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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

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What are Fulfillment Services for eCommerce? A Detailed Guide in 2025

To understand what fulfillment services are, why it's essential in 2025, and their benefits for your business, we need to first talk about the supply chain issues faced by many eCommerce retailers. Since the pandemic began, we've all been experiencing problems with shipping aggregation and the supply chain. The challenges we have experienced began with pandemic-related restrictions and shutdowns. Without supply chains that can keep up with current demand, vendors have had trouble getting the supplies and goods they needed. This negatively impacts customers, as they waited for their products to be delivered. The delays were worsened by other factors such as weather, lack of warehouses, labour shortages, etc. These factors were compounded when they created a flow that caused delays. This was a trend across eCommerce enterprises and affected all parties involved. Many fulfillment services that deliver goods suffered cash flow issues due to the pandemic. The customer’s impression of your company is determined by how they feel while receiving their order. Successful fulfillment platforms and branded shipping improve customer satisfaction and build a better brand presence. For customer satisfaction, streamlining and optimising your fulfillment services is critical. The online and offline elements of the business should work together to ensure that customers are satisfied with the service they receive, both in-store and through the shipped product. What is eCommerce Fulfillment? eCommerce fulfillment is the process of completing online orders. If someone orders your product via one of your online stores, you must deliver it quickly and at a reasonable price. An eCommerce fulfillment service deals with the process of customer orders, specifically receiving, storing, and shipping. It is also responsible for processing orders and dealing with customer returns. A well-planned and professionally managed eCommerce fulfillment service saves both time and money and is only one of the necessary parts of an extensive eCommerce business. The core feature of successful online retail are well-executed fulfillment services that help you expand your market reach and build customer loyalty by improving your efficiency. [contactus_gynoveda] What are the Steps Involved in the eCommerce Fulfillment Process? Product Receiving The first operation included in fulfillment services is receiving. When your products are delivered to the fulfillment center, they are entered into inventory and placed on shelves where they are ready to be shipped. It is useful to organise these products according to their delivery dates. You can accept and fulfill requests manually. Or, if you switch to using software to do it, you can integrate your cart or marketplace that will automatically look for orders based on the inventory. Inventory Management Proper inventory management means systematically tracking all products so that if and when you run out of goods, they are immediately replenished (know more about stock replenishment). The IMS can store and manage products in your inventory, meaning you won't have to worry about the logistics costs of product handling. Continuous processes such as audit functions should be performed regularly to avoid complications in fulfillment services. Inspect your stock to ensure that items are in good shape, and discard any damaged items. If you're missing an SKU, refer to your inventory or CRM software to track it down. One of the main challenges that retailers face is inventory management because they may not know what their customers want and need. Partnering with a competent fulfillment service provider, being organised, and staying informed about inventory levels can solve this issue. Order Fulfillment An eCommerce business can self-fulfill their orders or hire fulfillment services to do it for them. This includes the following three activities: Picking: It can take days for a company to fill an order. Selecting the product to be fulfilled is the first step in the process. You can pick from a single location or multiple locations across your warehouse if you have different products at each site. To quickly fulfill orders, find reliable staff that can handle the logistics at your warehouse. If your business receives many orders, it will be best to have staff dedicated to this process. The speed increase with this methodology is significant. Faster and hassle-free automation as well as partnering with fulfillment partners can be implemented to improve the pick and order process. Automation can create smaller orders and send them to the consumer in one batch. Packing: Once all the items in an order have been picked up, they must be adequately and attractively packaged. Packaging is an essential aspect of order fulfillment services because it is a physical reflection of your brand presence. Hence, you should concentrate on various packaging plans and choose what works best for your brand image. You should make sure that your packages are labeled and ready to be shipped. In either case, you should use a good packing strategy to ensure the safety of your package. Custom packaging could also be made available. Shipping: Logistics is crucial in order fulfillment services. Having a timely shipping experience can boost the experience of your customers and make any trouble or delays with shipping, less likely. The transport of goods often includes selecting a transport company and fulfillment services. Reverse/Return Logistics Reverse logistics is about tackling all the items that were returned. Rising competition in the market means that return orders are inevitable. Any company must manage this process efficiently. If your fulfillment service processes your items faster, they will quickly process the refunds. This would lead to the items and the refund being completed faster. Many fulfillment service providers allow you to automate your non-delivery report and handle the refund of orders. Since they take responsibility for all rebates, they can also dramatically lower the number of returns you may have to process. What are Some Common Misconceptions About Fulfillment Services? Warehousing and Fulfillment are Interchangeable Terms This statement is false. The terms warehousing and fulfillment are not the same. Warehousing refers to storing products in a particular place until they are ready to be distributed. Fulfillment refers to the entire process of delivering a product to the end customer. A distribution center created by 3PL fulfillment services is traditionally used only for order fulfillment and inventory management. Fulfillment centers, however, also take on order management duties and fulfill orders given by purchasing departments. The Fulfillment Center Should be Closer to the Business Location Shipping can become more expensive if you're shipping to your location (business) rather than your customer's location. You have to pay for the extra cost of having items shipped from the fulfillment center closer to your location. It can be challenging to maintain inventory and storage, as you will have to make compromises on-site. You need to try and have your fulfillment centers located closer to the customers to enable faster delivery. Self-Fulfillment is the Cheapest Way to Fulfill Orders Automation is beneficial if you ship out less than ten orders per day. But if you ship more than 20 to 30 orders each day, we recommend taking a shot at outsourcing your needs to fulfillment services. Training facilities and resources are necessary for a business's success. Without these, it would be hard to innovate and update products quickly. It Will be Much Cheaper if a Fulfillment Center is Located in a Tier-2 or Tier-3 City It can be challenging to maintain inventory and storage, as you will have to make compromises at the location. It might be cheaper in the short run to store your products in a remote, out-of-the-way place and deal with slower shipping, but you need to research the area of your target audience to avoid higher combined shipping costs. Try to have your fulfillment centers closer to the customers to reduce costs. What are the Benefits of eCommerce Fulfillment Services? Focusing on Core Business Outsourcing can free up time spent on mundane tasks. Rather than wasting time taping boxes, invest your time in growing your business. As a business grows, order fulfillment becomes more complex and risky. You can lower your risk of delays by outsourcing the shipping process to a third-party eCommerce fulfillment service. It will give you the time and resources to focus on other tasks like designing your products, marketing them, and selling them. Lowering Shipping Costs You won't benefit from the negotiated shipping rate if you ship orders yourself. Fulfillment services have warehouses all over the country and divide your inventory, so you don't have to pay for distribution in one location. They utilise tools to compare rates with couriers to reduce shipping fees. By partnering with a 3PL eCommerce fulfillment partner, you can get your inventory to the customer's door quicker and cheaper. By shipping from more than one location, you can maintain bulk items closer to customers, which leads to faster delivery. Increasing Shipping Speed Outsourcing fulfillment services will allow you to provide faster delivery. You can place inventory closer to your buyers and have warehouses all over the country for efficiency. Retailers need to be able to ship products quickly to customers and meet demand. An eCommerce fulfillment partner can help you do just that by meeting expectations and competing with big stores. Establishing Fulfillment Infrastructure It can be a nightmare to deal with the storage of orders if you handle them on your own. Storage entails a lot of eCommerce warehousing and operating tasks, which can be solved using asset and inventory management software. To have a fulfilling infrastructure, you need to have people working for you and providing storage and security. All of this comes at a significant monetary investment. When you outsource to a 3PL eCommerce fulfillment service, you will have access to improved storage space and won't be penalised for your usage. If you have fluctuations in sales volume, they have plenty of resources to deploy according to your order demands. WareIQ's Fulfillment Solution Keeping Buyers Up-to-Date Online buyers need consistency and transparency when buying products to trust the company they are purchasing from. If you use fulfillment services or outsource your needs to a third-party eCommerce fulfillment service, you can provide accurate delivery confirmation at the checkout page. They have an experienced workforce, and the capacity to deliver on time. Reducing Operating Costs Moving fulfillment services to an external location can be costly, but businesses often overlook the fact that self-fulfillment also has costs. Inventory storage is a significant expense and will continue to grow as eCommerce retail evolves. Additionally, outsourcing fulfillment services often lead to high rental fees for warehouse space. Outsourcing to third-party eCommerce fulfillment providers can save overhead costs by only paying for necessary items. You are also insulated against seasonal changes in sales volume. Expanding Your Reach You can receive orders from any state or country with an exemplary eCommerce fulfillment service. Organised and efficient fulfillment will help you reach your business goals. It can be intimidating to understand complicated international shipping and customs rules when managing orders on your own. International shipping rates are even more complex because they are governed by different regulations and currencies. As a result, many retailers keep their shipping options local or regional. But outsourcing fulfillment services can help you get your products to more people. Many fulfillment services have the infrastructure for shipping around the world. Accessing Superior Technology With a tech-enabled 3PL eCommerce fulfillment service, you can gain access to periodic inventory reports and crucial metrics that can assist you in making strategic decisions. A 3PL will provide you with real-time access to essential data such as insights on inventory and orders, forecasting, determining zones for distribution, and performance reports. What are the Costs Associated with Fulfillment Services? When calculating the costs of an eCommerce fulfillment service, different models need to be considered. There need to be calculations on the warehousing and fulfillment services and the channels and types of distribution. Self-Fulfillment When it comes to self-fulfilling orders, you need to take out loans due to the excessive use of resources. Staff needs to be trained in picking and packaging, and storage space and shipping services must also be obtained. 3PL Fulfillment 3pl Fulfillment services are a great way to scale your business up. It is a cost-effective solution, as it allows people to avoid all sorts of expenses, including labour costs and other miscellaneous costs. You only need to find a 3PL eCommerce fulfillment service and choose the fees you want to pay. Customers must pick 3PL fulfillment services closer to their location for an optimal experience. Dropshipping Early in a business, you don't have to invest any real money. Instead, your suppliers cover all the manufacturing, storage, and shipping costs with very little administrative or customer interaction. However, as your business grows, it can be hard to scale up if you need to maintain relationships with multiple channels. Fulfillment by Amazon Fulfillment by Amazon is when an Amazon.com seller sends their products directly to Amazon fulfillment centers. It's only for products on Amazon that have Prime status, and it's the most expensive option when selling on Amazon. With Seller-Fulfilled Prime (SFP), Amazon shipping can be outsourced to different sellers who are trustworthy. Sellers can receive their orders within two days with FBA. FBM, which has a lower cost, renders all Fulfillment services through the seller and is responsible for purchasing and maintaining inventory and handling customer service but provides no Amazon packaging. Which Types of Businesses are Best-Suited for eCommerce Fulfillment Services? One way for businesses to sell products more efficiently is by using an eCommerce fulfillment service. It can be beneficial for some industries, such as eCommerce retail. Accessories Fulfillment Source If you sell accessories, you can rely on more efficient third-party fulfillment services by automatically fulfilling any orders at the time of purchase. Beauty & Makeup Fulfillment You want to make sure that your makeup is shipped carefully so your customers can conveniently pick it up. Make it a point to consider the ease of transmission - even if you're sending a small package. Apparel Fulfillment Source Delivery of your clothing items is integral to running a successful garment outfit. With discrepancies in sizing, colour, and styles, working with 3PL fulfillment services that competently coordinate order volume is essential. A 3PL eCommerce fulfillment service should also offer the provision of a return, mainly when customers try on their order before purchase. Diet & Supplement Fulfillment The US FDA doesn't regulate dietary supplements, but for a rapidly growing market, it is essential to be able to ship and track inventory. 3PL fulfillment services ensure that this innovative business can expediently deliver products. Electronic Appliances Fulfillment Customers often need customer service when they order items online. Ensure your company offers customer service in addition to quality products and proper storage. Toys Fulfillment Selling toys is unpredictable unless you forecast and plan. Inventory and forecasting tools work better with 3PL fulfillment services with software to manage the process. Pets Accessory Fulfillment Source Customers are trusting when they purchase pet accessories from a company. They have high expectations for transparency during the purchases of your brand's products. 3PL fulfillment services are necessary to create and fulfill consumer desires. Collectibles Fulfillment eCommerce brands need help storing inventory and fulfilling orders. Etsy and Facebook Marketplace are some companies that cover the growing market for other items people are willing to buy. Home & Kitchen Appliances Fulfillment Kitchen appliances are constantly being developed, with people looking for the following new and innovative products that can be bought on the internet. Luxurious Goods Fulfillment Luxury goods can be vulnerable and fragile, so 3pl fulfillment services take excellent care to ensure your items are finely handled throughout storage and processing. They have virtually no cases of broken or damaged luxury goods. Games Fulfillment If you have an excellent idea for a game, the eCommerce market is the best place to sell it. However, the industry can be competitive, so optimising your retail fulfillment process is one way to stand out. Equipment Gear & Outdoor Fulfillment You need a reliable logistics eCommerce fulfillment service infrastructure to survive in the outdoor equipment and gear eCommerce industry. Cymatic offers a warehouse distribution network with drop gate technology that can help you compete in this saturated market. Healthcare Fulfillment It is critical to have the proper eCommerce fulfillment service when expanding your online store. Without the correct location or team, it isn't easy to fulfill an order on time and manage inventory efficiently. Home and Household Goods Fulfillment Source eCommerce homeowners and brands can now receive high-quality eCommerce fulfillment service support from 3PL fulfillment services, which have highly skilled fulfillment experts. It will save you time and money as you scale your brand, but it will also help optimise your supply chain. F&B Fulfillment Customers rely on eCommerce businesses to get food and beverages delivered more than ever. Consumers expect food and drinks to be fresh and perishable. Food that is provided by an eCommerce business needs to be stored and supplied carefully. Should You Outsource Operations to Third-Party eCommerce Fulfillment Services in 2025? If you're fulfilling orders for your business and see a significant influx, it's time to reach out about scaling. Use fulfillment services to help ship and process these orders quickly. If you are not using technology to optimise operations, your business will grow inefficiently. To do so, be sure to have an eCommerce fulfillment service that provides software that will suit your needs and the company's growth. Here are some questions to help determine if you should outsource your fulfillment requirements to 3PL fulfillment services. Do You Struggle in Determining How to Plan for Storage and Inventory? If the answer to this question is yes, consider outsourcing your inventory and warehouse management to third-party fulfillment services. Do You Spend Too Much Time Fulfilling Orders? If you can fulfill orders on your own, then there is no need to invest in fulfillment services for your business. However, if you are unable to do that, it may be worth looking into an eCommerce fulfillment service for any excess orders. How Do You Check Your Customer's Shipping Preferences? If you want to store products closer to home, take advantage of fulfillment services How Do You Plan to Grow the Business? If your business is projecting enormous growth, it's time to switch to 3PL fulfillment services. Conclusion: Is it Worth Partnering with an eCommerce Fulfillment Company in 2025? There are many advantages and benefits that come with partnering with 3PL fulfillment services. A few of them are listed below: Improved Time Management Saving time on fulfillment through fulfillment companies can help grow your business. Outsourcing it to a more conveniently located company will ensure timely delivery and better rates for shipping. Cost Benefits Upfront costs of in-house fulfillment come with seasonally shifting overhead expenses that require employing a full-time staff team. Outsourcing gives you more flexible, stable prices and better deals on storage and insurance. Improved Technology Outsourcing fulfillment requirements to an eCommerce fulfillment service can help utilise their existing technology and infrastructure, freeing up your time and money for other uses. Integrating your eCommerce platform with that of fulfillment services is a smart option. Business Growth Outsourcing your fulfillment responsibilities can help you focus on other aspects of the business and provide higher-quality service to customers. Market Reach Choosing an eCommerce fulfillment service can help your business reach global audiences without you having to deal with the logistics. You can focus on what's important for your business, like marketing and sales, knowing that your partner will handle the other tasks. If you are seeking to benefit from all the advantages of partnering with fulfillment services and much more, WareIQ can be of great assistance. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfillment centers, micro-fulfillment centers & urban dark stores near their customers Access to all major national & hyperlocal last-mile couriers at discounted rates for making same/next day deliveries possible Easy integration across multiple online platforms & marketplaces enhancing multi-channel selling Horizontal marketplaces: Flipkart, Amazon, etc. Vertical marketplaces: Nykaa, Myntra, etc. D2C platforms: Shopify, Magento marketplace, WooCommerce, etc. Social commerce platforms: Bikayi Access to a superior centralised tech platform for eCommerce operations ML-based prediction engine for efficient warehouse network design & smart inventory placement Centralised platform for core fulfillment & shipping operations Post-shipping apps for a delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next-day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realize significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in eCommerce warehousing, and data-driven decision-making. WareIQ’s WMS, a centralized tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. [signup] Fulfillment Services: FAQs

June 23, 2022

7 Best eCommerce Fulfillment Services to Streamline Fulfillment and Shipping Operations for Enabling Same Day and Next Day Delivery in 2025

Have you wondered how eCommerce market leaders achieve exemplary growth and customer satisfaction metrics? As the eCommerce boom continues and customer preferences change rapidly, powered by the plethora of options available to end customers, differentiation in offerings will be the key game-changer for eCommerce businesses. This differentiation can be achieved through the selection of the best eCommerce fulfillment services, more specifically, a reliable partner that offers the most recent trends in fulfillment, such as same-day delivery and next day delivery services. Keep reading to better understand how you can select the best eCommerce fulfillment services for your business and how WareIQ can be the best fulfillment partner in your growth journey. What are Fulfillment Services? Fulfillment services are similar to third party (3PL) logistics service providers that take care of preparing an order and shipping it to the end consumer on behalf of the seller and also provide a multitude of related services such as taking complete responsibility for receiving, managing and completing the order. As customer expectations of same day delivery and next day delivery grow at an ever-increasing and unimaginable pace, eCommerce fulfillment services are fast evolving as the preferred choice for eCommerce businesses across the globe. The best eCommerce fulfillment services enable businesses to reliably, accurately and efficiently fulfill their customer orders while minimising capital expenditure. While fulfillment services vary with regard to their exposure to the value chain, they mostly act as a command center for handling the entire order preparation and dispatch process as well as doubling up as a buffer inventory for holding the clients’ products. [contactus_uth] What Does an eCommerce Fulfillment Provider Do? An eCommerce fulfillment service provider takes up a broad span of responsibilities ranging from receiving stock, storing it in warehouses, order processing, shipping and transportation. The success of any eCommerce business largely depends on setting new expectations for customer experiences and fulfilling them effectively. With the eCommerce boom, customers have started expecting same day delivery and 2 day delivery as a general standard. However, for any eCommerce company, handling so many things single-handedly becomes cumbersome and the team starts losing focus on their core business processes. There is heavy capital investment, manpower hiring and management bandwidth allocation that is involved. Hence, outsourcing these requirements to the best eCommerce fulfillment services has proved to be a simple but very effective way of addressing this issue while riding on the growth engine along with competitors. An eCommerce fulfillment service’s task begins as soon as an order is placed by the customer and continues till the order reaches the doorstep of the customer or is returned due to some unavoidable reason. The best eCommerce fulfillment services give the seller access to a more dynamic eCommerce warehousing space, help negotiate more favourable terms with shippers, prevent stockouts and provide real-time tracking information of the order consignments. What are the Factors to Consider while Choosing the Best Fulfillment Services for eCommerce? While selecting the best eCommerce fulfillment services, a number of factors should carefully be considered and it can be a big burden for retailers to determine them. The decision depends both on the business objectives and personal preferences of the decision-maker. Broadly, the following factors must be taken into account while selecting the best eCommerce fulfillment services provider: Spectrum of service offerings Scalability Flexibility with respect to same day delivery and next day delivery Cost structure, pricing plans and price transparency Ease of onboarding Efficiency of customer service and reachability eCommerce and startup friendliness Intuitive business intelligence dashboard for real-time monitoring Extent of integration and security Micro eCommerce Fulfillment: The Move to Same Day and Next Day Delivery Same day delivery and next day delivery are rapidly becoming the most preferred delivery models for customers globally. According to some recent survey reports, over 60% of eCommerce shoppers consider delivery speed as a significant factor in their purchase decisions and 80% of shoppers are likely to turn to a competitor brand if they encounter long delivery periods. Let us take a look at the meaning of each: When an item is delivered to a customer within 24 hours of it being ordered, usually on the day on which it was ordered, it is referred to as same day delivery. To accomplish this humongous task, the item must be delivered from the inventory, also called a micro fulfilment center, located as close as possible to the consumption clusters. Next day delivery, on the other hand, means that the customer receives the item at their doorstep on the following day from when it was ordered. It involves bundling multiple orders throughout the day destined for a given region of distribution and making scheduled delivery stops by the shipping partner. However, there are multiple challenges to this micro fulfillment revolution such as heavy capital expenditure on numerous warehousing facilities, investment in robotic product handling, rapid order processing and packing, and lack of transport infrastructure in remote locations. Hence the micro fulfillment model used by eCommerce fulfillment services is fast evolving to provide a more customised experience for eCommerce sellers with same day delivery and next day delivery offerings. 7 Best eCommerce Fulfillment Services Offering Same Day and Next Day Delivery in 2025 We have listed down the 7 best eCommerce fulfillment services that offer same day delivery and next day delivery services, which will boost customer satisfaction, leverage loyalty and increase online sales for eCommerce businesses. WareIQ Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfilment tech solutions for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same day delivery and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfilment centres & urban darkstores near their customers Access to all major national & hyperlocal last mile couriers at discounted rates for making same/next day deliveries possible Easy integration across multiple online platforms & marketplaces Horizontal marketplaces: Flipkart, Amazon etc. Vertical marketplaces: Nykaa, Myntra etc. D2C platforms: Shopify, Magento 2 , WooCommerce etc. Social commerce platforms: Bikayi Access to a superior centralised tech platform for ecommerce operations ML-based prediction engine for efficient warehouse network design & smart inventory placement Centralised platform for core fulfilment & shipping operations Post-shipping apps for delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfilment tech companies in the world that have same day delivery offering for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from inbound operations such as scanning and quality checks through 100% accurate pick and pack to inventory management across all channels. WareIQ’s next day delivery and same day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing and data-driven decision making. WareIQ’s WMS, a centralised tech platform, is its core offering, with the following functionalities: Shipping Management Integration to all major national couriers and same-day delivery partners through WareIQ's platform with discounted rates Generation of bulk shipping labels & invoices in a few clicks Offering a branded tracking page and sending auto-alerts to inform customers of their shipment status Reduction in RTO % (Return to Origin) by automating cases of failed delivery attempts (NDRs) by the shipping or delivery partner Preemption of COD frauds through an integrated AI engine flagging risky orders Orders management Tracking of orders across multiple channels Filtering of orders by status Searching for specific orders Quick timeline view of where the order is in the fulfillment process (e.g. when an order is picked, packed, or shipped) Shipping-related information (e.g. weights, dimensions or carrier service) Quick snapshot of any orders that require action Syncing WareIQ’s out-of-the-box integrations with sales channels to eliminate manual importing of data and triggering all the necessary notifications to the end-customers Inventory management Tracking of inventory levels across multiple locations & sales channels including websites and marketplaces Using WareIQ platform to distribute inventory to multiple locations optimizing for speed & cost/order Setting reminders to proactively replenish inventory, bundle products for promotions, make inventory transfer requests and much more Warehouse management Managing multiple warehouses and offline stores on WareIQ's platform 100% inventory accuracy with scan-based operations Automated reconciliation tool which helps to keep track of returns and unsettled invoices Integrations with all major ERP & Accounting systems Assured tag on Flipkart without physically dedicating inventory to them The central platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. More than 300 companies such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms have trusted WareIQ as a reliable partner in their growth journeys. No minimum order quantity requirements make it suitable even for eCommerce firms having low order quantities to take advantage of the latest trends such as same day delivery and next day delivery. The onboarding process is simple, convenient and less time-consuming, while the pricing policy is clear and transparent. WareIQ also undertakes strict safety precautions at its warehouses and complete ownership of operations, thereby minimising the risk exposure of customers. ShipBob Source ShipBob was founded in Chicago in 2014 as a global logistics, technology, and eCommerce fulfillment services company that fulfills orders for D2C brands with next day delivery. With a claimed accuracy rate of 99.95% and serving more than 7000 customers worldwide, ShipBob provides end-to-end solutions for eCommerce fulfillment. It offers 2-day shipping at affordable and transparent prices, along with a robust software platform that allows integrations to the eCommerce providers’ own platform with a developer-friendly API. According to independent customer review reports, ShipBob ranks high with respect to: A broad network of warehouses across distant locations A superb easy-to-use user interface The ease of integration with other platforms However, customers have reported dissatisfaction on the following issues with ShipBob: Difficult to understand pricing plans Not-so-active customer support Non-availability of refrigeration facilities for perishable products Inflexibility for B2B operations Shipbob also provides predictive analytics to eCommerce customers to better handle stock-outs during peak sales periods. ShipMonk Source Also established in 2014, ShipMonk is based out of Florida and serves medium and small-sized eCommerce companies with comprehensive fulfillment solutions including warehousing, smart inventory management, subscription box fulfillment and campaign fulfillment. ShipMonk’s warehouses are located strategically across the USA and it has plans to establish warehouses in Europe, so as to provide more customised fulfillment, including 2-day delivery and next day delivery to D2C eCommerce brands. ShipMonk is equipped with robust and eco-friendly modern technologies such as locus robots, kardex machines, cubiscans and software that integrates easily with 75+ marketplaces and shopping carts. It offers customised packaging solutions and delivery protection schemes for willing eCommerce companies. ShipMonk allows a convenient pricing model that allows customers to pay on a per-unit basis for 1 to 10,000 fulfilled orders per day. It also enables customers to better understand the returns management process with accurate and real-time data and round-the-clock customer support. ShipMonk has a respectable mindshare among its customers with respect to: Heavy discounts and affordable shipping rates Complete paperwork and claims settlement Zero setup fees Zero inventory receiving fees Easy integration with eCommerce platforms Ability to handle international orders and subscription boxes effectively However, Shipmonk’s software is not integrable with eCommerce company websites hosted on Wix. Amazon Source Amazon has been the pioneer in the eCommerce fulfillment space with same day delivery and next day delivery services for Prime members across a long list of cities. To add to customer delight, Amazon has gone to the extent of fulfilling certain eCommerce orders within a few hours of placing the order. Amazon makes it possible through a very carefully placed network of fulfillment centers, comprising of warehouses and phantom godowns, close to the sites of maximum orders, based on their past order data and projections. The same day delivery concept evolved from the 2-day delivery promise that Amazon inherently made to its Prime members. While most eCommerce companies, especially small and medium businesses, admit to having benefited largely from the same day delivery offering of Amazon, the associated costs have been heavy for eCommerce companies having less frequent and uneven rates of orders. Moreover, the same day delivery and next day delivery services of Amazon are available only for registered vendors and sellers of Amazon; external parties selling through other platforms cannot avail of these services, thereby restricting their reach. Deliverr Source Established in 2017 in San Francisco, Deliverr provides superior fulfillment solutions to small eCommerce companies, with a 2-day delivery service. Transparent pricing, badges similar to Amazon Prime or flipkart badges and a hassle-free experience stand at the core of Deliverr's services. eCommerce companies can leverage the live data tracking options of Deliverr to predict their future fulfillment performance and even next day delivery for D2C customers located in close proximity of the warehouses. Deliverr ranks high on the following parameters: Online Customer support Ease of onboarding and integration Transparency in pricing Multi-platform integration for companies The primary disadvantages of Deliverr are: Unavailability of International delivery Telephonic customer support Non-adaptability with subscription boxes Rakuten Super Logistics Source Originally established as a 3PL company in 2001, Rakuten Super Logistics has established its strong foothold in the eCommerce fulfillment domain since 2013. A nationwide fulfillment network helps eCommerce companies minimise shipping periods, control costs and increase accuracy in eCommerce order fulfillment. RSL has partnered with some of the leading shipping carriers to handle a diverse range of parcel sizes for eCommerce platforms. While currently offering only next day delivery, it plans to introduce same day delivery services in the very near future to compete with Amazon. Rakuten customers have reported a plethora of advantages including: Dedicated customer support managers, available through phone Two-way inventory management and address verification Speciality fulfillment Discounts with bulk orders The main barrier for smaller eCommerce companies in partnering with Rakuten Super Logistics is its minimum order quantity of 250 monthly orders, although the company plans to shred down this limit in future. The other disadvantage is that eCommerce websites hosted on Wix cannot integrate with the API of RSL directly. Also, Rakuten Super Logistics does not offer a live chat feature and 24*7 customer support. FedEx Source FedEx, formerly Federal Express Corporation, was founded in 1971 as an urgent delivery services company. Over the years, Federal Express has grown and evolved as a multinational eCommerce fulfillment provider, serving diverse sectors such as healthcare, transportation, D2C, B2B and B2C eCommerce fulfillment solutions. Having operations across 200+ countries, FedEx has many large multinational conglomerates among its customer base and continues to innovate supply chain solutions to meet changing customer expectations. Moreover, FedEx offers the convenience of shipping pre-ordered consignments without storing them in a warehouse. However, the main disadvantages are that FedEx does not ship oversized and overweight products and it does not integrate with Amazon - an essential requirement from any eCommerce fulfillment service. Conclusion So, by now, you must have gained a fair understanding of the importance of having a strong fulfillment services partner, which is capable of providing same day and next day delivery services, which will boost the ability of your eCommerce company to become more customer-friendly. There is no standard one-size-fits-all approach for selecting the best eCommerce fulfilment services. So, it is best to trust WareIQ, the fulfillment company that provides you with the right flexibility with respect to order size and pricing. WareIQ has been constantly working on incorporating feedback from customers and strengthening the focal points in the fulfillment chain to provide you with a consistent improvement in customer satisfaction. We help you not only to reduce your logistic costs but also your delivery timelines – this could be the game-changer for your business. [signup] eCommerce Fulfillment Services: FAQs

June 22, 2022

Definition, Importance and 5 Step-By-Step Processes of Stock Reconciliation In 2025

It is sometimes likely that the inventory counts in your records and the actual amount of products on your shelves don't always match. This mismatch, while frequent, can have a significant impact on your organization. To avoid stockouts and guarantee that your consumers get what they need when they need it, you need to know how many goods you have in stock and how much stock you need for the future. You can employ stock reconciliation to determine the stock discrepancy between what's in your records and your warehouse and then make modifications to bring your figures into line. This is a critical step in ensuring that inventory is ordered as needed and that things are readily available for sale. In this blog, we will take a detailed look at the meaning of stock reconciliation, its importance, the processes involved in doing and the challenges faced while doing it. What is Stock Reconciliation? Stock reconciliation refers to matching inventory data to real-world inventory items in is stored in your business’s warehouse or fulfillment center. To do so, prepare a stock reconciliation report that accurately displays your current inventory and includes or disposes of stock items from the database. This is an essential step since it aids in the reduction of stock disparities and helps in understanding why they exist in the first place. Inventory reconciliation should be done regularly to guarantee that all inventory is accounted for. An inventory reconciliation report compares the business's written inventory records to the physical goods in storage. If this data doesn’t match, the report can assist in determining the cause of the issue. If you cannot find the cause of the difference, you should update the written inventory records to reflect the actual inventory level and the necessary accounting entries that need to be made. [contactus_gynoveda] Importance of Inventory Reconciliation There can be dire consequences for the business when the records do not match the physical inventory. Even with the best inventory management and control technology, inventory shrinkage to some extent is inevitable. There's no denying that human error and blunders are to blame for part of this shrinkage. The quality of the data recorded and handled in the inventory control system determines the accuracy of the information. Inventory reconciliation allows you to keep track of shrinkage and search for symptoms of greater problems such as dwindling customer demand or employee theft. Performing an inventory reconciliation helps your business to keep inventory organized and is important for the following reasons: It ensures your written records for inventory figures are accurate by aligning these records to those obtained via a physical check. It ensures that all kinds of stock are separately recorded and included in the written records. It helps in tracking your inventory more seamlessly to prevent incidents such as theft and manual errors. It provides a starting point for investigating the differences between inventory-in-hand and inventory purchased from suppliers by identifying the source of these differences through the use of item characteristics. Businesses find it helpful in judging their stock-loss percentage compared to prevalent industry rates. 5 Step-by-Step Processes Involved in Stock Reconciliation Inventory reconciliation is more complicated than just changing the numbers in your books to reflect the amount of inventory in your warehouse. There are a variety of explanations for the discrepancy in the figures and you must figure out what's going on, which can be done in the following ways: Step 1: Make a Note of Your Actual Inventory Count The number of items a business has on hand is known as physical inventory. The number of actual objects on your shelf is the one definitive thing that cannot be disputed. Businesses should arrange a time for qualified management to do physical inventory counts and double-check their data. Check your physical inventory count before browsing through your records. This may be accomplished by devoting a day or two to calculating the number of items in your inventory. This is crucial since it becomes conceivable whether the inventory was originally miscounted or recorded incorrectly. Furthermore, if you're distributing goods between different sites, the physical inventory count may be lower than the figures in your books. Step 2: Perform a Side-by-Side Comparison of Physical Inventory and Inventory Records Compare your real inventory numbers to existing inventory records once you've recorded them. You should double-check that these numbers match the physical location of each item on your shelves. You'll find out whether there are any inconsistencies during this procedure. Several factors might cause a discrepancy between your physical inventory count and your inventory management count, some of which are listed below: Paperwork that has gone missing Human errors Mathematical miscalculations Unlisted items Scrap items Fraud by suppliers Items that belong to a consumer or a supplier Items that have expired and thrown away You have to look into all options to determine the root of the problem, note what's causing the disparity, and make the necessary changes to your processes and records to prevent the same problem from occurring again. Step 3: Analyse Purchases and Sales of Inventory Since the Previous Reconciliation If you've done a stock reconciliation before, go back and check if any inconsistencies were discovered that might explain the discrepancy in figures during the current reconciliation. Compare your inventory reconciliation findings to previous ones. This can help in identifying trends and patterns, as well as the identification of areas that need more research. This is especially useful if any difficulties need to be addressed. Being aware of these problems and issues allows you to concentrate more attentively on those specific items, either averting future difficulties or supporting you in finding the cause of the issue. Step 4: Remove Any Disparities That May Exist It's up to you to decide how much shrinkage is acceptable in your company. It may be more time-consuming and costly to identify the reason for the loss rather than move on if the quantity or value of lost items is low enough to make an exception. If you need to identify the cause of it, start with your systems and personnel. If you're using a contemporary inventory or retail management platform, you may simply update the products in your system to reconcile your records. While this causes an abrupt pause in your inventory statement, it does allow you to build a general ledger that will serve as the formal beginning point for future inventory. Steps in the recording process are frequently overlooked at the warehouse, on the store floor, and while updating it on the inventory management software used by the company. It is a good idea to interview the people who are in charge of each phase to see if there's a reason for the disparity that can be rectified. If you can't figure out what's causing the disparity, consult with your team and identify each metric that could have caused it. Step 5: Repeat the Process of Reconciling Inventory Consistently The advantages are lost if inventory reconciliation is not performed regularly. Regular stock reconciliation improves data accuracy and lowers inventory costs. Inventory reconciliation is only effective if you verify your stock regularly. As a result, you'll get more accurate data over time and can reduce inventory loss, saving you money in the long run. Inventory reconciliations should be done regularly and the frequency should be based on what is best for your company. They can be time-consuming, so factor in any delays, sales halts, and labour expenses. Challenges to Stock Reconciliation Can be Time Consuming Inventory reconciliation is time-consuming for every business, and no matter how frequently you count, you'll have to tolerate certain amounts of unforeseen shrinkage due to factors such as damage, expiry, goods lost in transit, and many others. Frequent stock reconciliation can result in delays in delivering orders to customers and purchasing fresh stock that is needed to fulfill those orders. Disruption in Operations The place where you count your stock should be kept separate. This entails having access to a large warehouse or operational space to prevent the suspension of all inbound and outbound product movement is suspended for long periods of time. However, since it is already a struggle for many retailers to find enough storage space to fit in their existing inventory, this can be a challenge, as they often use third-party warehouses which don’t facilitate large sections that can be separated specifically for counting purposes. Use of Incorrect Weightage Factors The usage of incorrect weightage factors is a widespread issue that causes multiple monetary issues. When dealing internationally, for example, measuring a liquid in litres rather than in gallons or the other way around is often overlooked. This can cause confusion when noting down the dimensions of the product, especially if employees are not well versed in units of measurement and if the company deals in importing or exporting goods to other countries that use different metrics of measurement such as the US and Canada. Difficult to do Without Advanced Software If an order management system isn’t implemented, tracking replacements, refunds, and backorders make stock reconciliation problematic. In today's world, using excel or similar basic spreadsheets introduces unneeded difficulties due to a lack of relevant features that are needed. Even though these solutions have worked quite effectively for a long time, a more comprehensive package is required in the current market. They aren't responsive enough to manage a wide distribution network and other peripheral aspects of the firm. They provide many opportunities for human mistakes and there is no base structure for spreadsheet reconciliation reports. Additionally, if a business stores inventory in multiple warehouses and sell products on different platforms, the only way to manage the movement of inventory accurately is to use inventory management software. Manual Errors and Mismanagement of Inventory Many of the common causes of the disparity between inventory records and physical inventory counts are due to manual errors while entering the data or mismanagement of resources which leads to inventory shrinkage, stockout situations, overstocking, wastage, and much more. These factors have an adverse effect on business operations and are difficult to mitigate unless a major management and staff overhaul is done if the problem occurs frequently because it can be difficult to ensure that every item is being counted and added correctly. Conclusion Managing inventory should be a key priority when a firm starts to grow. Taking the effort to reconcile inventory acts as a quality check for existing stock systems and alerts the management team to any data inconsistencies. Managers may use this information to determine which inventory control systems to adopt to improve functionality and expand their business. The amount of money spent on stock mismanagement is reduced when an effective stock control system is implemented. While every organization's ability to raise selling prices is restricted, focusing on the bottom line is a good strategy. Inventory reconciliation is a valuable tool for reducing losses and streamlining procedures. The key to reducing inventory shrinkage is for all departments to participate in simplifying and optimizing their particular tasks effectively. You'll need to do inventory reconciliations regularly to keep track of your inventory statistics. Inventory checks provide several advantages, including saving money, reducing theft, and ensuring that your consumers get the desired items. If you need assistance with inventory reconciliation, you can check out WareIQ. WareIQ is one of India’s leading eCommerce fulfillment companies that utilize a strong technology infrastructure to provide a range of eCommerce fulfillment solutions, including inventory management and stock reconciliation. We give customers access to our advanced WMS that automatically tracks inventory across multiple fulfillment centers and selling channels, and automates multiple processes of inventory management to increase the speed and cost-effectiveness while reducing errors and issues. Stock Reconciliation: FAQs

June 22, 2022

What are the Steps to Start to Sell on Snapdeal & Open a Snapdeal Seller Account in 2025?

Snapdeal was originally pioneered as a daily deals platform in 2010 but has since grown to become an eCommerce marketplace that encompasses various services such as multilingual support, a customizable interface, and the use of advanced technology to enable retailers to sell their products on its platform. Currently based in New Delhi, the company has become a major player in the Indian eCommerce selling space which is reflected by more than 500,000 sellers that utilize it to sell a variety of commodities that span across industries and price ranges, giving customers a variety of options. The majority of the company’s customers are located in smaller towns and villages, rather than conventional metropolitan areas, which has led it to provide coverage to more than 96% of India’s pin codes. In this blog, we will go into detail about why you should sell on Snapdeal, how to become a Snapdeal top seller, the challenges associated with it, and how you can employ WareIQ’s assistance. Why Should You Sell on Snapdeal? Mitigates the Need to Set Up a Store A huge advantage of opting to sell on Snapdeal and most other eCommerce platforms is that the entire retail process from generating interest in a product and converting it to a sale, can be done online without the need of ever setting up a physical store and all the expenses and challenges that are associated with it such as rental costs, interior decorating costs, electricity costs and maintenance costs. This enables retailers to save a ton of money and removes any hassle of needing to run a whole store which makes the entire process more pleasurable and efficient for both the seller and their customers. Provides Access to More Customers When retailers opt to sell on Snapdeal and offer their services digitally, they instantly convert their potential customer base from just their local operational area to the entire country. As more of the country’s population gains access to the internet, they will discover the benefits and conveniences of shopping online instead of commuting to a physical store. In addition, Snapdeal provides services to more than 3000 cities and towns in India which means that retailers can receive orders from the opposite end of the country. This increased customer reachability will have a profound impact on sales and will assist retailers in expanding their operations further. Operates Round the Clock Companies who sell on Snapdeal are not bound by the restraints that a physical store has to abide by and this includes operational timings. Businesses are always in the position of attaining new customers, even when their staff is asleep or on holiday. Whether a customer is browsing through your online listings on their 9 am commute to work or during a 2 am shopping spree because they can’t get any sleep, your business will stay open to welcome their business, which simply cannot be done through a conventional brick-and-mortar store. Mobile shopping from anywhere has changed the shopping scenario in recent times. This helps in converting even the slightest bit of interest into a potential sale. Assists in Running the Business On the Go Due to the digital nature of eCommerce retail, businesses that sell on Snapdeal can take advantage of their staff not needing to be physically present in an office to be productive and keep an eye on ongoing operations, which can be seamlessly done through Snapdeal’s Seller Zone App or Seller Panel. This provides a lot more flexibility by enabling employees to be up to speed on important matters relating to operations, sales or issues faced by customers. This also leads to more time being spent with family or engaging in other personal activities such as physical fitness and being out in nature, which can stimulate personnel to work harder and more efficiently. Diversifies Your Product Range Retailers who put their Snapdeal seller accounts to good use can be reassured by the fact that Snapdeal is taking care of important logistical processes such as confirming orders and tackling delivery issues. This enables companies to put more focus on core business activities such as studying the market, enhancing their business strategy, refining existing products, and developing new ones which will ultimately lead to more satisfied customers resulting in improved customer feedback and higher profit margins. By having the freedom to diversify their product portfolio, businesses can tap into new segments of the market and expand their overall reach. [contactus_uth] 6 Simple Steps to Start to Sell on Snapdeal & Register as Snapdeal Seller in 2025 Step 1: Creating a Snapdeal Seller Account Source The first thing you need to do is go to https://sellers.snapdeal.com/ where you can create a Snapdeal Seller Account. You will need the following documents to complete the registration for the year 2025: Owner’s name Company’s name Copy of your PAN card Canceled cheque from the seller’s payment account Copy of your Aadhaar card Phone number Email ID Bank account information GST number Address proof such as bank statement, electricity bill, passport, etc. Step 2: Entering Your Business Information Source You have to enter your business-related information such as your office address, pick-up pin code, digital signature, name of the business, etc. Step 3: Verifying Your Email and Phone Number Source You need to verify your registered email and phone number by entering the verification code that will be sent to both. This will be used to notify you about orders, tracking information, and other important notifications. Step 4: Submitting Your KYC Documents Source KYC documents such as GSTIN, PAN card, and Aadhar card will be used to verify your ownership or identity of the company. They need to be uploaded to the website. Step 5: Entering Your Bank Details Source You need to enter the relevant bank details as this account will be used to credit payments after a sale is made and also for relevant deductions and expenses. Step 6: Creating a Product Listing Source Once you are done with the registration process, you can list a product using your Snapdeal Seller Account. You should have an idea of what products you want to sell and which category they belong to. There are 2 ways you can list products to sell on Snapdeal. Manual Product Listing Bulk Product Listing You can either click on “Create a Single Listing” to list products individually or you can bulk upload by uploading your content. Once your products are successfully listed, you can start to receive orders. You will get a notification every time an order is placed and you can choose to accept or reject it. You can now begin to sell on Snapdeal and utilise all the benefits that come with it. Challenges Faced by Retailers Who Sell on Snapdeal in 2025 Incurring of Returns Expenses Sales returns are a major challenge for every seller, regardless of the eCommerce platform. However, some handle it better than others. Retailers who sell on Snapdeal have to deal with 2 types of sales returns - courier returns and buyer returns. Courier returns are when the courier company could not deliver the order due to various circumstances and buyer returns are when the buyer returns the product, which could be due to a variety of reasons, many of which aren’t the sellers' fault. Sellers do not incur any expenses for courier returns but for buyer returns, they have to pay for the transport fee for delivery and return as well as the marketing and selling fees. For retailers struggling to maintain their profit margins, this could have dire consequences. Suggested Read: Why should you sell on myntra? Lower Profit Margins Compared to Other Platforms This problem is more pronounced on Snapdeal compared to other eCommerce selling platforms due to the large amounts of local vendors who prefer to use it as opposed to an international platform. This creates severe levels of competition and if businesses do not own a trademark, any and every other company can sell similar products at similar prices. The sheer volume of retailers trying to get into the eCommerce space in India means that by the time operational and logistical expenses and Snapdeals commission are cut, retailers barely have any profit left over. Quality Control Issues Snapdeal is one of the worst offenders in this regard. Retailers who sell on Snapdeal constantly face issues such as incorrect titles that are difficult to change, random transferring of shipping plans to Snapdeal Plus with no option to change it back, and retailers using the images and descriptions of other vendors. Dealing with these issues can cause severe time delays and unnecessary hassles for sellers when they could be focusing on other, more important tasks. Constant Changing of Account Managers A consistent theme of online selling platforms is the assignment of account managers to sellers who will assist them in tackling any issue or doubt that arises. On most other platforms, a fixed account manager is present, which is beneficial because they will have a deep relationship with the seller and will also have knowledge about prior mishaps that may have occurred. However, retailers who sell on Snapdeal can have their account managers suddenly change, without any prior notification. This means that when an existing problem isn’t solved or a new problem arises, there will be a new account manager that has no relationship with the seller or prior knowledge about the case which can lead to severe delays in solving it. Highest Expenses and Commissions Out of all the major eCommerce marketplaces operating in the country, Snapdeal is one of the most expensive. Retailers who sell on Snapdeal constantly have to pay the most expensive shipping fees, which contain many hidden costs and keep fluctuating. Snapdeal’s payable amount to retailers, known as seller net payable, is also one of the lowest and leaves sellers with some of the lowest profit margins of any online selling platform. This combined with the fact that there are many features omitted from the platform means that sellers are getting a much lower value compared to similar services. Suggested Read: Why should you sell on Amazon? Conclusion Snapdeal is one of the emerging eCommerce marketplaces in India. Since it is a homegrown company, it inspires many retailers to sell on Snapdeal, in addition to offering a vast amount of coverage to every part of the country. While the platform does have its benefits and drawbacks, it is still a useful platform to sell on as gives retailers more exposure to customers who do not live in big cities but rather, in smaller towns and cities. Retailers who sell on Snapdeal in conjunction with other platforms are best suited to have the maximum amount of visibility possible. It is always a smart option for sellers to sell on multiple platforms so that they can extend their reach and are not monopolized by a single marketplace. If you need to fulfill orders on Snapdeal or any other eCommerce platform, you can take advantage of WareIQ’s offerings. WareIQ’s custom WMS offers seamless integrations with more than 20 online selling platforms including Snapdeal, Amazon, Flipkart, and much more. This enables retailers to access all their order information across multiple platforms and inventory details across multiple fulfillment centers, to be easily accessed in one centralised virtual location. In addition, we also track important metrics about every order to enable companies to forecast future demand and the amount of inventory that they will need. We also provide fulfillment services for retailers who sell on every platform at faster speeds and discounted rates. Sell on Snapdeal FAQs (Frequently Asked Questions)

June 20, 2022

8 Best Strategies to Become a Snapdeal Top Seller in 2025

Retailers opt to sell their products on eCommerce selling platforms due to the various advantages that it offers compared to conventional brick and mortar stores such as little to no setup costs, visibility to a vast customer base and the convenience of not having to operate a physical store and all the challenges that come along with it. In order to get customers interested in their products, out-perform their competitors and generate as many sales as possible, retailers need to employ a wide range of tactics. Becoming the top seller in any given business, especially eCommerce, comes with a fair set of challenges. However, any business that has put the time and effort into doing the research, selling quality products and targeting the right audience, is bound to succeed. Read this blog to understand more about Snapdeal, find out the best strategies to become a Snapdeal top seller and the pros and cons of choosing to sell on Snapdeal in 2025. About Snapdeal Initially founded in 2010 as a daily deals platform, Snapdeal has since expanded its services to become a widely used online selling platform that offers a wide array of features such as the use of advanced technology to help retailers and their customers get a seamless eCommerce shopping experience, a highly customizable user interface and multilingual support that includes most major languages in India. The company is currently headquartered in New Delhi and has upwards of 500,000 retailers that use its platform on a daily basis to sell their products. Unlike other eCommerce marketplaces, Snapdeal’s customer base is primarily located in smaller towns and cities rather than large urban conglomerates which has enforced it to offer services to more than 96% of pin codes in the nation, including more than 2,500 cities and towns. Snapdeal allows a wide range of products, across industries and with varying prices, to be sold on its platform and has garnered a reputation for being more affordable than other channels. [contactus_lilgoodness] 8 Strategies to Become a Snapdeal Top Seller in 2025 Target the Appropriate Audience You can have the best product in the world at the cheapest price available but if you target the wrong audience, it won’t make any difference to your sales and will limit your chances of becoming a Snapdeal top seller. Retailers need to conduct market research using analytical tools to determine what kind of customers they want to target, who will use their products, what price competitors are charging for similar products and what customers respond well to. Customer feedback is also a valuable asset as you are getting suggestions directly from them directly as to what works and what doesn’t, which can be used to optimise your operations to attract future customers. Identify Your Unique Selling Point Your unique selling point or USP, can help your product and business stand out from a sea of competitors. Whether it lies in certain core features of the product, the pricing, the delivery or any other aspect, a USP can help attract the attention of customers and help to boost sales. Once you have identified your USP, you need to market the daylights out of it to ensure that customers can discern the benefits as opposed to your competitors. This will give you a competitive advantage in the segment and can have a positive impact on your profit margins, in addition to helping you to become a Snapdeal top seller. Provide Exceptional Customer Service To become a Snapdeal top seller, you need to offer a prolific support experience to customers whether they have already purchased your product or are thinking about doing so. This will enable you to generate their valuable feedback as to what they appreciated and if there was anything that they didn’t. This will allow you to increase their chances of becoming repeat customers and their positive feedback and reviews will direct more customers towards your business. Utilise SEO Tactics SEO tactics are extremely important if you want your product listings to rank at the top of search results when customers search for similar products. It is an acronym for Search Engine Optimization and involves intelligently placing keywords in order to rank highly compared to other results on search engines such as Google. Employing relevant and high-volume keywords in your product descriptions and titles can make the difference between generating heaps of visibility and barely having any customers visiting your page. Utilising good SEO practices will greatly improve your chances of becoming a Snapdeal top seller. Add High-Quality Images Adding high-resolution pictures and videos of your product from different angles and use cases can have a positive impact on your goal of becoming a Snapdeal top seller. Retailers who sell on Snapdeal should make sure to add attractive images as this is the first visible interaction that a customer will have with your product so it should be as memorable as possible for the right reasons. Pictures can often make the difference between a customer purchasing a product and searching for other listings because the product images were of poor quality. Employ the Use of Email Campaigns Email campaigns are a great way to keep in touch with existing customers to remind them about upcoming events and product launches. It is also a useful method to convert prospects into customers by getting them interested in your product and brand through the use of well-written and visually appealing emails. Either way, it can spark interest in your business and help you to become a Snapdeal top seller. Run Sales and Provide Discounts Retailers who sell on Snapdeal can run sales and provide huge discounts on certain products in order to attract the attention of customers. Research shows that customers are more likely to purchase a product if they think they are getting a significantly better deal than what it usually costs. Sales can be run for older products that are at risk of becoming obsolete, products that are not selling well or to spark interest in a brand new product. Customers will also appreciate these discounts and are likely to inform family and friends about offers that they deem as being good value which will help you in generating more sales and becoming a Snapdeal top seller. Reduce Shipping Costs Shipping costs can have a significant impact on whether your customer proceeds to check out or exists the page because it is too high. There are many ways to reduce shipping costs such as partnering with a 3PL company to take advantage of bulk shipping, discounts and more but there are also ways to intelligently make shipping costs invisible such as by bundling them into the product cost and offering free shipping, qualifying customers for free shipping if their shopping cart is of a certain value and much more. Retailers who sell on Snapdeal can make use of these tactics to become a Snapdeal top seller. Sell on Snapdeal: Pros and Cons Pros for Retailers Who Sell on Snapdeal Snapdeal enables retailers and their customers to save money, time, effort and resources by getting everything done online. Retailers do not need to incur the setup and operational expenses that are involved in a conventional store while also not needing to be physically present at an office to be able to ensure that operations are running smoothly. The user interface of the website and dashboard is easy to use for retailers who sell on Snapdeal. This enables any and every type of seller to sell on Snapdeal effortlessly, regardless of their technical prowess. Users can manage orders, check their inventory levels and edit listings from one master dashboard. There are currently more than 27 million unique customers that interact with Snapdeal to browse and purchase products. When retailers choose to sell on Snapdeal, they instantly get access to this entire base. While the sheer numbers will obviously reduce when you filter the statistics based on customers who shop for similar products and at a particular price point, you will still be left with a huge network of potential customers that you can convert into buying your products. Retailers who sell on Snapdeal can take advantage of its vast operational network that covers 96% and more than 2,500 cities and towns in the country. This enables users to generate sales to distant locations across the country because they are no longer constrained by their location. In addition to giving retailers who sell on Snapdeal access to a wide pool of customers, the platform also operates 24/7 to ensure that regardless of what time customers are browsing, sales can always be made. And since Snapdeal also takes care of the logistical procedures, retailers do not need to worry about fulfilling orders at odd hours. Cons for Retailers Who Sell Snapdeal Retailers who sell on Snapdeal are subject to some of the highest operating expenses of any eCommerce marketplace. In addition, Snapdeal also provides the lowest sellable amount to sellers which greatly reduces profit margins, especially for small and medium-sized retailers who are struggling to get by. The listing power that sellers have on the platform is extremely limited compared to other platforms. Not only is it much slower and is frequented by glitches, but it also does not offer any customization options and does not penalise sellers who use images from other businesses. Retailers are forced to incur returns expenses if the return is initiated by the customer for a particular reason, regardless if it is the fault of the seller or not. Since returns happen frequently, this additional expense, which includes travel to and from the destination and any other logistics costs that have been spent, can eat away at a seller’s profit margins. Conclusion If you are a retailer that seeks to sell on Snapdeal, it would be in your and your customers' best interest if you employ strategies to enable you to become a Snapdeal top seller. While Snapdeal themselves don’t provide any additional benefits for being a top seller, it will pay dividends in terms of customers having the best possible experience, highlighting that feedback in public forums and attracting new customers, who want to buy from a reliable retailer that sells quality products. This will help you to generate more sales and ultimately increase your profit margins. If you need assistance with fulfilling orders on Snapdeal or any other type of eCommerce-related assistance, you can think about partnering with WareIQ. WareIQ is one of the fastest expanding eCommerce fulfillment companies in India that provides a whole range of services that encompasses every aspect of eCommerce retail. Whether it is fulfillment centers to store products, fulfilling orders or managing inventory, WareIQ has got you covered. We utilise advanced technology to the greatest extent possible, to mitigate unwanted errors and provide a seamless user experience. Snapdeal Top Seller: FAQs

June 20, 2022

What is Decoupling Inventory? Definition, Methods, Differences and Effect on the Supply Chain in 2025

Inventory is a basic asset of any business operation, so inventory management becomes an essential task. Inventory management includes more than just arranging the items on shelves, picking them up when an order comes in and delivering it to the customer. It also comes with a lot of uncertainties. These uncertainties are part of operating a business and managing them by taking the appropriate steps is a sign of efficient business skills. Events such as the global pandemic and supply chain disruptions caused due to the war in Ukraine have highlighted many challenges and lack of inventory is one of them. Depending on the nature of a business, there could be a shortage of semiconductors, edible oil, medicines, etc. So to maintain functional production and supply operations, forecasting needs to occur. Decoupling inventory is one part of it and it needs to be implemented to prevent stock-out situations and grinding operations to a halt. What is Decoupling Inventory? Decoupling inventory, also known as decoupling stock, is the process of separating extra inventory within a production process to ensure smoothness in every operation. Buffer inventory is stored in order to prevent one step of production from causing delays in other steps. Manufacturers need to ensure that if any of the machines involved in production breaks down or slows down production rate at any point, production does not get affected. An Example of Decoupling Inventory For different purposes, the relevant decoupling inventory example can vary depending on the situation. One example for a manufacturing unit is as follows: If a manufacturer makes bread and biscuits that require the use of flour, they must purchase a huge amount of wheat to grind it into flour. For processes such as grinding, backing, kneading and cutting, various machines are put into use. If any of the machines get damaged or stop working due to an issue, the entire production process can get delayed. In order to mitigate this, the manufacturer can use the principle of decoupling inventory to keep extra flour if the grinding machine fails, keep some buffer knead to cut it and shape it for future steps. If the kneading machine fails then there should be another way to knead it, bake it or use the flour to make something else from the items in the product line that the company offers. This is a good decoupling inventory example that other businesses can emulate in order to prevent a delay in multiple other processes, just because one operation isn’t going to plan. [contactus_gynoveda] How Can You Achieve Decoupling Inventory? Most online retailers will keep extra stock to ensure that client orders are fulfilled on time. Many times, the order frequency gets too high. For example, if the monsoon arrives early, umbrella sellers will get more orders and may struggle to fulfill them. If you sell a product on your website and multiple other sales channels that needs to be a handmade item or requires assembly, it will benefit you to learn about how decoupling inventory can help you optimize your processes. Here is a step-by-step guide to completely comprehend how decoupling inventory works: Calculate your sales and production capacity. Determine the current raw material or work-in-progress inventory levels at each decoupling point in your manufacturing line. Analyze previous order data and patterns to forecast demand strategically. Determine the amount of extra raw materials you can keep on hand after demand has been met. Establish a predetermined inventory replenishment strategy based on the average delivery deadlines for each material after you know the quantity of raw materials to have on hand. Maintain accurate inventory records and historical order trends for each SKU and adjust your decoupling inventory purchase orders as needed. Keep in mind that your decoupling inventory replenishment approach will need to be tweaked over time. Decoupling inventory will not only require additional space in your warehouse but also you will have to dedicate resources towards holding and securing it. So the holding cost limit that you have set should not be surpassed. Always keep an eye on your holding expenses and avoid building up too much surplus inventory, especially if your raw materials have expiration dates or are prone to becoming obsolete. Advantages of Decoupling Inventory Maintains Buffer Stock for Repairs and Maintenance Decoupling inventory is particularly advantageous in the event of a facility outage for repairs or machine maintenance. Manufacturers can still fulfill orders on time despite any failure of equipment failure if they have adequate decoupling inventory on hand at every step of production. This enables them to use this inventory as a substitute to bypass the failure and enable normal production speed and efficiency. Provides Protection During Periods of Uncertainty When manufacturers are unable to obtain sufficient raw materials to finish producing a product, the work-in-progress manufacturing line slows or stops completely. Decoupled inventory is stored at each level of the production line to offer protection against any uncertainties that could occur and constructs a resilient failure-proof supply chain. This means that no matter which stage of the manufacturing process a product is in, there should be enough raw materials on hand to continue production without any delays. This is especially useful for companies that make a lot of goods with similar parts or ingredients. Helps to Avoid Stock Outs Decoupling inventory is a strategy for ensuring on-time retail fulfillment, particularly if the items you offer require machinery or assembly to fulfill a customer order. When you sell finished products through dropshipping or direct fulfillment that is done by the manufacturer, you do not have control over the manufacturing process. There are, nevertheless, measures to ensure that demand is met despite production delays. To reduce the risk of inventory shortages, partnering with manufacturers or suppliers can be a good option. However, this isn't the only technique to avoid bottlenecks in your supply chain. You can forecast demand and keep safety stock with you at all times to offset the chances of a shortage in inventory or raw materials. Decoupling Inventory vs Pipeline Inventory Though they have some similarities in terms of advantages, they are not used in the same way. Decoupling inventory and pipeline inventory both aid supply chain efficiency, with the primary purpose of both being to avoid wastage of time and reduced productivity. [table id=30 /] How Does Decoupling Inventory Affect the Supply Chain? Decoupling inventory operates alongside the material flow as well as the informational flow pipelines in the supply chain. Without decoupling points, a supplier error or downtime might have a negative impact on the demand and supply of products. Decoupling, for the most part, works inside the supply chain by emphasizing the prevention of time waste or downtime in relation to productivity. The use of manufacturing automation to streamline the production process is emphasized by these decoupling points. Manufacturing automation includes several features that make production more efficient such as order management, parts tracking, outlined/identified production stages, inventory management, etc. In case of a lack of ability to decouple inventory, production can get lower and then it can affect the following aspects of the supply chain: Impacts Dropshipping Some retailers opt for the manufacturer to fulfill orders to customers directly. In this case, sellers only focus on confirming orders on their website or other selling platforms. If decoupling inventory is not done properly and there are hindrances in the production process, manufacturers may be unable to fulfill orders due to various issues which will result in unhappy customers and negative feedback for the business. Affects the Purchasing of Inventory Many types of small and medium-sized eCommerce sellers purchase a minimum order quantity (MOQ) and economic order quantity (EOQ). If a manufacturer has low amounts of inventory in stock, there are fewer chances for the seller to get enough inventory to fulfill orders in a timely manner. Thus, the seller will have to settle with what the manufacturer has and is quoting, which may be much more expensive than ordering on the basis of MOQ and EOQ. Increases Freight Rate In case there is a stock shortage and sellers have to fulfill multiple orders, they will have to opt to obtain the goods from other warehouses which may be located in other regions, in order to not keep customers waiting. This process can work out to be much more expensive as sellers will have to incur extra freight charges to transport the commodities from those warehouses and can also result in delays as products are not being shipped from a warehouse that is in close proximity to the customer. Hinders Seasonal Sales When there is an uncertainty of inventory due to a lack of decoupling inventory, a seller cannot run flash sales or fulfill demand during a season sale which will ultimately lower the profit and cash flow and remove a seller’s ability to get rid of obsolete or low-demand inventory. Lowers Sales Velocity A higher sales velocity is always beneficial for a seller. They are often ready to compromise on profit margins to focus on selling more products because that is the way to generate high revenue and increase profit margins. However, if there is a shortage of inventory or other issues in the supply chain, sellers are often unable to achieve the desired sales velocity because they do not have the means to do so. 3 Different Methods to Avoid Stockouts Automate Order Placement If you are an eCommerce seller, technology plays a huge role in your business. The Internet of Things(IoT) is one of them. If you apply IoT for not only selling and tracking goods but also for procurement of inventory that you will be selling in the future, you can avoid any errors or miscalculations that could occur if it is done manually. This helps you to generate the data for future orders and optimizes your inventory. Through the use of technology, multiple facets of the business can be automated such as order placement, inventory management and order fulfillment. This will help increase the speed and accuracy of these processes. Keep Buffer Stock Handy Online retailers can utilize safety stock to determine how much extra inventory they can afford to have on hand in case of an emergency or supply chain failure that could cause a delay in order fulfillment, similar to how decoupling inventory works. The amount of safety stock you'll need is calculated using the following formula: Safety Stock = (Maximum Lead Time x Maximum Daily Usage) – (Average Daily Usage x Average Lead Time) However, keeping too much buffer stock can also lead to obsolescence and further expenses so it is best to calculate this accurately. Use a Warehouse Management System It is possible to strategically estimate future demand by collecting and evaluating precise past supply chain data. Though no forecast is 100% accurate, thanks to the rise and accessibility of digital supply chain technologies, forecasting demand is becoming easier to manage, allowing online retailers to make better judgments about inventory levels. Investing in technology that delivers real-time supply chain analytics and inventory forecasting insights will help you ensure that you have enough inventory throughout your supply chain to fulfill demand. A centralized warehouse management system (WMS) such as the one used in WareIQ's logistics network, collects and records real-time inventory data which helps in inventory planning and management. Conclusion: How Can WareIQ Help in Decoupling Inventory? Inventory Management Solutions provided by WareIQ will help you track inventory in real-time and provide insights to assist you to improve stock availability. Its inventory management apps for eCommerce businesses allow you to create automated reorder point notifications based on prior inventory performance at the SKU level, so you'll know when you're running low on stock. WareIQ is a trusted and tested technology platform that gives you all the inventory details you need and lists all the variations in a single dashboard. Experts control every aspect of inventory management. You get the data and insights you need with WareIQ to gain control over the movement of inventory, lower carrying costs and ensure you always have enough inventory on hand to fulfill demand. Our intelligent method of inventory management ensures balanced inventory in multiple locations according to the order traffic and proximity to customers. Decoupling Inventory: FAQs

June 20, 2022

Stock Audit: Objectives, Importance and 10 Procedures for Inventory Audit in eCommerce for 2025

Inventories contain finished goods for sale in the ordinary course of business, work-in-progress goods, supplies, and goods employed in manufacturing goods and order fulfillment services. Because inventory is critical to any firm, performing an inventory control audit is crucial. The procedure entails determining whether the entity holds the inventory value recorded in the entity's books. While performing stock audits internally or through external auditors, the organization should consider the following considerations. These factors include whether the company's inventory can be physically counted by hand, whether the Inventory is held in the company's warehouse or a third-party facility, and if the audit time is adequate. These considerations will aid in determining the audit method and schedule. What is a Stock Audit? A stock audit, also known as an inventory audit, ensures that the actual products are accessible in your store's warehouse corresponding to the stock registry findings. The Inventory audit procedure entails validating or cross-checking an inventory's financial records with its physical count. External auditors or internal firm employees carry out the stock audit, and the auditors use a variety of audit processes, which we will go over in detail. "The global financial auditing professional services market size was assessed at USD 109.21 billion in 2017," according to Grand View Research. From 2018 to 2025, it is expected to grow at a 7.4% compound annual growth rate." An audit can be divided into two main categories: Internal Audit Internal audits can be carried out in which the team examines the process, assets, and inventories. The company employs an auditor and reports to the CEO or the organization's senior management. When a company wants to prepare for an external audit, it conducts an internal audit. Another situation is when they are unsure about inventory or another issue. External Audit An external audit is a review undertaken by a non-affiliated accountant. This sort of audit is most typically used to get a certification of an entity's financial statements. Confident investors and lenders, as well as all publicly traded companies, demand this certification. Inventory Audit Objectives The main inventory audit objective is to compare and contrast financial inventory records with physical counts. However, because financial records are kept internally, there is a potential that they are wrong due to human mistakes, omission, or purposeful manipulation for personal gain, which is considered fraud. A stock audit ensures that these errors are avoided and that the audit is carried out correctly to present a truthful and fair picture of the organization's inventory situation. Therefore, inventory auditing involves verifying or cross-checking inventory counts and the quality and condition of inventory that is not recorded in financial records. Stock Audit Objectives Verifying Physical Existence As previously stated, the primary goal of a stock audit is to cross-reference financial data with physical counts. While conducting a stock audit, auditors keep an eye on the inventory counting process to verify if it is being done efficiently. They choose a sample of commodities to see whether physical counts correspond to financial records and vice versa. Examining the Operations Accuracy An auditor checks to see if the inventory counting system is accurate, and they do it using a statistical sample approach. Ownership Rights Another goal of the inventory audit is to evaluate whether the firm genuinely owns the inventory it has documented. Evaluation of Realizable Value One of the audit's goals is to see if the inventories are reported in the general ledger at the proper value. In addition, the auditor examines whether or not damaged and low-quality products are documented at a realizable value. Importance of Inventory Audit Inventory is a critical component of any organization, which is why auditing inventory is crucial. Inventory auditing is essential for gathering proof, especially for retail businesses. In addition, it may deal with a massive asset or capital balance. Inspecting Inventory should validate the amount of supply, quality, and condition to see if the stock's worth is accurately represented in financial records and articulations. The following points will help you understand the importance of stock audit- Inventory audits are necessary to compare the actual number of things in stock to accounting records, compensating for variances and allowing for shrinkage so that the ledger represents accurate values. A Stock audit will indicate which physical commodities or products are overstocked or understocked. This will allow you to stock your firm appropriately and effectively, allowing you to optimize earnings. Auditing inventory is required to eliminate wasteful stock investments and maintain correct line balancing in operation. An Inventory audit is required to compare accurate physical counts with company data. Auditing inventory will provide an actual image of what you own compared to the recorded stocks. If this count is done correctly, which will offer you a knowledge of the company's financial health. Inventory balances are frequently misstated, and this has a direct impact on reported profit. An inventory control audit will also uncover any faults with your warehouse practices, whether at the receiving dock or during packaging. This might assist in identifying any possible inefficiencies in the process, such as warehouse disorganization and delayed retrieval techniques. Stock levels that are too high sometimes lead to wasteful overstocking, resulting in poor cash flow and financial loss. A stock audit performed at regular intervals will aid in the resolution of this problem. It also aids in identifying any obsolete product in stock or orders mistakenly delivered to clients, which might result in financial loss and permanent harm to the company's image. [contactus_gynoveda] The Stock Audit Process While there is no one-size-fits-all approach to conducting an audit, there are key stages and activities that are similar to most audits: Demand Forecasting and Stockpiling Running out of stock would be the worst thing that could happen to you during the stock audit. After all, you don't want to put your entire business on pause while the audit is conducted. Of course, this isn't always possible, and some smaller businesses may be able to shut down for a day, but this is a dangerous approach. That is why, prior to auditing, it is critical to dive deeply into the data you have on hand to forecast future demand. Count the Tangible Items Here, there are a variety of techniques and methodologies to consider. For example, you can browse your warehouse's shelves item by item and document everything you see. You may perform a cutoff analysis to make things simpler by putting your entire business on hold during the audit, but this might lead to various concerns. You might instead try a cycle count, which does not need you to count your whole stock at once. You can specify a product type to audit within a specific term with a cycle count. It's less exact than a comprehensive physical count, but it's less disruptive to your business. You can also do a spot check audit, in which you merely evaluate one or two goods to discover any recordkeeping errors. If there are no discrepancies, you may assume that your sources are current and your stock is safe. Double-check your findings While doing everything twice may seem excessive, double-checking in-stock audits are necessary. Human error is a concern here, and the project scope is frequently too large to entrust to a single source. This is why it's critical to double-check your findings. Mix and match your auditing tactics (as long as you can justify it), give UPC tags or QR codes to each item to digitize the process for your future self, and employ a helping hand - there are lots of possibilities here; make sure the final count is as accurate as possible. Compare Between Your Results and The Financial Records It's time to compare your results to your sales records after you've tallied all of your physical merchandise. Any differences or mismatches signify the start of a distinct process of locating the problem's cause. 10 Best Procedures for Stock Audit Some audit processes can be used to accomplish stock audits. Ten of the most popular audit processes are listed below- Count of Physical Inventory The most typical method for conducting an inventory audit is to use a spreadsheet. It entails physically counting all of your inventory items and comparing the results to the numbers in your system. This is simpler for organizations that utilize a just-in-time inventory system or regularly compute their economic order quantity. Counting the Inventory Cycle Cycle counting, like physical counting, is manually counting a number of goods and comparing them to your system. On the other hand, cycle counts are done on a limited number of items regularly. This means you may do more frequent audits of your most valued items and avoid concerns like inventory loss. Analyze ABC Inventory ABC analysis is a method of categorizing goods based on their monetary worth, and this allows you to save and audit the groups that you wish. Analysis of the Cutoff Point You suspend all processes during the physical inventory count using this analysis. This eliminates the possibility of uncontrollable variables causing errors. Analytical Methods In this section, you may compare your inventory turnover ratio, gross margins, or unit costs to past years' statistics, allowing you to detect any unexpected spikes in volatility. Analysis of Overhead An overhead analysis is a thorough examination of all non-material costs. This covers rent, utilities, payroll, and other "invisible" inventory expenses. Analyze the Cost of Finished Items. For manufacturers and producers, this strategy is excellent. To guarantee that financial statements are accurate, all products are accounted for and valued upon completion. Analysis of Freight Costs This research looks at how much you spend on shipping and how long it takes (lead time). It also takes into consideration any losses or damage that occurred during transport. Shipping Invoice Matching This inventory audit is frequently performed at random by auditors. It entails matching the cost of sent goods to the number of items shipped. It ensures that no things are sent out at the incorrect price. Reconciliation of Products You must explore any problems discovered during your inventory count to reconcile items. This will allow you to note any SKU numbers that are prone to mistakes in the future. Also check - WareIQ’s Inventory Audit Strategy Stock Auditing Challenges and Solutions Almost every stock auditor must deal with some procedural difficulties at some time. Fortunately, they are usually minor annoyances that you should be aware of rather than significant issues that you should avoid at all costs. So, here are a few of the most prevalent stock audit issues: Stock management Is Time Consuming It takes time since it necessitates a great deal of attention to detail and personnel. As a result, the best method to avoid this problem is to plan audits and allocate a suitable amount of time for them. The procedure might take anywhere from a few days to a few weeks, depending on the magnitude of your surgery. No Real-Time Inventory View Most of the time, there is no real-time view of your inventory. Thus stock verification must be done regularly. Weekly or monthly auditing sessions may be excessive, but double-checking that the number of your actual things matches your sales record at least twice a year might save you a lot of pain. Procedure Cannot Be Automated Most audit procedures cannot be automated, and many operations must still be completed by hand. However, certain auditing activities may now be performed with the assistance of specialized software. Thus, our first recommendation is to invest in such a system. Aside from that, following the preceding two pieces of advice should reduce the manual labour you must do. Pauses Other Operations Inventory audits frequently disrupt other activities, creating delays in shipments and annoying in general. The most straightforward approach to avoid this is, once again, to plan ahead of time for your auditing and to rely on timely market research to estimate demand. 5 Benefits of Stock Audit in eCommerce Businesses A sound inventory management system may reduce audit frequency, length, and complexity. In addition, eCommerce inventory differs from traditional retail inventory in that sales can occur anywhere on the planet, making it more unpredictable. In today's digital environment, your inventory auditing processes must also be digital. The following are aided by employing technology that maintains inventory counts synchronized in real-time rather than using something static like Excel. Profit Calculation Inventory audits can assist you in calculating correct earnings since inventory accounting accuracy informs your bottom line. Accounting for variations in inventory value over time as it pertains to production and expenses of goods sold can significantly influence your accounting records. Inventory audits can help reduce inventory shrinkage (when actual inventory levels are lower than accounting reports) and detect expensive, slow-moving items. Budgeting With Precision You can't budget for the next batch of merchandise you need to buy if you don't have an accurate system for keeping track of its value. When you know the precise inventory count you're going through and how much safety stock you should have, stock audits may help you budget better and more correctly. Look For Inefficiencies. Inventory that isn't selling rapidly (or at all), SKUs that are selling out quickly and generating frequent stockouts, inconsistencies with storage or inventory monitoring procedures, and other operational issues can be discovered through audits. By abandoning failing goods, doubling down on what's working, and improving other elements of your supply chain — from manufacturers to warehouse locations — you may enhance your company's financial health. Make The Most of Your Inventory Storage. The total of all expenses associated with carrying inventory, such as storage, labour, insurance, and rent, plus the value of damaged, expired, and out-of-date items, is known as holding costs. The more money you pay, the longer you keep merchandise and the more useless goods you have. Inventory audits can assist you in limiting these variables. Getting Rid of Phantom Inventory It's not beneficial for the business to have phantom inventory. Phantom inventory is inventory that is shown as being available at a storage place but is unavailable when you try to utilize it. It's one of the most common causes of shelf issues. But unfortunately, many businesses overlook this problem because they believe it is minor. On the other hand, asset and inventory audits can help you solve this problem. You may appropriately delete them from your business and business documents using auditing. However, it is impossible for it to exist because of this programme. 4 Ways to Optimize the Internal Audit of Inventory Management Process Inventory audits address high-risk, high-value areas that firms need to be aware of to enhance the efficiency and efficacy of their inventory audits. Use the best practices listed below for your 2021 audit programme. Recognize Value and Risks of the Warehouse Examine the warehouse's accounting before entering. Spend time learning about the inventory, identifying outliers, and determining where the biggest value and risk are. Look for things that aren't like the rest of the population. Examining reconciliations and roll-forwards for reconciling items might reveal what management is having trouble with and where you should focus your efforts. This data can assist you in optimizing your stock audit so that you can focus more time on high-value products that pose the most danger to your financial statements. Consider Using a Qualitative Methodology. Asking as many questions as possible and not making any assumptions is the most effective method of learning the inventory system. Meet with management and warehouse teams in person or organize a video conference to discover how they receive inventory and process it in the design of record (SAP, Oracle, etc. ), as well as how they process and run reports. Ask specifically whether they are having any problems with the system and what efforts have been made to resolve them. These discussions will put you in a better position to spend your time where management is spending its time and having problems, allowing you to conduct a more successful audit. Look At The Cycle Count Results. Variations in cycle counts might help you figure out what's going on. However, these should not be utilized to determine fundamental causes but as symptoms to consider in conjunction with your other studies to complete the inventory system's picture. Strengthen Your Connections. Recognize that audit customers frequently have a negative impression of auditors. Therefore, make your audit clients allies by stating that the internal audit's purpose is to learn how they conduct their jobs so that improvements may be made to simplify their lives. When audit customers realize that the purpose of internal audit is to assist the organization rather than discover faults, they are more willing to cooperate. Conclusion A stock audit is an essential step for every eCommerce fulfillment services firm since it guarantees that everything operates properly and provides you with a clear picture of your financial situation. While audits by your fulfilment partner are not mandatory, they might be beneficial in the long run, especially if you run an international company with a variety of warehouses worldwide. Many logistics and fulfilment partners provide this service as a courtesy and may conduct inventory checks with minimum impact on your business. You'll be safe against the most common auditing problems in such a situation. Regular, thorough inventory reviews may help you avoid fraud, improve inventory management strategies, and increase income! Choosing WareIQ as your fulfillment platform helps your eCommerce businesses with inventory management, inventory planning, stock auditing & much more. [signup] Frequently Asked Questions

June 18, 2022

What is The Meaning Of Inventory Records? 4 Methods Of Maintaining Accurate Inventory Books In 2025

Inventory is the lifeblood of your company and it is continuously in motion across the supply chain. Examples of the movement of inventory include new shipments of inventory reaching your warehouse, items being serviced and packaged, and more inventory is purchased, shipped, processed, and stored. Businesses need an efficient way of keeping track of all these inventory movements and transactions and this is where inventory records can assist. In this blog, we will take a deeper look into what an inventory record system entails, the importance of keeping these inventory records, the various methods you can use to track them, and the various features that it consists of. What are Inventory Records? An inventory record is the collection of all data pertaining to various aspects of the inventory that is maintained by your business. An inventory record comprises information on the type and quantity of merchandise a company has in stock. Merchandise on hand, inventory on order, and inventory on hold for work-in-progress are all included in the inventory books. It is often referred to as a stock record. Inventory records can be considered as archives of data for every item in a brand's product range, including: The quantity of stock at the SKU level The quantity of stock that has been sold and reordered The total value of each product The location where the inventory is stored Other business-related information, such as work-in-process (WIP) inventory data Each entry must have a description of its SKU and other relevant data. Inventory records can be made and maintained digitally as well as manually. An accurate inventory record system helps track sales patterns and distinguish between fast-moving and slow-moving items. This helps you to anticipate and plan for surges in demand, ensuring that your most popular goods are properly supplied. This will prevent supply shortages, which can irritate consumers and harm your company's reputation. [contactus_gynoveda] Why is Maintaining Accurate Inventory Books Important? Source Inventory records may be used for various purposes, ranging from providing information on daily finances to completing yearly taxes. It may be used to establish strategies, increase operational cost-effectiveness and track output volume. An accurate inventory record shows that you are more likely to be able to fulfill client orders effectively. Customers will trust you if you know exactly what stock you have, where it is, and how much you may need to order to achieve optimum levels. An accurate inventory record system guarantees that you will always have in-demand items on hand, ensuring you never run out of them. Some ways in which inventory records are essential for your business are as follows: Ensures Accuracy of Inventory Tracking Keeping track of the inventory that is being received and is being used continuously promotes inventory visibility and leads to proper balancing of inventory levels. Inadequate inventory accounts for inventory shrinkage, i.e., the stock being less than the recorded amount in the accounting system and it can produce large disparities that can adversely affect profitability and other financials by creating confusion regarding the availability of items and how much of each item was ordered. Simplifies Inventory Accounting Inventory accounting is made considerably easier when accurate inventory records are maintained. The Financial Accounting Standards Board (FASB) and Generally Accepted Accounting Principles (GAAP) require all merchants and manufacturers to keep track of inventory value and count. To avoid overstating profit by understating inventory value, GAAP requires inventory to be correctly accounted for according to a highly specific set of rules. The GAAP guidelines also prevent a corporation from overstating its worth by overstating the value of its inventory. Inventory influences the total worth of the organization since it is an asset. You can track changes in value and know how much your inventory is worth at the completion of each accounting period by maintaining a comprehensive inventory recordkeeping method. Prevents Overstocking and Out-of-Stock Situations Keeping accurate inventory records allows you to avoid overstocking and better understand when you need to reorder more stock. Determining the exact quantity of stock for numerous product types is a difficult undertaking, whether it is sourcing raw materials for production or estimating the ever-changing client demand for retail sales. If done incorrectly, it might result in one of two equally aggravating issues: overstocking and out-of-stock situations. Not having enough inventory can lead to out-of-stock problems, while too much inventory can raise carrying costs, potentially leading to too much wastage. Since inventory moves continually across the retail distribution network, using real-time inventory management systems makes it easier to check whether every item of inventory is available and accounted for while comparing stock levels and electronic records. Mitigates Uninformed Decisions Made Through Inaccurate Data Outdated and unsynced inventory records may lead to you and your team running the risk of making crucial business decisions based on incorrect information. Errors can be minimized by reducing time-consuming, manual efforts by employing technology to manage inventory in real-time. Inventory management systems, such as inventory applications or a more complex system like ERP inventory software, can be used to track inventory in real-time. These solutions enable you to combine information by integrating your upstream production methods with your downstream sales. With real-time data linked to inventory, you can also discover patterns and estimate demand, enabling better forecasts on inventory reorder amounts and levels. 4 Methods to Achieve an Up-to-Date Inventory Record System in 2025 To run a successful business, you must keep your inventory precise, simplified, and up to date at all times. If you want to be competitive, you must maintain your inventory with accuracy. When you lose grasp of your inventory, you instantly lose control of your company's profitability. Furthermore, out-of-stock situations usually result in customer displeasure and losses for businesses. Thus, an up-to-date inventory system is a prerequisite for the smooth functioning of your business. The 4 most prominent methods for achieving an up-to-date inventory record system are as follows: Store Tangible Backups Businesses need to compare their inventory levels from time to time. An inventory audit is a practice of comparing a company's actual inventory levels to its financial records to assist with proper inventory accounting. To improve inventory auditing efficiency, businesses should preserve physical records of every item of inventory as well as online backups. In certain countries, keeping original hard copies may be required by law. It also safeguards your data in the event that the security of your cloud server is breached and valuable information is lost. Consult Your Accountant on the Relevant Information Needed For the proper management of inventory records and thereby ensuring the smooth running of your business operations, professional help is an important requisite. You should enlist the services of a reliable accountant and ask them for advice on maintaining proper inventory records for your firm. In most circumstances, the information you require during the accounting period comprises COGS, production inventory (if relevant), beginning inventory, and the value of ending inventory, i.e., what remains at the conclusion of an accounting period. You may also consult with your accountant about the appropriate inventory valuation technique based on the products you sell and your average sales volume. Maintain Consistency in Your Accounting Methods There are numerous techniques for tracking and recording inventory. Whatever approach you use, the most essential aspect is maintaining consistency to ensure accuracy. Consistency is the key to having proper inventory records. At the end of each accounting period or fiscal year, you must determine the value of your inventory. The following are the most frequent eCommerce valuation methods: FIFO (First-in, First-out) LIFO (Last-in, First-out) Weighted Average of Inventory (WAC) Specific identification method Utilize Advanced Inventory Management Software Inventory Management systems are concerned with keeping an account of physical quantities and the total monetary worth of goods sold and those in hand. It aids you in tracking items as they arrive at the warehouse or godown and when they are issued for sale. It guarantees that the commercial enterprise's records are entirely up to speed. You have two choices while maintaining inventory records: After a specific accounting period, update your records (periodic inventory system) Every transaction should result in an update to the records (perpetual inventory system) Adopting a definite inventory system is your best choice as your business expands. This may be accomplished by purchasing inventory management software, which allows you to track inventory movement in real-time, record daily coverage with minimal effort, and automate multiple aspects of inventory management such as record-keeping and tracking data. Features Offered by Inventory Management Software For Accurate Inventory Record System in 2025 An effective inventory management software is crucial for simple and effective inventory books. You can optimize inventory to match demand and increase supply chain efficiency by automating the monitoring of all inventory along with real-time adjustments. You can simply download records and custom reports with the correct software to have all the relevant data you need when it's time to consult your accountant and also for the smooth and effortless management of inventory. Some of the more critical features provided by inventory management software are explained below: Real-Time Insights Across Platforms As your business grows, you will expand to other avenues besides selling online. Direct-to-consumer (DTC) firms may increase their client reach by selling through marketplaces (like Amazon) and social media platforms (such as Instagram). As a result, many businesses use multichannel inventory management software, which manages inventory across channels and gathers information in one location. Inventory levels are continuously updated in real-time as bought or returned products arrive or leave and sales occur through multiple channels. You get visibility into your inventory, save time identifying essential products and eliminate interruptions, theft, and overselling with real-time data sharing. Image attachment and barcode/RFID scanning capabilities are two essential tools that enhance tracking and help speed up picking operations. They aid in increasing accuracy and reducing discrepancies. When you work with a technology-enabled 3PL, you have access to inventory management systems that allow you to track inventory across channels and distribution centers from one location. Instead of depending on different suppliers, retailers can distribute goods across several fulfillment locations and manage inventory in real-time through a single dashboard. Automated Generation of Reports The reporting of various business operations is one of the most valuable instruments of an inventory management system. People in charge of the inventory of a business must be informed about different business operations such as the availability of delivery personnel, the state of goods, information about the shipment of the order, and so on. Many technologies can be integrated into the inventory management software to facilitate reporting of these metrics. According to some experts, your inventory management software is only as good as the inventory reports it creates. Calculating and tracking this information in spreadsheets or via various integrations might be difficult. Inventory management software automatically gathers data, allowing you to generate customized reports whenever you need them. Reorder Thresholds Based on Past Data Inventory management software allows you to automatically establish reorder point notifications, allowing you to resupply inventory on time without having to manage to restock manually when each order is placed. For many supply managers, automating reordering is one of the most appreciated and stress-relieving aspects of IMS. The IMS can be designed to detect low stock levels and subsequently develop and submit purchase orders for the required products, including items sold in packages or packs. You can also establish personalized notifications to notify you when you hit the reorder point because you are running low on particular goods. The merchandise management program uses past sales data to provide insights on when it is appropriate to reorder more inventory per SKU, allowing you to establish a predefined reorder point. It is pointless knowing your exact inventory count and where it is located if it doesn't prevent you from avoiding stock-out situations. As a result, your inventory management software must be capable of establishing automatic notifications when critical stock is running low and must also have the ability to swiftly produce a purchase order in response to that warning. Conclusion The finest data in the world won't help your business if you can't locate what you're looking for when you need it. Inventory records are utilized for organizing and managing files, both physically and digitally. Inventory record systems may be used for various purposes, ranging from providing information on daily finances to completing yearly taxes. It may be used to establish strategies, increase operational cost-effectiveness and track output volume. It is feasible to increase operational efficiency by rearranging and retaining stock in the most advantageous position for production by understanding where and how much of each product is available in stores. It may also assist a business in ensuring that inventory is not wasted, abused, damaged, or lost. Maintaining inventory records independently as your company starts to grow can be a challenge so it is beneficial to partner with a 3PL company like WareIQ. WareIQ's core offering is Inventory LogIQ, an AI-driven inventory optimization platform, that helps you take control of your inventory data at geographic and SKU-level to unlock operational agility by enabling you to avoid stock-outs and excess inventory. WareIQ is one of the fastest expanding eCommerce fulfillment companies in India and can help retailers with a wide range of inventory requirements, including maintaining inventory records. Our advanced WMS provides data and insights on every metric of inventory you need to keep track of it and can automate multiple processes of inventory management to take the burden off you. Inventory Records: FAQs

June 17, 2022

What is Peak Season Shipping? 10 Proven Ways to Prepare eCommerce Stores for Peak Season Shipping in 2025

Businesses often wait for peak season to expand their operations, launch new products, open new branches, and more. The peak season has a lot of potential to generate sales and revenue. Businesses see it as an opportunity to populate their brand, clear stock, generate leads, and store data. Peak season sale is a familiar term for everyone who shops online but the people involved in setting it up know that it is a complex task and requires perfection in terms of planning and execution. Initiating the fulfillment process after getting multiple orders during peak season becomes more of a challenge than an opportunity. Learn the ins and outs of peak season shipping including the challenges, opportunities, planning, and factors to be taken care of before a big event. What is Peak Season Shipping? Peak season shipping or peak season fulfillment is the term that refers to fulfilling eCommerce orders during peak season when there are a high number of orders. The time of the year may differ depending on location, season, festival, culture, celebratory events, etc. During peak season shipping, retailers have a large number of orders to fulfill due to growing customer demand during that period. At this time, sales velocity is at its highest. It is a testing time for supply chain efficiency, inventory planning & management, 3PL fulfillment partners, and a seller's skills in order management. Any disruption can result in late delivery, damages, lower revenue margins, bad customer experiences, and ultimately downgrades a seller's ratings. [contactus_lilgoodness] Peak Season Shipping Challenges When you have a high number of orders, you have more chances of making mistakes during peak season shipping so let's look at some challenges that retailers face: Fulfilling Orders at a Fast Pace Fulfillment companies and sellers usually provide same-day and next-day delivery as one of their USPs which is quite a difficult task to achieve when you have high sales velocity. Peak season fulfillment is a trying time for retailers because every department will be struggling to meet its quotas due to the increased demand. On the other hand, customers continue to demand ultra-fast peak season shipping to take full advantage of the season. Lack of Staff During Holidays As the name suggests, seasonal sales occur during special times of the year so a large part of the workforce may want to take leaves which puts extra strain on retailers. This is not just limited to supply-chain staff but also employees that handle picking, packing, inventory management, and other processes. To counter this, a seller can ask their staff to work reduced shifts, provide incentives on orders and give their staff a bonus post-sale, based on their performance. High Expectations From Customers During peak season, customers expect to receive their orders before a specified time period. In India, peak season shipping needs to meet customers' expectations as they often plan ahead and expect to receive their orders before the start of a holiday season or festival. Risk of Product Damage Damage can occur during peak season fulfillment while storing, picking, packing, shipping, delivering, and managing returns. When retailers need to provide peak season shipping for a large number of orders, they cannot provide personalized care to each item because it will take extra time. They are under pressure to provide delivery services at the same pace while having to fulfill a much larger number of orders than any other time of the year, which leads to more careless handling of products and thus, there is more scope for mishaps to occur. Limited Amount of Warehouse Space While providing peak season shipping, you have more items to deliver which means that the sales velocity is high and you need to have an appropriate amount of inventory and enough space in the warehouse to store it. Keeping only a few items in stock can result in product shortages and storing more items than the warehouse capacity allows can result in product damage and deterioration. Incompetent Supply Chain Processes An incompetent supply chain could be your biggest challenge during peak season fulfillment. An order that is not fulfilled properly leads to customer dissatisfaction. If a logistics company does not deliver on time or damages the product in transit, there is a high chance of the customer returning the product and giving negative feedback to your business. The customer may never think of ordering from your business again which could result in other customers not giving it a chance. 10 Proven Ways to Prepare Online Stores for Peak Season in 2025 Plan in Advance To plan ahead of time and prepare online stores for peak season, arrange all of the data, create and implement planned promotions and figure out how you will handle the surge in demand. You can optimize stock levels and make smarter decisions about when and how much to reorder for each SKU by estimating demand. Though inventory forecasting may never be 100% precise, there are things you can do to bring your projections closer to reality such as analysing seasonal historical data, considering upcoming promotions and expected demands, and tracking fast-moving vs. slow-moving products to optimize stock levels. In the case of a stockout, you will have to set up a mechanism that immediately identifies products that have a low level of stock and that are out-of-stock in your store, so both you and your consumers are aware of the current availability of stock. If you have dead stock, you can launch a promotion or a flash eCommerce sale to clear it out and create space for in-demand products. Use Dropshipping & Direct Fulfillment Dropshipping, also known as direct fulfillment, is a business strategy in which online retailers, with the help of their merchants, distribute products directly to customers, without assistance from 3PL fulfillment services. Here, an eCommerce seller does not purchase or store inventory with them. They list it on their websites, generate sales, and take care of peak season shipping directly to the customer from their supplier or supply chain network. The dropshipping fulfillment process involves: eCommerce sellers listing items on their website or other selling channels Buyers ordering a product from any of the platforms The buyer is informed about the order placement and if there is an additional shipping fee Seller replicating the order with the supply chain network and keeps the vendor in the loop Vendor or fulfillment companies pick & packing the order and ship it directly to the buyer Utilise Technology A simplified tech stack can increase peak season shipping speed while improving order accuracy. It also delivers accurate data in real-time that can be integrated across multiple platforms. Before you begin peak season shipping, add the following technological elements to your supply chain: Warehouse Management System (WMS) Inventory Management Software (IMS) Order management Supply chain management Automated order processing RTOs and Returns management Partner With a Trusted 3PL Provider It's difficult to meet seasonal demand on your own and leasing your own warehouse can be costly and time-consuming. From inventory planning to returns management, working with a 3PL like WareIQ gives you access to premium technology and direct connections with major eCommerce systems. It's never too late to include technology in your supply chain if you want to optimize it before peak season fulfillment. Partnering with a 3PL can make the hectic season a lot easier to handle by providing the following: Ability to focus more on core business operations Fulfills orders on behalf of you Takes care of multi-channel sales orders Gives you multiple eCommerce warehouses and intelligent inventory placement Providing technological benefits and monitoring of your business from a single platform Take care of COD orders and settles transactions within a week Ensures same-day and next-day delivery Utilize Multiple Shipping Carriers You can increase your peak season shipping flexibility by using different shipping companies. However, collaborating with various shipping carriers can be time-consuming and it may cause you to fall below the minimum shipping threshold required to receive discounted shipping prices. Fortunately, a 3PL like WareIQ can assist you by giving you the choice of a variety of logistics firms like BlueDart, DTDC, DHL, etc. This will allow you to optimize your shipping strategy without having to manage things on your own. WareIQ also negotiates bulk shipping costs so that you can benefit from the savings. Use Multiple Warehouses Across Different Locations If you work with a third-party logistics company, you will be able to distribute inventory across different fulfillment centers, lowering shipping costs and shortening transit times in the process. WareIQ has locations all across the nation. It gains access to data tools and helps you determine which regions are generating the most sales, so you can improve your inventory allocation plan accordingly because every location is driven by the same technology. You can match consumer expectations by using a distributed inventory technique to offer competitive, rapid and economical delivery choices such as same-day or next-day delivery with a minimum spending threshold that exceeds your average order value (AOV). Calculate MOQs and EOQs During peak season shipping, you need to have a good amount of inventory to fulfill the orders of all your buyers. Also, you must take care not to buy more inventory than is necessary to avoid your money being held up. To provide the ideal peak season fulfillment, you need to calculate the number of items you need to keep. There are two major ways to do so: Economic Order Quantity (EOQ) The economic order quantity (EOQ) is a method used to determine the actual inventory quantity to order. It is calculated after taking into account product demand, unit pricing, and holding costs to assist sellers in figuring out the order quantity. The purpose of EOQ is to help sellers figure out how many products they need to meet demand without overordering and raising their holding costs. A seller must have a good grip on the following to make this method work: Order costs – Cost per merchandise order Demand rate – Sold units during a certain period Holding costs – Expense for holding the product The EOQ formula is : EOQ = Square Root of [{ 2 (Order Costs) X (Remand Rate)} / Holding Costs ] Source Minimum Order Quantity (MOQ) The minimum order quantity (MOQ) is a method used for calculating the amount of inventory a seller should order at any given time. This is for the sellers who wish to be careful with their ordering habits or want to maximize their cash on hand while avoiding excessive inventory storing and spending. There isn’t a set formula to calculate MOQ but a seller can calculate the right MOQ for their business by: Calculating Demand Being Aware of Holding Costs Knowing the Breakeven Point Determining MOQ Prioritize Your Peak Freight Shipments Shipments can get delayed during peak season shipping. You need to inform your freight partner about boxes or containers that consist of higher-priority items. Before a shipment is rolled out, the relevant teams will be notified and they can help guarantee that higher-priority boxes or containers will be given extra importance. You can prioritize using a variety of factors such as securing prepaid orders first and then others. If you sell laptops and other peripherals, try to deliver the laptop primarily and other related products after that so that there will be fewer chances of order cancellation, RTOs, and unhealthy feedback. The idea is that your key product should be delivered first. Establish Reverse Logistics By making the returns procedure as simple as possible for the customer, you can enhance brand loyalty and retain customers. A positive returns experience may also inspire your clients to exchange their items, allowing you to avoid losing a transaction. To ensure you are not losing money, make necessary changes to your return policy. Examine which products are getting the most returns, figure out why and make modifications to the products and/or product descriptions to better meet expectations. Also, make sure you have a well-defined return and exchange policy in place that is easy to comprehend and accessible on your online store or product listings page at all times of the year. Opt for Damage & RTO Insurance A recent report from April 21 to April 22 shows that Indian buyers returned 73% of products after buying them online. Damage and returns can be more painful than having few or no sales. Here, the seller pays delivery costs and risks product damage in transit twice and in the end, they do not achieve the sale and no revenue is generated. So these days, online sellers not only have an option of taking insurance on the product but also on RTOs. In RTO insurance, sellers are paid a specific amount of money if the product gets returned. WareIQ’s RTO Meter shows the RTO requests of individual buyers. If any buyer in the past had not received a product then it would reflect on the RTO Meter. A buyer with high RTOs is not preferred and insurance companies do not cover them in the policy. How Can WareIQ Help You in Peak Season Shipping? Ensuring that every component of your supply chain is synchronized is the best approach to preparing for peak season shipping and satisfying consumer expectations. You can outsource fulfillment to a 3PL expert like WareIQ instead of operating a warehouse, investing in your own fulfillment software, and shipping orders yourself. Leave it to the experts and save time and money to utilize it in the long run. WareIQ does not just provide multiple warehouses and logistics. It is a full-stack eCommerce fulfillment service provider that operates across India. It empowers you to ensure your customers receive same-day or next-day delivery. WareIQ provides warehouse management, inventory planning and management, logistics management, and much more, with full transparency in terms of operations and supplying real-time inventory information. Our custom WMS integrates with leading eCommerce selling channels allowing sellers to have all of their order and shipping data in one place. WareIQ also assists you with your item purchasing list by determining the right quantity and the right time to procure it. [signup] Peak Season Shipping FAQs (Frequently Asked Questions)

June 15, 2022

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