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How to Reduce Shipping Costs? 10 Most Effective Tips to Reduce Shipping Costs For Online Businesses in 2025

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 costs Packing materials costs Picking and packing costs Labour costs Loading costs Fuel costs Transportation costs Postage costs Surcharges and customs costs Delivery 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 2025 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 in 2023: 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)

May 21, 2022

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

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

May 20, 2022

Flipkart Integration with WMS: How to Fulfill Flipkart Orders with WareIQ in 10 Easy Steps in 2025?

Flipkart was founded in 2007 and instantly emerged as a force to be reckoned with in the still growing eCommerce industry at that time. Since then, especially with the entry of Amazon into the Indian market in 2013, Flipkart has been forced to up its game and adapt to the ever-changing trends in the rapidly-expanding Indian eCommerce market, which it has successfully achieved. It was acquired by Walmart in 2018, which has only bolstered its status as one of India’s leading eCommerce selling platforms, which can be seen in the 49% increase in its revenue in 2021, compared to Amazon’s 32%. In recent years, Flipkart has emerged as a worthy competitor to Amazon, with both of them capturing around 31% of the eCommerce retail market. In today’s blog, we will dive deeper into how you can fulfill Flipkart orders, the benefits of selling on Flipkart and how to integrate WareIQ with a Flipkart seller account. How Can You Fulfill Flipkart Orders? Retailers can currently choose between 2 options to fulfill Flipkart orders - Flipkart Fulfillment and Self Ship Fulfillment. Businesses that choose Flipkart Fulfillment to fulfill Flipkart orders can take complete advantage of all the facilities offered by Flipkart such as order processing, storage and management of inventory, order shipping, reverse logistics and customer care. The only downside is that you are not able to integrate Flipkart Fulfillment with other selling platforms so you will have to maintain different accounts for each platform. Conversely, Self Ship Fulfillment enables retailers to fulfill Flipkart orders on their own or by opting to partner with a 3PL fulfillment company such as WareIQ. There will always be advantages and drawbacks, regardless of which option you opt for. Read our article on Seller Fulfilled Prime, Fulfillment by Amazon and Shopify Fulfillment to get an idea of fulfillment services offered by competitors. Services Offered by Flipkart Fulfillment Inventory Storage Flipkart provides its users with storage facilities in warehouses and fulfillment centers. Inventory can be placed in multiple locations, depending on the type of commodity and areas with high demand for specific products. Delivery Services When you opt to fulfill Flipkart Orders with Flipkart fulfillment, you can take advantage of their delivery services to ensure that your orders are delivered to your customers on time. Product Quality Checks Flipkart ensures that all products are inspected rigorously to mitigate any deformities or quality discrepancies between units. This ensures that customers receive what they expected. Packaging Facilities Flipkart Fulfillment offers packaging services to its customers. Goods can be wrapped in standardised Flipkart packaging to make sure that products are delivered safely and securely and also look attractive in the process. Services Required from Sellers in Self Ship Fulfillment Entire Fulfillment Process If sellers choose Self Ship Fulfillment to fulfill Flipkart orders, they will have to perform all the processes that are associated with order fulfillment such as packaging, distribution and eCommerce logistics. Partnering with 3PL Fulfillment Companies Sellers can opt to partner with a 3PL fulfillment company of their choice to fulfill Flipkart orders. This ensures that they still have access to cutting edge features and technology, while also maintaining the flexibility to be able to integrate with multiple other selling platforms so that they don’t have to put all their eggs in one basket. Compliance with Flipkart’s Rules and Regulations Sellers who choose to fulfill Flipkart orders on their own or through a 3PL eCommerce fulfillment company need to make sure that they abide by all the rules and regulations that have been laid out by Flipkart. Seamless Customer Experience Since Flipkart isn’t directly involved in the D2C fulfillment process of sellers who choose to fulfill Flipkart orders by themselves, they need to make sure that retailers follow the same measures to ensure that customers have a good and speedy delivery experience. Benefits for Retailers who Use 3PL Fulfillment Companies as an Alternative to Flipkart Fulfillment Access to Custom Packaging Facilities Most big eCommerce selling platforms, Flipkart included, want to highlight their own brand the most and this is reflected in their packaging. Customers will only interact with your brand after they have torn off most of the outer Flipkart-centric packaging. However, retailers who partner with 3PL retail fulfillment companies to fulfill Flipkart orders usually have access to custom packaging facilities where they can opt from a whole host of different themes, styles and materials and can choose to highlight their own brand as much as they desire. Access to Faster and Cheaper Distribution Facilities In today’s day and age, 10-minute, same-day and next-day deliveries have become conventional and most 3PL fulfillment companies have been able to adapt to the growing demand for speedy delivery. Sellers that choose to fulfill Flipkart orders through 3PLs are able to take advantage of ultra-fast delivery while also paying way less due to the reduced prices offered by these companies. This is mainly achieved by the intelligent placing of inventory in warehouses and micro fulfillment centers that are located near areas of strong demand. Access to Strategically Placed Fulfillment Centers Retailers who choose third-party fulfillment services, gain access to a large network of warehousing facilities and fulfillment centers, scattered in different regions of the country. They can choose where they want to store specific products based on areas of high demand for those specific products and also based on things like proximity to large population centers and access to distribution networks, among many other factors. The storage facilities provided by 3PL companies are also much cheaper than the in-house storage that is offered by Flipkart. Complete Management of Inventory Most 3PL fulfillment companies offer advanced and detailed Warehouse Management Software (WMS) to enable efficient and smooth tracking of inventory, across multiple warehouses and selling platforms. These software solutions can also forecast future demand so you can optimise the storage of inventory and offer smart suggestions on inventory placement based on a variety of factors such as demand, expiry dates, perishability etc. Offloading of Order Management Retailers who partner with 3PLs to fulfill Flipkart orders, gain access to high-tech and advanced order management software where orders from multiple different platforms can be accessed and tracked in one software suite. This is in sharp contrast to Flipkart’s offering, where you cannot integrate with other platforms so you can only keep an eye on your Flipkart orders while orders from other platforms are left lacking. More Freedom and Fexibility Since retailers who opt to fulfill Flipkart orders on their own don’t have to rely on Flipkart directly for order fulfillment, they have more freedom to make their own choices in how they want to go about things, as long as they abide by Flipkart’s guidelines. They also have more flexibility in their choices by being able to choose if they want to fulfill Flipkart orders on their own or offload eCommerce fulfillment requirements to a dedicated fulfillment service. Access to Cheaper and More Transparent Pricing Retailers who use Flipkart Fulfillment to fulfill Flipkart orders are constantly at the mercy of varying prices. An increase in any of the multiple variables associated with order fulfillment can trickle down to retailers, who will then have to share some of that price increase with their customers. In addition, there are more hidden logistics costs as Flipkart needs to make sure that they can make the most money and this happens by putting the most risks on retailers. On the other hand, most 3PL fulfillment companies offer transparent and no-frills pricing in order to attract customers. They also do not have a monopoly in the market so they cannot increase their prices on a whim as that would enforce retailers to choose another company with cheaper pricing. Ability to Sell Across Multiple Channels If the retailer restricts themselves to selling on Flipkart and fulfilling Flipkart orders only, they are depleting themselves of a huge chunk of potential customers that may use other platforms. Retailers who seek to expand their business operations need to be visible in every corner of the market. 3PL fuflillment companies offer their users the service of integrating with and beauty fulfilling orders on multiple eCommerce platforms and make life easy for them by consolidating all the order and inventory information in one place to increase efficiency and mitigate any bottlenecks that could have otherwise occurred. Related read: Understanding Flipkart Video Management System (VMS) for Sellers Flipkart Marketplace Integration: 10 Easy Steps to Integrate WareIQ with a Flipkart Seller Account in 2025 When eCommerce retailers opt to partner with WareIQ to fulfill Flipkart orders and outsource all their fulfillment requirements, they instantly gain access to WareIQ’s country-wide network of fulfillment centers, cross-country courier partners and the advantage of being able to integrate WareIQ with a Flipkart seller account, which gives users access to 20+ other online marketplaces and platforms and state-of-the-art inventory and order management software. Sellers can integrate WareIQ with a Flipkart seller account in just 10 easy steps: Step 1: Logging In The seller can sign up at https://wareiq.com/contact-us/ & integrate WareIQ with a Flipkart seller account for managing end to end fulfillment of eCommerce their business. The seller gets the user ID & password from WareIQ’s customer onboarding team to log into WareIQ’s WMS portal. Step 2: Access to WMS Dashboard Once the seller logs in, the seller gets access to the WMS dashboard with an option to set up the account. Step 3: Navigating the Dashboard Click on the three dots in the top right corner of the WareIQ’s WMS dashboard. Step 4: Accessing Account Settings Click on “Account Settings”. Step 5: Adding Company Address The “Company Information” would have already been added to the portal by WareIQ’s customer onboarding team. Click on “Address”. Step 6: Adding Channels Fill up the “BILLING ADDRESS” and “DISPATCH ADDRESS” and click on “Add Channels”. Step 7: Adding Flipkart as an Integration The seller can view all the online marketplaces & website builders with which WareIQ’s WMS can be integrated. The platforms already integrated will appear at the top like the “Shopify” logo. Scroll over “ADD NEW INTEGRATIONS” & choose the Flipkart logo under “Select Marketplaces”. Step 8: Adding Credentials A screen pops up to add a few credentials of sellers like Seller ID, Location ID, Application ID etc. for connecting a Flipkart Account with WareIQ’s WMS. Step 9: Identifying Seller ID and Other Information Follow the steps below to identify seller ID and fill out the other required fields like application ID, Location ID and others: #1: Recording Location of Shelf Once you add the channel, the Smart panel's shelf location of Flipkart needs to be recorded in EasyEcom. You can do this by going to "Inventory >> Manage Listings" and selecting the "Update Listings" option. After this, choose "Flipkart Smart" as your marketplace and download the listing data. You then have to record the shelf location of every product and upload those files to EasyEcom. You can contact customer care at EasyEcom post updating the shelf location in Easy Ecom. #2 Flipkart Seller Panel details Identifying Your Seller ID To begin with, you need to sign in to your Flipkart Seller Panel and press Ctrl+Shift+i and then select network. You need to copy the Seller ID and paste it into the “Seller ID” column. Identifying Your Application ID and Secret You can start by opening this link: https://api.flipkart.net/oauth-register/login which will take you to the page below: Sign in with your account details and select “Register new application”. After this, you can copy the Application ID and Application Secret. Then you can select the “Flipkart Smart” option and you will get a popup where the information can be pasted. Identifying Your Location ID In order to identify your Location ID, sign in to your account via this link https://seller.flipkart.com/. After this, scroll to “Orders>>Smart Fulfilled Orders”. You can then copy your Location ID from the URL. Note that the Location ID always begins with “LOC”. Step 10: Syncing Channels Select the “Close” option to close the pop-up window and then select the “Sync Channels” option. The process to integrate WareIQ with a Flipkar seller account has now been achieved. The seller can start storing inventory for fulfilling orders from WareIQ’s fulfillment centers. Also read our blog on Amazon marketplace integration with WareIQ's WMS to get a better idea of competitor services to Flipkart and Amazons fulfillment. Why Should Merchants Choose WareIQ as a Fulfillment Partner to Fulfill Flipkart Orders? There are a vast number of reasons why merchants should choose WareIQ as their partner to fulfill Flipkart orders. Not only do we offer a seamless ability to integrate WareIQ with a Flipkart seller account but we also offer many more features, both in the forward and reverse supply chain, that will be sure to enrich your business with the tools it needs to tackle growing online demand and order fulfillment. We also offer cost-effective and transparent prices compared to our competitors. Here is a list of some of the features that we offer: Forward Supply Chain Smart Inventory Placement We analyze order density, SKU velocity, seasonality, & market trends by location for smart inventory placement to mitigate any delays and errors. Quality Assurance We offer services such as inbound management, coupled with rigorous product checks while adhering to Legal and Metrology compliance. Customization/ Personalization We enable through branded shipping, the creation of custom curated kits and custom packaging to meet every seller’s brand standards & requirements and help them highlight the unique aspects of their brand. RTO Shield Our in-house RTO Shield allows sellers to intelligently identify high-risk RTO orders and insures them against any RTO losses to maintain their profit margins and eliminate wasted resources. First-Mile Sourcing We offer centralized sourcing hubs to conveniently obtain all your materials and resources in one place. Prime-Like Badges Sellers can boost customer conversions by 30% using WareIQ’s Prime-like badges, which showcase varying levels of delivery speed and services offered. Smart Courier Allocation We give sellers the option to leverage data-driven insights to match them with the most suitable courier partner and the ability to ship with flat rates across each zone. Post-Purchase Experience With WareIQ’s Branded Tracking offering, sellers can deliver a premium post-ship experience. It also enables them to re-target & cross-sell thus increasing revenue and profit margins. Reverse Supply Chain Smart RVP We enable last-mile partners to verify product quality by leveraging reference checklists and images, eliminating returns of damaged or misplaced goods by customers and thus, mitigating reverse logistics expenses. Reinventorization We provide liability protections for our customers with simplified Seller Protection Fund claims and seamless settlement processes. Value Recovery We assist in recovering the value of returned goods through liquidation to the secondary market, upcycling and recycling, donation, and converting waste to energy to help businesses utlize every ounce of their capabilities and mitigate any wastage that might occur. Disposal We offer services for the sustainable disposal of products across categories such as food, apparel, electronics, health & hygiene etc. Over 300 of the fastest-growing eCommerce brands such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, already trust WareIQ with the fulfillment process of their companies, so they can focus entirely on core aspects of their businesses such as sales, marketing and R&D. You can also reap all these amazing benefits while stepping up your eCommerce game. We are tailored to every kind of business and offer the most competitive prices in the industry. Sign Up Now with WareIQ to take advantage of our superior fulfillment tech platform & accelerate the growth of your online business. Fulfill Flipkart Orders & How to Integrate WareIQ with a Flipkart Seller Account: FAQs

May 19, 2022

Flat Rate Vs Standard Shipping: 7 Key Differences in 2025

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 in 2025 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

May 19, 2022

What is EOQ – Economic Order Quantity? What is the Importance of EOQ for eCommerce Business in 2025?

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 Order S: 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. To make the process easier, you can try out the Economic Order Quantity Calculator. 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 inventory Mitigate 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 in 2025? In 2025, 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)

May 18, 2022

Flat Rate Shipping: How is it Important for eCommerce Business in 2025?

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. Suggested Read: What is Commercial Shipping? 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 in year 2024 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 in 2025? 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

May 18, 2022

Amazon Marketplace Integration 2025: How to Fulfill Amazon Orders with WareIQ in 10 Easy Steps?

Amazon is often credited with pioneering the boom of the eCommerce industry and popularizing the concept of shopping online and having your orders delivered right to your doorstep instead of needing to travel to physical stores. This phenomenon has also paved the way for advancement in other technologies such as online payments and automated warehousing processes. Today, Amazon is the largest eCommerce website in the world and changed the landscape of the Indian eCommerce industry when it entered the country in 2013. Since then, it has benefited a vast number of retailers who use Amazon to sell their products, by enabling them to expand and serve an increased customer base that extends all across the country. In today’s blog, we will take a look at the advantages of selling on Amazon, how to fulfill Amazon orders and how WareIQ can enhance your selling experience as a fulfillment partner in the year 2025. How can You Fulfill Amazon Orders? There are 2 methods with which customers can fulfill Amazon orders - Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). FBA is when you offload the entire retail fulfillment process to Amazon and FBM is when you sell products on Amazon but choose to fulfill Amazon orders on your own. For all intents and purposes, these are the processes that you would need to follow to fulfill Amazon orders : Processes Required from Sellers Research of Products Research needs to be conducted for each product to figure out their demand, competition from similar products, prices customers are willing to pay and penetration of that product in the Amazon marketplace in order to optimize your business strategies. Sourcing of Materials You need to partner with a supplier who will be able to manufacture your products in the right balance of cost and quality. They can then ship the finished products straight to Amazon’s warehouses. Listing of Inventory Product listings need to be created for each type of offering with the marketable descriptions, clear photos and accurate metrics such as features and size dimensions. Promotion of Products You need to create hype around your products and market them to be as appealing to your target audience as possible so that you are able to differentiate your products from the vast amount of competitors on the Amazon marketplace fulfillment. Management of Sales You need to keep an eye on every order that comes in and manage inventory levels and listings so that the right amount of inventory is always available, depending on customer demand. Post receiving an order, you can leave it up to Amazon to do the rest. Services Offered by Amazon Management of Inventory After Amazon receives the products from your supplier, it sorts out each product based on various metrics such as their type, price, demand levels, and expiry date, among others. It is then stored in massive fulfillment centers, where processes are followed by robots or Amazon employees. Keep in mind that it is in both your and Amazon’s interest to take the best possible care of your products because if anything is damaged in the fulfillment center, Amazon will pay you the retail price of what the product is worth. Automatic Processing of Orders Amazon automatically processes order requests, as soon as they are received from a customer. The order fulfillment process is initiated with the relevant product being picked, packed and shipped to the customers' location, according to the estimated time of delivery. Management of Customer Support and Returns Amazon takes care of your entire customer support, even after the order has been delivered. This includes resolving issues related to the order, answering queries and managing the reverse logistics process in the event of an RTO request. Read our blog on Seller Fulfilled Prime to get more information on other services offered by Amazon. Why Does it Make Sense for Retailers to Use 3PL Fulfillment Companies as an Alternative to FBA? Fulfillment Across Different Channels If you relegate yourself to selling only on the Amazon marketplace, you are cutting yourself off from a large number of local customers that possibly shop on other platforms. In order for a retailer to be competitive, it needs to open as many doors as possible. 3PL fulfillment companies often integrate with multiple selling channels seamlessly, to enable retailers to carve themselves a share of customers on each platform and fulfill Amazon orders at the same time. Transparent and Simplified Pricing Plans Costs in the Amazon marketplace, especially pertaining to FBA, constantly change and evolve depending on a variety of factors such as seasons, product size and nature, duration of storage and many others. This can lead to uncertainty in the amount retailers would have to expend to fulfill Amazon orders. On the other hand, 3PL fulfillment companies often have flat rates that are agreed upon beforehand, pricing per unit and no minimum order quantity. This provides transparency and enables sellers to budget accordingly. Customized Packaging Amazon has standardised most of its processes, including its packaging. While this may seem like a good thing on the surface, it means that Amazon’s brand is highlighted much more than the retailer's brand is. There are also little to no customization options available. With a 3PL fulfillment company, retailers can customize their packaging with their brand logo, choice of materials, custom stickers and themes and much more through branded shipping, which will contribute to customers attaining much more knowledge about their own brand, while they fulfill Amazon orders. Order Management Most 3PL fulfillment companies offer software that helps them efficiently fulfill Amazon orders. In many cases, they are more simple and more intuitive to use than Amazon’s offering, which can feel overly complicated and cumbersome at times. This order management software will help you keep track of past, present and future orders and will mitigate any unexpected errors along the way. Inventory Management Gone are the days when the Amazon marketplace had a monopoly on smart inventory management services. Due to the widespread adoption of state-of-the-art technology and advanced Warehouse Management Systems(WMS), most 3PL companies are able to offer an enhanced level of inventory management capabilities to fulfill Amazon orders. This includes smart placement of inventory according to various metrics, monitoring inventory levels, forecasting demand and supply levels in the future and much more. Fulfillment Centers in Multiple Locations Most of the larger 3PL fulfillment companies offer a vast network of warehouses and fulfillment centers that are strategically dispersed across the country in areas with high demand to be able to rapidly fulfill Amazon orders. This enables retailers to offer faster shipping services at reduced rates because of smart inventory placement at locations that are in close proximity to the delivery locations of customers. In addition, these companies are not bound by the red tape of the Amazon marketplace so this results in inventory being stored at much cheaper rates. Faster Shipping for Lower Prices 2-day shipping was originally popularized in the Amazon marketplace and other retailers and eCommerce platforms had to adapt in order to compete. However, due to economies of scale and the technology behind fast eCommerce shipping becoming mainstream, there are many 3PL fulfillment companies that offer next-day, same-day and even 10-minute shipping for a fraction of the cost that Amazon charges for its fulfillment services and for companies to fulfill Amazon orders. Read our blog on how to become a Flipkart Gold Seller, Flipkart Fulfillment and Shopify Fulfillment to understand how to use competitive services. Amazon Marketplace Integration: 10 Easy Steps to Integrate WareIQ with an Amazon Seller Account in 2025 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

May 17, 2022

How to Sell on Amazon? A Step-to-Step Guide for Beginners in 2025

Amazon is the largest eCommerce in the world and has changed the retail landscape forever. Because of its large volume of resources and access to highly advanced technology, Amazon often initiates trends that need to be followed by other eCommerce platforms in order to stay relevant. This is why it is the goal of many online retailers, regardless of size and scale, to sell on Amazon. There are many benefits associated with it and also a few things to keep in mind. Let's take a closer look in more detail. Why Should You Choose to Sell on Amazon in 2025? Experience Higher Levels of Growth and Exposure Even though the advent of eCommerce marketplaces has given rise to multiple alternatives, choosing to sell on Amazon consistently enables brands to expand at faster rates than if they opted to join another eCommerce selling platform or sell on their own means. It also supplies retailers with increased levels of exposure to their target audience as well as potential customers in isolated or far-off locations. Many eCommerce analysts suggest that opting to sell on Amazon not only provides multiple benefits but that it is also vital for the long term survival of the company. Amazon is a company that continues to grow at a rapid pace due to an increase in the number of people who have access to the internet and who are getting accustomed to shopping online. Relatively Simple Process to Start to Sell on Amazon Getting started with your journey to sell on Amazon is a relatively easy process for most retailers who are able to meet the necessary requirements and regulations. Specific product categories are susceptible to more scrutiny than others but this is generally the exception, not the rule. It is also in Amazon’s interest to make the process as intuitive as possible to attract as many sellers as they can. The process in order to sell on Amazon is also far easier than setting up your own website, warehousing facilities and retail fulfillment processes. All you need to do is: Create listings for all your offerings Transport your inventory to an Amazon warehouse Monitor the orders that come in After you finish these aspects of the setup process, Amazon will take care of the rest. However, you will need to put in an effort to make your product stand out from the crowd and this can be done through attractive listings and pictures, branded shipping or discounted prices compared to similar products. Tailored to Retailers that Have Exclusive Products and Stable Levels of Income Choosing to sell on Amazon empowers budding eCommerce retailers with all the tools they need to sustain and accelerate their growth. By removing the burden of important eCommerce logistics processes such as inventory management and order fulfillment, Amazon enables businesses to focus on the core aspects of their business such as refining and marketing their products. However, it needs to be said that all these services come at a price and would mainly benefit companies that can afford to give Amazon a significant commission, by maintaining profitability at a sustainable rate. It would not benefit companies that cannot afford to reduce their bottom line by giving a share of their profit to Amazon for their services. Benefit from Customers Association with Amazon as a Household Name When you make the choice to sell on Amazon, you automatically get access to millions of potential customers who already use and trust its services. Because of the extremely standardized nature of its offerings, customers associate brands who sell on Amazon with reliability, speed and quality and since your business is fulfilling orders through them, customers will extend that same association to your business as well. Amazon has strict quality control measures and will ensure that every order is delivered according to the estimated date and time and in the best possible condition. Customers expect everything to be seamless and that is what your business will provide to them, through Amazon marketplace integration. When you sell on Amazon, you also get the benefits of Amazon’s stellar customer service to make sure your customers are always satisfied, even if they have to deal with a minor issue or query. Gain Access to the Amazon Marketplace’s Advanced Technology and Automation The Amazon marketplace is known for its use of advanced technology and automation from drones to state-of-the-art Warehouse Management Systems (WMS). Businesses who partner with them will also get access to these facilities, without needing to do any of the heavy lifting themselves. Oftentimes, small and mid-sized companies would not have access to the resources or budget to conduct research and development on how to advance their services so it is highly beneficial to them to be able to take advantage of technology that would enhance their business processes, mitigate any manual errors and increase customer satisfaction. Read our blog on how to become a Flipkart Gold Seller to get more information on similar services to Amazon. How Can You Start to Sell on Amazon? 7 Easy Steps to Follow Registering on Amazon The first thing you need to do if you want to register your business to sell on Amazon is to go to the Amazon Seller Signup Page and click on the “Register Now” option. This is a setup page and would prompt you to provide various details about your business such as the name of your company, office address and contact information such as phone and email. Entering the Name of Your Organization During the registration process to sell on Amazon, it is beneficial to register your business as one of the following: Limited Liability Partnership (LLP) One Person Company (OPC) Private Limited Company (PLC) This is due to the fact that these types of companies are covered under limited liability protection and involve an easy setup process. This is important because retailers that choose to sell on Amazon or any other eCommerce platform can constantly come under the scrutiny of litigation from customers or other sellers. Entering Your Business’ Address and Contact Information You should provide the official office address of the company in the relevant field and also enter an active phone number that can be used for calls and SMS identification. Entering Your GST Information Providing GST information is only required for products that are bound by GST, which are the majority of products that are available on the Amazon marketplace. Products that don’t fall into this category are exempt from needing to provide GST details. Entering Your Bank Account Information Sellers who wish to register to sell on Amazon are required to provide the following information regarding the bank details of the relevant company: Account Type Bank IFSC Code Bank Account Number Bank Account Holder’s Name Listing of Available Products Post filling out the necessary information, potential sellers will have to participate in a compulsory Amazon Partner Quiz. After this, they can begin to sell on Amazon. Products will then have to be listed with detailed descriptions, pictures and accurate information regarding dimensions, features and pricing which can be done on the Seller Dashboard. Post Setup Process If a customer shows interest in one of your products and ends up making a purchase, you will get an alert with all the details, prompting you to ship the order. You can then either start the delivery process of the ordered product on your own through Fulfillment by Merchant (FBM) or allow Amazon to fulfill the order on your behalf through Fulfillment by Amazon (FBA). They will deduct their commission and transfer the remaining amount to your listed bank account. Alternatively, you can also read how to sell on amazon without FBA. 8 Best Strategies to Benefit the Most from Selling on Amazon in 2025 Come up with a Detailed Business Strategy It is important to chalk out a detailed plan for anything that you seek to accomplish and this holds true in order to successfully sell on Amazon. Important aspects to achieving a suitable business strategy would be: Core short term and long term goals for the company Analysis of potential customers and target markets Research and development of products Marketing strategies Sales figures in terms of units Estimation of logistical, production and operational costs Setting a profit margin It is also necessary to identify trends in the market, keep a close eye on your competitors' products and strategies and have a clear picture as to what kind of products you want to sell and what kind of customers you’d want to sell them to. Another thing that we recommend is to come up with a detailed list of schedules and relevant activities in order to streamline every process that would ultimately have an impact on your bottom line. Identify Your Place in the Market Opting to sell on Amazon is no easy task as there are a vast number of retailers and offerings that would often overlap with your business model. It is important to identify where your products fall in terms of price and visibility, in comparison to your rivals. To achieve this, you need to constantly examine the indicators that would have an impact on your space in the market so that you stay ahead of the curve and be the dominating seller in your segment. Provide Exciting and Descriptive Product Titles Product titles are one of the first things that a potential customer will interact with, on the journey to getting them to make the purchase. Just like your product itself, you need to enhance and refine your title so that it will stand out amongst a sea of other products. The general consensus to come up with the best listing titles is to follow a simple hierarchy which is as follows: name of the brand name of the product descriptive elements such as colour, dimensions, use case etc. If you follow this method, your title can rank highly in terms of keyword searches and customers will have a concise way of identifying your products. Provide High-Quality Photos Making sure that the photos on your product listing pages are high resolution and are able to encapsulate the positioning of your product is crucial. It can have a drastic effect on the perception of your products by customers. In this day and age where phone cameras are more than capable of taking high-quality photos, it isn’t hard to put in a little effort to make sure that your product stands out in its images. There are a few tricks that you can follow to get good shots: Take pictures of your product in its real-world use-case Highlight your product from all angles Use a tripod to avoid shaky or blurry images Use a subtle background that doesn’t overshadow the product Avoid using flash Make Sure Your Inventory is Synced If you sell on Amazon in addition to multiple other channels, you need to make sure that your inventory is synced across all of them to avoid any confusion regarding orders and available stock levels. You will also be able to seamlessly edit listings and orders that will reflect across all platforms, which will save you time and effort. Focus on Relevant Keywords Keywords are a very important aspect to sell on Amazon by making sure that your product is not only visible to your target audience but also to as many potential customers as possible. Trending keywords are constantly changing based on customers' tastes and preferences, festive seasons, online trends and other factors so it is important to stay up to date on which keywords are relevant at the right time. Abide by Amazon’s Rules and Regulations There are a vast number of rules and regulations that retailers need to follow to sell on Amazon. The company is very strict about enforcing these rules so it is important to follow them at every step of the way. These rules exist to not only get the most out of your business but also so that Amazon can maintain its image of efficiency and quality. Push for Customer Feedback If you sell on Amazon, it is important that you get feedback to gauge the reception of your products from customers. If you are able to provide a positive experience to customers, it would benefit your business to highlight those reviews so that it can inspire confidence in other customers. Conversely, if you receive negative reviews, it is important to understand and solve the issues faced by the customers that wrote them, so that you can mitigate those same issues in the future. Read our blog on Seller Fulfilled Prime to understand how it can help boost your Amazon sales. Sell on Amazon: Pros and Cons Pros for Retailers who Sell on Amazon Access to Larger Customer Base In most regions of India and the world in general, Amazon has become synonymous with eCommerce retail. This gives retailers who choose to sell on Amazon, a significant advantage over their competitors who opt to sell through their own website or other eCommerce channels. This additionally unlocks access and visibility to the millions of customers who use and browse through Amazon on a daily basis which other eCommerce platforms simply cannot compete with on the sheer scale of active users. Access to Positive Perception by Customers Since Amazon has a vast amount of rules and regulations for retailers to follow if they want to sell on Amazon, most processes across the board are standardised and customers experience a consistent level of efficiency and quality that they will start to associate with your brand as well since you sell on Amazon. Easy to Operate In order to sell on Amazon, you do not have to be well-versed with technology because most of the services and functions are designed to be intuitive to people from walks of life, so that they can easily sign up by following the instructions and start to sell their products, without any hassles or complications. Access to Important Features in One Place Fulfillment by Amazon (FBA) is Amazon’s 3rd party fulfillment service that all retailers who sell on Amazon can take advantage of if they want to. It provides access to Prime shipping, Amazon’s unrivalled network of fulfillment centers and complete D2C order fulfillment for a specified sum that is agreed upon beforehand. It will help businesses ultimately reduce logistics and operational costs. Cons for Retailers who Sell on Amazon Sellers Need to Abide by Amazon’s Rules If retailers choose to sell on Amazon, they need to follow all the rules and regulations otherwise they can be penalised. Rules can also be changed at the drop of a hat without any say from the retailers. It is also not uncommon for sellers to be booted from the platform for minor breaches in the rules. Sellers Have to Out-Compete Amazon When retailers sell on Amazon, they not only have to compete with a vast array of other sellers but also with Amazon themselves. Amazon sells its own branded products so preference would be given to those over any other, in the form of promotions, ads and appearing at the top of search results. Sellers are at Constant Risk of Being Scammed A big threat to retailers who sell on Amazon is being susceptible to cyber-attacks and scams. Sellers have had to face problems like people buying all their inventory, only to ship it back once the peak season is over, hijacking of orders and losing control of their own listings. Amazon Reduces Storage Space During High Demand Retailers that sell on Amazon and utilize FBA warehouses and fulfillment centers constantly have their available storage space limited, especially during holiday seasons. They can also do this if your products are not in demand and accumulate on a large number of shelves. You May Like: How to Sell on Snapdeal? Conclusion: Is it Viable for Your Business to Sell on Amazon While opting to sell on Amazon is something many retailers think is a no-brainer, it does depend on the nature of your products, the goals of the business, and the requirements for eCommerce fulfillment services. Selling on Amazon can give your business the boost and exposure that it needs to attain a steady level of growth. However, retailers would need to weigh the pros against the cons. If you do decide to sell on Amazon, and you want to preserve a little bit of your freedom, you can always opt for a 3PL fulfillment company like WareIQ, to take care of all your requirements. That way, you can focus on the heavy-hitting and leave the rest to us. 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 Warehouse Management System (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. Sell on Amazon FAQs (Frequently Asked Questions)

May 17, 2022

14 Best Ways to Reduce RTO Charges in eCommerce in 2025

Businesses these days are involved in cut-throat competition, mainly on online selling platforms. They try to offer all the services they can to create a better online purchasing experience for their customers. One of them is the return option for buyers. One of the painful realities that online retailers must accept is that there will be customers that seek to return their orders. In order to reduce RTO frequencies, sellers employ a variety of tactics. If a retailer wants to be profitable in the eCommerce space, they need to reduce RTO costs. If not, their profit margins will fall or it may also start creating difficult scenarios. It is widely known that it’s impossible to reduce RTO requests to zero but taking care of a few things can optimize and reduce RTO charges to a certain extent. To achieve significant RTO reduction, you need to first understand it in detail. What is RTO or Return to Origin? The term return-to-origin or RTO is often used in the eCommerce industry. The initiation of the return of a product and its return to the seller's warehouse is referred to as RTO. A package may be returned to the vendor for various reasons. An eCommerce business will incur more costs as a result of this. Setting strategies to reduce RTO costs is vital for the business to maintain its profit margins and not incur extra costs. [contactus_lilgoodness] What is RTO Related Costs? When an online seller or selling channel provides the facility of free shipping, they add the shipping charges to the final selling price of the product. In certain cases where the sale is done but the product is in the process of being returned, all costs associated with the returns process are known as RTO-related costs. For a seller, RTO reduction equals higher profitability. Let us understand the different RTO related costs and how to achieve RTO reduction. Charges for the Shipment to be Delivered and Returned Product delivery is chargeable for sellers, which they account for in the final selling price. If an RTO is initiated, it costs the seller twice the amount which they will not make back during the sale. Therefore, sellers need to find ways to reduce RTO costs. Costs for Repackaging Products are packed after picking them from the shelves of a warehouse, godown, or fulfillment center. Products are customized with multi-layer packaging and the invoices are posted on the outer packet which includes the receiver's address, barcodes, order number, etc. In the event of an RTO, this packaging needs to be removed and put back in the inventory. Later when the same item is ordered again by another customer the seller needs to pack it again. Thus, sellers need to find ways to reduce RTO packaging costs. Cost Incurred due to Product Damage Through online selling, order fulfillment is done by achieved by traveling large distances. These products are picked up and kept with hundreds of other products, which could cause damage if they are not placed in a proper manner. This could result in an initiation of RTO because of product damage before it has even reached the buyer. Companies need to analyse how to reduce RTO caused by product damage. Costs During Handling of Recalled Inventory Storing and managing inventory carrying costs a huge amount of money to a seller. Holding a product for a while can proportionately increase the cost, to the amount of time and addition of new products being added. Sellers seek to reduce RTO storage costs by investing in better inventory management facilities. Costs Incurred due to Expiration The passing time makes a lot of products redundant. Christmas trees are mostly sold during the Christmas season. It applies for most festive seasons so if the product is delayed in transit, it may lose its importance and value due to which a seller will have to store it for a long period which may result in it becoming old-fashioned and irrelevant. Practices That Can Help Sellers for RTO Reduction You can have the best products and most efficient eCommerce fulfillment strategy but you will still get RTO requests. RTO reduction can be achieved but it can never be entirely mitigated. To reduce RTO charges, sellers can keep a few things in mind: Store Inventory Near High Traffic Order Placement Locations: It will not only help a seller in saving shipment charges but also reduce RTO costs as distances to fulfill orders will decrease. Covering less distance is also effective in terms of limiting product damage. Choose Logistics Partners with Competitive Freight Rates: Freight rates in the supply chain matter a lot. Dynamic increases in fuel prices, and not using optimized vehicles can double the freight rate. If your logistics partner offers cost-effective rates, it can reduce RTO charges. Opt for RTO Insurance: This is a recent concept where eCommerce logistics companies and fulfillment companies give sellers an option of RTO insurance. If an RTO occurs, these fulfillment companies will bear the cost instead of the retailer, resulting in an RTO reduction. Choose a Third-party Fulfillment Partner: Third Party fulfillment companies give all-in-one solutions to a seller. It stores your inventory at the best location with high order traffic at the cheapest freight rates, provides individual buyer RTO rates, gives the option of RTO insurance, and provides facilities like RTO shields. All these factors can reduce RTO costs. How to Reduce RTO Charges & Frequency in eCommerce? 14 Proven Ways in 2025 To make your business more profitable, you can apply some tricks to reduce RTO charges. These tested tricks will help you reduce RTO in the year 2025: Optimize Product Descriptions In online selling, people always complain about the difference between a product’s appearance on the website versus reality. When a customer buys a product, they read the product descriptions to get an exact idea of the product. So try to write a good description of the products with accurate facts and figures about their features and dimensions. Provide Order Tracking Many times, ordered products are not received by a buyer because the buyer is not present at the location. If the seller provides order tracking and order scheduling facilities, the buyer can plan and receive it accordingly. Offer Multiple Modes of Payment These days, people are more reliant on UPI or card payments. So if the placed order is COD and the receiving person does not have cash (higher chance in the case of expensive products), the delivery partner should have multiple options of payment available. Convert Returns/Refunds into Exchanges If the seller turns the returns into exchanges, a buyer who often requests for RTOs will have to receive the parcel or they will not get the paid amount. In the case of COD, they can be noted and deprived of the COD option in the future. Check Customer Availability Before Attempting Delivery Most of the time, last mile delivery partners deliver products during the day which may be working hours for the buyer and they may not be present at the given location. So for the delivery, the delivery partner can first check the availability of the customer and schedule a time or change location after verifying the details. This will reduce RTO frequencies significantly. Alert for Consumers with High Initiation of RTOs These days with the help of technology and software, sellers have options to get the numbers of RTO frequency of individual buyers. If a person has a high rate of RTO requests, a seller could ban or restrict them from placing certain orders. Locations are also blacklisted by a few selling platforms as per bad fulfillment experiences. Offer Faster Shipping (Same/Next-Day Shipping) When a buyer orders a product, they expect to get it as soon as possible. They may find some other way to obtain it sooner or buy it from an offline market and when the order finally arrives, an RTO request gets sent. So, a seller should ensure to deliver products on the same day or the next day after the order has been confirmed to reduce RTO requests. Offer a Branded Post-Shipping Experience When a buyer reads the feedback about certain products and brands, they invariably find some feedback related to a bad delivery experience. Chances are that many customers may not have received their orders due to similar problems. The solution to reducing these kinds of RTO requests is to provide a branded shipping experience to your customers. Pick and pack it nicely, send confirmation messages, Message them the tracking ID/number, allow buyers to choose a favorable time to receive it and finally ask them to write a review. Reduce Cash on Delivery Losses Data shows COD orders are mostly converted to RTO requests and from a customer's point of view, they don’t want to pay before they get the product. In this scenario, a seller has multiple options to reduce RTO requests: Verification of Shipping Address A seller can verify the shipping address before dispatching the product to a logistics company. In case it is incorrect, which can turn into an RTO request, the seller or the logistics company can instruct the buyer to correct the eCommerce shipping address to achieve a successful delivery. The address can be verified with a address proof documents of the buyer. Profiling of Risky Orders Make a database of risky fulfillment and mark them according to different parameters. Then choose whether you want to give them an option for COD or ask them to pay before the order delivery. Providing Dashboard Analytics Discover indications that contribute to your RTO losses by getting RTO information at a state/city/pincode level. To better understand delinquent behavior and implement the learnings into your business plan, get full-order review reports. This will reduce RTO requests that are fraudulent. Customization of Business Model Learn algorithms, evolve, and localize the learnings over time to continually increase accuracy based on your company's demands. To make it even more flexible, you can create your own flagging rules. Furthermore, blacklist specific persons based on email addresses, phone numbers, and other factors to reduce RTO costs. Automation of Important Processes As your eCommerce firm expands, automation becomes increasingly important. Set up automated workflows to automatically accept or reject red-flagged orders based on risk factors, saving time and money in the process. To maximize your business and decrease operating expenses and reduce RTO charges, automate order confirmations, payment collections, and other operations. Conversion of Risky COD Orders to Prepaid Orders: If there are higher chances of RTO requests with an individual customer, only give them the option to pay before order placement. Prepaid orders result in RTO reduction and if an RTO request still occurs, allow an exchange instead of a refund. Optimizing Website Experiences in 5 Ways to Reduce RTO in eCommerce You may have observed that brand appearance matters a lot in its positioning. In online selling, the appearance of a brand depends upon its website. Websites increase brand value and with good brand value, RTO reduction of a product can be achieved: These are some ways to make your website more effective: Implement a Return Policy For eCommerce businesses, return policies should be a set of rules created by a retailer or a selling platform to manage returns and exchange unwanted merchandise that a customer has purchased. It should tell the buyers what items can be returned and for what reasons, according to a timeframe over which returns could be initiated. Enhance Product Illumination When a product fails to meet the standards set out on the business’ website, it is a key contributor to product returns. It's disheartening to receive a shipment after waiting weeks for it, just to open it and discover it's not what you expected or required. Ways to reduce RTO requests in this regard are: Create an attention-grabbing headline summary. Summarize the product definition with a bulleted list of key characteristics and features. Use a paragraph to expand on what makes the product unique. Instead of focusing on describing benefits, focus on giving a solution. To persuade the consumer to buy, end with trust, social truths, urgency, and a call to action. Value Consumer Reviews If you have a high number of RTOs then there must be some reason why the majority of customers are not accepting the delivery. You can try to get feedback from the buyer who didn’t accept the delivery or read reviews of buyers who have written about their post-order experience. Read all and then try to provide a solution. Introduce Product Videos If customers are returning items because they don't meet the product description's expectations, you might want to consider adding a video function to your product detail page. Brand films are now a highly effective technique for increasing conversion rates, and reducing RTO requests and more individuals determine that after watching a product commercial, they can better imagine themselves using the product. Provide a Post-Purchase Confirmation Message Sending a post-purchase message(mail) to your customers can be a very effective way to reduce returns. Reduce objections that lead to refunds and keep customers enthused about what they just ordered by informing consumers about the product between order and shipment. Strategies to Decrease RTOs in eCommerce with WareIQ According to a recent study by KPMG, return shipments can make up to 20% of total shipments in e-commerce. This rate climbs to 40% in the case of Cash on delivery (COD) orders. Return to Origin (RTO) is a nightmare for sellers as it significantly increases the logistic costs. RTOs rates are expected to increase even further in India with demand surges in tier 2 and 3 cities. Given the situation, reverse logistics has become an integral part of a business plan. Given the convenience of online shopping and the lack of risk, buyers can frequently return items without second thoughts. RTO logistics become extremely important to decrease this trend as well as the costs involved. The sheer amount of revenue lost by companies through return items is about 20% of the sale, and that’s exactly where WareIQ pitches in to help you save the costs. We optimize your return order logistics and improve overall efficiency with the help of insights derived from customer data, customer retention metrics and return policies. How Does WareIQ Help eCommerce Businesses in Reducing RTOs in 5 Ways? Quick TAT (Turn around time): Logistic partners provide an estimated delivery timeline based on which the customers anticipate the delivery. If it fails to reach them as per this expectation, there is a risk of an RTO and the customer opting to order from a competitor. This also affects the customer retention rate. With WareIQ’s Prime-like shipping, data-driven insights, PAN-India network of warehouses, and excellent supply chain management system, orders reach the customers on time as promised. This ensures a higher rate of First attempt delivery, thus reducing the breach of TAT. Higher and Efficient First Attempt Strike Rate (FASR): Delivery success in the first attempt ensures happy customers and helps in their retention. This is an important metric since lower returns imply lower logistics costs on RTO. With WareIQ’s structured incentive plans, delivery partners are encouraged to deliver maximum shipments in the first attempt thereby increasing the FASR. Improved Non-delivery Report (NDR) conversion: Knowing the customer’s intent before performing the last mile delivery can save a lot of time and costs related to RTOs. This can be achieved by validating the attempted shipments by directly communicating with customers via phone calls, SMS, e-mail, WhatsApp, etc. Any change of preference or cancellation or order can be recorded and shared with the shipping partner in real-time to decide whether to “Reattempt the delivery” or “Make RTO”. Performing this manually at scale is almost impossible. With WareIQ’s innovative solutions, most of it can be automated via IVR (Interactive voice response) calling, auto-SMS, auto-mailer, WhatsApp alerts, etc. This also keeps the customer well informed and creates an impact on improving the delivery conversion percentage. In the auto NDR process, the customer will get an IVR call immediately after a failed delivery or when the NDR remark is updated by the delivery personnel. Automation makes the entire process quick and efficient. Wrong or Incomplete Address: Amidst the huge traffic across the supply chain and sometimes because of consumer ignorance, deliveries often end up attached with wrong or incomplete addresses. This is also one of the major reasons for RTO. Address validation becomes important in this context. WareIQ ensures this authenticity with various checks on the same. This increases the chances of successful delivery. In case of an incorrect address, shipping is cancelled prior to dispatch. It allows not only for lower RTO but also avoids wasteful shipping costs. Automated Partner Pin Code Allocations: With WareIQ’s cutting-edge technology, pin code allocation is automated. This altogether eliminates the hassles of manual allocations thus reducing logistics costs & shipping costs & RTO as well as increasing fulfillment serviceability and speed of delivery. Making changes in allocations is complex and takes a good amount of time. The system analyzes historic RTO percentages and cost per shipment (forward + RTO) to optimize the allocation and ensure that the courier with the lowest possible cost is chosen for the given pin codes. Such efficiency and cost reductions are not possible with manual processes. This also saves a lot of time in processing and shipping the orders. RTO Shield WareIQ's RTO Shield provides eCommerce/D2C firms with a comprehensive checkout strategy to reduce RTO losses and increase revenue. Why WareIQ’s RTO Shield? Request a refund for any RTO order that was predicted to be safe by the company. Smart COD checkout option based on technology to detect problematic customers and save on shipping costs Disable COD for untrustworthy and blacklisted customers automatically. Identification and deletion of duplicate orders Verification of shipping addresses and intelligent shipping selections based on address completeness Benefits of RTO Shield Increase conversions and decrease cart abandonment. The quickest checkout time is under 10 seconds. Identify high RTO risk consumers using data sets from telecom, banks, hyperlocal, and OTT providers. Identify scammers using previous data on their past purchasing behavior and win over them. How Does it Work? Integrate the website/application with WareIQ 3 months of historical data will be needed to train the model to predict accurately. Go live in 3 to 5 days [signup] Reduce RTO FAQs

May 16, 2022

Flipkart Gold Seller Guide: Advance Towards Gold Tier Selling in 2025

It is simply possible and easy to sell your products online on Flipkart and become a top eCommerce player with minimal cost, whether you're a manufacturer, seller, or supplier. At this moment every seller is aspiring to be a Flipkart Gold Seller. In comparison to the other tiers, Flipkart offers a lot of services in the Gold tier. The question now is how to become a Flipkart Gold seller, and how to maintain your Flipkart Gold tier status if you already are. Flipkart is an online marketplace with millions of products in more than 80 categories which includes clothing and accessories, automotive accessories, food products, books, industrial and scientific supplies, health care and beauty, mobile and accessories, home and kitchen, and many more. Flipkart was started in 2007 by Binny Bansal and Sachin Bansal and is headquartered in Bengaluru, India. The organization currently employs more than 50,000 people and has 150+ million registered users (Targeting 500 million by end of 2022), who visit the website daily. Flipkart's technical support allows them to send millions of shipments per month, and the numbers are still growing. Five Reasons for Establishing Online Selling Business With Flipkart in 2025 The primary goal as a business owner is to promote and grow your brand, which enables you to generate revenue and indirectly increases the prospects of becoming a Flipkart Gold Seller. Even if you possess a prominent location for your business in a bustling market, you may be well-known, but your reach will be limited. What can you do about it? By starting to sell at online marketplaces like Flipkart, Amazon, and Myntra. When you sell products online, you can reach a much larger audience and potential customers. Building your brand value and making your products easily visible online to customers in various cities across India, will cause them to shop from you online. This way consumers can also easily order things online and have them delivered to their homes, without going to that place. Selling with Flipkart has its perks and benefits. Pan India Reach You may have the most famous store in Connaught Place, Delhi, or in Commercial Street, Bangalore, but clients who aren't in that area won't be able to visit you. When you sell online, on the other hand, you can reach customers in your neighborhood and city just as readily as customers from distant parts of the country. For example, when you sell on Flipkart, you instantly gain access to over 150 million registered users. With this one move, you may transform your business by establishing an all-India presence. To be precise, a physical store owner may only be able to contact a limited number of buyers. They can deliver to consumers' houses, however, distance restrictions may apply. Hence reaching out to more customers can be beneficial to sellers who need to broaden their reach to find new customers. Low Set-up Costs Unlike a traditional shop, selling online on Flipkart doesn't require you to spend a lot of money on setting up and running your business. With a few clicks, you can easily start a small business that can grow without having to spend a lot of money. Organized Logistics Network When you sell things online, you don't have to worry about how you'll get them to the customer or how much they will cost. You may use the logistical network that has been developed and perfected with ease if you choose the correct platform, such as Flipkart. You may enjoy the delivery experience while simultaneously protecting yourself from losses with the Seller Protection Program, which offers hassle-free pick-up and delivery of products through 200+ pick-up hubs and more than 10,000 delivery agents and also reduces logistics costs. Low Marketing Cost When you launch your business online, how will you stand out among the thousands of other sellers? Don't panic, you can promote your company without breaking the bank. When you sell on Flipkart, for example, you'll be connected with partners who will catalog and photograph your products so that they appeal to customers, as well as give you advice on promotions and advertising and assist you in making smart business decisions. Access to Market Trends You may take advantage of market trends when you start your online business on Flipkart. Flipkart collects data on a variety of topics to assist you to understand what products are in great demand, what new market trends are emerging, and what products sell better. You can utilize this data to make appropriate stock changes and, as a result, enhance your revenue. With these five reasons in mind, start selling online and take your business to the next level. You may register in a matter of minutes and utilize the simple seller platform to manage and build your business. Flipkart's online marketplace, which has over 150+ million registered users, has more room for expansion than you could ever dream of. This, together with all of the assistance you require, makes it simple for you to get started and become a Flipkart Gold Seller. Also, read our blog on Seller Fulfilled Prime to get an idea of competitive eCommerce services. [contactus_lilgoodness] How To Get Started With Selling Products on Flipkart? While many people find the lengthy process of becoming an online vendor burdensome, Flipkart has simplified the procedure to the satisfaction of sellers. When you complete the Flipkart seller registration procedure, it will ask you for information and documents about the sort of legal business organization you wish to register with. Identify Legal Business Entity When you start to think about an online selling business on Flipkart, even before the seller registration process, you should be well informed about documents about the type of legal business entity you wish to register with. As a fact, before you join Flipkart as a seller, you first must establish a legitimate company entity. There are the three classifications Flipkart has been offering: Private Limited Company Limited Liability Partnership Firm Individual or Sole Proprietorship Firm Each legal entity has its own set of characteristics and regulations. As a consequence, you need to determine which one meets your requirements. It might be detrimental to your business if the structure you choose is inappropriate. It is also significant in terms of the fact that the firm must file income tax returns and annual filings with the company registrar. Let us provide the detailed information and advantages of registering as a legal business entity: Registering as a Private Limited Company There are various benefits of registering as a Private Limited Company on Flipkart. This is by far the most appropriate corporate structure. Sellers benefit from the advantages of a Private Limited Company, such as limited liability, which provides security to its promoters and shareholders, easy transferability, easy access to financing, independent legal entity, perpetual succession, and risk-taking ability to build the business, among others. It is an extremely progressive move to register as a Private Limited Company for selling/trading things on online platforms like Flipkart and Amazon. Documents required are- Identification proof A copy of the Private Limited Company's registration documents or certificate of incorporation MOA Copies (Memorandum of Association) The company's PAN card Address Verification Electricity bill under the company's name Lease or rental arrangement Cancelled current account check GST Identification Number Registering as a Partnership Firm or LLP As a Partnership Firm, a seller can join Flipkart. Limited liability protection, a separate legal entity, and easy transferability are all advantages of registering as a Limited Liability Partnership (LLP) on Flipkart. Documents required to become a Flipkart seller using a partnership or LLP business type include- Identification Proof Certificate of LLP Incorporation or Partnership Registration Partnership Firm or LLP PAN Card Documents indicating the Partners Address proof Official document verifying the Partners' address Electricity bill in the name of Partners/LLP Telephone bill in the name of Partners/LLP Rental or Lease agreement Electricity bill in the name of Partners/LLP Registering as an Individual or Sole Proprietorship firm For individuals who do not want to maintain their business storefronts but still want to sell their products, online markets for them are usually very simple. Organizations like Flipkart make it easy for them to list their products and sell them across the country. The majority of people are using these portals to register. The sole proprietorship is immediately granted to the person who registers under a brand name. This business model provides no insurance to the owner and limits the owner's capacity to expand due to unconstrained liability and limited access to loans, company grants, and banks. As a consequence, selling as a sole proprietor is ideal for small business owners with minimal risk. Here is a list of documents and information required to register as a sole proprietorship- Identification proof A signed statement on the company's letterhead stating that the person controls and owns the company's bank account Proprietor's Passport Proprietor's PAN card Proprietor's voter ID/driving license Identification card with the seller's photo ( Aadhar Card) Address verification A proprietor's bank account statement or a cancelled check The proprietor's electricity bill License or Lease agreement GST Identification Number How to Register as a Seller On Flipkart Steps to follow to register your business on Flipkart · Go to the Flipkart Seller Homepage to register as a Flipkart seller. · When you click "Register Now," you'll be sent to the seller registration page. · After submitting the basic details (Name, Email-Id, GSTIN) you will receive a confirmation email from Flipkart that registration has been successfully done. · The next screen will ask for your pick-up location. You must first enter your pin code, which will be confirmed, followed by your address. · Business information will be requested in the next following step. · After providing the information asked, there will be another verification email request to confirm the email address. To confirm the email address. · The Flipkart seller account would be finally created. After that, the individual will be brought to the final page for authenticating the account, where filling out the following categories is mandatory. Attach a scanned copy of each supporting document to demonstrate the legitimacy and functioning of the business entity. The store's name Business Information Details on the Virtual Signature Bank A photograph of a cancelled cheque GSTIN Documents Supporting KYC Documents List of Products Interested in Selling Tax Registration Documents To begin selling on Flipkart, one must submit Tax-Related business documents. Listing The Products On Flipkart Click the listing in your Flipkart Seller Account By clicking on Listing, select 'Add New Listing’ Depending on your preference, you can submit a single product or a batch of products To check your inventory, click ‘check Inventory health’ after uploading the details of the products Flipkart also features a dashboard for sellers to manage their accounts. Update or change all of the product's details using the dashboard Setting up for Shipping and Logistics Operations Flipkart offers shipping and operational support. It has collaborated with major logistics partners across India to pick up and deliver orders quickly wherever in India. Packaging expertise, materials, and training are provided by the logistics company or courier services. After receiving the order, the seller is responsible for packing the product and keeping it ready for dispatch. The courier service representative collects the order from the vendor and delivers it to the specified location. Flipkart Smart Fulfillment Flipkart assists you in achieving maximum results with less investment. As a result, the Flipkart Fulfillment service allows you to access cutting-edge fulfillment centers at a very low cost. Where products are stored at fulfillment centers. Flipkart fulfillment offers space for fulfillment centers, efficient delivery of products, professional inspection of products for quality, and aesthetic packaging. The benefits of Smart Fulfillment are: · Orders are processed quickly. · Strict quality controls · Packaging materials of high quality · Assured by Flipkart · Inventory is distributed across several fulfillment centers. · People that join up for Flipkart Fulfillment and sell high-quality products earn the Flipkart Assured badge. A seller must meet the following requirements to receive this badge: · Least customer returns · Smart retail fulfillment should be listed. · A product's rating should be higher than the standard. · Flipkart imposes shipping charges if you receive the Flipkart Assured badge. · You can determine delivery charges depending on your costs if you lose the Flipkart Assured badge. Managing Payment and Returns Flipkart deposits funds directly into your bank account between 7-15 business days of receiving your order. The reward varies according to the performance level. Seven business days for gold sellers, ten business days for silver sellers, and fifteen business days for bronze sellers. Flipkart also charges a minimal fee on successful orders, and you have complete control over the price of your products. A returns policy is a collection of rules and regulations that enables customers to return goods if they are disappointed with them. Flipkart's return policy protects customers from products that are damaged or defective. It allows buyers to request a return, replacement, or refund based on predetermined criteria. Seller Account Analysis Every Flipkart seller has to analyze data, and Flipkart has made it simple for them to do so by creating the Sellers Hub mobile app. It gives real-time information on listings, payments, D2C order fulfillment, refunds, and other topics. Flipkart also has its dashboard where vendors may view the metrics analytics. Sellers can easily comprehend data from a certain period and also recognize return orders. The Flipkart dashboard assists you with evaluation, management, and analytics. It includes all of the relevant information for a seller, such as listings, payments, inventory, orders, growth, reports, and advertising. Seller Profiling on Flipkart It became increasingly difficult for Flipkart to treat all merchants fairly as the number of sellers increased exponentially. Flipkart had to decide which sellers' products would get the most visibility, which sellers would want a dedicated account manager, which sellers would require advanced seller support, and so on. In 2016, the Seller Tier System was implemented, with sellers being paid based on their performance. To assign a particular tier to the seller, Flipkart evaluates a seller's performance using these inspection criteria: sales, product ratings, service quality, and regional utilization. Sales- The performance of sellers on Flipkart is one of the most important distinguishing factors. Flipkart evaluates a seller's sales success using one of three metrics: units sold, revenue earned, or growth index. Product Ratings- Flipkart enables consumers to rate products based on their usability and customer service aspects. The scale for these ratings is zero to five, with five being the highest (topmost rating). To earn favorable feedback, sellers must ensure that their items and services satisfy the required customer expectations. Service Quality- Flipkart expects its sellers to just provide prime-quality service. To do so, they've instated strict guidelines that sellers should follow, as well as penalties for any breaches. Flipkart evaluates a seller's service quality using two criteria: Ready to Dispatch (RTD) violations and seller cancellation. When selling on Flipkart, sellers must be careful with inventory updates and Service Level Agreement (SLA) driven order processing. Based on the analysis of the performance of the seller, they are provided with certain benefits. These benefits are considered to be directly proportional to the performance of the sellers and this becomes important from the seller’s point of view. Better the seller performs while selling on Flipkart, the more perks he will receive. Performance is reviewed and rewarded, and it is classified as a Bronze, Silver, and Flipkart Gold Seller (prime-tier). This rating is valid for 90 days, after which it will be upgraded if you meet all of the criteria for the following tier. GMV (Gross Marginal Value), or the number of units sold, seller cancellations, Ready to Dispatch (RTD) breaches, and product ratings are all factors considered for the specific classification. Requirement for Becoming Flipkart Bronze Seller As a seller, you are automatically assigned to the Bronze tier To progress to the Gold/Silver-tier on Flipkart, sellers must focus on expanding by hitting benchmarks using the tools provided on the dashboard Requirement for Becoming Flipkart Silver Seller A minimum of 30 lakh rupees in revenue or 4,000 units sold is required. Seller cancellations are less than 0.50 percent RTD breaches of less than 1.40 percent Required ratings must satisfy the vertical benchmark Requirements for Becoming Flipkart Gold Seller Every seller at Flipkart aspires to be a Flipkart Gold Seller on the platform. In comparison to the other tiers, Flipkart offers a lot of benefits in the Gold tier. The question now is how to become a Flipkart Gold Seller, and how to maintain your status as a Flipkart Gold Seller, if you already are. To attain Flipkart Gold Seller tier status on the Flipkart marketplace, you must meet certain conditions- Seller Cancellation- If the seller cancellation rate is greater than 0.15%, then the seller will not grow out from the existing tier. Ready to Dispatch (RTD) Breaches- If dispatch breaches are greater than 1%, then the seller again will be kept in the existing tier. Product Ratings- There are various vertical benchmarks for analyzing product ratings. It is possible that if a seller has a bronze seller rating in any product or category, Flipkart will promote them to a higher tier, however, this is entirely dependent on Flipkart, and WareIq suggests you keep your product ratings as high as possible. Sales- Either 50 lac rupees in sales or 6000 units are required. Flipkart requires to fulfill either sales or unit criteria. If any one of them is accomplished within 90 days from the start of the current tier, the seller progresses to the next tier. Growth Index- The growth index compares your performance to that of other sellers over the same period. You may examine the growth index by going to the Growth tab and selecting Performance Overview from the drop-down menu. It will demonstrate your progress in comparison to other sellers. The growth Index should either be equal to or greater than 2. Regional Utilization- The number of units sold and delivered in the same local or zonal region is divided by the number of units sold. It should be in the 30 percent range or higher. These are the most critical pre-requisites which are to be keenly obeyed to become a Flipkart Gold Seller. Dare you miss any of them. Flipkart Gold Seller Benefits Flipkart always incentivizes its sellers in an attempt to keep its customer base in the face of raising the level of competition amongst sellers. Flipkart Gold Seller tier members receive a 20% discount on forwarding shipping costs, a 7-day payment cycle, high product visibility, a dedicated account manager, exclusive participation in exclusive Flipkart events, and first-page high visibility on the Flipkart website. This Flipkart Gold tier features to assist in the expansion of the Flipkart Online Selling business. 4 Smart Ways to Achieve Flipkart Gold Seller Tier Status After registering on Flipkart as a seller and spending the majority of your day there, sellers probably noticed a large increase in their overall sales. However, the sky's the limit in online business. If you're still wondering how to increase your Flipkart sales and maintain the Flipkart Gold Seller status, you are at the right place to learn the tactics. Improve Overall Sales Performance Participate in Spike or Flash Sales A flash sale is one of the most effective ways to achieve Flipkart Gold Seller status. Vendors can advertise the sale in advance, which will work as a stimulant, resulting in greater sales and money. Go to the 'growth' section of the seller dashboard to participate in such events. Flipkart actively encourages vendors to participate in its promotions. With Flipkart's spectacular shopping events, often known as spike sales, you'll have a lot of opportunities to grow your brand. There are interesting offers on practically all categories during spike sales. This draws a large number of purchasers and delivers a lot of traffic to websites and mobile apps. Sellers not only increase sales with little work but can also reach out to more buyers all at once. Participating in spike sales can also help increase buyer satisfaction and helps in getting established as a Flipkart Gold Seller. Flipkart makes sure suppliers receive a large number of buyers during the sale by providing everything from extra operational employees to TV commercials and promotions on web portals. Running Advertising Campaigns Running ad campaigns on Flipkart is another effective approach for increasing the discoverability of your products on the platform and attaining Flipkart Gold Seller status. You can develop highly-targeted and tailored commercials for customers who are most likely to buy your products using paid advertisements. Simply go to your Flipkart seller dashboard and click on advertisements to use Flipkart ads. Flipkart has a comprehensive rate card with various CPCs for various categories. Sellers can start advertising after selecting the appropriate category and defining targeted demographics. The more clicks your products receive, the more likely they are to be purchased. Product Listing Ads are the simplest approach to obtaining more clicks for your products on flipkart.com. Select a product and develop an advertising campaign for it. Then these products are displayed as 'Featured Products' on relevant Flipkart pages. When a buyer comes across an ad while looking for things to buy, he clicks on it. If it is relevant to the buyer search query, most probably it is purchased. Offer Better Cataloging On an eCommerce website, a catalog displays a list of products and plays a key function in influencing shoppers. To become a Flipkart Gold seller, it's critical to have a well-designed catalog with a concise explanation of your products if you want to convert traffic to sales. Remember that most people shop online to save time, so your product description should impress them without making them waste time trying to figure out what you're selling. Adding your goods to the appropriate category and sub-category is another key aspect of cataloging that can help you enhance sales. This will make it easier for shoppers to find your products and increase traffic. Make sure you have enough things to pick from for your customers. Even if your product line is small, you can give your clients the option of selecting numerous product versions such as colors and other features. This improves their chances of making a purchase. Improve Overall Product ratings Use of High-quality Images Images are the closest a customer can come to the look and feel of a real product on a digital platform, making images a crucial component of online selling. Your product's images should always be high-resolution, with every detail visible. Because what looks nice sells more, make sure that product images are professionally photographed to pique buyer interest. Customers may never know what they are buying if you display your products with pixelated or blurry images. This increases the likelihood of your products receiving negative feedback. To avoid this, make sure all of your profiles include high-resolution photos of your products. This can help you achieve Flipkart Gold Seller status Use Informative Descriptions for Products Customers may have unrealistic expectations of your products if you don't use accurate and helpful product descriptions. This may result in people giving your products a low rating. You should include content-rich product descriptions, including characteristics, materials used, weight, size, and more, to avoid any mistakes. Using detailed descriptions will escalate your chances of becoming a Flipkart Gold Seller. Accurate and Easy to Read Size Charts The ratings of clothes and footwear brands, in particular, suffer because buyers order the wrong size. Furthermore, there is a small size difference across brands. Customers will order the correct products if they include an easy-to-read sizing chart, which will also help boost product reviews. This can also help in making you a Flipkart Gold Seller. Improve Overall Service Quality Reduce Ready to Dispatch Breaches RTD stands for ready to dispatch, and an RTD breach occurs when the product is not dispatched on or before the scheduled dispatch date. On a priority basis, sellers should pack orders and designate them as ready to ship. A procurement Service Legal Agreement (SLA) is decided upon by the marketplace and the sellers. According to their order processing capacities, sellers should apply procurement SLAs to their product listings. In the event of a resource shortage, quickly boost procurement SLAs across all listings to avoid an RTD breach. Finally, avoid packing orders on the last day and designate them as ready to ship. Reduce Seller Cancellation When a seller lacks sufficient inventory or is unable to obtain an ordered item, the seller is compelled to cancel the order. Regularly update product listings with the correct selling price and quantity. If an ordered item is not in stock, strive to locate it immediately so that the order can be fulfilled on time. Remove the product from the listing immediately if you are unable to source it and avoid submitting too many product listings and then failing to fulfill some of them. Improve Regional Utilization Analyze the Most Demanding Zones Analyze the region with the most orders using your previous order history. It assists you in distributing products according to high-selling zones. Flipkart has built a robust seller panel that may generate performance reports for you. These reports can be used to determine the most important zones for storing your merchandise. If you're just starting, it can make sense to disperse your goods across the country's big metropolises, such as Mumbai, Delhi, and others. Identify High Selling Products and Improve Regional Inventories Find products with a high sell-through rate and distribute them to various eCommerce fulfillment centers. Distribute stock of your flagship products if you're starting from scratch and don't have sales data to identify top performers. These ways when adopted help the seller to achieve Flipkart Gold Seller Tier. In case, you want to expand your sales channel and want to start selling on Meesho, read our blog to know about 8 effective strategies to become a top Meesho seller. How WareIQ, as a Tech-Enabled Fulfillment Partner can Upscale Flipkart Sellers from Tier Bronze to Flipkart Gold in 2025? The technology behind WareIQ prioritizes speed and scale to give you complete control over your logistics and provide clients with Amazon-like delivery. WareIQ combines all of your logistics operations into a single platform, allowing you to manage everything from inventory, orders, and warehousing to shipping, delivery, and refunds all in one location. There will be no more squandered resources or data fragmentation from a hundred separate tools but WareIQ provides a one-stop solution for every eCommerce complication and reduces logistics costs. Since customer expectations have risen dramatically as a result of changing consumer preferences and high digital adoption and eCommerce logistics expansion after the COVID-19 pandemic. To stay ahead of the online selling competition, brands now must improve their website interface and services to become a Flipkart Gold Seller. In this article, we'll go through numerous pain points that can affect your online selling and how WareIQ can help you deal with them. SLA Driven Order Processing: Ensure High-Quality Service The SLA-driven and streamlined pick and pack automated systems in WareIQ ensure that every order is packed and marked as "ready to dispatch" on time, every time. We assist our sellers to avoid RTD breaches and seller cancellations by properly processing orders while keeping the SLAs in mind which helps sellers to attain Flipkart Gold Seller status. Efficiently Handle Flash Sales or Promotional Events When participating in flash sales and promotional events, frictionless fulfillment is essential to satisfy the peak needs and complexity of direct-to-consumer and direct-to-business orders, with automated order fulfillment systems, this can be productively fulfilled. Effectively handling exponential increases in order quantities, WareIQ combines its enormous fulfillment infrastructure with well-organized procedures. All you have to do is tell us when and how long the flash sale will last, and we will handle the rest – everything from raising your daily pick capacity to allocating dedicated labor is taken care of. Avoid Overselling with Correct Inventory Relay With the correct inventory relay, you can avoid overselling. Overselling is one of the leading causes of SLA breaches. When a seller is unable to fulfill a customer's order owing to a shortage of inventory, this occurs. To avoid this, WareIq syncs your inventory across all channels regularly, allowing you to accurately transmit inventory levels to marketplaces and avoid overselling, which can result in seller cancellations. With WareIq you only receive orders for inventory you have which causes zero cancellations from sellers. Terminate Low-Quality Products Reaching Your Clients To ensure that your consumers receive premium quality products, WareIQ runs quality checks at the time of receiving inventory and order processing. If you have one-of-a-kind products that require further scrutiny, WareIQ lets you tailor the inspection criteria to meet your requirements which indirectly assists you in increasing your average product ratings by presenting the appropriate products. With precise order processing, we won't let you deliver a low-quality product to your clients. This will assist you in becoming a Flipkart Gold Seller. Improve Your Regional Utilization with WareIQ Our storage facilities and fulfillment centers are scattered across India and closer to your demand centers. This is how WareIQ helps you to reach a wider audience in less time. Also, our strategic inventory placement keeps your demand centers filled and allows for effective and timely delivery. WareIQ can assist your transition from a 5-15 day delivery system to an Amazon-like same-day/next-day delivery system. With WareIQ, you can split your inventory based on your most popular zones and improve your regional utilization WareIQ Helps You Secure a Flipkart Gold Seller Spot What if we told you there is a method to become a Flipkart Gold Seller right now, that is too hassle-free? All you have to do now is contact us and our executive will help get you onboarded then as a vendor you will start enjoying the benefits of being a Flipkart Gold Seller in less than 90 days. [signup] Flipkart Gold Seller FAQS

May 16, 2022

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