due to packaging variationAffected by changes in temperature, pressure, and inaccurate tare weight calculationHow Are Net Weight and Gross Weight Calculated?Before understanding the calculation of gross weight and net weight, it is important to understand another concept of measurement: the tare weight. So what is a tare weight? A tare weight is the weight of the packaging. Packaging can either include the main packaging or the packaging and additional containers that it comes in.The calculation of net weight and gross weight is as below:Net weight = Total Weight - Tare Weight / Gross Weight - Tare WeightGross Weight = Net Weight + Tare WeightThe Importance of Net Weight and Gross Weight in Different IndustriesGross weight and net weight are two terms that are most commonly used in day-to-day life. However, it has great significance in different industries as well. Below are some industries where the application of net weight and gross weight is used:Shipping and LogisticsUnderstanding the concept of gross weight and net weight is crucial in the shipping and logistics industry. It helps determine shipping charges for different packages and ensures complete compliance with transport regulations. More importantly, as there are multiple packages, the transport vehicles are arranged based on the calculated weight. If the calculation of the net weight and gross weight is an error, it can lead to additional charges. At times, the package might need to be redone to meet the regulations.Manufacturing and ProductionWhen manufacturing a product or producing an item, it is essential to know the net weight of the raw material to meet the standard requirements. Knowing the net weight helps maintain inventory control, maintain the uniformity of the produced goods, and accurately calculate material costs.Net weight is a highly significant concept in this industry, as consumers must be provided with the mentioned quantity.Food IndustryKnowing and understanding the concept of net weight is extremely important in the food industry. Since strict rules need to be followed to maintain food safety, the net weight of edible items is printed on the packaging to provide accurate details to the customer.Furthermore, nutrition labelling is also a requisite in the food industry. It is essential to print everything according to the net weight so that customers can get the correct information if they are following a diet or want to avoid certain ingredients.Consumer Goods and RetailKnowing about net weight is essential to avoiding false advertising and following correct trade practices. All consumer goods are sold based on net weight, and it is required by law that a product's packaging describe its net weight. Printing the net weight is a standard rule because consumers compare products based on price and the quantity they are receiving. Hence, net weight is a significant concept in consumer goods and retail.Suggested read - Volumetric Weight FormulaChallenges in Weight Measurement The challenges that are faced by different industries in weight measurement are as follows:Packaging variability: Packing materials have different weights, which can sometimes make it challenging to weigh. It can also become difficult to distinguish net weight from gross weight.Faulty Equipment: Weighing equipment is necessary to determine the correct weight of an item. When the equipment is faulty, it will show the wrong weight, making it difficult to derive the exact weight.Changing Conditions: When it comes to liquid or semi-liquid items, the temperature and pressure can impact the gross weight as well as the net weight.Tare Weight Calculation: Since tare weight is essential to calculate gross weight or net weight, it can create errors if tare weight is challenging to weigh. This happens mostly when the shape of the container is unusual.Also check - Dimensional Weight CalculationGet Hassle-free Shipping with WareIQs's Smart Shipping SolutionsWareIQ's innovative shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times.Our solution offers the following capabilities:Multi-carrier engine enabling fast deliveries across 24,000+ pin codes.Control Tower & automated workflows to minimise NDRs & RTOs.Same/Next-day delivery courier options.Seamless integration with your WMS, ERPs, and shopfronts.Shipping badges to display precise Estimated Delivery Dates (EDD).Custom branded tracking pages and notifications to enhance the customer experience.Suggested read - What Is Tare Weight? A Guide to Shipping Weight CalculationConclusionThere is a slight difference between net weight and gross weight. In many industries, the calculation of net weight and gross weight is of great significance. Net weight is the actual weight of the product or goods; gross weight, on the other hand, is the combined weight of the product/item and the packaging/container. Whether it is the shipping industry or food and retail, gross weight and net weight are widely used to maintain fair practices and regulations. Various factors can pose a challenge in determining the net weight and gross weight, such as faulty equipment, failure to calculate the weight, and packaging variability.Related - Shipping Weight Discrepancy in Indian eCommerce VGM in Shipping: Understanding Verified Gross Mass RequirementsFAQs about Net Weight vs Gross WeightDoes packaging affect gross weight?Yes, packaging impacts gross weight for smaller products like cosmetics or snacks. However, when it comes to heavy-weight products, the packaging will make minimal difference.Why does gross weight matter in the shipping industry?The gross weight helps to determine proper transportation arrangements. An arrangement made based on net weight can lead to overloading and, hence, can be hazardous. It can damage the goods in transit.What is tare weight?Tare weight is the weight of the packaging. To know the tare weight, you can deduct net weight from gross weight.Is it mandatory to list the net weight of the package?Yes, most laws require manufacturers to list the net weight of the package so that consumers can make an informed decision.Can gross weight and net weight be the same?Yes, in cases of bulk machinery or goods sold without packaging, the net weight and the gross weight will be the same.

June 18, 2025

Bill of Entry Status: How to Check and What It Means in Customs?

Have you ever ordered something internationally and found yourself wondering what happens once it crosses the border? Customs procedures can feel like an endless maze, and one term that tends to pop up often in this context is "bill of entry status." But what exactly does it mean, and why is it such a big deal? Whether you're an importer, a business owner managing logistics, or just someone fascinated by the inner workings of customs, this guide is here to clear up the mystery for you.Think of the bill of entry as more than just a piece of paperwork; it’s the golden ticket that ensures goods can cross borders legally and without unnecessary delays. But what happens when the process stalls or you're not sure where things stand? That’s when knowing how to check the bill of entry status becomes a game-changer.In this blog, we’re going to break down everything you need to know about a bill of entry: what it is, why the status matters, and, most importantly, how to track it like a pro using tools like ICEGATE. Ready to get a clear understanding of customs clearance? Let’s jump in and figure it out together.What is a Bill of Entry?Simply put, a bill of entry (BOE) is a legal document submitted to Customs authorities when goods are imported into a country. It contains detailed information about the shipment, such as:The value of goods.The description of goods.The applicable customs duty.In the world of logistics, the BOE is essential for clearing goods through customs. Without it, your imported products might sit in a warehouse indefinitely or incur hefty fines.Did you know that filing a bill of entry allows importers to claim Input Tax Credit (ITC) under GST? That’s another reason why keeping an eye on the bill of entry status is crucial.Why is it Crucial to Monitor the Bill of Entry Status?International shipments can be tricky to manage, and even minor delays can lead to higher costs, dissatisfied customers, and logistical headaches. This makes keeping an eye on your bill of entry status a critical task for businesses involved in imports. It’s more than just tracking a document – it’s about ensuring the entire process runs smoothly and without unnecessary setbacks.Smooth Customs Clearance: Monitoring your bill of entry status helps ensure your goods pass through customs without issues caused by incomplete or incorrect paperwork. Avoiding delays here saves you from paying extra storage charges or facing penalties.Accurate Duty and Tax Calculations: The bill of entry is crucial for determining customs duties, Integrated GST (IGST), and any compensation cess. Staying updated ensures you avoid calculation errors and pay the correct taxes for your shipment.Compliance with Regulations: Monitoring your BOE status through platforms like ICEGATE helps you meet import regulations, avoid missed deadlines, and prevent penalties caused by incomplete filings or late submissions.Efficient Logistics Management: A clear and up-to-date BOE status allows you to coordinate better with logistics providers, accurately predict delivery schedules, and manage your inventory more effectively, ensuring your supply chain remains uninterrupted.By using tools like the ICEGATE bill of entry status tracker, you can stay informed at every step of the process, avoid unnecessary delays, and improve the efficiency of your import operations. Being proactive is not just a smart practice—it’s the key to running smooth and cost-effective international trade.How to Check Bill of Entry Status Online?Thanks to the ICEGATE portal (Indian Customs Electronic Gateway), tracking your bill of entry status is now a simple and straightforward process. ICEGATE is the official platform for customs and GST-related activities in India, providing importers with easy access to critical information about their shipments. Whether you’re new to this or just need clarity, here’s the exact process to follow.Step-by-Step Guide to Track Bill of Entry Status via ICEGATESearch for the ICEGATE PortalOpen your browser and search for “ICEGATE Portal” on Google, or directly visit ICEGATE’s website.Access the ‘Bill of Entry’ Tracking SectionOnce on the homepage, navigate to the “BE Tracking” section. You may find it under “Enquiry” or “Tracking Tools.”Log In (If Required)Some users, such as importers or authorised agents, might need to log in with their credentials to access specific information.Enter the Required DetailsTo fetch your BOE status, provide the following information:Bill of Entry Number: A unique 13-digit identifier for your shipment’s BOE.Port Code: Identifies the customs location where the BOE was processed.BOE Filing Date: The date the BOE was submitted.Submit and Check the StatusHit the "Search" button, and the portal will display your BOE status. The information includes:Payment confirmation and duty status.Customs clearance progress.Shipment value, importer details, and channel number.Government agency approvals and document validity.Resolve Issues or Get Real-Time UpdatesIf the status seems outdated or unclear, use the “Query ICEGATE” feature to fetch real-time updates directly from the customs database.Also check - What Is a Bill of Materials (BOM) in Manufacturing?Key Components of a Bill of EntryWant to decode the information on a BOE? Here are the critical elements you’ll find:Importer’s Details: Name, address, and Import Export Code (IEC).Exporter’s Information: Name and origin of the shipment.Goods Description: Quantity, monetary value, and tariff classification.Port Code: Identifies the customs location.Duties and Taxes: Includes IGST, customs duty, and cess.Every detail on the BOE has a purpose, so ensure its accuracy during filing. Mistakes can lead to delays or penalties.Common Issues with Bill of Entry and How to Resolve ThemIssueDescriptionResolutionBOE Status Not UpdatedThe status may not show the latest updates due to technical glitches.Use the “Query ICEGATE” feature to fetch real-time data from the ICEGATE portal.Mismatch in DetailsBOE details don’t align with your shipment or supporting documents.Contact your Clearing House Agent (CHA) or the customs department to rectify the discrepancies.Delayed ClearanceShipment clearance is delayed due to unpaid duties or missing documents.Ensure all duties and taxes are paid promptly and submit complete documentation for processing.This table highlights the most common BOE issues and provides actionable steps to resolve them efficiently, ensuring smoother customs clearance.Related article - Difference Between Excise Duty and Custom DutyHow Can WareIQ Help Simplify Your Import and Fulfillment Process?When managing imports and navigating customs processes like tracking your bill of entry status, efficient logistics and inventory management are critical to avoiding delays and ensuring smooth operations. This is where WareIQ steps in as a reliable partner for eCommerce businesses.WareIQ is a Y-Combinator-backed, full-stack fulfilment and shipping platform designed to meet the needs of modern eCommerce operations. Here’s how WareIQ can optimise your supply chain:Nationwide Fulfillment Network: WareIQ operates fulfilment centres across 12+ cities, ensuring inventory is strategically positioned close to your customers for faster delivery. It supports multi-channel fulfilment across platforms like Amazon, Flipkart, Shopify, and others.Advanced Inventory Management: With AI-powered inventory planning, WareIQ helps prevent stockouts and automates replenishment to ensure uninterrupted supply chain operations.Smart Shipping Options: WareIQ offers delivery to 27,000+ pin codes through a multi-carrier engine, providing same-day or next-day delivery options. Features like branded tracking pages and accurate delivery timelines improve customer experience.Compliance Assistance: WareIQ simplifies GST registrations, APOB/PPOB setups, and ensures marketplace-compliant operations, easing the burden of customs and compliance management.Partnering with WareIQ means fewer delays, better efficiency, and more satisfied customers. Manage your import and fulfilment processes effortlessly with WareIQSuggested read - Shipping Bill vs Bill of Lading: Key Differences ExplainedWrapping UpUnderstanding and tracking the bill of entry status is a crucial part of ensuring seamless customs clearance and smooth logistics operations. From preventing delays to avoiding fines, staying updated on the BOE status can save businesses from unnecessary hassles. Platforms like ICEGATE make it easier to monitor shipments, while solutions like WareIQ further enhance logistics efficiency with advanced fulfilment and shipping support.By leveraging the tools and knowledge outlined in this blog, importers can navigate the complexities of customs with ease and focus on growing their business. Whether you’re an eCommerce seller or a business owner managing global trade, staying proactive with your logistics and customs processes will ensure success in the long run.You may also like to read - How to Check Your Shipping Bill Status Online in India?Frequently Asked Questions (FAQs)What is the SEZ bill of entry status?The SEZ bill of entry status refers to the tracking of customs clearance for goods being imported into or exported from Special Economic Zones (SEZs). It provides updates on document validation, customs duties, and clearance progress specific to SEZ regulations.What happens if my SEZ bill of entry status is not updated?If the SEZ bill of entry status is not updated, it could be due to system delays or incomplete filings. Use the "Query ICEGATE" feature for real-time updates or contact your CHA for assistance.What is the ICEGATE portal, and how does it help with tracking the bill of entry status?ICEGATE (Indian Customs Electronic Gateway) is the official platform for customs and GST-related activities in India. It allows importers to track their bill of entry status, view payment confirmations, check customs clearance updates, and access other shipment-related information.Can I check the status of the bill of entry without a clearing house agent (CHA)?Yes, you can track the status yourself through the ICEGATE portal if you have the required details like the Bill of Entry number, Port Code, and Date of Filing. However, a CHA can assist with resolving any issues or discrepancies in the process.What is bill of entry tracking and how does it work?Bill of entry tracking is the process of checking the current status of your import documents submitted to Indian Customs. You can track it online using the ICEGATE portal by entering your Bill of Entry number, date, and port of entry.How does customs ICEGATE bill of entry tracking work?Customs ICEGATE bill of entry tracking allows importers to check the real-time status of their shipments online. By visiting the ICEGATE portal, you can enter your Bill of Entry number, date, and location to track clearance progress with Indian Customs.

June 17, 2025

Shipping Bill vs Bill of Lading: Key Differences Explained

When it comes to international shipping, several documents must be considered. These documents are of great significance, as they contain information about shipments. Some of the documents that stand out for their importance include shipping bills and bills of lading. To a common man, both documents seem similar; however, they are quite distinct in terms of their importance in the logistics chain. Businesses involved in the shipping industry must understand the key differences between Shipping Bill vs Bill of Lading.Additionally, considering that in June 2022, approximately 2.1% of the 45 million bills were made digitally, it highlights how the shipping industry is transitioning to digital documents, replacing traditional paperwork such as the shipping bill and bills of lading; it thus becomes necessary to be aware of various documents and their usage. In this article, we will understand what is a shipping bill, what is a bill of lading and what are the differences between Shipping Bill and Bill of Lading.What is a Shipping Bill?One of the primary documents required by the customs authority during the clearance of goods is the shipping bill. The shipping bill contains detailed information about the goods that are being exported or imported.Details on a shipping bill include the following aspects:The complete description of the good, such as the type, value and the quantity.It also contains detailed information about the exporter and importer, including their names, numbers, and addresses.It also contains the HS code, which is the Harmonised System code for classifying the goods.The shipping bill also has details about the port for loading, as well as the destination. It specifies the exact location from which the goods are being shipped and to which location they are being shipped.Shipping bills also include export taxes, which apply to the goods.What is a Bill of Lading?The bill of lading is a document that is legalised, and it is a necessary requirement for every shipper. It is issued by the carrier to the shipper, thereby acknowledging the receipt of goods for shipment. A bill of lading serves several purposes.Purposes served by a bill of lading include:It confirms that the carrier had successfully received the shipment of goods.A bill of lading also outlines the terms and conditions in detail under which the goods are shipped.A bill of lading necessarily contains a document of title. It represents the ownership of the goods. The document title can be used to transfer ownership by endorsement.Also check - Bill of Materials (BOM) in ManufacturingShipping Bill Vs Bill of Lading: Key DifferencesWhen the international shipping industry is considered, the shipping bill is quite different from the bill of lading. The differences between a shipping bill and a bill of lading are explained below in detail:AspectShipping BillBill of LadingType of documentA shipping bill is a legal document that is required for customs clearance.On the contrary, a bill of lading is a legal document that is used by shippers or carriers.Main PurposeThe primary purpose of a shipping bill is to obtain customs clearance and permission for export.The primary reason why a bill of lading is issued is for the acknowledgement of goods and terms and conditions of a shipment.OwnershipA shipping bill does not represent ownership.A bill of lading does represent ownership and can also be transferred.Authorities involvedAuthorities involved in verification or issuance are customs authorities.The bill of lading is governed by maritime laws and does not involve customs authorities.Mode of generationA shipping bill is generated by authorities such as ICEGATE in India and is generated electronically.A bill of lading can be generated electronically or manually. It is usually generated by the shipping line.Requirement of signaturesA shipping bill may require signatures from customs, CHA, or even the exporter.A bill of lading mandatorily requires a signature from the carrier.Customs requirementA shipping bill is an essential document needed for customs clearance.A bill of lading is not needed for customs clearance; however, it is needed for cargo delivery.Retention periodThe retention period of a shipping bill as per legal or compliance norms is for 5 to 7 years.A bill of lading must be preserved for dispute handling and record keeping, as it is required for cargo release.AmendmentsAmendments to a shipping bill can be made before the departure of cargo or before customs clearance.Amendments to a bill of lading are difficult if the cargo is already shipped out.JurisdictionA shipping bill falls under export regulations or customs clearance in a country.A bill of lading falls under maritime or contractual laws.Related documentsDocuments which are related to a shipping bill include certificate of origin, LUT (for exports), packing list and invoice.Documents related to a bill of lading include a delivery order, letter of credit or freight invoice.Get Seamless Documentation With Shipping Solutions From WareIQWareIQ’s smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times.Our solution offers the following capabilities:Multi-carrier engine enabling fast deliveries across 24,000+ pin codesControl Tower & automated workflows to minimise NDR & RTOsSame/Next-day delivery courier optionsSeamless Integration with your WMS, ERPs and StorefrontsShipping Badges to display precise Estimated Delivery Dates (EDD)Custom branded tracking pages and notifications to enhance customer experienceSuggested read- How to check Bill of Entry StatusConclusionA bill of lading and a shipping bill are two essential documents in international trade. Hence, it is necessary to understand both the documents and their differences as well. A shipping bill ensures smooth customs clearance, as it serves as a formal permission document, which is essential. On the other hand, a bill of lading is like a contractual pass that is issued by the carrier.Understanding the nuances of Shipping Bill vs Bill of Lading is necessary not only for compliance but also for seamless and efficient logistics management. It is also required to protect the cargo being shipped, maintain healthy cash flows, and obtain timely clearances. Being unaware of the significance and differences between these documents can lead to monetary penalties, delays, and even the seizure of shipments.Related read - How to Check Your Shipping Bill Status Online in India?FAQs About Shipping Bill vs Bill of LadingWho issues the shipping bill?A shipping bill is a document generated electronically by either the exporter or their authorised agent. It is usually generated through the ICEGATE portal in India.Is it necessary to have a shipping bill generated for every export?Yes, a shipping bill is a necessary document required for customs clearance on all shipments exported from India.Is a bill of lading similar to a sea waybill?No, a bill of lading is different from a sea waybill. A bill of lading is a document that essentially represents ownership of goods. On the other hand, a sea waybill is a non-negotiable document and does not serve as a document of title.Will there be any complications if there is a discrepancy found in a shipping bill?If there are discrepancies in a shipping bill, it can cause various problems, such as delayed customs clearance processes and potential penalties and fines.

June 16, 2025

Sourcing vs Procurement: Understanding Key Differences in the Supply Chain

Running a business in India, whether it is a small workshop in Coimbatore or a large factory in Gurgaon, often feels like juggling a dozen tasks at once. One moment, you are chasing customer orders, and the next, you are scrambling to secure raw materials. In the midst of this chaos, two terms frequently pop up: sourcing and procurement. They sound similar, but mixing them up is like confusing a recipe’s ingredients with the cooking process. Understanding the difference between Sourcing vs Procurement can transform how you manage your supply chain, saving you time, money, and plenty of stress.In this blog, I will break down what sourcing and procurement mean, highlight their roles in the supply chain, and share practical tips for Indian businesses. Whether you are sourcing cotton for a textile unit in Tiruppur or procuring electronics for a store in Delhi, this guide will help you navigate the process with confidence. Let us get started!What Is Sourcing in Procurement?Sourcing is the groundwork of your supply chain. It is about finding the right suppliers who can provide the goods or services your business needs at the right price and quality. Imagine you are a furniture maker in Jodhpur looking for high-quality teak. Sourcing involves researching suppliers, comparing their offerings, and building relationships to ensure a steady supply of wood that meets your standards.In procurement, sourcing is a strategic process. It focuses on identifying vendors, negotiating contracts, and setting up a reliable supply network. For example, a spice exporter in Kochi might source turmeric from farmers in Tamil Nadu, evaluating them based on quality, cost, and delivery reliability. The goal is to create a robust supplier base that supports your business in the long run.Key Aspects of SourcingSupplier Research: Identifying potential vendors through market analysis and referrals.Vendor Evaluation: Assessing suppliers based on quality, pricing, and reliability.Contract Negotiation: Securing favourable terms, such as bulk discounts or flexible delivery schedules.Relationship Building: Establishing trust with suppliers for consistent collaboration.What Is Procurement in Supply Chain Management?Procurement is the bigger picture. It covers the entire process of acquiring goods or services, from spotting the need to paying the supplier. While sourcing is a part of procurement, the latter goes further, managing everything from purchase orders to delivery tracking. In India’s complex supply chain, where delays due to festivals or customs can throw a spanner in the works, procurement keeps things on track.For instance, picture a Mumbai-based retailer stocking up on festive decorations. Procurement involves not only sourcing reliable suppliers for lights and ornaments but also placing orders, ensuring timely delivery, checking quality, and settling invoices. It is about making sure your business has what it needs, when it needs it, without breaking the bank.Key Aspects of ProcurementNeed Assessment: Determining what goods or services are required to meet business goals.Order Placement: Issuing purchase orders and coordinating with suppliers.Delivery Management: Tracking shipments and verifying compliance with contract terms.Supplier Oversight: Monitoring vendor performance and maintaining relationships.Sourcing vs Procurement: Key DifferencesSourcing and procurement work hand in hand, but they serve distinct purposes. Here is a clear comparison to help you see the difference:AspectSourcingProcurementDefinitionIdentifying and selecting suppliers for goods or services.The full process of acquiring goods or services, including sourcing.FocusFinding the right suppliers (the “who”).Managing the acquisition process (the “what” and “how”).ScopeA strategic subset of procurement, focused on supplier relationships.A broader process, covering sourcing, purchasing, and logistics.TimingOccurs before purchasing to establish supply channels.Spans activities before, during, and after purchasing.GoalsBuild cost-effective and resilient supply chains.Ensure timely delivery of quality goods at optimal costs.ActivitiesMarket research, supplier vetting, negotiation, contract signing.Sourcing, ordering, delivery tracking, payment, performance reviews.Procurement vs. Purchasing: Clearing the ConfusionAnother term that often confuses is purchasing. While it is part of procurement, purchasing is narrower, focusing solely on the transactional act of buying goods or services. It involves placing orders and making payments but lacks the strategic depth of procurement, such as supplier selection or long-term planning.For example, a Hyderabad startup buying office furniture from a local vendor is purchasing. However, if they are also researching suppliers, negotiating bulk deals, and ensuring timely delivery, that is procurement. Purchasing is about completing the transaction; procurement is about managing the entire process.Why These Differences Matter for Indian Businesses?In India, where supply chains can be as unpredictable as monsoon rains, understanding sourcing and procurement is crucial. Here is why:Cost Efficiency: Smart sourcing helps you find affordable suppliers, which is vital in a market where margins are tight. Procurement ensures you avoid costly mistakes like overordering or delayed deliveries.Supply Chain Stability: With challenges like infrastructure bottlenecks or regulatory complexities, sourcing builds a diverse supplier network while procurement keeps operations smooth.Local Advantage: Sourcing from nearby suppliers, such as leather vendors in Kanpur, cuts lead times and supports initiatives like “Make in India.” Procurement ensures compliance with GST and other regulations.Growth Potential: Clear sourcing and procurement processes allow businesses to scale, whether you are a small retailer in Kolkata or a growing exporter in Ahmedabad.An Example of Sourcing and ProcurementLet us say you own a bakery chain in Bengaluru, and you need flour for your signature bread. Here is how sourcing and procurement come into play:Sourcing: You research wheat flour suppliers, shortlist a mill in Punjab for its quality and price, and negotiate a contract for monthly deliveries. You also check their sustainability practices to align with your brand.Procurement: You place an order for 1,000 kilograms of flour, track the shipment to your bakery, verify the flour’s quality, and process the payment. If the delivery is late, you coordinate with the supplier to resolve it.This example shows how sourcing secures the supplier, while procurement ensures the materials arrive and are used effectively.Suggested read - Difference Between Centralised and Decentralised PurchasingWhich Comes First: Sourcing or Procurement?Sourcing usually happens first. You need to find and contract suppliers (sourcing) before you can order goods and manage deliveries (procurement). However, the two are interconnected. Procurement relies on sourcing to create a reliable supplier base, while sourcing uses procurement data, like supplier performance metrics, to refine vendor choices.Strategic Sourcing vs. Procurement StrategyA sourcing strategy is about building a strong supply chain. It involves long-term planning, such as diversifying suppliers to reduce risks or prioritising local vendors to save costs. For example, an Indian electronics manufacturer might source components from multiple vendors to avoid supply disruptions.A procurement strategy is broader, aiming to optimise the entire acquisition process. It includes sourcing but also focuses on streamlining orders, cutting lead times, and ensuring compliance. For instance, the same manufacturer might use a procurement strategy that automates purchase orders and integrates with GST portals for seamless tax filing.Practical Tips for Sourcing and Procurement in IndiaTo master sourcing and procurement, try these tips tailored for Indian businesses:Source Locally: Work with regional suppliers, such as textile mills in Surat, to reduce delivery times and support local economies.Embrace Technology: Use procurement software to automate orders, track shipments, and analyse supplier performance, saving time and reducing errors.Build Trust: Foster strong supplier relationships through clear communication and fair deals, a cornerstone of India’s business culture.Ensure Compliance: Align procurement with GST and import-export rules to avoid penalties, especially for cross-border sourcing.Review Suppliers: Regularly assess vendors based on quality, timeliness, and cost to keep your sourcing strategy sharp.Suggested - A Definitive Guide on How to Source Products for Your eCommerce Business in 2025Facilitate Your Supply Chain with WareIQ’s Tech-Driven SolutionsNavigating sourcing and procurement in India’s complex supply chain can feel like a full-time job. That is where WareIQ, a Y Combinator-backed e-commerce fulfilment platform, comes in, offering smart solutions to make your life easier. Whether you are sourcing raw materials or procuring goods for retail, WareIQ helps you manage inventory and deliveries with ease, letting you focus on growing your business.WareIQ provides:Nationwide Fulfilment Network: Store inventory in fulfilment centres across more than 12 cities, enabling fast deliveries to over 27,000 pin codes, compliant with Seller Flex and FAssured standards.AI-Driven Inventory Management: Use Inventory LogIQ to place stock strategically, avoid stockouts, and align with your procurement plans.Seamless Integration: Connect with D2C platforms (Shopify, WooCommerce) and marketplaces (Amazon, Flipkart) for centralised order and inventory management.Efficient Returns Handling: Manage returns with high-definition media evidence to minimise claim rejections, keeping procurement smooth.Regulatory Support: Get assistance with GST registration, catalogue listings, and compliance, simplifying your procurement process.By combining WareIQ’s solutions with effective sourcing and procurement, Indian businesses can optimise their supply chain, reduce costs, and deliver faster, whether in Pune, Chennai, or beyond.Summing UpSourcing and procurement are like two sides of a coin, each essential to a thriving supply chain. Sourcing builds the foundation by finding reliable suppliers, while procurement ensures goods arrive on time and within budget. For Indian businesses, mastering these processes is key to staying competitive in a fast-moving market.By understanding the difference between sourcing and procurement, you can make informed decisions, cut costs, and build a supply chain that withstands India’s unique challenges. With partners like WareIQ, you can take efficiency to the next level, ensuring every order is fulfilled seamlessly and every customer leaves happy. So, go ahead—source smartly, procure wisely, and watch your business soar!Also read - Supply Chain Management vs Procurement: Key DifferencesFrequently Asked Questions on Sourcing vs ProcurementWhat is the difference between procurement and sourcing?Sourcing involves finding and selecting suppliers, while procurement is the broader process of acquiring goods or services, including sourcing, purchasing, and delivery management.Which comes first: sourcing or procurement?Sourcing comes first, as it identifies and contracts suppliers before procurement handles ordering and delivery.What is the difference between sourcing and procurement strategy?A sourcing strategy focuses on creating a cost-effective supplier network, while a procurement strategy optimises the entire acquisition process, including purchasing and compliance.What is an example of sourcing and procurement?Sourcing is selecting a steel supplier for a construction firm in Mumbai, while procurement includes ordering the steel, tracking its delivery, and processing payment.

June 13, 2025

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