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How To Sell On Myntra? Step By Step Guide To Become A Myntra Seller

How To Sell On Myntra? Step By Step Guide To Become A Myntra Seller

Myntra is India's most profitable e-commerce site. Being able to sell on Myntra is a fantastic opportunity for any business. Myntra has expanded from offering customized gift products in 2007 to presenting more than 500 Indian and international companies in 2022. Myntra features over 1000 companies and sells over 150,000 goods. India is the world's second-largest internet user, with 700 million internet users in a population of 1.4 billion people. Regular internet users make up 87 percent of the total user base. This means that things for online enterprises are only getting better. Myntra, unlike other e-commerce platforms, does not recognize every private label that sells low-quality products. As the platform is limited to branded items, to become a Myntra seller, the vendor should transform the business into a brand. When you compare Myntra to any other fashion e-commerce platform, you will see that Myntra exclusively promotes selected brands, whilst other platforms register any local selling vendors. Myntra displays your products alongside popular brands that are exclusive to the platform once you register your business. As appealing as a Myntra registration may appear, registering a business on the site is not easy, it takes a fair amount of effort to sell on Myntra. It is for the same reason that scams and low-quality products/businesses are kept off the platform: Before permitting a firm to use the site, Myntra goes through a rigorous screening process before you can start to sell on Myntra.  Introduction to Myntra Online Seller Portal Myntra Seller entry is an online selling platform where retailers can sell their items on the website. It offers an advantageous way for retailers to deal with their items, make postings, and get orders from buyers. Assuming you have a product and are thinking to start to sell on Myntra online portal, you'll have to set up your account and list your products to become a Myntra seller. When you've done that, you can begin with getting orders from buyers and start to sell on Myntra. You can also utilize the seller portal to deal with your stock, and track your business details, from there, the sky is the limit. There are a couple of key advantages to selling on Myntra. In the first place, it's an extremely aggressive commercial center with fierce opposition. This intends that there is potential to make a reasonable amount of revenue assuming you set forth the energy. Also, Myntra offers a simple way for retailers to deal with their items and get orders from buyers. This makes it an ideal stage for independent companies and business visionaries who need to begin selling their items on Myntra. At last, Myntra has high consumer loyalty rates, which is reasonable because of its advantageous stage and cutthroat costs. Venders can likewise utilize Myntra's delivery apparatuses to ascertain transporting costs and get orders for potential buyers. At long last, Myntra provides online tools to buyers to find items that they're keen on buying and review merchants' reviews before making a buy. Myntra supports and provides great website traffic on its portal for people who want to become a Myntra seller. [contactus_uth] Why Choose to Become a Myntra Seller? Myntra is one of the biggest online business platforms having expertise casually and fashionably of life. Based in Bangalore, Karnataka. Myntra is an online commercial center for the Indian crowd. In this article, you will figure out how to sell on Myntra as a vendor and for that you should know how to register yourself and list products on Myntra. Myntra is an online internet business commercial center that sells local and global brands with month-to-month website traffic of around 38.5 million, as of April 2022 (as per SEMRUSH Stats). It has turned into a significant advertising channel for every one of the brands that work in the design and way of life areas. There is no dealer commission to enroll on Myntra. Myntra charges a proper commission of 4% to 5%, contingent upon the classification of the item. Myntra committed account directors to give definite data about this classification and illuminate you about the various kinds of advancements you can use to draw in expected clients. After the registration and enlistment of products, you can sell on Myntra and access different assets for your business development. Advantages of Selling Products On The Myntra Seller portal As a Myntra vendor, you should get aware of the several compelling reasons for shops to flock to Myntra and establish a significant presence in the online marketplace. Myntra retailers have complete control over their merchandise once authorized. Companies can handle orders, online sales, catalogs, merchandise quantities, and product quality. When sellers start to sell on Myntra, they experience many advantages of selling on this platform. Some of them are mentioned below. Myntra's Internet Presence Reaches A Significant Number of People. Myntra's management has always believed that having an online presence is essential for connecting with customers on a personal level. As a result, they provide a diverse range of products from leading companies, and their user-friendly website makes it simple for clients to find what they're looking for. In India, Myntra's marketplace reach is extensive. It is offered to all types of customers who are eager to purchase things in a variety of pricing ranges. With so many people visiting their website, it's no surprise that their items are constantly rated among the best on the market. If you want to sell on Myntra successfully, start by establishing a strong presence on Myntra. It will assist you in connecting with more potential clients and increasing revenue. When you use third-party platforms, you can save money on marketing charges. Myntra marketplace receives millions of visitors each day and has a consistent user base, and you don't have to worry about the payment gateway as well.  Myntra receives millions of visitors each day and has a consistent user base, and you don't have to worry about the payment gateway as well. WareIQ also provides packaging materials, facilitating packaging and shipping easier for online vendors. Myntra Provides a Diverse Range of Products Myntra is India's largest eCommerce company, with over 6 million consumers. Products one can sell on Myntra range from apparel to appliances Many Indian vendors have listed their businesses and items to gain more attention and reach a broader audience. Myntra is a shopping website that sells a variety of products for men, women, and children. Clothing, accessories, and footwear are all available. Myntra also has a sale area with fantastic deals on clothing, footwear, and accessories. Myntra Gives Excellent Customer Service Myntra offers excellent customer service to those who sell on Myntra as well as their consumers. Their team is ready 24 hours a day, 7 days a week to assist you with your issues and queries. Furthermore, they have a well-organized return policy in place that allows you to easily get your money back if the thing you purchased does not fulfill your expectations Overall, Myntra is a trustworthy online shopping platform with excellent customer care. Myntra Items are Competitively Priced Myntra provides competitively priced products at savings of up to 50% off standard rates. Users can filter products by category, size, color, and brand using the app. Dynamic pricing is critical in boosting sales on online marketplaces. A slew of firms offering analytics services assist marketplaces and those who sell on Myntra in updating their prices by constantly watching market demand and supply as they strive to sell enormous volumes. Offering competitive prices and keeping good metrics assist online retailers in capturing the "buy-box," or conspicuous placement at the top of the category page. On peak sale days, vendors that do an average of a couple of crores in businesses hire the least people to adjust the prices on the marketplace. Myntra Offers Discounted Deals and Also Easy Returns on Goods The vendor who sells on Myntra also provides discounted deals on products so that consumers can purchase them. Discounts and promotions are available on a variety of products and categories. Users must scan the barcode of the goods they wish to purchase and then navigate to the 'Myntra Deals' tab on the product page. They will then be able to see all of the available discounts and promotions. Myntra has simple return and exchange policies. You can return the product for a full refund or exchange it for something else within 14 days of getting it. Furthermore, if you are not happy with your purchase, you have the option of receiving a refund or an exchange within 30 days of making your purchase.  Understand Seller Profile- To Become a Myntra Seller With the number of vendors on Myntra increasing at an exponential rate, it became difficult to treat all merchants fairly and incentivize their success. As a result, on August 29, 2019, they launched the Marketplace Partner Tiering Program effort to fuel seller growth and improve user and seller experiences. The Marketplace Partner Tiering program's goal is to improve and maintain partners' performance on business-critical criteria like sales, reliability, and quality by assuring a positive customer experience. The program enables sellers of various sizes and tenures to drive their Myntra growth by concentrating on their performance and is divided into three tiers: gold, silver, and bronze. The Marketplace Partner Tiering program is ongoing and will be renewed every quarter in the first week of the first month, based on the partner's performance in the preceding quarter. Gold is the highest category, and to earn it, a partner must constantly maintain good metrics. All sellers begin to sell on Myntra as bronze vendors and can advance to the silver and gold tiers based on their success. 6 Easy Steps of the Onboarding Process to Become a Myntra Seller in 2022 Myntra is a popular eCommerce shopping platform in India, and there is no sale on Myntra fees for Indian online vendors. If you are serious about selling on Myntra India, there are numerous options for eCommerce shippers and online merchants to grow their businesses. You can go straight to the Myntra seller central website for Myntra seller registration online and enter your business information to begin selling your products in the Myntra seller central dashboard. The steps required to become a Myntra seller are given below- Step 1- Fill up the Myntra seller registration form with all of your company's information. Step 2- Enter business information such as GST number, PAN number, Bank account details, business address, email address, phone number, and so on. These details will be used to generate tax invoices for clients and the marketplace. After registering, you must set up your store by selecting a theme and a location. After you've built the store, you'll need to build a listing, which we'll go through later in the post. This will comprise the URL of your store, the title of your product, its price, and the number of units available for purchase. You will also need to market your store on social media platforms, such as Facebook and Instagram, and also through online search ads. Step 3- Select the product category you want to sell on Myntra. You should conduct additional research on the product you intend to offer on Myntra.  Step 4- Enter product information and begin product listing. You must decide on a selling price. Create an eye-catching and useful listing for all customers. Finally, enter information about each item, such as its price and description, into the product list. You're ready to sell on Myntra, once you've finished these steps! To increase your visibility and sales in the marketplace, you must include as much information as possible. There are numerous resources accessible on the internet that can assist you in attracting customers to your listings. It is critical to conduct research before selling on Myntra. Know what the product you're selling has to offer, and make sure to highlight all of its features and benefits. You should also ensure that you have reliable information about sizing, colors, and other characteristics. Step 5- Determine how you want the merchandise shipped. You can use third-party logistics to get your product to clients. Choose a shipping rate based on the size and weight of all of your purchases. Step 6- To begin receiving orders from the marketplace, you must conduct a promotion and advertising campaign. Use social media and other internet methods to publicize your listing. You can also provide free delivery and easy returns. To know more, as to which business structure you need to register your business on Myntra, and start to sell on Myntra. How Does Myntra Measure Your Sales Performance After initiating to sell on Myntra, always keep in mind the KPIs that Myntra analyses for you to sell on Myntra. Evaluation of seller's performance is done using these inspection criteria that they have developed- Gross Merchandise Value (GMV) Myntra pushes for maximum sales. Myntra uses the Gross Merchandise Value (GMV) of vendors to assess their success. It is the total value of products sold to clients by a vendor over a specific period, excluding returns and canceled purchases. Seller Cancellations Myntra anticipates a minimal number of order cancellations from its sellers. So, this performance indicator indicates any cancellation initiated by the seller, i.e. when the seller lacks sufficient inventory or is unable to fulfill a specific transaction for whatever reason, the seller must cancel the order Cancellations caused by Myntra, on the other hand, would not be considered in this measure. Adherence to Inventory SLAs This metric only applies to vendors who do not handle their order fulfillment, i.e. Myntra handles their order fulfillment. Myntra does not want any issues to cause order delays or client cancellations. So, to avoid scenarios that can cause a product to be out of stock (OOS) owing to a delay in delivery, Myntra expects merchants to obtain inventory within a specific time frame. Adherence to Delivery SLAs This indicator applies exclusively to merchants who conduct order fulfillment in-house or outsource order fulfillment to a 3PL (third-party logistics) provider. Because Myntra wants its merchants to fulfill orders quickly, it has created tough standards that sellers must follow. All orders indicated as ready-to-dispatch on time are included in the dispatch SLA. Returns Myntra anticipates low order returns. Myntra considers any orders that were returned (or reimbursed) by the consumer that the seller could control for this purpose, excluding try goods, purchase goods and product quality returns. Quality of Product When it comes to product quality, Myntra has high expectations. Myntra takes into account any orders that were returned due to quality difficulties, such as defective products, fabric quality, faded products, used products, worn-out products, stitching flaws, and so on. How to Become a Gold Seller on Myntra After you start to sell on Myntra, always aspire to become a gold-tier seller. For that you must achieve the following performance criteria: GMV (gross merchandise value): Traders who sell on Myntra should have a monthly GMV of at least INR 25 lakhs.Seller Cancellations: Traders who sell on Myntra should cancel fewer than 0.11 percent.Observance of Inventory SLA: Traders who sell on Myntra should have a procurement rate of more than 85 percent from April 1st to September 30th of any given year, and from October 1st of the same year, sellers should have a procurement rate of more than or equal to 90 percent.Observance of RTD SLA: Traders who sell on Myntra should have a Ready to Dispatch rate greater than or equivalent to 90%. Guide To Improve Performance Criteria Every Vendor who sells on Myntra aspires to be a Gold Seller on the platform. In comparison to the other grades, Myntra's Gold tier provides several perks. The challenge now is how to enhance your performance so that you may become a Myntra seller with Gold Tier status, and how to keep your Myntra Gold Tier status if you currently have it. You can achieve the gold tier by focusing on improving on KPIs mentioned below. Increase Gross Merchandise Value A vendor who sells on Myntra must have a monthly GMV of at least INR 25 lakhs. To sell on Myntra and obtain that figure of sales, the seller must look into the facts mentioned below  Offer Free Shipping Customers who do not have to pay for delivery are a popular alternative for online purchasing. Customers that are price sensitive and want a clear pricing structure would appreciate the free shipping. Upsell and Cross-Selling of Products Upselling is a sales tactic that involves selling a better, more costly version of a product that a client already possesses (or just bought). Meanwhile, cross-selling refers to offering items that are similar to those that a consumer already owns You may upsell items by offering larger sizes, adding additional features, or improving performance. If a consumer desires 4GB RAM for their computers, upsell them to 16GB RAM, with a limited-time offer and a somewhat higher cost than their prior option. On your product pages, you may include an "often bought with this item" or "who bought this" area for cross-selling. Add Bundles When you bundle complementary products into a collection of things that can be purchased together at a discount or at a lower price than when purchased separately, this is known as product bundling. As an upsell or cross-sell, you might group goods. Alternatively, you may design a one-of-a-kind product bundle in a gift box or with bespoke wrapping. Discounted Deals Discounting is a marketing tactic that encourages customers to buy more and in larger quantities at a reduced price. This is especially helpful if you're selling things that are generally purchased in bulk. You may also utilize free presents or free merchandise to reward clients who spend more money in your shop. Quality Customer Service Approximately 95% of customers feel that customer service is vital in their brand selection and loyalty. Furthermore, 80 percent of customers value a company's experience as much as its products. When you take the time to address clients' inquiries on social media and live chat, you develop trust and make them feel comfortable purchasing from you. Return requests can be converted into new sales if you are diligent in managing them. Instead of requesting a refund, your buyer may be content with an exchange. This boosts brand confidence and encourages people to return to your store. After all, keeping a current client is five times less expensive than obtaining a new one. Lower Order Cancellation Ratio The vendor who sells on Myntra must have seller cancellations of fewer than 0.11 percent. To sell on Myntra and maintain lesser cancellations, the seller must look into the facts mentioned below  Make Information Easily Accessible The client of the twenty-first century is well-informed. Most shoppers do their leg work before making a purchase and most of the buyers abandon the purchase due to a lack of information.  Providing precise information such as product characteristics, usefulness, and the price will help to decrease cancellations and returns. Enabling easy access to help agents can also inspire consumers to call out for information that they cannot obtain elsewhere. Agents at call center outsourcing businesses may capitalize on cross-selling and upselling possibilities by assisting clients in locating items that meet their specific requirements. Prioritize Transparency Transparency with your consumers about product or service performance, availability, or order tracking can help decrease cancellations. Transparency may also be improved with a clear and efficient communication strategy. It is well established that providing 24/7 customer assistance through customer service outsourcing has a favorable impact. Use Technology Wisely Technology may be a game-changer for e-commerce companies. Using technology wisely while managing inventories or connecting with consumers may improve customer experience and reduce mid-purchase dropouts. Advanced programs and inventory management software, for example, can give up-to-date product listings. This can help to decrease order cancellations due to delays. Technology can also be used to facilitate quick communication, such as with chatbots. Check High-Value COD Orders When transporting high-value cash-on-delivery goods, an unavailable consumer might pose significant logistical and financial challenges for your company. Before fulfilling a COD order, it is usually preferable to confirm the customer's availability. This can help you avoid last-minute cancellations and save you money. Check High-Value COD Orders Find the Right Fulfillment Partners For successful product distribution, an e-commerce firm must rely on several partners. A diverse set of stakeholders influences customer experience, ranging from logistical partnerships to contact center outsourcing firms. This is why it is critical to select the correct partners to build a trustworthy experience chain for your clients and avoid cancellations due to discontent Minimize Returns Vendors who sell on Myntra must maintain the least returns as much as possible. To sell on Myntra and maintain returns, the seller must look into the facts mentioned below  360-degree product images To sell on Myntra or any eCommerce fulfillment platform differs from selling in a traditional retail store. In a retail store, customers may visually check and judge the quality of things. E-commerce platforms, on the other hand, provide relatively few visual indications to buyers about the goods they are about to purchase. Sellers must overcome that gap with outstanding product photography. Providing your consumers with a 360-degree picture of the goods is the most effective strategy to reduce returns. Don't overlook important visual information so the buyer knows exactly what they're getting. In-depth Product Description If there are any aspects that a photo cannot convey, make sure you mention them in your product description. A thorough product description is essential for decreasing Myntra returns since it reduces the amount of misled purchases. A good description can inform clients about the product's intricacies, such as measurements, color options, and materials utilized to create it. Consumer who understands exactly what they're getting is less likely to return the product once it's been delivered. Make sure to include crucial facts in your product title so that clients can easily find the content. Use product videos Videos are fantastic marketing tools. Because you won't be able to make a sales pitch in person, make sure your product video fills that need. A product video can assist clients in better comprehending the product and making an educated buying decision. It condenses your product photos and descriptions into an easily digestible visual bundle, filling the visual and sensory gap that usually bothers online customers. Keep in mind that you may only upload videos and additional visual material if you are a Myntra-registered brand. Outstanding packing The online shopping experience of a client does not end after a product is purchased. Packaging can help you increase sales significantly. Packaging is more than simply understanding how to pack a product; it is also about ensuring that the proper items are packed in the first place. Always double-check your orders to verify that clients receive the merchandise they requested. Shipping and delivery on schedule Customers have deadlines as well. Their purchase may be a birthday present, therefore waiting for the thing is out of the question. When you get an order, make certain that the product is sent on time, every time. While there are often logistical issues that are beyond the seller's control, it is within your ability to ship orders as quickly as feasible. If the order is late, there is always the possibility that the merchandise may be returned, resulting in an unnecessary blemish on your seller record Ensure timely customer service Because of Myntra's customer-friendly return policies, sellers have few options as a vendor if a product is returned. Returned goods, on the other hand, provide a chance for a seller to learn from their mistakes. Vendors must resolve customer complaints in real time and provide a channel for customers to report their issues. A fast answer might help to alleviate a customer's concerns and boost their trust in your business. A positive customer experience frequently results in more purchases and a reduced return rate. Make use of feedback and client reviews Customer feedback and reviews are critical for enhancing your service and products, therefore keep a watch on customer comments and reviews at all times. To reduce your return rates, try to figure out why your product was returned and work to solve the problem. It is also never a bad idea to contact the buyer personally. If a consumer has requested a refund, get in touch to explore what can be done and how this scenario may be prevented in the future. Direct and honest communication is frequently all that is required to guarantee that the customer does not post bad feedback about the vendor. You may take this a step further by asking your clients to complete a brief multiple-choice survey to better identify and address underlying issues. Improve Procurement SLAs Plan your inventory replenishment to avoid running out of inventory while keeping in mind the typical time it takes to send the product to the eCommerce fulfillment center.You must have a certain quantity of items in stock in your storage facility at all times, i.e. standard level inventory.When inventory falls below the normal level, you must order more inventory, also known as the reordering level.Keep an emergency supply on hand. Improve Ready to Dispatch (RTD) SLAs Create product listings for the goods that, based on your order processing capabilities, you will be able to ship by or before the scheduled ship date.Ship the orders and confirm the shipping with Myntra by the order's scheduled ship date.Pack your orders and designate them as ready to dispatch (RTD) on a first-come, first-served basis. Regularly review your order fulfillment operations to detect and rectify any inefficiencies that may result in late dispatch.Increase your ability to handle orders during flash sales and other promotional events. How can WareIQ Assist You to Sell on Myntra in 2022?  Working with a tech giant like WareIQ will help you sell on Myntra as Gold Tier Seller. Let's look at how: Meet all SLAs to guarantee shipment adherence and avoid seller cancellations. WareIQ's SLA-driven and streamlined pick and pack solution allows you to pack Myntra orders on time and label them as 'ready to dispatch.' Sellers can minimize late shipping and cancellations by meticulously processing orders while keeping SLA in mind. Read how the pick and pack fulfillment process works. With Correct Inventory Relay, you can avoid seller cancellation Every 5 minutes, WareIQ syncs your inventory across all sales channels, allowing you to convey precise inventory levels on every marketplace and avoid cancellations. How do we assist in reducing seller cancellation?  You only get requests for inventory that you have by relaying precise inventory levels. Check out Warehousing and Fulfillment at WareIQ and read about warehouse management. WareIQ's Inventory Planning Increase your Gross Merchandise Value(GMV) by offering product bundles You may utilize strong merchandising strategies like product kitting with WareIQ to package many goods together. This allows you to maximize product visibility and give clients interesting incentives. How do we assist? It allows you to increase sales by boosting a purchase's average order value (AOV). Discover how kitting may be an effective revenue-boosting strategy.  Fulfillment is frictionless during flash sales and other promotional events. WareIQ network supports flash sales by coping with exponential increases in order volume and integrating its broad fulfillment infrastructure with well-organized workflows. Simply tell WareIQ of the sale's schedule and duration, and WareIQ will raise your daily pick capacity and provide enough labor. How do we assist in frictionless eCommerce fulfillment? It enables you to improve sales, enhance income, and assure uninterrupted order fulfillment. Check out our crucial guide on organizing a flash sale. Eliminate seller-controllable returns and product quality returns, ensure accurate order processing and quality inspections WareIQ performs quality checks throughout inventory receipt and order processing to ensure that your customers receive the proper items. If you have one-of-a-kind items that need to be thoroughly investigated, WareIQ allows you to tailor the inspection criteria to your exact requirements. How does it assist? It enables you to provide the correct items with remarkable order accuracy while efficiently handling returns management. You May Also Like: How to sell on Instagram? Conclusion While many merchants believe that selling on Myntra is a no-brainer, it is dependent on the type of your items, company goals, and eCommerce fulfillment service requirements. To become a Myntra seller, we may provide your company with the push and exposure it requires to maintain continuous development. Retailers, on the other hand, would have to evaluate the benefits against the drawbacks. If you do decide to sell on Myntra and want to keep some of your flexibility, you can always hire a third-party fulfillment firm like WareIQ to handle all of your needs. You may concentrate on the heavy lifting while we handle the rest. WareIQ is one of India's leading and fastest-growing full-stack eCommerce fulfillment companies, providing everything from same-day and next-day delivery, shipping badges, and RTO Shield to cutting-edge technological solutions like our custom Warehouse Management System (WMS) and user-friendly app store. With that it offers seamless integrations with more than 20 online selling platforms including Snapdeal, Amazon, Meesho, Flipkart, and much more. We can handle all of your brand's fulfillment needs, ensuring that you and your customers receive the finest order fulfillment in the country, a hassle-free experience, and increased customer happiness. [signup] How to Sell on Myntra FAQs What is the process to register and sell on Myntra?To sell on Myntra, you must first register a seller account on their website before filling out a simple form with your personal and business details. How can I create a Myntra seller account?If you want to sell on Myntra and want to open a Myntra seller account, you must first create a Myntra Partner Portal account. You may create a Myntra seller account from within the Partner Portal once you have registered a Partner Portal account. What type of products to sell on Myntra?All kinds of Clothing and accessories, Bags, Footwear, Self-care Products, and Jewellery are the best categories of products that vendors sell on Myntra. Is it profitable to sell on Myntra?Yes, it is advantageous and profitable to sell on Myntra. Before you begin to sell on Myntra, you should be well informed of the company's selling policies. How do I sell on Myntra if I don't have a GST number?If you wish to sell on Myntra without a GST number, you may only offer non-taxable items. These items do not require a GST number to be sold online. Is it possible for any individual to become a myntra seller?Only a business entity, not a person, is permitted to sell on Myntra. As a result, to become a Myntra seller, the applicant must own a legally recognized firm. How can I sell on Myntra and become a gold seller?If you wish to sell on Myntra and aspire to become a gold tier seller, you should follow policies strictly to sell on Myntra and stick to SLAs to gain access to the gold tier. You also need to maintain specific return rates and quality as per rules to sell on the Myntra marketplace. Why sell on Myntra?Selling on Myntra is an excellent approach to promoting your products to prospective consumers. One of Myntra's biggest features is that they provide free shipping on orders above INR 499. Returns are very simple, and buyers may receive their money back within a few days.

May 23, 2022

7 Best Ways to Increase Shipping Speed for Fast Fulfillment & Better Conversion in eCommerce Business in 2022

7 Best Ways to Increase Shipping Speed for Fast Fulfillment & Better Conversion in eCommerce Business in 2022

The speed of delivery has always been one of the major factors in meetings customer expectations and it seems to be getting more challenging. However, the real challenge is that in today's modern world, fast shipping in 1-2 days is considered the norm, not an additional benefit. There is a dire need for eCommerce players to increase shipping speed to meet customer expectations. Before figuring out the reason for improving delivery speed, let’s understand what eCommerce shipping speed means. What is Shipping Speed? Simply put, shipping speed refers to the speed of delivering customers’ orders to their doorsteps. Whether the product being shipped is online fashion, groceries or pharma, its shipping speed is the time taken to travel from the warehouse to the customer. It depends on the distance between the storage unit and the customer’s doorstep, the road network, and other logistical challenges and costs such as infrastructure. Shipping/ Delivery Speed is calculated in the number of days or hours taken to deliver the shipment to the customer. It is different from the processing time that companies take to process and prepare the order for shipping. Processing time includes the time to procure the inventory and build the final product. Shipping speed comes into the picture once the product is handed over to the carrier. Why is Shipping Speed an Important Metric in the Shipping Strategy of an eCommerce Business? Customer expectations drive eCommerce business decisions. A few years back, the expectations were same-day or next-day deliveries. The internet penetration in smaller towns was already driving the trend of fast deliveries when the forced stay-at-home lockdowns changed customer mindsets. Gen-X and millennials were getting used to the idea of instant gratification. This situation reduced their patience even more and so too, the timeline given to eCommerce players to deliver. The rising number of eCommerce players in the market has added to the desperate need to perform better. Most customers switch to another brand if the delivery takes more than one or two days. In fact, 49% of online shoppers accept that same-day delivery pushes them to complete the transaction. 80% of shoppers expect same-day deliveries, but 61% expect their package to arrive in less than three hours. Plus, many customers agree to pay for increased shipping speed. The eCommerce logistics involved in shipping online perishables or groceries is another story. However, its penetration in the Indian economy is expected to reach up to 5% by 2025 from 1% today. Plus, around one-third share of the income is spent on groceries, and a young population below the age of thirty further pushes eCommerce companies to improve delivery speed. All these factors combined are spearheading the need for speed in the shipping strategy of eCommerce businesses. In addition, the current consumer mindset is forcing online retailers to improve delivery speed to stay in the game. [contactus_gynoveda] Top 7 Ways to Increase Shipping Speed for Faster eCommerce Fulfillment Streamline Picking eCommerce business owners know the significance of same-day picking of inventory. The moment an order is placed, try to pick up the stock or schedule it through your logistics partner on the same day which increases shipping speed. Notify the customer of the pickup to keep them engaged. Let them know that their order is already on-route to the warehouse for processing. This technique serves as a great time-saver. Use Multiple Storage Locations Having multiple warehouses and dark stores is another way to increase shipping speed and although it also increases overall logistics costs, this hack indeed speeds up last mile deliveries. Areas are divided into geographical zones, and storage spaces are set up for order fulfillment. Moreover, it allows eCommerce companies to cover more pin codes. The logic is simple. Being closer to the customer’s destination helps in saving time and logistics costs. Plus, partnering with a specialist ecommerce warehousing provider at multiple locations can help the business reduce overheads. Be Ready for Peak Season Discounts and orders increase during the festive season, leading to hectic timelines and puts unprecedented pressure on the supply chain. As a result, shipping delays can quickly occur when orders pour in, in contrast to any other time of the year. So it becomes crucial for businesses to prepare for this increase in demand in advance. Get resources such as manpower, inventory, software and 3PL fulfillment companies to prepare for the festive season. Unmet customer expectations can lead to poor reviews and a sudden drop in ratings. The eCommerce industry is on high alert during the peak season and all players look for ways to entice customers. No business can afford to lose its customers during this time due to underperformance. It is critical to focus on increasing shipping speed during this period. Provide Updates Through Notifications Letting the customers know of the whereabouts of their order is making a promise that their shipment is on the way. After making the payment, customers keep a frequent tab on their packages. eCommerce companies should strive for same-day pickups but delay informing the customers. Instead, roll out the confirmation email after the order has been picked and packed from the warehouse and shipped. This way, the notification highlights your promptness and surprises the customer who will receive the package earlier than expected. Partner with Experts Managing an eCommerce business comes with a lot of challenges. Having a 3PL logistics expert on board to offer advice and logistical services can smoothen the process. A specialist can help businesses plan eCommerce warehousing at multiple locations, offer safe and well-timed transportation services and give advice on reducing expenses. Have SLAs for Processing Procuring the inventory and preparing the final product to make it ready to ship can be a cumbersome process. Moreover, delayed processing can pressure shipping partners to meet delivery timelines. It can lead to failed promises and unhappy customers in case of tight shipping deadlines. Having service level agreements (SLAs) executed well on the ground helps prevent the snowball effect. eCommerce companies can also hire a logistics consultant to plan timely processing, push out the final product for delivery, and improve delivery speed for the business. Automate Processes Besides usual delays, as discussed above, human errors are another common cause of delays in operations and bad shipping speed. Automating the supply chain either partially or completely can save time & help to increase shipping speed. There are readily available automation mechanisms like robots, automatic barcode scanners and automated shipping decks. eCommerce companies must develop and optimise their shipping routes for timely deliveries to a particular zone or location. Today’s superior tech can automate the supply chain to save time and effort. AI and ML-enabled software assist in charting the best routes for efficient utilisation of transportation, workforce and time. Plus, advanced apps help integrate retail fulfillment systems with the supply chain and help improve delivery speed. Despite all preemptive measures, delays can happen while shipping, but there are ways to handle them. How do Online Businesses Manage Shipping Delays? After facing delayed shipments, most online shoppers don’t return to an eCommerce brand. It is more difficult to retain an existing customer than to acquire one. If not a global pandemic, human errors, customs issues, poor warehouse facilities, transportation & warehouse management, or simply distorted communication between logistics partners can lead to shipping delays. Here are some ways to manage shipping delays: Customer Communication Update the customer in real-time with the reason behind the delay and the revised estimated delivery time. Then, offer them some discounts on their current or future purchases and special deals to pacify them. Take Ownership While some customers may understand, some might choose to post complaints on social media. Either way, eCommerce companies need to take ownership of the delay and issue a formal apology. Track Orders in Real-Time eCommerce companies must watch for any mishaps or delays once the shipment has left their warehouse. While hiccups occur, shipping partners usually offer a resolution. Some propose a money-back guarantee, which helps retail customers. Use Multiple Logistics Partners The supply chain requires multiple processes at different stages. Using multiple logistics partners is advisable for eCommerce businesses so they can fall upon someone else if one service provider falters.  How Can WareIQ Help Increase Shipping Speed for eCommerce Players? WareIQ is a shipping and eCommerce fulfillment enterprise. They provide their eCommerce clients with high end updated technologies like an advanced warehouse management system, RTO Shield, a team of specialists, multiple warehouses across India, information regarding the best courier services (area-wise), etc. This series of offerings enables eCommerce businesses to store inventory closer to their customers throughout the country, thus facilitating faster order fulfillment and improving delivery speed. WareIQ's team and tech, combined, offer efficient solutions for Intelligent inventory placement and courier allocation to the eCommerce industry. They employ a full-stack approach that offers complete fulfillment solutions, last-mile delivery software for tracking, COD and returns management. After all, they are a seasoned logistics service provider. Sign Up Now with WareIQ to take advantage of our superior fulfillment tech platform & accelerate the growth of your online business. Shipping Speed FAQs How can WareIQ improve delivery time & provide fast shipping speeds to your business?WareIQ offers multiple fulfillment services including it's custom WareIQ RUSH platform that enables companies to provide seamless same-day and next-day delivery. How is Shipping Speed calculated?Shipping speed for an order depends on the processing time and transit time. Factors affecting it are the customer’s delivery location, the route leading up to it, any unforeseen contingencies and the number and nature of products that need to be delivered. Can there be different charges for odd-hours shipping?Yes. If a customer selects odd-hour delivery timelines, eCommerce companies can charge a fee for such shipments. Such orders affect the average shipping speed executed by the company. They demand specialized planning, which might have to be advanced or delayed depending on the customer’s request. Does faster-shipping speed increase sales in eCommerce?Fast shipment contributes to greater conversion rates.  49 percent of customers agree that speedy shipment encourages them to shop online. This means that a single day's delay in delivery might make or break a purchase. When delivery times are too slow, 85 percent of customers look for better options elsewhere.WareIQ is an eCommerce fulfillment company that provides Prime like logistics with the fastest shipping speed to online brands in India enabling next day & same day delivery. Can complaints or requests received in transit affect the shipping speed?Any customer requests received in transit are usually not accepted as they can delay the shipment. However, 3PL shipping partners know how to handle such contingencies and can assist the eCommerce businesses in managing the situation.

May 21, 2022

How to Reduce Shipping Costs? 10 Most Effective Tips to Reduce Shipping Costs For Online Businesses in 2022

How to Reduce Shipping Costs? 10 Most Effective Tips to Reduce Shipping Costs For Online Businesses in 2022

eCommerce sales have dramatically increased as technology advances and customer experiences become more personalised. However, most organisations face the dilemma of whether to reduce shipping costs to remain profitable or to provide high-quality shipping services to customers.  Shipping costs are a substantial expense for every company, but you may risk providing a poor customer experience while trying to save money.  Continue reading to learn how to efficiently reduce shipping expenses without sacrificing service quality, customer experience, or operational efficiency. What are Shipping Costs? In the broadest sense, shipping costs are the total rates of getting the order delivered to the customer. When looking at door-to-door delivery from the manufacturing unit to the customer’s location, multiple prices are involved.  The total shipping cost can be divided into 2 types - shipping and handling. This entire process will have the following associated costs: Warehouse storage costsPacking materials costsPicking and packing costsLabour costsLoading costsFuel costsTransportation costsPostage costsSurcharges and customs costsDelivery labour costs [contactus_gynoveda] Top 10 Factors to Consider While Calculating Shipping Costs Now that we understand the various price components involved in shipping costs, we will take a look at other factors that impact how much a package will cost to be delivered. They are listed below:  Weight of Package The package's actual weight is a significant factor in increasing shipping costs. A heavy package/delivery item will require more space and energy to deliver to the customer's location. The packaged weight translates to higher shipping costs while delivering heavy packages. Dimensions of Package Apart from weight, the dimensions of the package also influence shipping costs. The larger the order, the more space is required in the delivery fleet for a seamless experience.  Distance to Delivery Locations The distance between the package pickup and delivery location is another major factor that determines the shipping cost. Delivery fleets divide delivery locations into zones depending on delivery speed, type of package (domestic or international), mode of delivery (sea, land, or air), the feasibility of delivery, etc. The further the delivery address, the higher the costs associated with it will be. Fuel Fluctuations Changes in fuel prices contribute drastically to the associated shipping charges. Higher fuel costs automatically increase the cost of shipping orders. When fuel prices are stable and manageable, it also lowers transportation charges and is able to decrease shipping costs. Delivery Speed The time it takes to deliver an order affects the shipping cost. Many delivery fleets have standard timelines to deliver packages across various distances. Opting for same-day delivery or overnight shipping increases the costs associated with delivery. Type of Delivery Location It is cheaper for delivery personnel to drop packages off at a commercial site or office building than to go to individual houses. It is cheaper to ship orders to apartment complexes than to individual houses, since apartments receive multiple orders on the same day, balancing out the costs. There may also be additional fees for deliveries to hospitals, military areas, and out-of-the-way locations like rural addresses that may take longer to fulfill the delivery. Weather Conditions A factor that many businesses don't consider is the weather's impact on delivery. Bad weather at the warehouse or fulfillment center location, while in transit, and even at the delivery location can cause delays. Weather conditions can also adversely impact ports, container ships, air cargo, and trucking services. Shipping Insurance Keeping in mind that shipments can be damaged, delivered to the wrong address or could have delivery-related delays so it is vital to protect and insure your orders. Especially when shipping an expensive order, it is indispensable to use shipping insurance. This helps to recover any costs involved in replacements. Most package carriers charge a percentage of the product value as shipping insurance. Customs and Duties International shipping charges can vary based on delivery location. Different countries have customs and other obligations that need to be cleared for smooth delivery. Multiple Orders If a customer has placed multiple orders, shipping and packaging costs can increase. Sometimes, some orders have n increased delivery timeline because they are perishable. In this case, additional shipping costs will be involved to make multiple deliveries to the exact location on different days. Numerous orders should be packed and shipped together to save time and money whenever possible and decrease your shipping costs. Keeping all these factors in mind, companies can decide which type of cost structure to choose when it comes to shipping: Flat Rate Shipping Vs Standard Shipping. You can learn in detail about how to calculate shipping costs here. 10 Best Ways to Reduce Shipping Costs to Boost Profits in 2022 The key to excellent order fulfillment involves good planning, sticking to timelines, and ensuring that overhead costs are not too high. Striking a balance can help increase the profits of a business and improve customer satisfaction. Here are ten ways to reduce shipping costs for eCommerce: Make Packages Lighter While product weights remain the same, ensure to use minimal packaging material to reduce the overall weight of the package. Use more lightweight, efficient materials like air pillows to protect items. You can also use lightboxes to pack. For durable products that won't cause spillage, try switching to plastic bags with branding rather than bulky boxes to reduce shipping costs, you can learn more about branded shipping here. Use Smaller Boxes Make sure that the box used for packing items is slightly larger than the actual product so that minimal packing fillers are needed to keep it secure and will ultimately decrease shipping costs. The bigger the box, the more space it will take in the delivery vehicle, leading to more expensive shipping costs.  Keep DIM Weights in Check Smaller boxes can keep DIM weights in check while packing your order which will help reduce shipping costs. Carriers calculate the DIM weight by considering the package dimensions. There are chances that the DIM weight can be higher, even for lightweight items, solely because of the box's size. It is good to create custom packaging that will keep the products snug and free from movement by using the purchased item's original packaging as well. Shipping products in their own packaging can prevent the need for an additional box to ship to the customer, which will also decrease shipping costs. Club Orders Wherever Possible It is much cheaper to ship a single box that is bigger and heavier than multiple small boxes with single items. Bundling orders is possible when the same customer orders various products; this can help reduce shipping costs. You can also provide discounts on order volumes to increase customer delight. Have a Network of Multiple Shipping Partners Having various shipping aggregators to negotiate with will help get better rates and will decrease shipping costs. Shipping companies decrease shipping costs if the business has consistent order volumes. This provides an excellent opportunity to negotiate with multiple providers based on prices offered by competitors. Use Packaging Provided by Carrier Partners Since shipping costs are affected by package dimensions, it's better to use packaging materials offered by the carriers themselves. This will eliminate associated dimensional fees and reduce shipping costs, overall. Opt for Third-Party Insurance Shipping insurance is higher when taken directly from the carrier partner. Also, consider shipping insurance for fragile and high-value items. You may not need to insure every single package. Third-party insurance providers are cheaper than native carrier partners, helping businesses decrease shipping costs by almost 50%. Use Prepaid Shipping Prepaid shipping can help sellers decrease shipping costs by at least 20%. You can opt for prepaid shipping and buy shipping labels from carriers in advance. This is ideal for businesses with consistent orders of the same package size and weight. Look for Hybrid Solutions If you can manage same-day order processing, it is best to choose a hybrid model for order fulfillment. It can help to reduce shipping costs for eCommerce. eCommerce Shipping companies partner with carriers who can have it picked up from a business location and get it to customers quicker with last-mile delivery. However, keep in mind that orders need to be processed as soon as possible after a customer places the order to meet delivery expectations. There may also be other factors to consider with this hybrid approach, such as specifications of weight, dimensions, order volume, etc. Reduce Shipping Distance Keeping inventory at locations closer to areas of high demand will help decrease shipping costs drastically. The closer the products are to delivery locations, the less money and time businesses need to spend in getting their orders to customers. Having a third-party fulfillment partner will optimize the delivery experience and decrease shipping costs.  Suggested Read: Ways to Provide Free Shipping to Costumers. Conclusion: Does Outsourcing Fulfillment to a 3PL Partner Like WareIQ Help to Reduce Shipping Costs? The best way to decrease shipping costs, reduce order processing times and improve customer satisfaction is to outsource fulfillment operations. Here is how a 3PL fulfillment services provider like WareIQ can help businesses maximize profits and reduce shipping costs: Flexible Warehouse Space WareIQ allows businesses to pay only for the warehouse space that is actively used without the businesses having to invest anything in warehouse management. Packaging Optimization Having experts manage fulfillment ensures that products are packed with suitable materials that provide damage-free delivery and avoid an increase in the DIM weight. Provision of Discounts Having a fulfillment partner helps improve shipping costs as they buy packaging materials in bulk and can help reduce overall fulfillment costs. Inventory Management With access to fulfillment centers, businesses can easily manage optimal stock levels and scale the business without high capital investments With a centralised platform for core fulfillment, eCommerce shipping operations, and post-shipping apps, WareIQ manages the entire range of complex eCommerce operations in the eCommerce fulfillment process. Inbound functions like scanning and quality check, 100% accurate pick and pack, and inventory management across all channels provides a delightful experience and zero to minimal supply chain leakages. Customers of WareIQ enjoy significant cost savings and a broader reach with no minimum order quantity (MOQ) limit. [signup] Reduce Shipping Costs FAQs (Frequently Asked Questions) What costs are involved in sea cargo?For delivery by ocean cargo, businesses will have to consider ocean freight, various surcharges incurred for peak season, low sulphur, emergency risk, etc., and other factors like currency adjustment, bunker adjustment, etc. What costs need to be considered when shipping across international orders?If packages have to be shipped by land and need to cross international borders, various costs involved will include documentation, customs for port, road and rail, customs brokerage, delivery order fee, wharfage, cartage, chassis usage, etc. Which is better to reduce shipping costs? Self-Fulfillment or Third-Party Fulfillment.When businesses themselves ship orders, the costs will always be higher. With 3PL partners fulfilling orders, companies get transparent pricing, better inventory management, faster delivery, and better opportunities to scale the business. How can WareIQ help your business to reduce shipping costs?WareIQ offers multiple services across the fulfillment spectrum and offers the choice of every major shipping courier service in the country, to always provide the cheapest rates and most competitive services to its users. 

May 21, 2022

What is Returns Management? A Detailed Guide on the Processes, Best Practices & How to Benefit From Returns & Exchanges in 2022

What is Returns Management? A Detailed Guide on the Processes, Best Practices & How to Benefit From Returns & Exchanges in 2022

With a drastic increase in online purchases, especially after the health crisis of the Covid-19 pandemic, the eCommerce industry is booming like never before. Most eCommerce and online businesses focus on forward logistics and last-mile delivery to reduce the overall delivery time. But unfortunately, the majority of them miss one of the most critical aspects of the supply chain – the returns management of goods. The bad news is that almost 30% of online purchases are returned. There may be numerous reasons behind it, but customers often get discouraged from committing to a purchase if the returns management process is complicated. Statistics revealed that 92% of buyers stick to the businesses if they can manage returns in a simple way.  What is Returns Management? Source According to research, after-sales service, where returns management is a prominent factor, ranks as the most important metric in building customer trust. Returns management, also known as reverse logistics, is a process where a customer returns the goods they have already purchased. The company then needs to arrange a pick up of the returned items from the end buyer and take them to the warehouse. Mainly, the whole process is triggered, tracked, and controlled through software solutions or mobile applications. The process does not end here. After receiving the returned product, the company decides whether to dismantle it and keep the useful parts, recycle it, repair the product or scrap it as a whole. The decision depends on the situation and condition of the returned item. 5 Processes of Returns Management The returns management process depends on the type of purchase - online or in-store. But regardless of the type, it should be simple and easy. Initiation of a Return or Refund by the Customer The process starts when the customer requests a return of the product that they have purchased. There may be several reasons for wanting to return it such as receipt of a defective product, delivery of a wrong product, improper packaging of the item, buyer’s remorse or multiple other reasons. The buyer then requests a return through the order tracking page or by contacting customer service and needs to mention why they are initiating the return and whether they need a refund or replacement. Acceptance or Rejection of the Request by the Company Depending on the company’s return policy, the dedicated personnel either accepts or rejects the return request depending on various factors such as the reason for the return and the condition of the product. Usually, the status immediately reflects on the platform, and the customer receives a notification. Pick-up and Inspection of the Product From the Delivery Address by the Seller After the acceptance, the seller mentions the expected pick-up date and time and arranges the relevant reverse logistics processes. Though it is a daunting task for the logistics team to manage the forward and reverse logistics, it is crucial for the company’s brand image and customer retention. Some companies often delegate this task to a 3PL logistics company. Delivery partners will assess the condition of the product and report the information back to the seller. Delivery of the Product to the Warehouse After collection, the returned product travels back to the warehouse or storage facility. It is then sorted and goes through a strict and detailed quality assessment. If any aesthetic or functional defect is found, further decisions are taken on whether to repair, refurbish or scrap. Else, it moves to an auditor for further analysis. Restocking the Product in the Inventory If the product passes the quality check, the warehouse stores and stocks it as per the inventory policy. The product is eligible for sale once again. How to Make the Most Out of Returns and Exchanges Customer returns are an inevitable fact. But you need to find out how to manage returns. Here are some interesting and effective ways to utilize returns management to the fullest extent: Automatic Data Collection and Analysis To improve the process, it is imperative to collect all the data you can. Investigate the reason for the return and try to get the customer’s feedback about the return, refund and replacement process. During the analysis, consider all the demographic factors like age, gender, etc. It is helpful to identify all the possible metrics that lead to return so that those same factors can be mitigated in the future. Better Understanding of the Preferences of Your Customers An efficient returns management process can tell you about the choice and trends of your customers. The information shared by the customer during the returns management process is beneficial to understanding your buyers’ persona and assists in lead generation and refining your target audience. Construction of a Robust Return Policy Prevention is better than a cure. A customer's return request and how it is managed are indicative of whether your business is able to manage returns or not. Data helps avoid such scenarios. You can get a better understanding of the loopholes to reduce excess costs associated with it. It can highlight the weak points of the return policy and you can craft a more stringent yet customer-friendly policy to avoid losses. 7 Ways to Improve Your Returns Management Systems in 2022 The need to manage returns is painful for every company. But it is a part of business and an efficient returns management process can help you to reduce your expenses drastically. We have summarized some key methods for you below: Understand the Controllable and Uncontrollable Aspects of Returns Customer rejections are costly. If you can identify and analyze the controllable and uncontrollable parts of the returns management process, you can strategically implement the improvements that are necessary. Measure the Cost of the Returns Process Customer satisfaction is one of the critical aspects of measuring a company’s success. But the ultimate goal of a business is to make money. If the cost of customer return is very high and impacts the business's bottom line, you need to think of ways to streamline it and reduce some of those costs. A refund could be a more economical option than an outright replacement. Implement a Clear Return Policy A transparent return policy plays a vital role in mitigating any complications regarding returns management. It helps you to manage returns efficiently, without offending the clients. You can share it on your website, send a hard copy with the shipment, or make it visible on your selling page of every online platform you are listed on. The policy should be easily accessible to the buyers to remove any disparities that could arise later. Analyse the Reasons for the Return This aspect provides the deepest insight into your returns management process. To manage returns effectively, ask your customers to mention the reason for the return while sending a return request. You can perform the analysis in different ways such as measuring the frequency of the returns of certain items, shortlisting specific geographic locations, manufacturers, etc. Provide a Quick Response and Pick Up Customer retention is now the focal point of every business. In order to improve their experience, a quick response and returns management process play a crucial role. According to statistics, 88% of buyers do not prefer to buy from a company that has a late response, return or refund process. Focusing on this area helps you retain clients and is also good for better inventory management. Provide a Transparent Tracking Process Just like the forward logistics during the delivery of an order, a transparent tracking system to manage returns can also help you improve efficiency. An update on the fulfillment status, delivery, and expected time of return through a digital medium or email and SMS notifications improve the trust quotient of your brand. Use a Return Fulfillment Center Having a separate fulfillment center for returns is a good option if you do not have enough time to manage returns. Nowadays, several 3PL fulfillment companies provide such services. This system provides you with ample time to focus on your core business activities so you do not need to worry about returns management. Benefits of Optimized Returns Management Return management is a cumbersome process. But if you can manage the customer return process efficiently, it can benefit you in several ways: Improves Profit Margins Return management is an integrated part of every eCommerce and online business. It is hard to avoid, but if one can manage returns correctly, the process can be improved to increase profit margins. You can do this by: Optimizing the transportation expenses of reverse logistics.Exploring the option of reselling rather than scrapping returned products. This will save you from a complete loss.Trying to repair or refurbish damaged products to be able to resell it.Do a detailed rejection analysis, find the root cause, and eliminate the vital issues first. That way, you can reduce the reoccurrence of similar concerns. Boosts Customer Satisfaction Returns management may be an underrated aspect from a business perspective. But it is a vital point from a customer’s point of view. If you are unable to manage returns properly, it will directly impact the customer’s feelings about your brand image. The after-sales service is more important than just ensuring your products get sold.  Improves Turnaround Time A quick return process can help you get back products faster. You can then repair or resell it faster, which helps to eliminate the cost of a new purchase. Reduces Wastage Efficient returns management entails proper handling of returned products as well. You need to analyze every product and explore ways to be able to reuse or monetize it. A thorough inspection can give you an insight into which products can be resold, which can be repaired at a minimum cost and what items need to be scrapped.   Conclusion It is now evident that to run a successful eCommerce or online business, you need to take returns management seriously. This does not mean that you need to spend large amounts of money on research and development. You just need to understand the importance of providing a solid returns management process as it will benefit customers as well as your business, in multiple ways. Partnering with a 3PL fulfillment company like WareIQ will give you access to advanced features at competitive prices that you may not have had prior access to.  Ways in which WareIQ can Lower your Returns Management Expenses Quick TAT (Turn around time) Logistic partners provide an estimated delivery timeline based on which the customers anticipate the delivery. If it fails to reach them as per this expectation, there is a risk of an RTO and the customer opting to order from a competitor. This also affects the customer retention rate. With WareIQ’s Prime-like shipping, data-driven insights, PAN-India network of warehouses and excellent supply chain management system, orders reach the customers on time as promised. This ensures a higher rate of First attempt delivery, thus reducing the breach of TAT. Higher and Efficient First Attempt Strike Rate (FASR) Delivery success in the first attempt ensures happy customers and helps in their retention. This is an important metric since lower returns imply lower logistics costs on RTO. With WareIQ’s structured incentive plans, delivery partners are encouraged to deliver maximum shipments in the first attempt thereby increasing the FASR. Improved Non-delivery Report (NDR) Conversion Knowing the customer’s intent before performing the last mile delivery can save a lot of time costs related to RTOs. This can be achieved by validating the attempted shipments by directly communicating with customers via phone calls, SMS, e-mail, WhatsApp, etc. Any change of preference or cancellation or order can be recorded and shared to the shipping partner in real-time to decide whether to “Reattempt the delivery” or “Make RTO”. Performing this manually at scale is almost impossible. With WareIQ’s innovative solutions, most of it can be automated via IVR (Interactive voice response) calling, auto-SMS, auto-mailer, WhatsApp alerts, etc. This also keeps the customer well informed and creates an impact on improving the delivery conversion percentage. In the auto NDR process, the customer will get an IVR call immediately after a failed delivery or when the NDR remark is updated by the delivery personnel. Automation makes the entire process quick and efficient. Wrong or Incomplete Address Amidst the huge traffic across the supply chain and sometimes because of consumer’s ignorance, deliveries often end up attached with wrong or incomplete addresses. This is also one of the major reasons for RTO. Address validation becomes important in this context. WareIQ ensures this authenticity with various checks on the same. This increases the chances of successful delivery. In case of an incorrect address, shipping is cancelled prior to dispatch. It allows not only for lower RTO but also avoids wasteful shipping costs. Automated Partner Pin Code Allocations With WareIQ’s cutting edge technology, pin code allocation is automated. This altogether eliminates the hassles of manual allocations thus reducing logistics costs & shipping costs & RTO as well as increasing fulfillment serviceability and speed of delivery. Making changes in allocations is complex and takes a good amount of time. The system analyzes historic RTO percentages and cost per shipment (forward + RTO) to optimize the allocation and ensure that the courier with the lowest possible cost is chosen for the given pin codes. Such efficiency and cost reductions are not possible with manual processes. This also saves a lot of time in processing and shipping the orders. RTO Shield WareIQ’s RTO Shield provides eCommerce/D2C firms with a comprehensive checkout strategy to reduce RTO losses and increase revenue. Why WareIQ’s RTO Shield? Request a refund for any RTO order that was predicted to be safe by the company.Smart COD checkout option based on technology to detect problematic customers and save on shipping costsDisable COD for untrustworthy and blacklisted customers automatically.Identification and deletion of duplicate ordersVerification of shipping addresses and intelligent shipping selections based on address completeness Benefits of RTO Shield Increase conversions and decrease cart abandonment.The quickest checkout time is under 10 seconds.Identify high RTO risk consumers using data sets from telecom, banks, hyperlocal, and OTT providers.Identify scammers using previous data on their past purchasing behavior and win over them. How Does it Work? Integrate the website/application with WareIQ3 months of historical data will be needed to train the model to predict accurately.Go live in 3 to 5 days Sign Up Now with WareIQ to avail our superior fulfillment tech platform & app store & enhance your online business growth by reducing RTOs with RTO Shield. Returns Management System FAQs What is RMA?RMA or return merchandise authorization is a process used by online and eCommerce businesses to allow the buyer to return the product. You need to have a proper process in place to respond to issues before setting up an RMA. It can help to reduce returns management costs and boosts customer delight. Why is it suitable to offload your returns management processes to 3PL companies?3PL companies specialize in fulfillment processes across the board and this includes returns management. They are able to offer you means to reduce the frequency of returns, strategize efficient returns policies and implement detailed reverse logistical procedures to ensure that products are returned safely. What are the reasons for a return?There may be several reasons for customers to return a product. Some common factors are:- Products are damaged when recieved- Products appear different than the descriptions on the website- Remorse after the purchase has been made- Delayed delivery- Poor quality product delivered How is returns management linked to business growth?An efficient returns management can help the growth of a business in several ways. It improves customer satisfaction, which in turn improves customer retention. A happy customer can become your brand's advocate without any cost spent on advertising. Good references always help to generate leads and thus more sales and growth. Does WareIQ manage returns?Yes, WareIQ manages returns. It has What returns management processes does WareIQ provide?WareIQ provides multiple services that can assist in your returns management processes such as Non-Delivery Report (NDR) conversion, liability protection, RTO Shield, customer support and much more.

May 20, 2022

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

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

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

May 19, 2022

Flat Rate Vs Standard Shipping: 7 Key Differences in 2022

Flat Rate Vs Standard Shipping: 7 Key Differences in 2022

In the eCommerce market, shipping is quite important. If you're selling tangible assets, shipping is the only way for them to get to their intended destination. Customers, on the other hand, want their orders delivered at their convenience. Are you unsure about flat rate vs standard shipping? Don't worry we've got your back. Many of you have probably heard of these terms and must be aware of Flat Rate vs Standard Shipping costs and processes related to them. In this post, we will discuss flat rate vs standard shipping and how to select the most appropriate and cost-effective delivery option. Flat Rate and Standard Rate Shipping Flat rates and standard shipping rates are the two different price options for shipping your products. You may offer your customers a fixed shipping fee for each zone or weight slab, or you can offer them a standard shipping rate that varies within a zone and is determined by various criteria. What is Flat Rate Shipping? Flat rate shipping is also known as linear rate shipping. Every parcel is assigned a set value. As a result, the value is unaffected by the dimensions, size, or weight. That is why delivering heavy items via flat rate shipping is more beneficial than shipping smaller parcels. Flat rate costs vary depending on the time zone or a weight slab, however, all parcels that fall within that weight slab will be charged the same flat fee. The goal of the flat shipping charge is to unify and standardize your package. If it fits the specific size and weight standards, the same fee applies to shipments in a single region, such as local national delivery. It means you may choose from a variety of box and envelope sizes, each with its weight restriction. You can send it with basic shipping if the item you're sending fits in the lowest parcel size and the weight allowance isn't exceeded, Advantages of Flat Rate Shipping include transparency, simplified management, and rare weighing errors, among various other benefits. Read more on Flat Rate Shipping, to gather additional information on it. What is Standard Shipping? Standard shipping, also known as ground, economy, or regular shipping, this module of shipping can save your money by generating prices that are tailored to your specific needs. Standard shipping is intended for small businesses or individuals who mail packages of various sizes and weights. It also supports shipping to a variety of locations, including international operations. Standard shipping usually includes a fair delivery time and a comprehensive tracking option, allowing both the sender and the receiver to follow the shipment in real-time. The standard delivery time is three to seven business days, however, if the destination is far away, it may take a bit longer. The majority of standard shipment is done by road. Standard delivery is cost-effective, but it is also slow. Some customers who are accustomed to next-day or same-day deliveries may be put off by this. [contactus_gynoveda] Advantages of Standard Shipping The following are the key benefits of standard delivery rates Liability is minimal to non-existent One of the most important benefits of going with a normal delivery fee is that you have little to no liability. This is perfect for new fulfillment sellers or firms who are unable to determine their true reach at first. In this scenario, regular shipping prices assist to avoid any confusion or loss. It assists in providing a full breakdown of each order's cost. Provides a Classic Approach When a company doesn't have many consumers in a given time zone, a standard delivery fee is an easy choice. It might help you avoid the continual switching of shipping partners. How Does Standard Shipping Work? Standard shipping is suitable for companies who need to send small to big packages at a low cost. The cost of shipping varies depending on the distance, weight, and size of the package. When a consumer selects this option, provide them with a comprehensive shipping policy that covers shipping rates and procedures, as well as delivery timelines. The shipping businesses choose, sort, and pack orders that are shipped via regular delivery. They are then transported by ground transport, which takes 3 to 7 business days to reach clients. There is no need to purchase boxes with precise dimensions for standard delivery. You may pack it in any box that matches your merchandise. Standard international shipping takes substantially longer, depending on where you are. Customs fees and taxes may also be applicable. Many courier companies also provide eCommerce order tracking, which keeps you and the customer informed about the parcel's exact location until it is delivered. Now when we have the basic idea about flat rate vs standard shipping. Hence, choosing the correct shipping partner for an eCommerce courier business is a difficult undertaking. There are dozens of them throughout the world, each with its own set of charges and terms. We compiled a list of the best eCommerce shipping companies in India, along with eCommerce Fulfillment Services guide. Flat Rate Vs Standard Shipping: Key Differences Every shipment is charged a predetermined amount under flat rate or linear rate shipping arrangements. The charges for this shipping plan are not affected by the size or dimensions of the package. The flat delivery charge is frequently preferred when transporting large products. Flat shipping charges may differ based on time zones and destination location. Standard rate shipping is the most popular method used by businesses to deliver their items to customers. The pin-code, box dimension, weight, time zone, and other factors are all taken into account when determining the final shipping charge. The majority of shipping service companies give a normal delivery period of 3 to 7 days. Flat Rate Vs Standard Shipping: Key Differences Table [table id=18 /] Flat Rate vs Standard Shipping: Differentiating Factors There is a set delivery time with flat rate shipping that cannot be changed. Standard shipping is based on ordinary shipping prices, which are computed based on pin codes and zones. A flat rate simply indicates that any item may be sent for the same fee, generally within zones. In most circumstances, the eCommerce site calculates and sets this pricing after consulting with its delivery partner. Shipping Cost Flat rate shipping is calculated based on different shipping zones. For example, flat charges may vary depending on the region and zone where the item must be delivered. Standard Shipping prices are computed based on pin codes and zones, and standard delivery is priced accordingly. To ensure that buyers receive only one shipping price, you do not need to adopt any special flat-pricing method. Customers will pay a single shipping charge for shipments within the city, regardless of their quantity. As a consequence, if you need to send to an address inside a specific zone near your business, this kind of shipping is suitable. Alternatively, if you have frequent consumers who travel from specified areas. There is a set arrival time for flat rate shipping that cannot be changed. Delivery Time In Flat rate Shipping, the deliveries take place between two to four days, while Standard Shipping takes three to seven days for the delivery of the package. Advantages Flat Rate vs Standard Shipping, both have their own advantages, in flat rate, the destination is pre-determined which saves time while delivering the package, and in Standard Shipping the cost for shipping is custom calculated, hence it saves money spent on the shipping. Flat Rate Shipping is mostly done by MNCs shipping identical packages in bulk, while Standard Shipping is for small businesses with a variety of packages. Flat Rate vs Standard Shipping- Choose Ideal Shipping Process for eCommerce It is critical for you to understand which delivery method is ideal for you as an eCommerce vendor, as far as Flat Rate vs Standard shipping is considered. You must have an estimate of the cost and select the most cost-effective way. Flat shipping is excellent for routine shipping deliveries within short distances in most circumstances (for example, within the country). Standard shipping is preferable for remote shipping zones since it is more reliable. You can charge the consumer for a portion of the shipping costs in the form of delivery fees. Before selecting to use flat rate shipping, you should consider the number of shipments you make. When you pick flat rate shipping, you may be required to pay additional shipping expenses. This implies that Flat Rate Shipping is ideal if your clientele is heterogeneous. How WareIQ Offers Shipping to eCommerce Players? Partnering with WareIQ can let you offer a diverse variety of carriers, transit times, and shipping alternatives to your clients. Also, WareIQ's next-day delivery helps to gain trust and credibility amongst our clients. WareIQ provides comprehensive eCommerce logistics support in addition to providing regular shipping alternatives that are dependable, fast, and accurate. You get free shipping materials, order tracking capabilities, a large network of fully operating fulfillment centers, and an on-demand logistics solution that connects with your online business when you outsource fulfillment to WareIQ. WareIQ also enables the brand to distribute to all places within 24-48 hours just like Amazon guaranteed deliveries, while lowering fulfillment expenses by 25%, as WareIQ is well aware of all the pain points in the eCommerce industry. The last thing you want to worry about is shipping, whether you sell on your website or through a vendor fulfilled prime, or on a marketplace. WareIQ has partnered with all the major national & hyperlocal courier service providers for efficient shipping. We at WareIQ seek to remove logistics operations totally off your plate so you can focus on growing your business in other ways. [signup] Flat Rate vs Standard Shipping FAQS Flat Rate vs Standard Shipping: Which is the most cost-effective delivery option?Standard shipping is the least expensive delivery option. It helps you earn the best margins. As far as Flat Rate vs Standard Shipping is considered Flat Rate vs Standard Shipping: Which shipping is best for the fastest delivery?Flat Rate Shipping takes 2-5 Days to deliver while Standard shipping takes 3-7 days, it might take weeks for International Standard Shipping. Flat Rate vs Standard Shipping: Which is best for my business?Both the flat rate and the standard shipping have their own benefits. This implies that you must make a decision based on your company's needs. Make an informed decision based on your company's needs and aspects such as reach, purchasers, and so on. Choose cautiously because it can impact your revenue generation. Flat Rate vs Standard Shipping, difference between Flat Rate and Standard Shipping.There is a set arrival time for flat rate shipping that cannot be changed. Regular shipping prices are calculated based on pin codes and zones, and standard delivery is priced accordingly. Standard shipping is employed for lengthier or non-prioritized deliveries instead of flat rate delivery. Flat Rate vs Standard Shipping: What is the difference in costs?Standard shipping is more variable than flat rate shipping because it includes a steady price for packages. Standard shipping fees may be applied based on package type, size, shape, weight, or distance travelled. Each carrier determines its own shipping charges.

May 19, 2022

What is EOQ – Economic Order Quantity? What is the Importance of EOQ for eCommerce Business in 2022?

What is EOQ – Economic Order Quantity? What is the Importance of EOQ for eCommerce Business in 2022?

These days, order fulfillment for eCommerce sellers has become a relatively easy task due to the emergence of multiple high-quality logistics partners with huge supply-chain networks. From picking and packing to shipping services, they are also responsible for collecting payments post-delivery and managing inventory. But in the end, the seller is in the driver's seat so they need to determine the type of products they want to sell and price them competitively. To decide this, they need to do market research and study the demand and supply of similar products. This is where economic order quantity can help them streamline their decision making process. Things like minimum order quantity (MOQ) and economic order quantity (EOQ) assist sellers to get an accurate estimation of batches as per their requirements while also ensuring that there is enough free space for storage as opposed to an uninformed seller who may keep placing orders to their supplier only after their inventory gets depleted. What is Economic Order Quantity (EOQ)? Economic Order Quantity (EOQ) is the appropriate order quantity for a company to purchase goods in order to reduce inventory costs such as holding charges, shortage costs, order costs, etc. Inventory management, which oversees the ordering, holding, and usage of a company's inventory, requires the use of economic order quantity. EOQ is responsible for determining how many units a company should add to its inventory with each batch of orders, to lower the total inventory expenditure. The EOQ model aims to ensure that the appropriate amount of inventory is ordered per batch so that neither does a company have to place orders too frequently nor have an excess amount of inventory in hand. Sellers need to understand the difference between inventory setup costs and industry holding costs. When a seller can minimize both, only then can the inventory cost be minimized.  How is Economic Order Quantity Calculated? To calculate the EOQ for your business, you must know the components listed below: D: Demand Rate (Quantity Sold Per Year)Q: Volume per OrderS: Ordering Cost (Fixed Cost)C: Unit Cost (Variable Cost)H: Holding Cost (Variable Cost)I: Carrying Cost (Interest Rate) Source ​Order Cost It is a variable cost. It refers to the sum of all costs associated to fulfilling the order of products from sellers to buyers. This cost includes packaging (branded packaging), shipping (branded shipping), managing, etc. Before we arrive at the ordering cost, we will have to find the number of orders per annum. The number of orders annually can be found by dividing the ‘annual demand’ by ‘the volume per order’. The formula can be expressed as: Numbers of Orders = Annual Demand / Volume per Order (D/Q)  Now that we know the number of orders, we need to find the annual ordering cost for each order with a fixed ordering cost (independent of the number of units- S) by multiplying the number of orders by the fixed cost. It is expressed as: Annual Cost Order = Numbers of Orders * S = Annual Demand / Volume per Order (D/Q) * S Demand Rate Demand rate is the cumulative number of units of products that a retailer sells in a year. Might from retail fulfillment, drop-shipping etc. Holding Cost  In any business, you need to have inventory to fulfill demand. Offline businesses can store their products in a shop whereas online businesses do not have access to a physical shop. For them, holding inventory is more expensive than maintaining the website or listing their products on multichannel eCommerce selling platforms. This cost can be a direct cost that is incurred by spending on the storage of inventory or the cost of holding inventory. Holding cost includes eCommerce warehousing costs, logistics costs, securing costs, insurance costs, etc. The per-unit holding cost is often expressed as the cost per unit multiplied by the interest rate, expressed as follows: H = IC The Economic Order Quantity formula is   EOQ = square root of (2*S*D)/H How Does Economic Order Quantity Work? Ordering a huge amount of inventory for the purpose of hoarding ultimately increases the cost which reflects in the per-unit cost of products. Conversely, ordering small amounts of inventory increases the frequency of orders which also increases the setup cost. So this is where economic order quantity helps. It finds out the actual quantity required which mitigates all the risks.  Example/Case Study: Let's speculate that a company uses EOQ to assess demand, order costs, and holding expenses per unit per year over the previous year and anticipates comparable demand next year. If the information is as follows:  Annual Usage is 20,000 units Ordering Costs are ₹400 rupees per order Carrying Costs is ₹4 per unit per annum Solution: square root of (2AO/C) square root (2*20000*400)/4=2,000. The EOQ is 2000 units. In case a seller is short of inventory, they need to order 2,000 units. If a seller wants to order 10,000 units which is 5 times 2,000 units then you need to multiply 2000 by 5. Note: economic order quantity can change if any of the variables change. What is the Importance of EOQ? As the name suggests, economic order quantity is the economic means of ordering inventory, keeping in mind the size of the business(small scale/large scale) and increasing future demand and supply requirements. A few of the benefits of EOQ are: Gives sellers a figure to order and maintain their inventoryMitigate the risk to sellers of facing a stock shortage.Makes the supply-chain activities hassle-free.Helps eCommerce sellers as well as merchants in dropshipping. 5 Benefits of Economic Order Quantity (EOQ) Bulk Order Discounts: Sellers can take advantage of the best bulk-order or economies-of-scale discounts offered by vendors if they plan and time their orders correctly. Improved Order Fulfillment: When a certain item is required for a customer order, optimal EOQ ensures that the product is available, allowing you to complete the order on schedule and keep the customer satisfied. It enhances the consumer experience of your customers and possibly increases sales. Lower Storage Costs: You should have fewer things to store when your supply effectively meets your demand. This can save you money on real estate, utilities, security, insurance, and other expenses. Prevents Over-Ordering: Over ordering and locking up too much cash in inventory can be avoided with a precise estimate of what you need and when you need it. It creates a smoother cash flow in the business. Reduces Wastage: More streamlined order schedules should reduce irrelevant inventory, especially for organizations with perishable commodities that can result in dead stock. Challenges of Economic Order Quantity (EOQ) Business Growth: For organizations with consistent inventory demands, the EOQ formula is perfect. Using economic order quanitity in a fast-growing business might lead to inventory shortages. Also it is mainly needed in scenarios of constant demand and inventory storage.  Outdated Systems: Old and obsolete systems may contain incomplete data, resulting in missed savings opportunities. This issue can be solved with an inventory management software solution or a cloud-based ERP. Seasonal Needs: Seasonality makes EOQ more difficult, but not impossible. This is because client demand may fluctuate significantly throughout the year. Flawed Data: Access to correct and trustworthy data is one of the most difficult aspects of estimating economic order quanitity. Manual or spreadsheet-based solutions may generate erroneous calculations due to poor quality or obsolete data. Inventory Shortages: If you’re a new user of this method, you may often generate smaller orders. Also, if you are conservative with your calculations and expenditure on inventory then you will end up under-ordering. How to Use EOQ to Improve Inventory Management? If you are operating a large eCommerce business then before you get to important tasks like creating a website, registering on third-party selling platforms and partnering with a 3PL logistics company, you have to take care of inventory management and here,  theories like minimum order quantity and economic order quantity are useful. While calculating the economic order quantity, you can figure out what order size is the best for your business. It eliminates guesswork and reduces the risk of over-ordering or running out of stock. You can use the stats and data to make a long-term inventory selection for your company. If you run a large organization, especially one that requires expensive inventory, or one that has high inventory holding costs, EOQ could have a significant impact on your operations, cash flow, and earnings for years to come. Conclusion When you are in a business, you need to take care of the demands of your customers. You can regularly check what they want and try to fulfill their requirements in the best possible way. Economic Order Quantity helps a seller in many aspects such as reminding them to reorder stock and running their supply chain smoothly. If the seller runs out of stock, they would not be able to deliver the product to their buyer on time. Inventory Management is an issue for most big as well as small eCommerce businesses. They face problems choosing between the Newsvendor Model, the Continuous Review (ROP), the Periodic Review (FOI), the Economic Order Quantity (EOQ) and lack of appropriate forecasting leads to several inventory management issues at the beginning of the supply chain inventory which travels down eventually causing the Bullwhip Effect. These days, many sellers are claiming to provide same-day or next-day delivery with the help of fulfillment partners like WareIQ, a full-stack platform for eCommerce companies. Their USP is using state-of-the-art technology to provide Amazon Prime-like delivery and fulfillment services for every eCommerce company. With the emergence of eCommerce as a full-time business, WareIQ provides its partners with several advantages. Other than calculating economic order quantity, WareIQ can assist in the following ways: Choosing multiple warehouses in which you can divide your inventory according to location or market-specific orders.Minimizes your inventory holding cost by charging only for the area occupied by the seller's product.Provides accurate data of inventory in real-time which helps sellers to get insights into their sales figures and forecasts demand and supply.Keeps EOQ logistics costs low with smart warehouse locations near cargo and shipment centers.Does all the economic order quantity calculations for a seller so that they need not get hassled and can focus on their core business operations. Sign Up Now with WareIQ to take advantage of our superior fulfillment tech platform & accelerate the growth of your online business. Economic Order Quantity FAQs (Frequently Asked Questions) How does EOQ help in inventory management?Economic order quantity (EOQ) is a statistic that defines a company's ideal order size, allowing them to meet demand without going over budget. EOQ is calculated by inventory managers to reduce holding costs and surplus inventory. What are the assumptions of EOQ?The Economic order Quantity implies inventory depletion and steady demand at a constant rate until it reaches zero. A particular number of conclusions arrive at that point, restoring the inventory to its original state. There are no such inventory shortages or associated costs because the model assumes instant replenishment. Who uses Economic Order Quantity?Economists in businesses use the EOQ model to plan operations since it is a quantitative approach that provides significant cost savings. Furthermore, because the model is based on a consistent or regular pattern, total expenses can be accurately projected. Why is EOQ necessary for eCommerce?Economic Order Quantity (EOQ) is a formula for calculating inventory stocking levels. Its main goal is to assist a corporation in maintaining a steady inventory level while also lowering expenditures. Variable annual usage amount, order cost, and warehouse carrying cost are used in EOQ. When can EOQ be implemented?It can be implemented only when demand for a product is stable throughout the year and each new order is delivered in full when inventory reaches zero. Regardless of the amount of units requested, each order has a fixed cost.

May 18, 2022

Flat Rate Shipping: How is it Important for eCommerce Business in 2022?

Flat Rate Shipping: How is it Important for eCommerce Business in 2022?

If you are a part of the eCommerce Industry, either as an online seller or shopper, you would be familiar with the term flat rate shipping. It's likely that you've interacted with eCommerce shipping companies that have offered this service, or that you have chosen it as a customer when making online purchases. Shipping margins are crucial to the profitability and long-term sustainability of eCommerce businesses. You are wasting precious resources if you're not moving your products in the most cost-effective and efficient method possible. Flat rate shipping is one approach to reducing operational and eCommerce logistics expenses. So, what is it about flat-rate shipping that has become so popular lately? What makes this such a popular choice for big packages? Should you use the flat rate shipping method as a seller or merchant? You can read further to find answers to all these queries, and also specifics on flat rate shipping charges and other related topics. What is Flat Rate Shipping? Flat rate shipping is a way to measure the cost of eCommerce logistics shipping based on the size of the parcel or envelope rather than the dimensional (DIM) weight. When there are no peak-season charges, flat rate shipping is an appealing choice for holiday buyers. For example, you might charge ₹50 for local delivery, ₹750 for flat-rate international shipping, and ₹10 for orders over ₹500. Furthermore, many merchants have chosen a few fixed flat rate shipping costs to cover their vast shipment requirements. Several shipping providers offer flat rate shipping, regardless of where the cargo will be dispatched from. If the goods appear to fit within the carton and weigh no more than the allowable limit, they can be delivered to any destination at no additional charge. Flat-rate delivery is an effective way for businesses to standardize shipping charges and eliminate major price fluctuations caused by factors like dimensional weight, shipment distance, and seasonal swings. Flat shipping rate deliveries are an ideal alternative for online businesses seeking to optimize their delivery procedures. [contactus_gynoveda] Importance of Flat Rate Shipping in eCommerce With eCommerce rapidly expanding year after year, retail fulfillment shipping processes will also need to be adapted. For more than 50% of merchants, the key commercial limitation is the cost of delivery. eCommerce enterprises will need to find new ways to save money and streamline fulfillment processes as consumers become more accustomed to free and expedited shipping, as well as free returns. Based on how shipping prices are normally determined, flat rate shipping is an interesting shipping option for a few reasons: 1. The further the distance or shipping zones are to which you ship your goods, the more expensive their services are and this only gets worse as the order size increases. 2. Dimensional weight is a standard price method that is derived by multiplying a package's length, width, and height. Shipping rates are calculated by freight carriers like USPS, FedEx, and UPS depending on whichever number is greater - the package's actual weight or its calculated dimensional weight. 3. Flat rate shipping simplifies things considerably and might be an excellent choice for certain companies, particularly smaller ones. What is the Process of Flat Rate Shipping? The term flat rate shipping highlights the fact that the cost of shipping is related to the weight, shape, or size of the shipped commodity. It is calculated by how much stuff can be crammed inside the packaging box. Following these procedures allows eCommerce warehousing enterprises to ship products at a flat charge. Flat rate delivery is now offered by all major shipping aggregators. Some carriers will insist that you use their packaging, while others will allow you to use your own as long as it meets specific dimensions. There are also weight limits that merchants must adhere to, to avoid incurring additional penalties. The process of how flat rate shipping works are discussed below:  Choose your carrier and the size of containers or flat rate envelopes you require. Use the flat-rate packaging provided by your carrier or choose a box that meets your size requirements. Put your order together and ship it to your customers’ address. Attach a shipping label to the item and drop it off at the post office or arrange for a pick and pack fulfillment. How to Figure Out the Optimal Flat Rate Shipping for Your Company? Flat rate shipping costs vary depending on the goods, geography, and destination. While you would want to give your customers a comfortable checkout experience, you must also take into account the cost of delivering their products. This helps in devising a strategy that raises sales without any compromise. The most accessible way of determining how much to charge is to calculate your usual delivery cost. This average can be used as a standard shipping rate, signifying that depending on the purchase, businesses would either gain or incur losses on delivery. Now when you know the statistics of average flat rate shipping, you can eventually balance the revenue generated with the costs that need to be spent. 6 Factors Affecting Flat Rate Shipping The amount you will need to charge for shipping is unlikely to be the same as in any other industry. When it comes to your business, there is no one-size-fits-all solution, and flat rate shipping is no exception. Consider the following variables when determining how much you should charge: Size and Weight Each carrier has its terms and categories for describing weight and size regulations, but envelopes for standard documents, packages for larger documents, boxes, and pallets for compact objects, are the most common. Surcharges may apply to oversized or odd-sized packages. It's a good idea to ask your favorite carrier if you're not sure which size category your package belongs into. Dimensional Weight Another aspect that can affect transportation costs is dimensional (DIM) weight. It refers to the package density, or how much space it takes up in comparison to its actual weight. When the DIM weight of your package exceeds the actual weight, it becomes the billable weight. Shipping Distances Your shipping prices may be affected by whether you're sending domestically or overseas. Carriers frequently use dynamic geographic zones to determine how far your shipment must travel. The bigger the expense, the longer the distance. Time Zones Carriers normally offer a range of standard and express service times depending on the country of origin and destination. Although the service titles may differ by carrier, the time frames generally fall into one of three categories: Time-sensitive delivery sends packages at certain times only.Overnight and next-day delivery services are available.Depending on the distance the item must travel, expected delivery dates range from two to seven business days. Surcharges Surcharges are costs that are placed on top of the base rate. It's critical that you're aware of them and knows which ones apply to your shipment. If the shipping needs more paperwork, effort, or time, additional costs and supplementary fees (for import shipments) may be charged. Anything not covered by ordinary shipping and handling will increase the shipment cost. The most common type of surcharges are listed below: Charges for Fuel This is the most typical surcharge, which compensates for fluctuations in oil prices. It's determined as a percentage of the total shipment cost, and it's usually modified weekly. Surcharges for Packages That are Too Big or Too Little Non-stackable or cylindrical shipments, as well as packages that exceed your carrier's normal format, may be subject to additional charges.  Charges for Extending Area Service to Rural Areas Package delivery to remote places incurs an extra charge. Charges for Hazmat Items or Dangerous Goods Additional charges will apply to the shipping of any dangerous goods that may endanger a person or compromise other shipments. Charges for Documentation or Address Inaccuracy You may be charged penalty costs if your carrier needs to modify documents for you. Customer Expectations The typical shipping cost for your customers will vary depending on your consumer base, the products you deliver, and the order's delivery schedule. According to research, 65 percent of customers are willing to pay more for speedy delivery. Find out the balance between how much your consumers are prepared to pay and getting those packages out the door without negatively affecting your revenues. What are the Positives and Negatives of Flat Rate Shipping? Positives of Flat Rate Shipping Transparency When you choose flat rate shipping, you give your customers a fixed price, which simplifies the selling process. As a result, you acquire the consumer's trust and your company's relationship with the customer improves. They would also prefer your firm over your competitors because there are no additional shipping or handling costs.  Predictable Shipping Expenses Many online sellers' revenues are seriously impacted by DIM weight and peak season surcharges. While splitting shipments or comparing carriers that can save you money, it's hard to avoid paying for home delivery when using a regular shipping service. By adopting flat rate delivery, you can eliminate these extra costs and keep shipping prices reasonable for both you and your customers.  Utilization of Carrier's Packaging If you're using conventional packaging rather than more expensive custom-branded packaging, fulfillment costs can still rise significantly. For merchants, being able to partner with a carrier that provides their packaging for free is extremely cost-effective, especially for those who are just getting started. Packaging provided by the carrier also aids in the speedy eCommerce fulfillment process. You don't need to weigh and confirm the dimensions of each package before delivery because the DIM weight has been pre-determined by the carrier. This speeds up the direct fulfillment process significantly. Simplified Management Your eCommerce website will no longer require a shipping calculator after converting to flat rate shipping. The delivery prices of Individual products will not need to be adjusted based on weight or size. This frees you up to focus on improving your items and other fulfillment services such as packing and sourcing. Implementation of Promotions With Free Delivery When you know exactly what your shipping expenses are and how much they cut into your profit margins, it's much easier to provide free shipping to customers. Merchants can confidently bake the cost into their product prices or set a free shipping threshold because flat-rate shipping rates don't fluctuate during the year or with each purchase, which indirectly helps in promoting the business. Cart Conversion Flat rate shipping allows you to communicate up front with your customers about your shipping prices. According to a recent study, 50% of customers abandon their carts because the additional expenditures, such as shipping, tax, and other fees, are too costly. Another 20% claimed it was because they couldn't estimate the total cost of the order upfront. Customers do not want any unpleasant surprises when they pay. Knowing how much shipping will cost before they begin purchasing from you will prevent shipping charges from negatively impacting your cart conversion. Negatives of Flat Rate Shipping Increased Transit Time Every consumer wishes that their ordered items arrive in a shorter period. If you're charging a flat shipping rate, there's no other alternative than to use the surface mode for shipping. Customers may become irritated as a result of lengthier transit time.   Undercharging Interpret which form of delivery will make you and your customer happy before making any decisions on the shipping alternatives you would be providing to your clients. Make certain that the flat cost you charge does not result in a loss for your company. Inaccessible To Various Locations One of the most significant disadvantages of flat rate shipping is that it cannot be extended to consumers who live in rural areas. Because shipping costs rise with distance, charging a flat fee may result in a loss for the firm, as the seller must absorb the additional costs. Easily Comparable With Competitors Since your shipping costs are transparent and there are no hidden fees, clients will be able to compare your rates to those of competing suppliers, perhaps resulting in the loss of customers to other companies.  Missed Branding Opportunities One of the most important competitive differentiators in eCommerce logistics is the time of delivery. However, by using carrier-supplied packaging, you're not able to sell your brand image. To summarize, flat-rate shipping might mean foregoing an important avenue for establishing brand familiarity and trust with customers, as well as foregoing remarkable unpacking experiences that increase customer engagement. How Can WareIQ As Your Fulfillment Partner Provide the Best Flat Rate Shipping Services in India? If your eCommerce business has outgrown your present delivery techniques, efficient shipping is another approach to reduce shipping costs and increase profitability. WareIQ as a fulfillment partner uses integrated technologies and various fulfillment facilities to speed up your delivery by optimizing your flat rate shipping expenses.  Here's how WareIQ handles fulfillment: Connects Your Store The WareIQ platform integrates with your online business (for example, to handle selling on Amazon and Flipkart Selling), allowing you to simply manage inventory and track the fulfillment process from beginning to end. Handles Your Inventory WareIQ's nationwide fulfillment network allows you to store your merchandise. This brings your items closer to your clients, resulting in lower transportation costs and faster delivery.  Automatic Fulfillment of Orders  Orders are automatically routed to the best eCommerce fulfillment center, where they are chosen, packaged, and shipped from WareIQ’s end. Hassle-Free Last-Mile Delivery with Flat Shipping Rates Across Zones WareIQ has partnered with all national & hyperlocal courier service providers to provide hassle-free same-day or next-day shipping. eCommerce businesses can select their preferred last-mile delivery partner among the 20+ options available. In case of bulk orders or during sales events, WareIQ even offers flat shipping rates to its eCommerce clients to mitigate the revenue lost by them due to heavy discounts during sales events. Tracking and Analysis Once an item has been dispatched, eCommerce order fulfillment tracking information is supplied to the consumer so they can track its progress and you can also analyze your weekly and monthly performance on the platform provided by WareIQ. [signup] Flat Rate Shipping FAQs Can I charge high flat rates shipping prices?Keep in mind that setting your flat rates too high could have a negative effect. Customers do not want to pay Rs 100 for a Rs 50 order for shipping. Consider the terms and conditions you could impose on your pricing. How long do flat rate shipping deliveries take to reach a destination?With WareIQ, deliveries are accomplished within 24-48 hours, pan India. For flat rate shipping deliveries by other service providers, deliveries can happen after 7 days also if the customer is located in remote parts of the country. Should I choose flat rate shipping?Although flat rate shipping is a fantastic service, it isn't always the greatest option for all types of eCommerce businesses. If you're satisfied with fulfilling orders in-house, flat rate shipping is a fantastic option for heavy products. How can I avoid unnecessary shipping charges?Verify that your shipment information is accurate and that it complies with the shipping requirements. Use a packaging box that is not larger than you require.

May 18, 2022

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

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

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

May 17, 2022

Minimum Order Quantity Explained: 10 Benefits of MOQ for eCommerce Business in 2022

Minimum Order Quantity Explained: 10 Benefits of MOQ for eCommerce Business in 2022

These days, starting a business is not a big deal, especially in the eCommerce space. People have increasing amounts of money through their own resources or through investors but they don’t lack in terms of knowledge and free time. They may know about the basics of demand and supply but don’t know how the nuances of running an eCommerce business.  In eCommerce, inventory plays a crucial role. It is the biggest asset of a business among all its resources. Buying goods or raw materials isn't always easy for a seller. You need to find a trustworthy company that not only sells the necessary supplies at the right price but also allows you to order the suitable amount units possible and preferably, does not impose a minimum order quantity (MOQ). It is critical to understand how minimum order quantity works and why some suppliers may employ it, especially in low-margin or highly customized firms. Minimum order quantity, if appropriately controlled, can help you boost your profits with increasing cash flow. What is Minimum Order Quantity (MOQ) & MOQ Meaning? Minimum order quantity is the least number of units of a product that a  retailer offers to sell to their customers at a particular time. In the eCommerce industry, it is mostly offered by a manufacturer or supplier in the context of production activity. A merchant can ask you to order an MOQ for a certain amount of money. MOQs are a reflection of the financial limits faced by suppliers while fulfilling an order. These can include expenditures associated with material, machinery, and completion of that order, such as shipping costs. It is maintained by suppliers to maintain sales margins and lower the operational and logistical costs of the business. Types of Minimum Order Quantity Simple Minimum Order Quantity Many businesses are not retailers although they have to fulfill a single order. The lowest limit could be the minimum order quantity or the least amount spent on the purchase. For example, a bike dealer directly buys bikes from the manufacturer but sells them in individual units. They maintain MOQ with a limited amount of stock with keeping in mind the constraints of economic factors by their target buyers. Complex Minimum Order Quantity Here, a retailer deals with many constraints at one time by taking care of various metrics such as price charts, quantity, quality, etc. A good example of this is orders placed by a grocery store owner or a chemist. A chemist has to fulfill orders for several medicines at a time for which they have to store different types of medicines in varying quantities.  How does Minimum Order Quantity Affect Inventory? For both the supplier and the buyer, the minimum order quantity has a significant impact on inventory. Sellers who pick a high minimum order quantity must produce and store large amounts and thus, their inventory management is affected by the MOQ. Buyers, on the other hand, must determine whether they require their product's MOQ, or else find another supplier with a lower minimum order quantity or explore various other inventory storage solutions. Buyers must think about things like storage space and the potential savings from acquiring products in bulk. High Minimum Order Quantity (MOQ) Suppliers with a high minimum order quantity may need to keep a large amount of inventory with them to fulfill orders. Suppliers may need more time to fulfill orders if they want to keep inventory levels low and adopt just-in-time inventory management. Inventory requirements that are larger involve a lot of working capital and take up a lot of warehouse space. However, they save administrative expenses since products or raw materials can be ordered less frequently, resulting in savings further down the supply chain. While stockouts are less likely, there is a higher chance of products becoming obsolete with a high minimum order quantity, particularly in the case of electronics. Low Minimum Order Quantity (MOQ) Suppliers don't require as much inventory on hand for orders with a low minimum order quantity because the typical order size is likely to be smaller. This could result in lower inventory levels and higher inventory turnover. A low MOQ might put a strain on your sales team, forcing them to manage more customers and work more to generate leads. Because orders are placed more frequently, administrative costs are higher. While low MOQ suppliers suffer the danger of running out of stock, they also run the risk of obsolescence. Suggested Read: Economic Order Quantity Meaning How to Calculate Minimum Order Quantity? There is no particular formula to calculate MOQ. It depends on various factors of a business like its size, location, operational sector, etc. It is built up to accommodate each supplier's unique problems and business needs. Businesses must select whether they want a lower minimum order quantity with a higher price when purchasing from their suppliers or vice versa. The more you buy from suppliers, the easier it is for them to cut costs per unit, which is why this system exists. Even though there is no set quantity for MOQ, there are a few things to consider when determining the optimum MOQ. Estimating Demand Demand forecasting considers product type, competition, seasonality, and other factors when calculating how many units you will sell as a merchant while ordering inventory. This information can assist you in making your next purchase decision. Inventory and demand forecasting go hand in hand in this equation. You might find that the manufacturer's minimum order quantity isn't far off from what you'd be able to sell. You'll also want to factor in your overall timeline for preparing the inventory to be shipped, which should include lead times, freight transit times, receipt of goods in the warehouse from your third-party logistics service provider (3PL), and any other potential delays, as you may find the need to order inventory sooner than expected. Knowing Your Break-Even Point If you want to set your minimum order quantity, you'll need to know what your break-even point is. When you recover the customer acquisition cost and your customer returns through email marketing efforts, you will get a better idea during the second transaction for DTC orders. Consider the lowest per-unit monetary amount you're willing to charge in exchange for a larger order value for wholesale agreements. It can't be so low that your profit margins suffer but if you're not merely paying for lesser amounts at a greater price, discounted prices are expected. Calculating Holding Capacity and Cost Some items are more costly to store than others (due to size, duration of storage and special ecommerce warehousing requirements). It's more cost-effective to keep such items out of your inventory for as long as possible. The true cost of storing all of your products will reflect in your inventory holding cost, which you must consider before spending extensively on inventory. Framing Your MOQ Strategy Let's assume that you have high demand at all times. Suppose on average, your partners order 200 units per order, and you need to sell at least 150 units per order to break even. If your partners or clients have previously agreed to buy 200-unit orders, you might need to set your minimum order quantity to 200 units, or even lower to 150. 10 Benefits of Minimum Order Quantity for Multichannel eCommerce sellers in 2022? A seller who sells their products on multiple channels including their websites through means such as dropshipping and 3rd party fulfillment, has to strongly take care of the minimum order quantity. These days, retailers taking advantage of multi-location warehousing rely on software to manage all their orders and inventory. It helps them to cut costs on individual products which are transferred to buyers. Benefits for Sellers Better Cash Flow A seller should stock the right volume of inventory so that is not too high that they have to hold it for long periods of time where their money remains withheld and not too low where they cannot fulfill all their orders. Proper maintenance of minimum order quantity helps them to save more efficiently and have a better cash flow. Low Inventory Costs Storing a high volume of inventory is expensive. You not only need to pay to rent storage but also on tracking and maintaining inventory levels and keeping it safe. You will have to spend a lot of money to buy a high volume of inventory which is stuck for a long time. Assurance of Profit If an MOQ is set, orders are at the lowest amount after calculating the profit and it will not affect the inventory and transportation cost. This gives the business a guaranteed profit margin. Benefits for Buyers Increase in Savings When a seller saves money while selling a product, the effects trickle down to the buyers as well. This makes the end customer receive discounted prices from a seller who effectively manages inventory levels using minimum order quantity. Fresher Inventory  A buyer buying products from a seller who follows MOQ will get fresh items because the seller stores the least amount of inventory that is needed. Steps to Implement Minimum Order Quantity (MOQ) Every idea, if tried and tested, can yield promising results compared to carrying out ideas that have not been researched. So for MOQ, these are the steps to achieve a  better output. Calculate the Target MOQImplement the MOQ Calculate the Target Minimum Order Quantity This is the most essential thing to do while implementing minimum order quantity. You cannot purchase a lot of items and keep your inventory stocked with just those products. If these items are not going to get sold shortly then: There will be less space in your inventory to store other items.Your money will be stuck until the products are sold.The products could get expiredThe value of the products gets loweredThey start to need more maintenanceCosts will accumulate with time So for an easy check on this, you can take the following precautions: Figuring Out Demand Forecast the demand that you will need to fulfill in the future. Adjust your minimum order quantity per seasonal demands, the nature of the products, etc. Calculate the Break-Even Point Know the break-even point of a single product before you place an order in bulk.  Consider All Possible Costs You must calculate all the costs associated with different minimum order quantity levels such as holding and transportation costs. Some products are expensive to store depending on their size, duration of storage, and special storage conditions. (e.g., fruits, vegetables) Implement the Minimum Order Quantity After all the trouble to calculate the right minimum order quantity, implementing MOQ is also a major task for the buyer. While implementing the MOQ, you may need to rent a warehouse, secure it, connect it to logistics partners, keep track of it, keep updating it, and add services like branded shipping, dropshipping fulfillment, etc. to it. You can also partner with a third-party fulfillment provider who will take care of all these things and give you extra benefits like multi-warehousing with MOQ, access to high-tech inventory management software, connections to more courier aggregators, RTO indicators, etc. Conclusion: Successfully implementing Minimum Order Quantity with WareIQ As you we have discovered, MOQ is important for eCommerce players who are maintaining multiple shops at a time on multiple selling platforms. They have a lot of things to focus on. Instead of micromanaging things that will consume all of their time, they should focus on other important aspects and manage the business. WareIQ can be a solution for this. It provides you with the facility of multiple warehousing/fulfillment centers in different locations.You get an actual count of your inventory before initiating MOQs.You will have to spend less on warehouse (inventory) management after MOQ.It sends you a reminder for low inventory.It eases your holding capacity for a long time.It lowers your freight rate by placing your inventory near areas of high demand.It helps you to find the best logistic partner to make your fulfillment hassle-free.It enables you to promise your customers same-day and next-day delivery.It has features such as RTO Shield to prevent high costs associated with product returns. WareIQ offers sellers a full-stack platform. They also offer fulfillment centers near the recipient, which is something that not every eCommerce company can do. To save time, you can obtain all of your logistical needs in one place: inventory management, shipping orders, customer delivery concerns, and performance analysis. To enable firms to offer two-day deliveries, WareIQ maintains a network of fulfillment centers across India. They also collaborate with third-party companies to assist in the operations of their services, such as last-mile delivery. WareIQ handles issues that arise during order fulfillment, such as damaged or lost inventory, and responds immediately to provide a positive customer experience. To keep your cash flowing, they offer COD remittance twice weekly. Finding the most efficient and dependable choice for your delivery, as well as managing returns, are all taken care of. Minimum Order Quantity - FAQs: What does a minimum order mean?The smallest amount of a product that can be ordered in one delivery, usually to spread shipping expenses across a reasonable number of units, is known as the minimum order. We do not have an MOQ, and all of our wholesale products are sold in modest pack sizes through advanced shipping services. How do you find the minimum order quantity?There is no such formula for calculating it. MOQ depends on various factors like the size of the business, type of business, nature of the product, season for sale, and much more. What is MOQ in Supply Chain?The minimum order quantity, or MOQ, is the smallest order size that a supplier will accept. The smallest number of units is frequently used. Suppliers can, however, specify the minimum order quantity based on the order value. What are the purposes of MOQ?The goal of minimum order quanity is for suppliers to maximize their earnings while simultaneously getting rid of more inventory and weeding out "discount shoppers." What is safety stock level?Safety stock is a logistics term to indicate the quantity of additional stock kept on hand to avoid stockouts (raw material or packaging shortages) due to supply and demand fluctuations. A sufficient supply of safety stock allows corporate activities to run as planned.

May 17, 2022