Blogs

B2B Fulfillment: A Detailed Guide Including Definition, Processes, Differences with B2C Fulfillment and Use Cases of B2B Order Fulfillment in 2025

Understanding the differences between B2B and B2C fulfillment and the roles they play in the supply chain may be difficult at first if you're new to the industry. Both of them deal with inbound and outbound logistics processes. B2C fulfillment focuses on smaller orders, whereas B2B fulfillment is primarily concerned with less frequent orders but larger product quantities. B2B fulfillment is also subject to stricter rules and depending on a number of variables, the costs involved can be much higher. Compliance regulations for B2B businesses may include tax laws, product limitations, SKU codes, shipping labels, barcodes or a particular invoicing system. Shipments might be anticipated to cost more and take longer to arrive because orders are larger and bulkier. Let us look at the ins and outs of B2B order fulfillment and how it should be done to get better results. What is B2B Fulfillment? B2B eCommerce fulfillment is the process by which products are transported direct fulfillment to a business or another retailer. Orders are often placed in bulk so that the receiving company can have adequate inventory to sell. Businesses usually order in advance and in large quantities to save time and money by avoiding the need to constantly place purchase orders. If you decide to use a 3PL to fulfill your B2B orders, they should prioritize reliable and quick delivery. eCommerce sellers need these hybrid fulfillment providers to be optimized to enable cost reduction and greater efficiency because of the nature of B2B order fulfillment. They are essential to be able to fulfill orders on time. A 3PL's delays and poor management might result in penalties, refund losses that they would be required to provide and damage to the reputation of the company they represent. [contactus_lilgoodness] Working Processes of B2B Fulfillment The B2B eCommerce marketplace or B2B sector is solely concerned with transporting goods to other companies and shipping in bulk to avoid purchases on a frequent basis. It includes providing goods to other businesses for resale, including to numerous big-box retailers. The B2B fulfillment process is handled by fulfillment centers, which critically emphasize speedy shipment. In B2B fulfillment companies, quick shipping is always vital but there are times when efficiency must be prioritized over providing excellent customer care. A factor for focusing on fulfillment speed is the complicated routing processes that warehouses must follow. B2B fulfillment regulations are very complicated and can result in severe losses, if not followed. It can be very stressful to deal with chargebacks to fulfillment facilities for improperly following the correct procedures. Electronic Data Interchange, also known as EDI, is required by many big-box retailers for B2B fulfillment centers, in addition to compliance with barcodes, shipping labels, and invoices. As a result, B2B fulfillment is far more difficult to complete than B2C fulfillment. B2B vs B2C Fulfillment: Key Differences [table id=37 /] Use Cases of B2B Fulfillment for eCommerce Businesses Due to the benefits that many firms are realizing from online product ordering, the B2B eCommerce fulfillment market is expanding. Now is the best time to provide B2B products if you want to grow your e-commerce company, get a competitive edge, and enhance B2B fulfillment services. Businesses With Small Products Maybe you get shipments of a few wholesale orders to your different small stores each month. If so, you might not require a B2B fulfillment-focused warehouse. Like big-box merchants, small shops do not need to have tight inbound freight needs. If your products are small, you can ship wholesale orders by a common carrier. This B2B fulfillment can likely be handled by your B2C fulfillment center. Businesses With FTL Orders B2B fulfillment services are required if you ship LTL or FTL (full truckload) orders. You will need to create a B2B fulfillment protocol if you have an account with a major retailer. It is crucial to complete the paperwork correctly, and doing so can be expensive. Put your B2B fulfillment plan in place even if you don't yet have the necessary accounts, in case your business plan includes selling to major chain retailers. You'll be prepared to act when you get a big wholesale account. Online Wholesalers The market for wholesale eCommerce is expanding. To more easily access the wholesale market, several internet retailers are launching online wholesale stores. Although wholesale margins are smaller, you can compensate for it by placing bigger orders. A small number of lucrative wholesale accounts can significantly increase your profit margin. In general, customer service is less necessary in B2B sales. Additionally, a happy B2B customer will frequently place additional orders, saving you the occasionally high customer acquisition fees for retail consumers. Are you interested in expanding into the lucrative B2B market? You can grow your firm to new heights with the assistance of outsourced logistics providers. Setting yourself up for B2B fulfillment will pay off in the long run for your company. Conclusion: Role of WareIQ in Helping eCommerce Retailers With B2B Order Fulfillment Do you require specialized B2B fulfillment for your eCommerce business? If you have a variety of customers, including other businesses, then yes. It would be helpful to partner with a third-party logistics firm, whether you distribute primarily to customers or other retailers. While managing your inventory and selling processes, WareIQ also helps you to secure the right amount of inventory from the best manufacturers, wholesalers and other merchants. When it comes to B2B order fulfillment services, accuracy is the most important factor and with WareIQ, accuracy is guaranteed with our extensive use of advanced technology such as our custom WMS. WareIQ can help you forecast demand, determine how much inventory you need to store at a time and can automate your reorder process, in addition to managing your inventory. B2b Fulfillment: FAQs

July 06, 2022

Categories:

What is Dropshipping? How Does Dropshipping Business Model Work? [Detailed Guide in 2025]

Most likely, if you're looking for an online business opportunity, you've heard about dropshipping. For the aspirant e-commerce business owner, dropshipping model is a profitable online business concept. This business can be started with a minimal amount of initial money and some labour. Then, when you begin to experience success, you may grow by devoting additional resources to branding and promotion. In 2019, the global dropshipping market had a value of $162.44 billion. As per a leading research agency, the dropshipping industry is projected to be worth a whopping $591.77 billion by 2027. From 2020 to 2027, the market is projected to expand at a CAGR of 18.3%. How did the concept of dropshipping begin? Dropshipping was first introduced in the 1960s when customers could purchase products from the catalogues they received in the mail. A warehouse would deliver the goods you choose when you place a call and specify where you want them delivered. How does dropshipping operate, and why should you use this strategy to fulfil your business aspirations? You must understand the definition of dropshipping before moving ahead. Read our blog on dropshipping vs order fulfillment to find out which model is right for your business? What is Dropshipping? Dropshipping is a retail fulfilment for online retailers where merchants buy goods from outside suppliers as consumers place orders rather than storing inventory. After that, the merchandise is delivered right to the customer. In this manner, the seller is relieved of direct product management. Sounds recognizable? The shipping and order fulfilment process is hands-off, mainly for a retail store manager. The retailer is not required to have stock on hand, place large orders for goods, or physically complete any orders. Instead, the third-party logistics or vendor will handle the merchant's goods shipping. Read the blog on dropshipping vs 3pl to understand the key differences. Dropshipping is advantageous for business owners since it requires less operating capital to operate a store than the conventional retail model. For example, you don't need to start a brick-and-mortar business, employ staff, maintain lighting, pay expenses, or carry inventory. Instead, you set up an online storefront and purchase bulk from suppliers with inventory and storage facilities. Who is A Dropshipper? A manufacturer or supplier who handles inventory for a retail merchant and sends orders to their customers is a dropshipper. Since the merchant is mainly in charge of bringing clients to the business and handling orders, you will essentially be acting as a middleman. Despite this, you will make most of the money by adding a markup to the things you sell. It's an easy business strategy that has the potential to be incredibly lucrative. Due to its minimal entrance requirements and inexpensive startup costs, dropshipping is a popular business model with millions of businesses. You're curious for that reason. However, the most exciting news is that this business model enables you to launch a viable long-term business from the comfort of your laptop. Before launching your own dropshipping eCommerce fulfilment business, it's critical to consider this business strategy's challenges, benefits and disadvantages. But once you know the advantages and disadvantages, mastering this business model will be simple — especially with the fantastic modern-day tools offered to entrepreneurs! A Complete Overview of Dropshipping Order Process Having established what dropshipping is, let's examine the procedure in detail. The supply chain in this business model is the path a product takes from a manufacturer to a client. The chain technically starts with the mining of the raw materials. However, concentrating on the major players - manufacturers, suppliers, wholesalers, and retailers- will be enough to comprehend the dropshipping model. There are three prominent players in the dropshipping supply chain- Manufacturer The person who makes the things you dropship and sells them in bulk to suppliers and wholesalers. You can choose to have your purchases sent straight from the makers. So, for instance, you may get in touch with manufacturers at Alibaba rather than going to AliExpress to search for suppliers. As a result of skipping the supplier, you will pay less for your goods in this manner. Additionally, you will be able to alter your logo slightly. The issue is that manufacturers typically have minimum order requirements that you must satisfy. This entails making a sizable initial financial investment, which might be problematic when you're just establishing a drop shipping firm. Supplier OR Wholesaler A supplier or wholesaler is the individual who purchases goods from producers and resells them to retailers. Suppliers frequently focus on a specific industry, making it simple to locate the goods you want to sell. The goods are a little marked up. It is far more convenient for you because their purchase minimums (if they have any) are often significantly lower than those manufacturers impose. Retailer You are the one making the direct sales to the consumer. Your consumers' place of purchase is here. Your job is to ensure your profit margins are high enough for you to make money but not too high that your potential consumers would select your rivals after the product has gone through the supply chain and been marked up numerous times. [contactus_uth] Process Of The Dropshipping Business Model Let's examine the procedure for handling a dropshipping order. For example, we'll use a hypothetical order placed with Laptop Outlet, an online retailer specializing in laptop accessories. All of the products sold by Laptop Outlet are dropshipped from its pet supplier. Here is an illustration of what the whole ordering procedure may entail: Source Step One: The customer places an order with Laptop Outlet in step one. The customer uses the laptop outlet's online store to order a new laptop for his professional use. However, several things take place after the order is approved. The store's software automatically sends an email confirmation of the new order to the customer and laptop outlet. Payment from customers is taken during the checkout process and is immediately put into the bank account of the laptop retailer. Step Two: Place an order with a supplier through a laptop retailer. Usually, all required to complete this stage is for the laptop retailer to transmit the email order confirmation to a wholesaler salesperson. The wholesaler will charge the laptop outlet's credit card on file for the wholesale price of the products, as well as any shipping or processing costs. Step Three: Delivery of the order by the wholesaler If the product is in stock and the wholesaler successfully charges the laptop outlet's credit card, they will package the order and send it straight to the consumer. Even if the cargo comes from a wholesaler, the packing slip and invoice will have the outlet's name, address, and logo. In addition, the wholesaler will provide the laptop outlet with an invoice and a tracking number once the shipping has been completed. Step Four: The consumer is informed of the shipment by Laptop Outlet. The laptop outlet will likely use an email interface embedded within the online shop interface to provide the consumer with the tracking information once it has received the tracking number. The order fulfilment process is finished after the order is dispatched, the payment is received, and the client is informed. 7 Common Dropshipping Challenges for eCommerce Retailers in 2025 Unquestionably, dropshipping products is one of the most extraordinary developments brought about by the internet and our new way of life. With this new business model, savvy entrepreneurs may enter the e-commerce market with less funding and still make progress. Although this business model provides many advantages, there are also some inherent difficulties. Dropshippers must manage the challenges that the business model presents as entrepreneurs. Here, we'll go through seven of the most typical problems with dropshipping and how to fix them- Order Processing Delay Customers anticipate that their orders will be completed as quickly as feasible when purchasing from your e-commerce website. Most clients are unaware that, in most cases, you have little control over how fast you execute their orders. Sometimes, a producer's order that you've previously placed will be delayed. As clients wait for their tracking code, the delay may cause some irritation to them. Let it go quickly. Contact your provider to resolve the issue if you don't hear back from them within 24 hours of making your purchase. Then, you will at least know why the order hasn't been handled and how long you have to wait. Supplier Compliance and Transparency Your consumers will hold you accountable for the quality of the products they purchase from your store since you are the face of your company. Even if you have nothing to do with creating and packing the products you sell through dropshipping, you are still in charge of them. A robust service level agreement (SLA) with your suppliers is one method to manage this difficulty. You must be very explicit about what you anticipate from them regarding adhering to the agreement. The SLA should also be detailed about the repercussions of breaking it. Consider every client complaint seriously and look for measures to confirm that your providers are constantly following the SLA requirements. Delivery to the Wrong Address Some orders are sent to invalid or incorrect addresses, as unpleasant as it may sound. You could also have to deal with that as an e-commerce business owner. Preventing address errors on your end is the easiest method to deal with this issue. You must double-check the address you submit to the supplier for every order. Some kind of documentation should support any shipping address you provide. Returns of Products In e-commerce, you can't get away from this. Since dropshipping usually involves a third party, it is rarely ever your responsibility. You cannot also set all the rules in this place. You must discover ways to explain suppliers' various return policies to your consumers. Remember that your consumers will come to you rather than the provider. On your website, be explicit about your return policy. Make all necessary efforts to ensure that the procedure is simple for your consumers. Handling Finances Even though dropshipping needs very little initial commitment, sound money management is essential if you want to make money over the long haul. Keep track of the profit made from each sale, and if your present line isn't bringing in the desired amount of money, don't be hesitant to look into different product options. Additionally, you must regularly review your business alliances. Then, you might be able to locate a new vendor who provides the same goods at a lower price. This level of customization is essential for optimizing your earning potential. Finally, take taxes into account while calculating your budget. Because sales tax computations are partially based on the supplier's location, dropshipping makes taxation a little bit more complicated. Supplier Issues Finding reliable suppliers is the first big problem most dropshippers encounter. Many producers and sourcing firms might act as your suppliers, but you need to agree on the partnership's specifics. Next, you must locate reliable vendors who can maintain the calibre of their vendors. In practically any niche you pick, finding suppliers is not too difficult. You may find a lot of materials to aid you in your search. Just make sure the provider you choose can accommodate your demands. Think about supplier costs, order minimums, industry-specific expertise, and scalability. Running Low On Supplies Even if you are already in business, this might still occur. It is one of the most widespread issues and is more common during particular seasons. Additionally, organizations with just one supplier are particularly impacted by this issue. If you are dealing with a huge producer and order fulfilment company, you might not feel the full effects of running out of stock. Even if you look for alternate ways to complete customers' purchases, you must notify your clients as soon as you run out of stock. It is wise to use many suppliers. Like other business concepts, dropshipping has several difficulties. These seven are typical and are covered here. However, overcoming them can assist you in expanding your e-commerce firm in various ways. Benefits and Drawbacks Of Dropshipping Model A straightforward approach for potential business owners to get started in e-commerce is through dropshipping. You don't need a pricey degree from a business school or a lot of money to enter the industry. You also benefit from the trend of consumers favouring e-commerce over physical storefronts. Despite the considerable flexibility of dropshipping, there are several drawbacks. Let us examine the advantages and disadvantages of this business model to determine if this business strategy suits you. 7 Advantages Of Dropshipping Business The following are some of the benefits of becoming a dropshipper. Easy To Setup Starting a dropshipping business doesn't require any prior business expertise. You can establish a business fast and pick up the rest of the knowledge as you go if you take the time to understand the fundamentals. This business is simple to launch since its startup expenses are inexpensive compared to other retail company models. For instance, you don't need a crew or a warehouse to keep your items. Additionally, you don't have to bother about shipping or inventory. Surprisingly, once you get rolling, it's hands-off. Low Startup Costs Businesses that use dropshipping strategy don't have to spend money on stock purchases or setting up a place to store it. Additionally, they are spared the time-consuming tasks of inventory organization and staff hiring for order fulfilment. As a result, dropshipping has a shallow entry barrier since anybody may start this business even if they lack the financial resources required to operate a regular retail firm. Scalability Because order fulfilment is not reliant on the size of a physical location or the number of employees required to ship an order, dropshipping retailers may grow swiftly. Dropshipping may thus be quite advantageous for merchants whose sales fluctuate due to seasonal variables or other considerations. Easy To Manage, No Office Is Required You may run an entire business from your laptop without needing to make any significant financial commitments. Your most considerable outlay will be advertising, which you may increase as your store's popularity grows. Your expenditures will be cheap, especially compared to typical business expenses, even as your organization expands. Minimal Inventory Management Costs This Business model lowers the administrative burden that retailers must bear by doing away with the requirement to retain physical inventories. In addition, because shipping is outsourced to suppliers, they do not have to spend time maintaining or tracking the merchandise's infrastructure. Numerous Product Offerings This business model lets you expand the range of products to sell. As a result, retailers can carry a broader variety of goods, enabling small businesses that would not otherwise be able to provide as many alternatives. Flexibility Dropshipping gives a retail firm more freedom in a variety of areas. For example, a brand may operate from any location, provide a variety of items, and simply modify its selection as consumer tastes shift. 4 Disadvantages of Dropshipping Model and Strategies to Avoid Them Shipping goods from independent vendors have inherent drawbacks, just like any other company strategy. Shipping Might Become Quite Challenging Calculating the delivery expenses is simple if you buy your items from one provider. Dropshippers typically employ many suppliers for various things, though. When many goods from the same purchase have varying shipping rates, determining the delivery costs becomes slightly more challenging. Additionally, various vendors could use different invoicing methods. The Solution Start with a single provider and add more later. Limited Ability To Regulate Branding When you dropship things, there isn't much you can do to customize them. Yes, you can have a well-designed website with excellent product descriptions. However, if you want to take branding to the next level, you may organize professional photography of your items. You can't do anything about the packing or the instructions that come with the items you sell, like most dropshippers. The Solution You may decide to dropship your goods from an online retailer like Alibaba. This website enables direct product shipment from producers. In this method, you may get in touch with manufacturers and ask them to add your brand name (if you want one) or alter the packaging of your goods. Since adjustments frequently need the minimum order quantity (MOQ), be aware that you will be asked to pay extra up front. But you may always practise your negotiating abilities! Customer Service May Be Annoying Up until a client complains, it's fantastic that you don't have to handle inventory management yourself. After that, however, you are responsible for the suppliers' failures to fulfil your requests. Therefore, to prevent receiving unfavourable evaluations, be prepared to apologize profusely and offer top-notch customer service. The Solution If the goods are damaged, you may send your client to the supplier for assistance. You'll need to track the shipment with your supplier. That is why choosing a reputable supplier is crucial. Additionally, you might wish to spend money on software enabling online shopping and connecting you with clients. To be more effective, use can use Shopify applications with customer support. Profit Margins Can Be Pretty Low You'll probably encounter a lot of competition due to the low admission criteria. So keep your pricing as low as possible to stay alive until you establish a strong clientele. The Solution However, many business owners that maintain extremely low margins don't consider how their store seems. You must outperform your competition in marketing if you want to win over potential clients. Make your business appear legitimate, and customers will be willing to pay a little more for your products. Conclusion Dropshipping involves practice, careful preparation, and study. However, entrepreneurs still choose it since it is the simplest method to launch an internet business and is fantastic for testing new product concepts. Moreover, you may try your hand at eCommerce with little risk because it needs little initial cash. Dropshipping may be combined with various useful tools and services that can simplify and automate some of the more challenging portions of the process while avoiding some of the issues we've covered in this essay. With the help of these resources, you can focus on creating effective marketing strategies and building your brand to maximize earnings. [signup] Frequently Asked Questions

July 04, 2022

What is Sell Through Rate in eCommerce and How Can it Impact Your Business in 2025?

Most eCommerce sellers attempt to manage their inventory in the best way possible but while many of them spend a lot of time on inventory costing techniques, they neglect to consider how effectively the inventory is flowing through their supply chain. A high sell through rate indicates that you are placing the proper amount of orders in relation to demand for those goods. However, a low sell through indicates that you have ordered too much of a product. In many cases, your demand forecasting, purchasing or pricing strategies are fundamentally flawed. Let us get a detailed understanding of what sell through rate is in eCommerce and how it can impact your business. What is Sell Through Rate (STR)? Sell through rate or STR is the ratio of inventory received from your manufacturers during a given time period to inventory sold during the same time period. Your STR is a performance metric that compares monthly sales to a predetermined goal. You can track sales, modify your objectives and maintain supply-chain efficiency by measuring the sell through rate of your company. STR varies depending on the industry and organization but ideally, a rate of at least 80% is preferable. [contactus_gynoveda] How to Calculate Sell Through Rate? Sell Through Rate Formula To calculate your sell through rate, you need to total your sales during a specific time period and the total amount of stock available for sale for that same period. You can calculate STR using the sell through rate formula which is as follows: Sell Through Rate (Percentage) = (Total Sales / Stock on Hand) x 100 You can calculate your sell through rate weekly, monthly, quarterly, half-yearly or annually, depending on your sales goals and target time to achieve it. Real-World Example Suppose you sell electronic items. If you order 250 Bulbs for July, you would want to calculate your sell through rate at the end of the month to understand what your sales figures are. If you sell 200 bulbs out of 250 then your STR is: =(200/250) X 100 =80% Hence, your sell through rate for July is 80%. Why is Sell Through Rate Important? The sell through rate is important for several reasons: Helps Discern Your Best Performing Products Your sell through rate is more than just a general indicator of total sales. STR is frequently determined by the supplier, product line, store location and other factors involved in eCommerce retail. As a result, your STR is a useful tool to assist in your understanding of the most popular products. Utilizing this data will enable inventory optimization and a more accurate assessment of consumer demand. It will also help you to focus on refining and promoting those products to generate more revenue. Assists in Calculating Your Inventory Holding Cost A low sell through rate highlights inaccurate forecasting of your goods and possibly under-utilisation of storage space. To learn more about how you can reduce your storage costs, you can calculate STR. Stock that will soon expire or that will become obsolete due to changing seasonal demand can make overstocking even more expensive. The unsold inventory occupies space that could be used to store goods that are highly in demand. You can decide on the amount of storage space you need by taking into account storage expenses versus anticipated transportation costs or losses from stockouts, both of which have increased significantly during Covid-19. Helps in Segmenting Your Supply Chain Unexpected delays frequently occur in different stages of the supply chain, especially during COVID-19. Manufacturers, vendors, retailers and customers are all attempting to compensate for supply cycle bottlenecks. Many businesses make up the difference by placing excessive orders or overstocking before they know whether products will truly be profitable. Your STR gives you clarity on sales trends so you can collaborate with your suppliers to order the appropriate goods in advance and stock up on high-selling items. Assists in Determining Your Targets Every retailer has sales objectives and they will differ for each depending on multiple factors. Setting goals enables you to monitor performance, hold sales representatives responsible and inspire your team and other colleagues. Sell through rate measures your targets and enhances sales via suppliers, product lines, store locations, sales channels and other factors. STR can be used to analyze sales from any angle and gain a better understanding of how various aspects of your retail operation are doing so that you can accurately frame your targets and meet your objectives. Helps With Managing Capital An important tool for comparing your revenue to the cost of goods is your sell through rate. A decreasing STR over time indicates that you are spending more money than you are bringing in. On the other hand, as you alter your inventory orders and storage expenses, a growing STR indicates that your profit margin is increasing and will keep doing so for the foreseeable future. 5 Ways to Improve Your Sell Through Rate in 2025 If you have determined that your sell through rate is poor after calculating it, here are some strategies for increasing STR and expanding your clientele: Maintain Accurate Inventory levels The practice of buying goods in bulk and then putting them aside until they are needed is no longer viable for retailers. A product has a minimal possibility of making a profit when it is sold after being on the floor for ten weeks or more. If your sell through rate is steadily declining, you might want to think about lowering your inventory levels. Slow-selling products could be eliminated or reduced in quantity and you could stock up on high-demand products that will increase your revenue and profit margins. Make Sparing Use of Discounts The quantity of stock you initially ordered may be the reason your sweaters aren't moving as quickly as you'd like, even though you're not selling them at full price. Post the end of a particular season, most items are not sold as frequently and now you have to wait for a whole year to sell them, which will most likely cause them to become obsolete. Suppose a product is out of stock, business is slow or you only have a few of the less sought-after sizes left, discounting current products makes sense to make space for new inventory. Although it could seem like an appealing strategy to increase sales, keep in mind that you'll also be lowering your profit margins. You should use discounts and promotions rarely and if you do run them, keep the break-even threshold in your mind. Forecast Demand How much merchandise you sell in a specific time frame depends on the season. For instance, the sell-through rate of school shoes in December is likely lower than it is in May. Similarly, woolen items' sell through rate in May is much lower than it is in December. Your STR may showcase a few product lines that are out of season even though it doesn't take seasonality into account. Demand forecasting can be used to fix this. Use Social Media More customers translate into more sales and an increased sell through rate. Make a list of prospective marketing tactics to raise the profile of your retail establishment. Consider working with major retailers on campaigns that promote your brand and merchandise to attract new clients, potentially through branded or merchandise-specific retargeting, advertising or Instagram posts and stories. Use social media tools to increase awareness, such as the "swipe up" feature on Instagram (alternatively you can sell on Instagram also) stories or Facebook's shopping ads. This makes it possible for customers to access your product page directly, increasing the likelihood that they will convert. Working together with an influencer or group of influencers who are relevant to your audience will work more. Make Use of Bundling Combining two or more products to be offered for sale at a discount is known as bundling. Product bundling is frequently used by retailers to increase cross or up-selling and lessen the "pain of paying." It's also a wonderful way to sell surplus inventory and slow-moving items, particularly if your products are close to expiry or become out fashioned rapidly. Sell Through Rate vs Inventory Turnover Rate [table id=34 /] Many shops have attempted to make the connection between the two figures or, more specifically, to determine whether inventory turnover and sell-through are correlated, but it is pointless. Manufacturers frequently devise special advertising campaigns or promotions to boost the sell through rate of their goods at the retail level. They will help a retailer move items out of their store using specialized funding known as cooperative funding (co-op). They can be used as advertising funds or, in some cases, as actual cash to mark down your inventory. Conclusion A high sell through rate indicates that you are placing the proper amount of orders according to demand and a low sell through indicates that you have ordered too much compared to demand. One of the best ways to optimise your sell through rate and get a better understanding of how to maintain inventory levels in relation to demand is to partner with a 3PL company like WareIQ. WareIQ employs the use of a custom WMS that gives you access to historical data and all the metrics you need to measure your sell-through rate. We can also help with demand forecasting and suggest the optimum amount of inventory you need and which fulfillment center location it would be best suited for. We also help in determining your EOQ and MOQ to always have the appropriate amount of inventory on hand. In addition, we handle multiple other processes involved in order fulfillment such as storage, inventory management, delivery and returns, and also provide access to our advanced technology and applications through our custom app store. Sell Through Rate: FAQs

July 04, 2022

What is Shopping Cart Abandonment? Top 10 Strategies for Reducing Cart Abandonment Rates in 2025

The most disappointing thing that a seller can experience is when a buyer shows genuine interest but doesn’t end up purchasing anything. It reflects a loss of all the resources and time that is dedicated by the business. Shopping cart and checkout abandonment are all too prevalent among online buyers in the modern eCommerce space. Data shows that the current average shopping cart abandonment rate is more than 70% in India, which is severely eroding retail revenues. As a result, many retailers have made reducing shopping cart abandonment a top priority and are investing increasing amounts of money in doing so. Fortunately, there are a number of approaches and personalization techniques that aid in abandoned cart recovery and boost returns. Let us look at it in detail. What is Shopping Cart Abandonment? Shopping cart abandonment happens when a potential consumer begins the online check-out procedure for an order but leaves before making a purchase. A commodity that is added to the shopping cart but never purchased is regarded as having been "abandoned" by the customer. In simple terms, it is the same as a customer going to a store to buy products, choosing which ones they want and are about to have them scanned, but suddenly decided against it. In a real-world scenario, a shop attendant can inquire if there are any issues and recommend them better and cheaper products. [contactus_uth] How to Calculate Shopping Cart Abandonment? To calculate cart abandonment rate, you need to divide the total number of completed transactions by the total number of created carts. Subtract from one and then multiply by 100. The formula is as follows: The total number of transactions initiated. This will show you your rate of shopping cart abandonment over a given time frame. For instance, you can take into account all of the transactions from the previous month or quarter and split them by the number of completed transactions or the goods that customers added to their carts but did not end up purchasing. For example, if you have a total of 500 carts created and 120 completed purchases, the cart abandonment rate is 76%. The 3 Stages of Shopping Cart Abandonment Pre-Abandonment It might be challenging to determine visitor intent during the pre-check-out stage because they might simply be browsing your website without making a purchase decision. In some cases, factors contributing to their final abandonment may be related to the user experience. No one will purchase from your website if it appears to be shady or fraudulent. A reliable website can influence users' behaviour significantly by lowering hesitations and fears. The usability of a website that is simple, transparent and convenient can frequently convert a potential buyer into a loyal customer. Both internal and external aspects of the eCommerce experience, including security seals, shipping procedures, customer testimonials and more, may have an impact on the trustworthiness of your business, as determined by customers. Buyers need to feel secure when making purchases from a website. Broken links, poor image quality, inaccessible sites and site timeouts can make visitors lose faith in your company and their ability to make wise purchases. Three efficient strategies to encourage trust in your business and develop confidence in your site include displaying well-known verification seals and logos, making customer product reviews easily accessible and providing complete disclosure on security standards. According to a study, unanticipated expenses, like expensive delivery fees or additional prices, are the main reasons for cart abandonment. Preventing customer frustrations and significantly lowering pre-abandonment dropouts can be accomplished by streamlining the checkout process and offering upfront prices, clear payment options and transparent delivery charges. Display of Abandonment Intent The warning for impending cart abandonment is set off by a number of the buyer's telling behaviours and intent signals. There are efficient personalization and abandoned cart recovery options that let you recuperate in real-time and convert those potential abandonments into sales. Customers could feel confused when websites have an excessive amount of content. When buyers lose interest and indicate that they are ready to go, eCommerce companies can deliver personalized and incredibly compelling messages to them. Powerful ways to keep visitors engaged before they go back to their referral source include triggering an incentive-laden overlay with limited-time offers, free shipping, money-back guarantees or an inducement to subscribe to a newsletter upon display of this behaviour. For instance, assume that your user has chosen to quit your website rather than completing the checkout after being confronted with unexpected shipping expenses. By automatically launching an exit-intent overlay or message with a tailored incentive for finishing the order when you notice your visitor's exit intent, you can successfully re-engage with them. Employing flashing tab notifications that change the title of the abandoned browser's tab to attract the user's attention and persuade them to purchase if they already have items in their cart is another strategy that is simple but effective in reducing shopping cart abandonment. Post-Abandonment To get your customers to return, resulting in abandoned cart recovery, there are a variety of retargeting tactics and technologies you may use. For instance, businesses can use targeted display advertising to retarget cart abandoners, reminding them that they still have products in their carts and providing them with special offers when they come back to finish their purchases. When a user visits a website, browsing cookies are used to retarget them with highly relevant advertisements for things they have already shown interest in. eCommerce businesses can create customized abandonment email campaigns to remind customers to finish their shopping or to provide discounts when out-of-stock items have been restocked. While requesting input from customers might assist in identifying the issues that contributed to shopping cart abandonment, providing personalized marketing messages is an incredibly successful method to encourage returns. Sending out surveys to your visitors and clients regularly will help you remain on top of their expectations and will provide you with information on the most pertinent and efficient marketing methods to use to decrease future abandonments. Abandoned cart recovery strategies can be quite successful in re-engaging customers at all stages of the cart abandonment process. Customers' demands are rising, and eCommerce merchants in charge of omnichannel shopping should adopt creative new approaches to address their needs on a personal level, throughout the customer journey. Top 10 Causes of Shopping Cart Abandonment in 2025 Unintuitive Checkout Process The buyers should reach the finish line as soon and as easily as possible. A lengthy checkout process with numerous steps and forms might cause friction and slow down your customers. As a result, the buyer not only detracts from the present checkout experience but may never make another purchase on your website. Unforeseen Shipping Expenses Unanticipated delivery expenses typically hit a customer after they've entered their shipping information and discover that it is more costly than they anticipated. Once they notice those fees, customers might reconsider their purchase and, if their expectations aren't satisfied, they might even abandon their cart. Forced Account Setup Prior to making a purchase, users should not be required to register an account. This is especially true for new customers who might not be prepared to open an account. The checkout experience is complicated and order completion is slowed down when customers need to generate a username and password in order to finish a transaction. Payment Safety Concerns Understandably, most buyers are extremely wary of making purchases online. They won't complete their purchase if they don't feel secure about giving their personal information or if they worry that their payment information won't be handled securely. Shopping Cart Restrictions Customers don't want to add things to their cart only to discover later that they are unable to purchase them due to limitations on the amount that one person can buy. Being forthright about quantity restrictions helps reduce consumer resentment by establishing expectations that a product may have restricted availability. Better Deals Elsewhere Customers now have access to a wide range of options when purchasing online and can compare those options quickly, thanks to the wonders of the internet and the growth of mobile commerce. Deal-seeking customers frequently place items in their carts with the intention of buying them later from a different store that is offering a better deal. Lack of Variety in Payment Options Online buyers prefer to finish their transactions with the payment options that are most practical for them. Some customers may be content with the default selection but others may decide to quit your site entirely if you don't accept their chosen payment method, whether it's card payment, UPI payment or the purchase now, pay later option. Rigid Returns Policy After adding items to their cart, customers frequently receive information about warranties and return policies. A vague or insufficient return policy may make customers think twice about their purchase. Customers want to know that they can simply return a product to a shop and get a refund if anything goes wrong with it. Long Delivery Timelines Customers expect to receive their order as soon as possible. The advantage of shopping online over visiting a store is lessened if consumers must wait too long. Instead of waiting for your store to ship, a consumer who needs their purchase by a certain date might decide to search elsewhere. Glitches in Website Performance A glitchy or unsteady eCommerce site may make customers lose faith in your checkout process or simply become irritated and leave. In the event of an unexpected crash or lengthy page load, customers are less likely to provide their payment information for fear of being charged twice for the purchase or having their payment fail. 10 Best Strategies to Reduce Shopping Cart Abandonment in eCommerce Provide Ultra-Fast Delivery The online shopping space is expanding and enhancing the delivery process to fulfill orders as soon as possible has become very important. Same-day and next-day delivery has become the new standard USP provided by sellers. In many cases, some sellers, with the help of a third-party fulfillment company, can deliver an item within a few hours. This has a positive impact on customers' buying experience and reduces shopping cart abandonment rates. Offer a Mobile-Friendly Experience A streamlined, appealing mobile interface of a website is essential to boosting online sales because younger consumers are increasingly using their mobile phones for shopping. When combined with typical distractions such as calls, messages, social media, etc. an unorganized and unfriendly user experience will increase the rate of cart abandonment. Mobile-friendly websites are fantastic due to their responsiveness and optimization. However, developing a mobile app for both Android and iOS would be the greatest method to appeal to millennials, as no website can match a native app in terms of usability and navigation. Some of the top merchants in the world like Amazon, Flipkart, Mesho and others, have repeatedly demonstrated this. Have a Simple Check-Out Process Customers tend to favour eCommerce websites with simpler checkout processes because there are now more options available to them than ever before. They will immediately leave to locate a website with a simpler interface if they see a lot of pop-up windows or they need to confirm an action more than once. If customers find a website with a good user interface, that brand will easily win them over. Customers dislike filling out registration forms, verifying their phone numbers and email addresses, and entering their billing and payment information. Allowing customers to register using their social network accounts would be a more appealing method to accomplish this. Simple measures like these can greatly increase abandoned cart recovery. The shopping cart must have a clean appearance and show the products clearly. The price breakdown in terms of cost, shipping and taxes, as well as information on the return/exchange policy and delivery, must all be prominently shown on the page. By enabling one-click ordering, other eCommerce companies can learn from Amazon. Another example is Mesho, which has recently introduced a new feature that enables prospective buyers to click on a picture of an outfit they like and make a straight purchase through the app rather than going to the retailer's website. Reduce Any Uncertainties The discrepancy between the actual goods and their online description or product image is among the most common complaints about internet purchasing. Realistic product imagery, snappy, in-depth product descriptions and product films that portray the item more accurately and highlight its features can all help to lessen this. When describing something, it is important to be as truthful and accurate as possible. In a time when consumers seek credibility above all else, images that have been heavily modified are considered unacceptable. Conversion rates can be greatly increased by using images of the use case of the product. Provide Transparent Pricing Most websites display a starting price in their ads or even on the product description page, then raise it when you add items to your cart. This makes customers wary of unexpected price increases. Making sure that all costs, including shipping costs and taxes, are expressly listed on the product description page, is the simplest technique to reduce shopping cart abandonment. This prevents customers from leaving the checkout page after noticing an increase in the overall price. One thing that websites can do is include tax in the cost of the goods and, if applicable, state the threshold for free shipping and delivery on the home page or product page. Undercut Your Competitors When a buyer lands on your website and starts shopping, they might abandon their cart because of price comparison with your competitors. You lose the deal and the customer for further sales, so you need to check competitor costs and price your product in a similar vicinity or even below it. Additionally, a website can reassure users of this by providing details regarding discounts, customer feedback and reviews for each product page which may add value to the product if the pricing is high in comparison to competitors. Implement a Fair Returns Policy eCommerce's ability to offer a doorstep return/exchange facility is one of its biggest advantages. To reassure customers, an effective policy backing this needs to be prominently shown on the checkout page. Free returns enable customers to make purchases without hesitation or concern. Offer Customization Options Many times, buyers choose a seller because of the colour and size of the product, fast delivery, favourable payment options, etc. They seek the easiest possible transactions and the best customer experience. So you should offer customization options to increase the rate of cart abandonment recovery and finally earn their money. Have Multiple Payment Methods Retailers must provide numerous payment gateways, including region-specific payment alternatives, as well as the choice to remember customers’ payment information and preferences. Additionally, new payment providers could provide promotional offers and cashback plans to entice customers to finish their transactions. Send Emails to Customers Who Showed Interest Staying in touch with customers who have shown interest in your brand and your products can increase their chances of returning to your company and making a purchase. It pays to have a form where users can record their contact details before check-out so if you notice that a customer has abandoned their cart, a personalised email can be sent inquiring about the reason for their sudden abandonment and can suggest similar products or offer a solution. Provide Assurances on Listings Assurances such as a money-back guarantee in case a product is returned or shipping badges that specify the exact delivery speed will reassure customers that they are dealing with a professional company. This will reduce the chances of them suddenly abandoning their cart because they are apprehensive about the company. Additionally, it will give them more clarity on when they can expect to receive the order and anything else that you wish to convey. Conclusion: How Can WareIQ Help to Reduce Shopping Cart Abandonment? To reduce shopping cart abandonment, you should primarily start by measuring and analyzing shopping cart abandonment KPIs in order to figure out where you are going wrong and increase sales and the rate of repeat customers with the help of various technology and experts. Differentiating between cart abandonment and checkout abandonment has proven to be successful for many retailers. WareIQ, one of the country's most trusted third-party fulfillment companies, provides a whole range of eCommerce fulfillment services from storage to delivery and everything in between. We assist retailers with reducing their shopping cart abandonment rates by providing super fast delivery services like same-day and next-day delivery through our WareIQ Rush product. This assures customers that they will not have to wait for multiple days to receive their products and can encourage them to make the purchase after they have added products to the shopping cart. Additionally, you can display custom shipping badges on your product pages to convey faster delivery timelines, which provides assurance to them they will receive their products within 1-2 days of placing the online order. Shopping Cart Abandonment: FAQs

July 01, 2022

How Does Decentralized Inventory System Help in Adapting to Changing Buyer Behavior & in Growing eCommerce Businesses in 2025? Benefits And Challenges Of Having A Decentralized Inventory Management

Ordering merchandise, shipping, storing, and selling become critical decisions that must be made as firms expand. Increased industrial storage is required to expand the range of items offered and enable products to reach a greater geographic area. A critical choice during this expansion phase is whether to transport goods from a single central site or smaller warehouses dispersed around the country. Both centralized and decentralized inventory has benefits and drawbacks, and their use depends on the organisational structure, individual objectives, and management methods. According to the U.S. Census Bureau, manufacturers, retailers, and merchant wholesalers in the United States had inventory worth more than $1.9 trillion in June 2018. Believe it or not, according to experts, roughly 90% of a company's inventory is stationary. It is kept in storage, whether on racks in a warehouse or on shelves in a store. A company's merchandise is only genuinely in transit 10% of the time. So it becomes essential for the organization to think about managing their inventories. In this article, you will learn about centralized and decentralized inventory systems with how to maintain a decentralized inventory system, which helps expand the reach of your business. What is a Decentralized Inventory Management System? Decentralized inventory refers to an inventory management system in which the items are moved from a central location to other warehouses, further decentralising the process. This technique is appropriate for businesses whose clients are dispersed across the country. Quick delivery also contributes to enhancing client happiness and service. Decentralized inventory aids in more effective and quick emergency response. The risk of fire and other natural disasters is reduced since all the commodities are kept in various warehouses. Products are more vulnerable to dangers if kept in a single location. For example- As an illustration, imagine that you own a Delhi-based online business with regular consumers from Maharashtra, Rajasthan, and Karnataka. You only have one warehouse in Gurugram from which you transport goods to particular regions of the nation. A centralized inventory system is what this is. Due to the proximity of your location to your consumers in Rajasthan, their orders will arrive swiftly. Customers from Maharashtra and Karnataka, on the other hand, are dissatisfied with the extended shipment delays. As a result, in addition to the current facility in Gurugram, you plan to establish regional warehouses in Mumbai and Karnataka. When you receive an order, you can determine which facility is nearby to the customer's delivery location and send the product there. If the item is out of stock at that location, you ship from the nearest warehouse. A decentralized inventory management system is what this is. Although it may seem enticing, implementing and maintaining a decentralized inventory management system successfully calls for strategic planning and a top-notch management system. 4 Challenges Of Having a Decentralized Inventory and Multiple Warehouses A large body of management theory supports decentralized warehouses, but ignoring the difficulties they provide would be naive. Instead, we need to consider a few things, including administration, inventory visibility, and employee-related problems across various warehouses. Inventory Control Supply chain management becomes more challenging when inventory is dispersed among several distribution sites. However, when everything is in one place, management is focused there, reducing processes and lowering expenses. Retailers can feel as though they have to give up inventory management due to a lack of clarity when there are products in numerous locations. Although ERP systems should in theory support these tasks, they're not always reliable and can occasionally lead to inventory shortages or errors. Management Of Decentralized Inventory Naturally, managing numerous sites is more difficult than managing just one. More staff, inventory, and administration are necessary when there are many warehouses involved. Warehouse operations may easily become complicated and disorganised if warehouses are shared, serve as distribution centres, or serve as drop shipping destinations. Even if everything could run perfectly in one place, increasing inventory locations might make procedures more difficult and even endanger regular business operations. Coordinating Warehouse Shipment Costs Calculating a rate or lead time for shipping from a single location is almost always constant. Shipping from the same location each time implies predictable cut rates and transit times, giving clients the transparency they expect in their purchase. The number of considerations increases significantly when locations are included in the equation. Which warehouse will handle shipping for the order? Does the customer's closest warehouse have the variety of goods they need? Have you got a lot of stock in one place but a dangerously low quantity in another? Of course, making decisions in several locations is more difficult than doing it at a single location. But how will this impact the choices you make about your inventory? Prior to adding more sites, it's critical to build a plan for these factors. Having the proper tools in place is essential for controlling shipping costs between warehouses. Utilizing Decentralized Inventory Management to Address Challenges A multi-location distribution system or decentralized inventory offers several advantages over other approaches, despite its difficulties. Businesses that struggle with long lead times, dissatisfied consumers due to transit periods, or a lack of distribution flexibility should carefully consider multi-warehouse management and how it might address these issues. The option of having smaller or fewer facilities is another benefit of a decentralised supply chain for e-commerce firms. These warehouses can be handled quickly and adaptably, providing retailers with greater insights into the levels, demands, and shortfalls of inventory replenishment. In the end, merchants almost always benefit from the flexibility that comes with decentralized inventory management. [contactus_lilgoodness] How Can a Decentralized Inventory Aid in the Development of Your Online Business? Decentralized inventory could be a wise investment for growing e-commerce companies. With smaller, local facilities, businesses can deliver goods to clients more quickly. In addition, warehouses may be able to act as client pickup places depending on their location, a service that is becoming more and more popular every day. Lower Shipping Expenses Your distribution options are immediately doubled when you add even a single warehouse location for your goods. You may be able to significantly reduce transit times and shipping costs owing to greater proximity to more consumers, depending on the strategic position of your facilities. Shipping costs decrease when warehouses are positioned closer to delivery sites. Expand Your Consumer Base Similar to the advantages of lower transportation costs, expanding your network of sites can help you reach clients who live farther away. If their order will be delivered in just a few days, a consumer interested in a pair of shoes from our go-to shoe shop is far more likely to order. Shipping may take a few weeks if the business just had one location, providing customers with an incentive to purchase somewhere else. Your prospective consumer base will grow as a result of expanding your footprint, which will increase your revenue. Quicker Local Delivery Times Having numerous warehouses boosts a local customer's ability to pick up purchases directly or provides them access to same-day delivery, especially in the age of curbside pickup and same-day delivery. With these choices available, shoppers might be able to purchase and get goods on the same day. You can only provide immediate pickup to consumers in one location if you have one warehouse. However, distributed warehousing brings your items and additional consumers together. 6 Factors to Consider Before Implementing Decentralized Inventory Control system A decentralized inventory system can appear to be the magic solution for a failing eCommerce warehousing company in the continuously changing eCommerce fulfilment industry. It may not be the best method for everyone due to a few factors that may alter its effectiveness. Before implementing decentralized inventory control, take into account a few variables that may have an impact on how it functions for your company. What is the Weight of my Goods? It might not be beneficial to have inventory in many locations if you sell heavy goods, such as furniture or exercise equipment. It might not be a wise investment to transport merchandise first to a warehouse before sending it from the production or import site because shipping prices for things like this are already rather high. To What Location Do I Deliver Orders? It might not be a good idea to distribute merchandise outside of the general area of your consumer base if your business is largely reliant on local clients. A seller of umbrellas, for instance, definitely doesn't need to move their business from Seattle to Arizona and may even lose financially if they did. What Are The Running Expenses For Several Warehouses? Spreading your items over many locations can not be advantageous if they need specific attention, such as refrigeration or routine quality inspections. Given how expensive it already is to store this kind of merchandise, increasing the expense of keeping them might not be a wise investment. What is the Amount of Orders Each Month? Using numerous warehouses is generally not essential if you just transport a few high-value items each month. It could be best to keep things straightforward and centred with only one site while eCommerce companies are still in the beginning or growth phases. It can be required once you've ramped up and are getting a bigger stream of orders. Do Businesses Really Need Additional Warehouses? The eCommerce logistics industry is now buzzing about decentralised inventories. Given all the talk about it, it could appear essential to expanding your company. However, now might not be the best moment to consider decentralising your inventory if your shipping issues do not include inventory location. Is the Current Technological Setup Ready for Several Warehouses? Do You Require a Solution for Managing Many Warehouses? Do you currently use an ERP? a management system for warehouses? What software do you currently use to manage your business? Make sure your systems are strong enough and prepared to manage the shift before making the jump to distributing your products. The single most important action to do before starting the shift will be to be well-prepared. 7 Best Practices For Maintaining A Decentralized Inventory System Researching and implementing an Enterprise Resource Planning(ERP), or a Warehouse Management System(WMS) will be one of your initial stages. Your work will be a lot easier and business operations will run much more smoothly if a software solution is in place to handle things. Are you prepared to explore dispersed inventory? It's a wise choice that will benefit you. To fully profit from the distribution, you'll need to set it up properly in the meantime. Here are a few of our pointers for successfully managing Decentralized Inventory Balance Your Stock Levels In order to maximise storage space and prevent fulfilment delays, your data should be used to establish stock levels. To effectively manage your inventory across all warehouses, you must determine your maximum, minimum, average, and order levels by taking a look at your product sales, inventory turnover, and lead time rates. To keep expenses low, it's crucial to maintain strict control over your stock levels and make sure they are balanced. Why? Because it reduces waste and guarantees you are not putting too much strain on your finances with high stock expenses. In order to select which warehouse to stock which goods and maximise product levels, you need also pay attention to the following KPIs: Your per-order processing fee Your lead Time Statistics (or order fulfilment latency) Your Ideal Order Rate Watch Your Bestsellers Closely The most crucial goods to maintain will be your most well-liked offerings. Setting up minimum inventory levels of these items at each site is a smart move to make sure you can send them out from each warehouse swiftly. It's crucial to anticipate these trends and have extra stock of these items because they will frequently sell out. Count Product Stock In Decentralized Inventory System It's crucial to make sure you do stock counts at each facility. Ecommerce retailers frequently make the error of believing they simply need to track the overall quantity of items without taking into account the product levels at each warehouse when transitioning to a decentralized inventory system. To guarantee that the stock levels we indicated are balanced at each warehouse, you must be aware of all of your items there. If you aren't utilising decentralized inventory management software, you'll need to work hard to keep an eye on product counts at each warehouse since running out of a product at one warehouse can cost you time and money. When you have a lot of items, divide your inventory counts into focus lists so that you don't have to count every item all the time. The most effective approach to achieve this is to separate your items into high-risk (those with the poorest history of inventory counts) and high-value categories (products with the highest revenue potential.) Utilize Both Movable and Fixed tracking Long-term headaches may be avoided by making an investment in your inventory management. To build a reliable inventory management system, fixed and mobile tracking are required. Why? Since you can precisely assign warehouse destinations by combining fixed and movable tracking options, you can be sure that you always know whether the hardware needed to process the order is up to par, where each product is placed, what its status is, and which products are ready for fulfilment and shipping. Simply said, it streamlines and expedites your fulfilment services. Here is a brief explanation of each for those who are unfamiliar with warehouse management jargon- Fixed Tracking Fixed tracking, sometimes referred to as asset tracking, is the continuous observation of your production-related machinery as well as any equipment that supports your warehousing and fulfilment centre operations. To track the location and status of equipment, utilise RFID tags or barcodes. Movable Tracking Movable tracking, sometimes referred to as inventory management, is the process of keeping track of each product and how many you have on hand, as well as which items need to be refilled and which ones are in excess. In a nutshell, it's the administration of your inventory and figures in real-time. Not Every Product Needs to be Stored in Every Warehouse The number of goods you sell will increase along with the size of your eCommerce logistics business. It makes no sense to keep all of your goods in every warehouse. As we mentioned above, one of the greatest strategies is to divide your inventory into best- and worst-sellers, and then stock your warehouse appropriately. To enable speedier, more affordable delivery, you may, for instance, make sure that your bestsellers are present at each warehouse site while keeping all of your slow sellers in one warehouse and your medium sellers in another. Remember that clients may request many products at once that may be stocked at different locations. Due to the possibility of having to fulfil items from several locations, this may result in additional shipping and packaging expenses. It would be beneficial if you compared these expenses to the warehouse layout you choose and, where it is practical, matched goods that are frequently stored together. If you aren't arranging warehouses with decentralized inventory management software, label your items as out of stock once they have been transferred to the new location. Real-Time Data Update The most important decentralized inventory management advice is to make sure that your ordering systems and warehouses' data are in sync to avoid delays. You can get away with this manually if you operate a tiny business from your home with just one warehouse. However, if your company is expanding and adding more than one warehouse site, a robust decentralized inventory management system, like the new Multi-Warehouse Management feature, is the only method to handle data in real-time. This feature enables you to: Build decentralized inventory warehouses Control inventory levels and move it across warehouses Management of warehouse inventory allocation depending on channels Implement connectors with 3PL and Amazon FBA Manage dropship orders Implement automatic order routing by the supplier Make invoices, shipping labels, and packing slips. Receiving order notifications Integrate with shipping software and carriers Access order status in real-time across all markets Utilize Cross Docking and Wave Picking Make sure you are preparing for a lean operation when organising your decentralized inventory management. In other words, you aim to minimise expenses. You may accomplish this with the use of two warehouse management systems: wave picking and cross-docking. In the latter, a product is dispatched out as soon as it is received. Alternatively, if you make your goods, consider it a method that allows for considerably less storage space, lowering warehouse expenses. However, it becomes difficult to retain this storage option as your organisation expands without creating fulfilment issues. Wave picking entails greater storage capacity so that orders may be completed in sequence throughout the day, making it preferable for larger, expanding businesses. Utilizing these strategies can ensure a distinct, lean system in your intricate shipping system if you have adequate inventory management software. Centralized vs Decentralized Inventory Management System The primary difference between centralized inventory and decentralized inventory is that the former refers to an inventory management system in which the goods are moved from the primary warehouse to various warehouses that are close to the consumer's residence. The latter refers to an inventory supervision mechanism in which all necessary operations are carried out in a central setup. Centralized Inventory This inventory management system conducts all activities in a single place. Despite the possibility of separate product-based storage areas, storage is frequently done in one big warehouse. The same crew handles all inventory, and the same transportation techniques are used. The majority of e-commerce businesses, including Amazon.com, use it. Utilizing centralized inventory has several benefits, such as: It makes it simpler to promote and uphold the corporate culture. Operating expenditures like rent and other utilities have decreased significantly. The lowering of expenses results in higher profits. Better customer service is delivered by emphasising the use of trained personnel, improved methods for responding to questions and requests, and improved tools. Management responds quickly to any issues with goods or procedures. Despite the many benefits, a decentralised inventory has a number of drawbacks, such as: Rush delivery and high transportation expenses, particularly in the long term, may be passed on to the client. Result in competition for resources like human resources Decentralized Inventory Decentralized inventory entails distributing your stock among several sites. Large retailers like Amazon frequently use these multi-channel distribution techniques. This method offers a wide range of advantages as well. When items are kept in warehouses close to clients, merchants may reach them in more places in less time. Additionally, it reduces the danger of keeping all goods in one location in the unlikely case of tragedy or poor management. The following are the main benefits of decentralized inventory: When compared to a centralized inventory management system, the system's distribution flexibility is substantially greater. There is a bigger decrease in the cost of transportation. Additionally, the shipping time is drastically cut down. The following are the main drawbacks of decentralised inventory: Significantly greater operating and investment expenditures. Inventory management calls for additional physical labour and personnel. Additionally, the control expense is somewhat greater. The likelihood of incorrectly allocating products is higher. Tabular Representation: Centralized Inventory VS Decentralized Inventory System [table id=33 /] Centralized vs Decentralized Inventory Management: Which is Right for Your Business? Decentralized inventory is defined as inventory that is held in many locations and warehouses, as opposed to centralised inventory, which is defined as inventory that is stored at a single location. In the case of centralised inventory, top management makes the decisions, but in the case of decentralised inventory, lower and middle management make the decisions. Less labour is needed for centralized inventory control. On the other hand, the latter situation necessitates more personnel. In contrast to a decentralized inventory management system, which may not guarantee price consistency, a centralised inventory system guarantees price uniformity. The likelihood of theft from consolidated inventories is quite low. On the other hand, there is absolutely no chance of theft with the latter. Conclusion The two main warehouse distribution types are, broadly speaking, centralised and decentralised. Between the two, there is a third choice, but all models are vital and relevant. Understanding your clients, regional presence optimization, fulfilment capabilities, and other factors are necessary when selecting one for your company. Because there is just one site rather than several, inventory management is simpler and more cost-effective with a central warehouse. Transport costs, however, can be rather high depending on how far shipments must go. Not all clients or consumers will be in close proximity to the core hub. A decentralised strategy keeps the warehouses dispersed and much closer to the final consumer. Over the centralised paradigm, order fulfilment, shipping times, and customer service frequently increase significantly. With a shorter distance between nodes, transportation expenses are also significantly reduced. However, operating costs are substantially greater and rise as more sites are opened. Both models provide options for outsourcing and cutting-edge automation to build a more streamlined and effective company. It frequently boils down to the demands of the typical consumer. Which model will best serve their needs, and how can the organisation help? WareIQ As an Inventory Management and Fulfillment Partner It is feasible to create a hybrid system using both methodologies, with WareIQ. The hub of operations, where all the inventory or product is normally kept, is a central warehouse. They are known as branch warehouses or decentralised warehouses and support several nodes that are located closer to the end-user. Only high-demand items are stored and managed in the branch warehouses, with real-time analytics and efficient distribution based on market demand. In other words, the smaller warehouses provide clients with faster delivery of the most popular items together with superior customer support. All of the inventory that the company controls, including more specialised items, is kept at the central warehouse. Additionally, it restocks the branch warehouses as needed. The combination of centralized and decentralized inventory is made possible and more effective than it would be without WareIQ's cutting-edge technologies, such as advanced computing, machine learning, AI, and big data. With WareIQ, What Does Having Such a Decentralized Inventory Mean to Your Brand and Service? Benefits to business and consumers for having a decentralized inventory with WareIQ are as follows: Faster Pan-India delivery with better shipping timeline/tracking. Data-driven optimization of your business. Efficient and smart inventory placement powered by the philosophy of "supply where there is demand". Helping meet the customers' expectations of an Amazon-level service. Reducing cancellations due to delays in delivery. Managing a central warehouse is cheaper but it comes at the cost of the cons we have discussed earlier. Outsourcing the decentralization of your inventory to a platform like WareIQ can actually bring down the overall costs as it improves business and customer retention. It also helps in achieving better operational efficiency- i.e providing superior services to the customers at the same cost. Also, managing local demand surges and scaling your business in new cities becomes easier. For a customer, it means faster delivery (within 1 day) and options like same-day pickups. They may no longer be bound to Amazon when they expect the same. It also increases their reliability and trust in the brand. [signup] Centralized Vs Decentralized Inventory Management FAQS

June 29, 2022

How to Improve Regional Utilization and Optimise Demand-Based Inventory Distribution in 2025 for Faster eCommerce Fulfillment with Accuracy & Lower Inventory Holding Costs?

Brands must provide faster deliveries and effective order fulfillment as competition in the eCommerce sector heats up. It is essential to be able to predict demand effectively and keep inventory levels in line with consumer demands. The amount of time it takes an eCommerce business to deliver an item to a customer's door has a significant impact on how customers perceive a brand. It is essential for both small and large businesses to fulfill orders quickly and accurately if they want to grow their eCommerce consumer base. Smaller brands must increase their consumer base through flawless order fulfillment while larger companies and international brands must preserve their brand reputation and existing customer base. To make delivery quicker and more cost-effective, eCommerce businesses are practising regional utilization. Optimizing regional utilization can help ecommerce businesses reduce shipping costs, improve delivery times, and increase customer satisfaction. It can also help businesses better manage their inventory and reduce the risk of stock-outs or overstocking. Let us get a better understanding through this article. What is Regional Utilization? Regional utilization (RU) is an eCommerce calculation term which reflects the percentage of local and zonal order fulfillments out of the overall order fulfilment. It is a measure of how well the fulfillment center is able to meet the demand for orders within a specific geographic area. Giant eCommerce players consider regional utilization (RU) as a significant factor in determining the seller account status. Electronic brands and sellers often prepare their stock for some of the most awaited eCommerce season sales like Amazon’s Great Indian Festival or Flipkart’s Big Billion Day. Regional utilization (RU) ensures faster delivery and reduces additional logistic costs. [contactus_lilgoodness] How to Calculate Regional Utilization? To calculate regional utilization, you will need to gather data on the volume of orders being placed in a specific region and the efficiency of your fulfillment center in servicing those orders. Here is an example of how you could calculate regional utilization: Gather data on the volume of orders being placed in the region. This might include the number of orders placed per day, week, or month and the average order size. Gather data on the efficiency of your fulfillment center in servicing those orders. This might include the number of orders being fulfilled per day, week, or month, as well as the average time it takes to fulfill an order. Calculate the regional utilization rate by dividing the number of orders fulfilled by the fulfillment center by the total volume of orders placed in the region. For example, if your fulfillment center is fulfilling 1,000 orders per month in a specific region, and the total volume of orders placed in that region is 2,000 per month, your regional utilization rate would be 50%. This means that your fulfillment center is fulfilling half of the orders placed in the region. The following illustration shows the regional utilization (RU) formula: Let's see, with the help of an example, how regional utilization (RU) is calculated. Suppose you have 10 fulfillment centers across India and the following factors are at play: You received 25 total orders in the month of July, 5 from New Delhi, 5 from Mumbai, 5 from Bangalore, 5 from Pune and 5 from Chennai. Out of 25, you managed to fulfill 15 orders locally. Therefore, your regional utilization (RU) = 10/25 X 100 = 60% Why Should an eCommerce Business Figure Out Their Regional Utilization? Businesses calculate regional utilization (RU) for a variety of reasons, including: To Get Faster Order Fulfillment When inventory is stored in close proximity to your customers, their orders can be fulfilled at a faster rate due to the less amount of distance that needs to be traversed and less time needed to travel that shorter distance. For instance, if your company has fulfillment centers located in Mumbai and Pune and you get the majority of your orders from those 2 cities, fulfilling orders will be much faster than if your fulfillment center was located in Nashik.‍ To Achieve a Lower Amount of Returns If there is an unforeseen delay in the fulfillment of an order or delivery timelines are generally longer due to the physical distance between the fulfillment center and the customer, there is a higher chance of customers initiating a return. When businesses take advantage of regional utilization, they reduce the wait time that customers have to endure and thus, reduce the number of returns that are initiated. ‍‍To Save on Shipping Expenses By making use of regional utilization, you can save immensely on your shipping costs because prices increase along with distance and if the distance is shortened due to goods being located to the customers that order them, shipping expenses automatically decrease. To Increase Profit Margins Regional utilization not only reduces shipping and logistical expenses, it also increases the efficiency of fulfillment operations, including saving money on returns management. All these elements when put together lead to an overall increase in your company’s profit margins. Some more important uses of regional utilization are listed below: Finding the inventory allocation across the country according to demand Creating a successful strategy for effective deliveries Changing to a low-cost shipping module Increasing product visibility better helps your seller account on online marketplaces to perform better Reducing RTOs Increasing customer satisfaction by meeting their expectations Offering same-day delivery Storing different inventory items at different locations as per their order volumes 7 Ways to Improve Regional Utilization & Optimise Demand-Based Inventory Distribution in 2025 To improve regional utilization (RU), eCommerce businesses can adhere to 6 methods mentioned below: Keep Warehouses at Multiple Locations A centralized warehouse is easy to manage, but it increases the cost and delivery time, affecting your revenue and customer satisfaction. It is always better to have decentralized inventory at multiple warehouses across the country to reach customers faster, that are located in any nook and corner of the country. Use a Demand-Based Inventory Model Source Instead of keeping all of your inventory in a single warehouse, consider using a demand-based inventory model that allows you to store inventory closer to your customers. This can help reduce shipping times and costs, and improve regional utilization. Have a Trained Resource Pool of Warehouse Operations & Delivery Personnel Trained human resources in warehouse management & last-mile delivery can make regional utilization easy, as they will ease operations and smooth your delivery processes. They can personally handle any task with great effectiveness. Opt to Partner with 3PL Partnering with a trusted 3rd party logistics company helps you to take more and more orders and then easily fulfill them. A few fulfillment partners come with the feature of same-day and next-day delivery and have micro fulfillment centers scattered across the country, which increases regional utilization. Never Risk Stock-Out of Inventory Always keep a minimum amount of inventory with you to deliver orders swiftly instead of risking stock-outs. MOQs, reorder quantity and reorder level can help you to avoid stock shortage and purchase it as per your demand, in addition to improving regional utilization. Optimize Data and Forecast Demand Data is the equivalent of gold in the digital market. In today’s world, every business is collecting leads. Data will help your company to forecast its demand and improve regional utilization to offer better order fulfillment. You will not be overloaded with inventory or face shortages during seasonal sales. (You can learn more about this here, seasonal demand) Look at data on where your orders are coming from, what products are selling the most, and when orders are being placed. This will help you understand your demand patterns and identify opportunities to optimize your inventory distribution. Use a Warehouse Management System A Warehouse Management System (WMS) is a high-tech software mainly used for warehouse management. It automates multiple warehouse processes which makes fulfilling orders faster and less prone to errors and mistakes. Inventory across multiple fulfillment centers and sales channels can be managed from a single dashboard. Suggested Read: 6 Steps for Effective Physical Distribution Conclusion: How to Optimise Inventory Distribution and Regional Utilization with WareIQ for Faster Order Fulfillment? Regional utilization (RU) is now the standard industry indicator for measuring the effectiveness of eCommerce companies, whereby shipping orders from the same area might greatly raise the market's profit margin. An increase in regional utilization (RU) can address the unbalanced dynamics of supply and demand, enabling quick fulfillment, significantly reducing shipping costs and enhancing the customer experience. By focusing on regional utilization, businesses can reduce shipping costs, improve delivery times, and increase customer satisfaction, which can all contribute to long-term success. We at WareIQ personalize your deliveries according to their demand, priority, locations, etc. We offer branded shipping and micro fulfillment centers across the country to enable regional utilization in most cities and towns. WareIQ is an eCommerce fulfillment platform that offers Prime-like logistics to online brands for same/next day delivery. You can split your inventory in-house or you can use a tech-enabled 3rd party fulfillment company like WareIQ to get access to fulfillment facilities that are strategically placed all over India. We combine a nationwide fulfillment & shipping network, a highly-skilled warehouse operations team and our vertically integrated tech platform & inventory planning product to drive: Over 30% accelerated sales with same/next day delivery options across 20+ marketplaces/D2C platforms 80%+ regional utilization & 40% lower holding costs 100% compliance with marketplace SLAs with 0% leakage claims in processing returns Regional Utilization: FAQs

June 29, 2022

How to Enhance Post-Purchase Experience in eCommerce With Order Notifications 2025?

The eCommerce industry is highly competitive, especially in a rapidly expanding market such as India’s, and the onus is on companies to try and find unique ways of differentiating themselves from the competition. As customers begin to order online more often because of the convenience that it brings, more and more are starting to get accustomed to useful convenience features such as ultra-fast delivery and seamless order tracking. In fact, research indicates that more than 83% of online shoppers expect regular updates about the status of their packages. This is where providing transparent and timely order notifications to customers can help to improve their experience and opinion about a company. Read along to get a detailed understanding of order notifications, the overall post-purchase experience and what it entails, and how WareIQ’s notifications app can help provide a stellar customer experience. What are Order Notifications? Order notifications, also called post-purchase notifications, are real-time alerts that are sent to customers to keep them informed about the status of their order and when it is expected to arrive at their destination. They can typically be sent on a variety of mediums such as email, SMS, Whatsapp and even customised platforms such as an order tracking app or a branded tracking page, where retailers are able to provide more detailed information such as product banners, social media links, information about the company and much more, compared to conventional channels. Order notifications are an extremely important facet of modern eCommerce retail as they enable customers, most of which run on extremely tight schedules, to make arrangements to be available to collect their orders. The details that are generally present in post-purchase notifications include the order number, tracking ID, and which stage of the fulfillment process the order is in such as “items have been packed”, “items have been dispatched” and “items are out for delivery”, and the estimated date and time that the package will arrive at the customer’s doorstep. [contactus_lilgoodness] 5 Elements Involved in Providing a Good Post-Purchase Experience to Customers Enhanced Communication Customers generally expect a basic after-sales experience that encompasses a feedback form and details about their purchase. However, something as simple as an appreciative email or message, thanking them for their service and saying a few words about how their business helps the company to stay afloat, goes a long way towards making them feel special and that they are actually valued by the firm. This will also increase the chances of them becoming repeat customers and recommending the company to their family and friends who have similar requirements. Customer Support Some companies often provide excellent customer support while trying to convert interest into a sale and during the delivery process, only to falter after the customer takes ownership of their order. A bad taste can be left in the mouth of a customer who has spent their hard-earned money on purchasing the products of a particular company, only to find that they are ignored or provided with sub-par customer support after the company no longer has an active interest in keeping them engaged. This is where companies can differentiate themselves by keeping a record of prior customers and their contact information, and giving them importance when they have an inquiry or issue. They could even be calling because they are interested in making more purchases so retailers need to capitalize on making them feel like their business is welcome. Increased Consumer Loyalty Research indicates that a customer retention rate of 5% can boost profits by up to 90%. Providing a seamless after-sales experience is essential for businesses who want to retain customers, whether it is through post-purchase notifications, promotional emails or messages thanking them for their business. Customers are more likely to repeatedly purchase from brands that they can trust and that have made a genuine effort to provide an enhanced experience to them, not just to sell them a product, but also to keep them in the loop about future events, campaigns, and new product launches. eCommerce customer feedback matters the most. After-Sales Service It is easy to think of after-sales service as customer support but they are very different in practice and they each have their own role in providing a positive post-purchase experience to customers. While customer support is centered around more technical aspects such as answering calls and solving problems, after-sales service focuses more on making sure that customers are satisfied, even if there are no additional issues that arise. It encompasses things like product returns, facilitating exchanges and much more. Good after-sales service leads to happy customers so businesses need to focus on providing it. Heightened Customer Satisfaction Most customers have enough presence of mind to gauge the difference between genuine effort and doing the bare minimum. To achieve a high level of customer satisfaction, firms have to put in the time and avoid taking shortcuts, as that can often lead to poorer results than what was intended. Additionally, it is also important to keep track of the rate of satisfaction that customers exhibit when they have encounters with different departments of a business. Retailers need to push for feedback in order to understand what their strengths and flaws are so that they repeat and expand the procedures that work and mitigate or adjust the ones that don't. Importance of Post-Purchase Notifications in eCommerce Active Communication is Expected by Customers Post-purchase communication helps firms assert to customers that they genuinely appreciate their business and value their feedback as to where they succeeded and where they fell short, which allows them to make the relevant changes and adjustments to streamline every process and customer interaction. Customers also may have queries or product-related issues even after they have accepted their order so it pays to constantly be available in case they try and contact the company. Order Notifications are Anticipated by Customers It is overwhelmingly clear that customers expect constant and consistent alerts from retailers about the status of their orders, as is mentioned in an earlier portion of this blog. Order notifications provide insight to customers as to which stage of the order fulfillment process their package is currently in and when it will reach their destination, allowing them to make the necessary preparations to accept it when it arrives. Post-Purchase Notifications Inspire Brand Loyalty and Positive Feedback from Customers The post-purchase interaction is the last thing that a customer will experience a business on their current order cycle so it is essential that they are left with a positive opinion. Not only does this increase the chances of them becoming repeat customers, but their positive and impactful reviews on a listing and other public forums can be the push that is needed to convince other potential customers to give the business a chance. 3 Ways in Which WareIQ’s Notifications through the “WareIQ Interact” App Enhances Post-Purchase Experience in 2025 Order notifications and post-purchase interactions are essential for providing a comprehensive and positive customer experience. Oftentimes, the after-sales services offered by a business are what matters more than the actual purchase itself. This is also something that many businesses neglect to offer so opportunistic retailers can use this as a means to stay ahead of the competition. And if they are partnered with WareIQ and have access to all of our post-purchase offerings, they are guaranteed to be on top of the eCommerce totem pole. If anyone is well-versed with downloading apps on the Google Play Store or Apple App Store, there won’t be a learning curve involved to seamlessly download and install apps on their custom WareIQ dashboard. One of our latest offerings to help retailers offer their customers an exemplary post-purchase experience is the notifications app. Designed to make sending order notifications and other after-sales interactions with customers as easy and seamless as possible, users can simply download apps with the press of a button. WareIQ’s post-purchase notifications app - “WareIQ Interact” enables online businesses to provide a powerful, personalized & automated post-purchase experience to their customers across WhatsApp, Email & SMS during the entire shipping journey. Through WareIQ Interact, you can deliver a personalized & interactive experience to your customers in 3 ways: Engage Customers Across Channels Drive up-sell & cross-sell opportunities by sharing notifications with customers across multiple channels – WhatsApp, Email & SMS Additionally, lower NDR & RTO rates by seeking direct confirmation from the customer over Whatsapp, Email & SMS Live Delivery Updates Share a variety of live updates regarding your customer’s consignment delivery & alleviate their shipping concerns Track Notifications Access the notifications dashboard to track the history of all communications sent out WareIQ not only offers services like order notifications and post-purchase services but also the entire gamut of operations that are associated with eCommerce fulfillment. This includes facilities such as: A nationwide network of fulfillment centers A custom WMS that can handle inventory management Integrations with multiple eCommerce marketplaces A choice of more than 20 of the largest shipping aggregators The most cost-effective and transparent pricing in the business Smart inventory placement Intelligent delivery assignment based on the quickest routes and cheapest prices No minimum order quantity A custom app store An RTO shield with insurance and liability protection Post-Purchase Experience: FAQs

June 29, 2022

10 Types of Shipping Notifications for Timely Order Updates and for Enhancing Customer Engagement in eCommerce in 2025

Keeping customers informed about the status of their order by providing order tracking facilities is one of the pressing concerns of most retailers that operate in the current eCommerce climate, especially in a fast-growing market such as India, where the rate of new eCommerce shoppers is increasing rapidly due to the expanding number of people who are consistently gaining access to the internet and all the lifestyle benefits that come along with it. New customers are more likely than existing ones to be agitated about the status of their order and it is up to the eCommerce retailers to take the initiative to provide constant reassurance that their order will arrive on time. Regardless of whether customers are new or existing, providing real-time updates to the order status will instantly provide them with an enhanced customer experience. Read further to get detailed information on eCommerce shipping notifications, their importance and 10 types to keep your customers informed. What are Shipping Notifications? Shipping notifications, also called order notifications, are updates that are provided to customers about the status of their order to keep them up-to-date about when they can expect to receive it. Shipping notifications can be sent in a variety of ways such as through SMS, Whatsapp, email or even custom tracking pages. They help customers get a better understanding of whether their order will reach their destination on time or if there will be any delays in shipping so they can plan accordingly. The information that is generally present in shipping notifications includes the order and tracking ID, which phase the parcel is in such as “order confirmed”, “items packaged” and “in-transit” and the estimated time of arrival to the customer’s location. [contactus_uth] Importance of Order Notifications for eCommerce Businesses They Provide Transparency to Customers Modern eCommerce customers generally expect that they will have the ability to track their order, whether it is in the form of notifications sent through a messaging app or a branded tracking page that provides them with all the information they need. Customers generally do not like to be kept waiting, regardless of if their food is taking longer than expected when they go to a restaurant or if there is a long check-out queue at a supermarket. This holds especially true for eCommerce retail because they do not have a physical sense of where the product is. Providing transparency through shipping notifications is essential to keeping customers informed at every step of the delivery process. They Enhance the Brand’s Image Customers appreciate it when a business makes the entire process of purchasing a product online to it being delivered to their doorstep as seamless and efficient as possible and order tracking notifications play a big role in that. Even if a delay occurs or an unforeseen issue arises, they will be less likely to attribute it to the business because they are being kept informed about any happenings in real-time. If a customer does not have to go through the effort of having to take time out of their busy schedule to deal with customer care personnel to find out where their order is and instead, can just automatically receive updates as to where their order is and when it will be delivered, their opinion about your business will instantly skyrocket because people appreciate convenience and ease-of-use. They Mitigate Concern From Customers Order notifications generally reduce the number of frantic inquiries from customers about where their order is. Customers who order online, especially ones that don't have much experience with it, are more apprehensive than if they had purchased their products in a physical store, due to the fact that they cannot touch or see the order until it has been delivered to their doorstep and this is even more amplified for Cash-on-Delivery (COD) orders because they have already paid for it and do not want to risk getting scammed and losing their hard-earned money. Shipping notifications help give them peace of mind by automatically providing constant updates every time the parcel enters a different phase of the fulfillment process so they never have to wonder about where their package is. 10 Types of Shipping Notifications to Keep Customers Informed Order Confirmation This is generally the first interaction with a customer after they have ordered an item and it is confirmed by the company. It can be in the form of an automated email or message informing the customer that their order has been received and is currently being processed. In the event of a payment error, if it is a prepaid order, businesses will also have to keep track of whether the money has been credited to their account and notify the customer accordingly. Order is Being Shipped An automated notification can be triggered through the business’s preferred contact medium, that the order is being shipped. This refers to the process of the order being picked up from the warehouse or fulfillment center by the relevant shipping aggregator, who will then transport it to the city or town where the customer is located. Customers are generally reassured when they see this notification because it means that the order has been successfully dispatched from the warehouse, without any complications. The order status can be provided with the ETA as retailers will generally have a better idea of when the package will reach once it is in transit. Suggested Read: 5 Easy Steps to Ship Order Consignments in 2025 Order is Sent for Delivery Once the order has been shipped to the city or town where the customer is located, the ground-level delivery personnel will be assigned the task of last-mile delivery to the customer’s doorstep. As soon as this happens, the order tracking page needs to reflect the updated status and a notification should be sent to the customer with the estimated delivery time to ensure that they will be available to collect it. The contact details of the delivery executive can also be provided in case there is any issue en route to the customer’s destination. Order is Successfully Delivered After the order has been successfully received by the customer, a notification can be sent to the customer detailing all the relevant information such as the product, amount, payment method, date of order confirmation and date of delivery. Retailers can also use this as an opportunity to promote similar or complementary products, provide tips for product maintenance and push for feedback about how the whole interaction with the company went, from purchasing the product to receiving the delivered item. This will help retailers generate positive feedback in the case of successful delivery or identify areas of improvement, in the event that the customer is displeased about something. Order is Cancelled, if Applicable Orders can be cancelled at any time, for a variety of reasons. In the event of a cancellation, customers need to be notified that is successfully done and that the order will no longer be delivered to them, to avoid any confusion. Retailers can also push for feedback regarding the reason for the cancellation and provide assurance that their money will be refunded within the relevant number of days, in case they have already paid for it. Order is Delayed, if Applicable Shipping notifications must be sent if any delay or issue occurs before the order has been delivered or dispatched. Delays could occur for a variety of reasons, in any phase of the fulfillment process, such as the product being out of stock at the warehouse, the delivery partner being stuck in traffic or bad weather and much more. It is the duty of the retailer to inform the customer about these delays and adjust the ETA, if necessary so that the customer will be informed and can better plan to be available to receive the order on the revised delivery date. Order Has Had an Unsuccessful Delivery Attempt Oftentimes, the delivery executive reaches the customer’s location, only to find that there is no one to collect the order. This is due to a variety of factors and even the slightest variation between the ETA and the actual delivery date and time can cause the customer to be unavailable and not be able to make prior considerations. Order notifications need to be sent to inform the customer that a delivery attempt was attempted unsuccessfully and can inquire about an adjusted date as to when they would be available to collect it. Order is Undeliverable Due to Loss or Damage Even with the use of advanced order tracking systems, goods can sometimes still get misplaced or damaged in transit, which is out of the retailer's control. If such an incident occurs, it is best to send a shipping notification to the customer informing them of the event and reassuring them that a new replacement order is on its way. Even though unforeseen circumstances may occur, retailers can maintain customer satisfaction by handling it in an appropriate manner. Return Initiation by the Customer Returns can occur for many different reasons, some of which can be blamed on the retailer such as damaged products being received, wrong items being packaged at the warehouses and unforeseen delays. However, there are many instances where returns are initiated due to no fault of the seller such as buyer's remorse from the customer, them finding a better deal elsewhere or simply because they changed their mind. Either way, when a return is initiated, an order status notification can be sent to the customer containing an acknowledgement of the return, a summary of the condition of the returned items, a status of the refund of the payment, if any and more. You can read more about how companies manage returns. Exchange Initiation by the Customer In some situations, customers opt for a product exchange, rather than a return. During these circumstances, shipping notifications can be sent containing an acknowledgement of the exchanged items, an adjustment to the price if needed and all the conventional order tracking notifications such as “order confirmed”, “order has been shipped”, and “order is out for delivery” and “order has been delivered”, to make the customer aware of the order status of their exchanged products. Conclusion: How Can WareIQ Help to Provide the Best Shipping Notifications to Customers in 2025? Shipping notifications have become an essential component of the eCommerce fulfillment process. Customers demand to be kept up to date about the status of their orders and if they aren’t, the business can face a significant amount of backlash, which can have a further negative impact on attaining new customers. Order notifications can be easily provided due to the vast amount of technology that is available. However, if you are an eCommerce retailer and want to provide a truly personalized experience to your customers, you can consider partnering with WareIQ. WareIQ is one of India’s fastest-growing eCommerce fulfillment providers that uses a centralised technology platform to enhance the experience of retailers and their customers. We provide a vast array of services that encompass the entire suite of fulfillment operations from storing your inventory in our fulfillment centers to delivering products to your customers. In terms of providing shipping notifications and a stellar customer experience, we offer the many services, some of which are listed below: Branded Tracking Pages Our branded tracking pages allow retailers to provide a truly personalized experience due to the high rate of customization that can be tailored to each individual customer. Instead of just a generic tracking screen, you can insert product banners, information about your brand, social media links and much more. Customers will end up spending more time on the tracking page, browsing through complementary products and getting a better idea about your company, which can even lead to repeat purchases. This will definitely enhance their experience and make your brand stand out from the rest. Notifications App - WareIQ Interact We provide a custom app store with multiple downloadable apps to enhance various aspects of your business productivity, similar to the Google Play Store or the Apple App Store. WareIQ offers a notification app named “WareIQ Interact” where every element can be customized and multiple orders can be tracked right from the app, with no external page or link needed. This enables retailers to be more organised and get insights into every order in real-time. eCommerce brands can use WhatsApp, Email & SMS to automate order status communications during the entire shipping journey. With WareIQ Interact, online brands can engage customers in the following ways: Share consistent communications with their customers to build a brand their customers can trust Alleviate shipment-related anxiety & boost trust in the brand leading to repeat sales Open new avenues for growth by cross-selling & up-selling Reduce the volume of NDR & RTO orders, leading to lower losses Customer Care We also offer customer care facilities so anytime a customer has a query or an unforeseen issue arises, our team of trained professionals will be there to get everything back on track as soon as possible. This provides assurance to you and your customers that you are backed by a dedicated team with multiple resources at their disposal to troubleshoot any problem that may arise. Shipping Notifications: FAQs

June 28, 2022

Reorder Quantity Formula: Guide, Definition, Importance, and 3 Simple Calculation Steps for 2025

The inventory of an eCommerce business is its most important asset and one of the most complex and crucial facets of operating an online store is inventory management. Additionally, it gets harder to keep track of stock levels with the more SKUs you have. Without effective inventory control, you can face situations such as overstocking products, which might expire or become outdated before you sell them and running out of stock, and losing clients and sales opportunities. It takes the right balance to have the proper quantities of a product. The reorder quantity formula is used by eCommerce companies to calculate this. Generally, they use the economic order quantity (EOQ) formula to reduce the cost of transportation, warehousing space, stockouts, and overstocks so that they can determine the ideal order amount. One of the best techniques to calculate the number of goods you need to purchase to maintain the proper stock levels is using the reorder quantity formula. Let us go into detail to understand what it entails. What is Reorder Quantity? Reorder quantity is the total amount of units of a product that you seek from a manufacturer or supplier for an inventory replenishment purchase order. The precise number shouldn't be too high so that you have too much capital invested in inventory and subsequent increased storage costs but it also shouldn't be too low so that there isn't enough safety stock and you have the danger of running out of inventory before you can order the next batch. The ordered amount or number of units must be optimal while taking into account a variety of elements, including the cost of the order, the cost of transportation, the cost of transporting the order, etc. The reorder quantity strikes the best balance between a number of variables, including quantity discounts, freight, storage expenses, and the need for working capital. [contactus_gynoveda] 3 Easy Steps to Calculate Reorder Quantity Using the Reorder Quantity Formula Determine Average Daily Usage Average daily use refers to the number of your product's units that are sold each day. Usually, thirty days is a common timeframe but it changes during different seasons or festivals. For instance, if you need to place an order for a product before a festival, your ADU should be determined using that festival’s ADU from the previous year. Calculate Average Lead Time Average lead time refers to the time span between when a supplier receives a purchase order and when they deliver it to the seller's warehouse or fulfillment center. The average lead time is calculated in days. If you reordered inventory on 1st January, your average lead time is 30 days if it is available to be used to fulfill customer orders by 30th January. Calculate the Reorder Quantity You can determine how much inventory you need to reorder by multiplying average daily use (ADU) and average lead time (ALT). Let's have a look at how to determine the reorder amount for a specific product: -ADU is 25 -ALT is 30 days Your reorder quantity using the reorder quantity formula will be: =ADU X ALT =25 X 30 =750 Recalculating your reorder quantity frequently is advised, especially as your order volume rises and if you sell seasonal items. When the reorder level is determined properly, replenishment stock should arrive immediately before the number of units of the existing stock drops to zero. Why is the Reorder Quantity Formula Important for 2025? Helps to Avoid Stockouts Lost sales result from low inventory. Backorders and split shipments are always an option, but they don't provide a seamless consumer experience. Reorder quantity allows you to order just enough to fulfill orders until your next purchase, while reorder level allows you to secure a recovery in time before your inventory runs out and helps handle stockout. Assists in Minimizing Expenses Additionally, you should avoid overstocking your inventory which will ultimately block your capital. You will need to expand your warehousing storage capacity or opt for storing items in multiple warehouses if your stock levels are too high. By estimating reorder quantity, you will be able to maintain just the right amount of inventory which will result in lower storage costs, less wastage, and fewer operational costs. Helps in Managing Inventory You can set up notifications in your inventory management system, allow live inventory tracking, and manage changes in demand over time when you know precisely how much to reorder and when you need to replenish by using the reorder quantity formula to calculate the reorder quantity you need. Example of Calculating Reorder Quantity You don't require reorder quantity calculator always, just using the 3-steps mentioned before we can calculate reorder quantity in a minute. To calculate your reorder level, multiply your average usage rate by the lead time for an inventory item. Be diligent while entering the time values you are using. If you are calculating average daily usage then put the lead time value in days. Suppose, Rajesh experiences an average daily sale of his items as 2500 units and the lead time for producing new units is 7 days, the re-order level will be: 2500 units x 7 days = 1,75,000 units. When the inventory level of items is left at 1,75,000 units in stock, Rajesh needs to reorder and stock more units. By the lead time the additional units arrive in 7 days, the on-hand inventory balance may have reduced to zero. Reorder Quantity vs Reorder Points Reorder Quantity and Reorder Point are two essential concepts in inventory management. They help businesses maintain an optimal level of stock and avoid stockouts or excess inventory. Reorder Quantity (ROQ) refers to the amount of inventory that should be ordered each time a replenishment order is placed. It is typically calculated by considering factors such as demand rate, lead time, and desired safety stock level. The goal of determining the reorder quantity is to balance the costs associated with ordering and holding inventory. On the other hand, the Reorder Point (ROP) is the level of inventory at which a replenishment order should be placed to avoid stockouts. When the inventory level reaches the reorder point, a new order should be placed to ensure that stock arrives before running out of inventory. While the Reorder Quantity determines the amount to order, the Reorder Point indicates when to place the order. These two concepts work together to ensure a smooth and efficient inventory management process. Reorder Quantity VS Reorder Level: 4 Key Differences Differences Between Reorder Quantity and Reorder Level are listed down here; Comparison Chart [table id=32 /] We Hope, this table of reorder quantity vs reorder level made the concept clear. Helps to Avoid Stockouts Lost sales result from low inventory. Backorders and split shipments are always an option, but they don’t provide a seamless consumer experience. Reorder quantity allows you to order just enough to fulfil orders until your next purchase, while reorder level allows you to secure a recovery in time before your inventory runs out and helps handle stockout. The latter is calculated using the reorder point formula. Conclusion: How Does WareIQ Help eCommerce Firms to determine their Reorder Quantity Accurately? For an eCommerce business to be managed successfully, knowing how much inventory to repurchase is the most important question to answer. With the help of the reorder quantity formula, you know that your incoming and outbound logistical workflows are being improved by ordering the proper quantity of goods. With the help of WareIQ, eCommerce businesses can manage inventory, forecast demand, pack orders, lower shipping costs, and fulfill customer expectations. We will optimize your data in real-time, automate your reordering quantity and move your inventory to relevant warehouses that are nearest to high-demand locations and transportation hubs if you choose us to store goods in our fulfillment centers. WareIQ helps brands improve their shipping strategy with a nationwide network of fulfillment facilities and technology that is integrated with the leading eCommerce platforms. Also read: What is Order fulfillment, its steps and strategies Reorder Quantity Formula: FAQs (Frequently Asked Questions)

June 27, 2022

How to Calculate Reorder Level: Definition, Advantages, and 5-Step Formula [2025]

By being able to execute proper business calculations, eCommerce retailers can advance in their goals. In the eCommerce industry, knowing when and how many products you require to fulfill orders is crucial. One method to show your aptitude for forecasting inventory and assisting your business in maximizing profits is by performing these calculations precisely and efficiently. Timing and the amount of inventory ordered should be accurate. If you have all the data, you can automate the re-ordering process. Today we will go into detail about the reorder level and how to calculate it using the reorder level formula, examples in different scenarios to maintain your inventory needs, and much more. What is a Reorder Level? Reorder level, also known as reorder point in management accounting, is the inventory level at which a business would place a new order or begin a new production run. Reorder level is influenced by a company's lead time for work orders, demand during that period, and whether or not it should keep a safety stock. The time it takes the company's suppliers to manufacture and deliver the ordered units is known as the work-order lead time. It is critical to determine the appropriate reorder level. A company may receive the ordered units faster than anticipated if it places a fresh order too soon and this could result in increased carrying expenses such as storage rent, opportunity costs, etc. Conversely, if an order is placed too late, the company would incur stock-out expenses, such as missed sales and customer dissatisfaction. [contactus_uth] Advantages of Reorder Level A conventional advantage of reorder level is to avoid stock shortage. Reorder levels are important since they enable a company to increase productivity and perhaps even revenues and profits. This is due to the fact that acquiring the right quantity of inventory can help the company run effectively while avoiding uncertainties like product waste. Reorder levels that are precise also aid in lowering carrying costs and other costs related to storing inventory. Rent, insurance, and potential spoilage are some carrying expenses that can be avoided or decreased with prudent ordering levels. Reorder level calculations are another useful tool for ensuring uniformity among team members when several people are in charge of issuing orders. The stock requirements are automatically activated at the order point. You may optimize your inventory list and reduce administrative time by using the reorder level model, which is a helpful decision-making tool. This reality enables you to concentrate on bringing value to your company while letting the system function on its own. Using this system has a number of benefits, including: Providing better service to both internal and external customers Preventing delays throughout the supply chain Lowering the inventory cost Maximizing the space in your inventory Staff members focus on value-added tasks while saving time Putting facts and evidence in front of speculation Forming a communication bridge between seller and manufacturer Avoiding overstocking Avoiding getting the items too early Preventing your capital from getting held up Making inbound and outbound logistics more efficient Reorder Level Formula: Calculation in 5 Simple Steps in 2025 Reorder Level or Reorder Points can be calculated in 5 Easy Steps explained below; Determine Your Average Demand The very first step is determining the average demand for a product or material. This refers to how many units of a specific commodity you sell or utilize over a certain period of time. There could be several retail items you require each day, week, or month, such as dishes, shoes, laptops, etc. You might also need a specific quantity of manufacturing material over time. Because demand may change from one period of time to the next, try estimating your inventory utilization over several of your chosen time periods and calculate the average of those results. This might be especially true for businesses or products that depend on outside factors. Calculate Your Lead Time The lead time is the period of time between when you place an order till the time you receive the shipment of goods. Use the same time unit (days, weeks, months, etc.) that you used to establish your average demand to calculate your lead time. You should calculate your lead time in days if your average daily demand is 100 goods. The wait time would be measured in weeks if your demand was 100 products per week. If deliveries are regular, you can generally automatically establish your lead time by looking up your order and delivery history. If delivery times are unpredictable, get the average lead times of a large number of orders. If outside circumstances affect how long it takes to get a delivery, use alternative lead times. Decide if You Should Keep a Safety Stock Determining whether you maintain a safety stock or not, depends on your preference. You will have to use a different formula for your reorder level for different situations. A business may retain some goods or materials on hand as safety stock in case certain circumstances arise, such as an unexpected spike in demand or a delivery problem. If you want to know if your inventory needs a safety buffer, compare the amount of stock you maintain on hand versus the amount you sell or use. You can also work with a business executive to determine whether your organization has a policy of maintaining a safety stock on hand and whether you should factor this into your reorder level. Any adjustments you might make or recommend making to your inventory levels should be communicated clearly. Use the Reorder Level Formula Calculate reorder levels with the proper formula using your average demand, lead time, and safety stock. The formula is as follows: Reorder Level Formula = (Average Demand × Lead Time) The formula in case safety stock is kept by the company: Reorder level = [(Average Demand × Lead Time) + Safety Stock] Your average demand and lead time should be calculated in the same unit of time. Your lead time should be calculated in days if your demand is calculated in units of products per day. Your lead time should also be measured in weeks if your demand is too. To ensure accuracy, think about working on your calculations simultaneously or asking a teammate to do so. You can also read this detailed article on Reorder Quantity Formula. Assess and Adjust as Required Finally, review your reorder level calculations and make any necessary adjustments. You might need to adjust your reorder level to account for the increased demand if, for instance, you find you are running low on the item before your next purchase comes in. You might need to modify your reorder level if orders start showing up with time changes. Determining a Fixed Reorder Level Stock While determining a fixed Reorder Level Stock the following factors are involved: Rate of Material Consumption It is the amount of material or number of items you sell in a lead time period. The material and items are averaged as per the duration of the time frame taken. Safety Margin Before you calculate the reorder level, you should keep a safety margin of stocks with you in case of higher demand than the average demand level. Delivery Period or Lead Time The average delivery period or average lead time is the time taken to get the stock after placing an order to your merchant or directly to the manufacturer. Maintaining a Minimum Stock Level Minimum stock level maintenance specifically helps small and medium-sized sellers and sellers who have limited storage space in different locations. This keeps your business supplied with stock and helps avoid uncertainty in inventory. Storage Fees and Interest on Materials-Related Capital Investments This is the crucial part to think about. You may calculate and order inventory as per your demand and your capacity to fulfill orders. This is not applicable if you have your own storage facilities but if you partner with a 3PL fulfillment company and use their fulfillment centers to store inventory, you will have to pay monthly subscription fees or for the amount of storage you are utilizing. Having an Emergency Fund Keep aside an excess amount of capital in liquid form to tackle uncertainties like machine breakdowns, supply-chain failures, increases in rates, etc. Many times, work is on hold in the logistics chain because of payment dues for certain processes. Read how should you plan your logistics in eCommerce. The Reorder Level of Stock Calculation in Different Circumstances Case 1 – Without Safety Stock Mr. Sanjay’s bookstore sells 200 books on average in a week. The maximum demand in a week is 217 laptops. If the lead time is 3 weeks then the reorder level calculation using the reorder level formula would be: Reorder level = Maximum usage(weekly) × Lead time (in weeks) = 217 units × 3 weeks = 651 units It means that every time the number of books decreases to 651, Mr. Sanjay’s bookstore must place a new order. Case 2 – With Safety Stock Suppose you are a bike seller with the following figures: Demand Minimum Demand: 40 bikes per month Average Demand: 50 bikes per month Maximum Demand: 60 bikes per month Safety Stock: 15 bikes Lead Time Minimum Lead Time: 1 month Average Lead Time: 1.25 months Maximum Lead Time: 1.5 months The reorder level of your outlet using the reorder point formula would be: Reorder Level = (Maximum Demand × Maximum Lead Time) + Safety Stock = (60 units × 1.5 weeks) + 15 units = 90 units + 15 units = 105 units Note: Both demand and lead time must be expressed in the same time unit, i.e., in days, weeks, etc. Modified Reorder Level Formula The amount of reordering presumes a constant pace of inventory consumption, which is usually false. For instance, if usage levels fluctuate often, the reorder level will be too low, resulting in a lack of inventory when it is required for production. On the other hand, this reorder procedure will result in having too much inventory on hand if actual usage decreases. It might be helpful to account for extra stock on hand and replace the average daily usage rate with the maximum daily usage rate in the reorder point formula in order to prevent stock-out situations. The revised reorder level formula is as follows: | [(Maximum Daily Usage Rate x Lead Time) + Safety Stock] | Conclusion: Choosing WareIQ for Faster and More Accurate Reorder Levels After understanding the importance of reorder level, it is understood that establishing reorder points is beneficial so that you can reduce your capital investments and make sure that your company is running as efficiently as possible in terms of both inbound and outbound logistics. The requirement for accurate data for supply chain planning and presenting a precise picture of customer demand is the most crucial and occasionally, most difficult aspect of effectively calculating reorder levels. You could wind up with too much or too little stock if the data is incorrect and the calculation is wrong. Also chech a guide on order fulfillment WareIQ can help eCommerce firms to manage inventory, anticipate demand, pack orders, cut shipping costs, and meet consumer expectations. In case you seek to store inventory in multiple WareIQ fulfillment centers, we will automate your reordering levels, optimize your data and reshuffle your inventory to relevant warehouses that are close to high-demand locations and transport hubs. WareIQ assists brands in enhancing their shipping strategies with a network of fulfillment centers spread out across the country and technology that is integrated with the top eCommerce platforms. Reorder Level Formula FAQs

June 24, 2022

PREV 1 … 64 65 66 67 68 … 74 NEXT