WareIQ Webinar: Prepare for Peak-Season – Reduce RTOs & Improve Delivery Speed
Register Here

Shipping Weight Discrepancy in Indian eCommerce: Why Does It Happen? Perspectives of Various Parties and Potential Solutions

Harsh Vaidya

Written By
Harsh Vaidya

September 05, 2024

Imagine this scenario as a brand owner: You’re working with a third-party fulfillment company, and for the past few years, your SKUs have remained unchanged, consistently shipped in the same type of packaging. Yet, every month, you notice fluctuations in your billing. Why? A percentage of your SKUs are being incorrectly categorized into a higher weight slab (from 500g to 1-2 kg), causing your shipping costs to increase 2-3 times for these miscategorized items. These variations aren’t minor—they can affect 5-20% of your shipments, making it difficult to predict your monthly bill.

What’s even more frustrating? Since you’re using a wallet recharge system, the amount is deducted immediately, and you’re stuck waiting for the dispute to be resolved, with your money locked up in the meantime. Who is responsible for this issue? And more importantly, how can it be resolved?

In this article, we delve into the causes of shipping weight discrepancy in Indian eCommerce and explore effective solutions to address and resolve these issues.

Table Of Contents
  1. Last-Mile Provider Perspective
  2. Brand Owner Perspective
  3. Fulfillment Company Perspective
  4. WareIQ’s Proposed Solution

Last-Mile Provider Perspective

  • Irregularly Shaped Products: Issues arise with products that have irregular shapes, such as hoodies and jeans, when sent in polybags. These items may become bulkier during transit due to deformation, increasing the length, breadth, and height (LBH). As a result, the volumetric weight increases, leading to higher shipping costs.
  • Incorrect Box Selection: Sometimes, the wrong boxes are chosen for certain SKUs, causing them to move to a higher weight slab. In a fulfillment center (FC) setting, packing staff may run out of standard materials and ship products in non-standard, often larger, boxes. This can result in different billing due to changes in volumetric weight.
  • Intentional Fraud: A sizable number of sellers may incorrectly enter their weight slabs. Such intentional frauds lead to higher scrutiny and a lack of trust within the system.

Brand Owner Perspective

  • Outsourced Logistics: “I outsourced my logistics to a warehousing and last-mile company. I am not even touching the products, so how do I dispute these charges without proof?”
  • Products Held Hostage: “My products are essentially held hostage, and there is no clear recourse to resolve this issue.”
  • Cash Flow Issues: “For no fault of my own, I have to wait for the dispute to be resolved, possibly take a financial hit, and have my cash flow tied up in the meantime.”

Fulfillment Company Perspective

  • Irregular Shape Scenario: This is primarily a last-mile handling issue and cannot be entirely avoided. A percentage of products will get deformed in transit despite correct packing in the warehouse. While we can provide proof of proper packing, it is a time-consuming process that leads to productivity losses.
  • Incorrect Box Selection: Although this can be mitigated, the primary reason for this issue is the short supply of packing materials from vendors, leading staff to use the next available option to process orders on time and avoid delays. While this can be reduced to a large degree, achieving near 100% accuracy is challenging.

If you consider the viewpoints of the involved parties, each seems reasonable from their perspective. However, the larger problem remains unsolved, and the impacted party in almost all cases is the brand owner.

WareIQ’s Proposed Solution

WareIQ has developed a strategic approach to minimize the impact of miscategorized SKUs, ensure accurate billing, and enhance the overall customer experience for brand owners. Key solutions include:

  • Deadweight-Based Billing System: Implement a deadweight-based billing system for select SKU categories, particularly in fashion and lifestyle, where shape distortion during transit can lead to higher costs.
  • Weight Freeze: For a standard set of SKUs, WareIQ can implement a weight freeze, locking in the weight and dimensions before handoff to the courier. This approach helps resolve disputes between WareIQ and courier companies, with WareIQ managing proof of the captured weight, dimensions, and other relevant details
  • Enhanced Dispute Resolution Process: Establish a faster and more transparent dispute resolution process that allows brand owners to quickly challenge discrepancies. We offer detailed photographic evidence of packaging at the time of shipment. Combined with the deadweight-based billing and weight freeze, this solution effectively addresses the majority of common disputes.

Supercharge your fulfilment with WareIQ now, contact our team.

WareIQ RTO Shield
Harsh Vaidya
Author

Harsh Vaidya

Harsh Vaidya is the Founder & CEO of WareIQ - a Y-Combinator-backed full-stack fulfillment solution catering to the fulfillment & shipping needs of 400+ eCommerce brands across categories. He was previously the Chief of Staff at Pitney Bowes managing Corp Dev & Strategy for $2.4 B SMB BU. He has 10+ experience in Strategy Consulting & SMB tech.

Read all of Harsh Vaidya's Posts

Related Posts

How to Fix Inventory Mismatch in Warehouses Caused by Courier Returns Reconciliation

How to Fix Inventory Mismatch in Warehouses Caused by Courier Returns Reconciliation

Inventory mismatch in warehouses is a critical issue for eCommerce businesses, especially when it stems from courier returns reconciliation errors. In this blog, we explore how WareIQ tackles this problem using technology and Operations best practices. We outline steps such as real-time data syncing with couriers, automated return reconciliation, and using unique return ID systems to ensure accurate inventory records. WareIQ's proactive approach, including regular cycle counts and efficient communication with courier partners, helps businesses prevent mismatches and improve warehouse operations. Learn how to streamline your warehouse processes and ensure inventory accuracy with WareIQ.

September 13, 2024
Is Inventory Serialization Necessary for Your eCommerce Business? A Vertical-Based Analysis

Is Inventory Serialization Necessary for Your eCommerce Business? A Vertical-Based Analysis

Inventory Serialization can be a powerful tool in eCommerce operations, providing critical item-level tracking, facilitating returns management, and ensuring compliance with industry regulations. Since 2019, we have been managing eCommerce operations for brands and have found that its necessity varies significantly across different eCommerce verticals. While some industries benefit greatly from serialization, others may find that it adds unnecessary costs and complexity to their fulfillment processes. For some brands, serialization may not make sense due to low product value or low return rates, making the added costs and effort unjustifiable. On the other hand, for certain industries—such as high-value electronics, luxury goods, or regulated products—serialization is essential for maintaining product traceability, reducing fraud, and ensuring compliance with industry standards. So how do you determine if serialization is the right choice for your business? The answer lies in evaluating your operations through a well-defined framework that we'll cover in this blog. What is Inventory Serialization? Inventory serialization involves assigning a unique identifier (serial number) to each product unit. This allows for granular tracking of individual items within a stock-keeping unit (SKU), improving visibility throughout the product life cycle, from inbound inventory to customer delivery and returns. Framework: Analyzing the Need for Serialization in eCommerce Operations To determine whether serialization is necessary for your business, use the following parameters as a decision-making framework: ParameterWhen Serialization is NeededReturn Percentage (%)High return rates (e.g., fashion, electronics) demand serialization to track individual items, preventing defective or counterfeit goods from re-entering inventory.Cost of GoodsHigh-value items like luxury goods, electronics, or designer products justify serialization to prevent fraud, theft, and return abuse.Value Added Over Batch ManagementSerialization provides significant value beyond batch tracking, such as enabling warranty validation, preventing fraud, ensuring product authenticity, and meeting regulatory compliance.Product LifecycleProducts with long life cycles (e.g., electronics, medical devices) require serialization to track warranties, manage recalls, and support repairs.Regulatory ComplianceIndustries with strict regulations (e.g., pharmaceuticals, food & beverage, medical devices) often require serialization for traceability and safety compliance.Customer Experience and SatisfactionSerialization is critical for products where authenticity, quality, and trust (e.g., luxury goods, health products) are major concerns, enhancing customer transparency and post-purchase support.Inventory Shrinkage or Theft PreventionHigh-risk categories prone to theft or shrinkage (e.g., electronics, high-end fashion) benefit from serialization to track individual items and reduce losses. Why Serialization is Critical for Some Verticals For certain verticals, the benefits of Inventory serialization far outweigh the additional costs: Consumer Electronics: High-value products such as smartphones, laptops, and other gadgets require serialization to track warranties, manage returns, and prevent fraud. The ability to trace individual units is essential for both customer satisfaction and cost control. Luxury Goods and Fashion: Inventory Serialization is crucial in preventing counterfeiting, ensuring authenticity, and tracking returns for high-end items like jewelry and designer apparel. Given the high value of these products, the cost of serialization is justified to maintain brand integrity. Health and Wellness (Supplements, OTC): Serialization helps ensure product safety by tracking individual batches, managing product recalls, and ensuring compliance with regulatory standards. Food and Beverage (Perishables): For perishable products, serialization is vital in tracking batches, managing recalls, and complying with food safety regulations. It ensures that spoiled or unsafe items can be quickly identified and removed from the supply chain. Medical Devices: Serialization is mandated in many countries to ensure patient safety, manage recalls, and track product history. Given the critical nature of these products, serialization is non-negotiable. Verticals Where Serialization May Add Unnecessary Overhead In some eCommerce verticals, serialization may introduce more complexity and costs than the benefits it provides. For these industries, batch-level tracking or other simpler methods may be sufficient: Fast Fashion (Low Value): For everyday clothing items, serialization adds unnecessary costs without significant benefits. Returns and inventory can often be managed effectively using batch or SKU-level tracking, especially in high-turnover categories like fast fashion. Books and Media: Since these are low-value items with minimal return issues, batch-level tracking is typically sufficient. Serialization would add complexity without a substantial payoff. Low-Cost Home Goods: Inexpensive items like kitchenware, décor, and linens usually don't require individual tracking. Batch-level tracking works well for managing inventory and returns. Toys and Games: For most standard toys and games, serialization may not be necessary, unless dealing with high-value collectibles. Otherwise, the cost of serialization outweighs the need for item-level tracking. The Balance Between Cost and Operational Efficiency For eCommerce businesses, the decision to implement serialization of inventory should depend on the industry vertical and the specific needs of their operations. If you’re handling high-value or regulated products, Inventory serialization is essential for mitigating risks, improving customer satisfaction, and ensuring compliance. However, if you operate in low-cost or high-turnover categories, serialization could introduce unnecessary overhead. For example, in fast fashion or low-cost home goods, the additional cost of assigning and tracking serial numbers might not justify the minimal benefits gained, especially when batch-level tracking can efficiently handle inventory management and returns. Table: Serialization Necessity Across eCommerce Verticals Industry VerticalHow Critical is SerializationNeed for SerializationConsumer ElectronicsHighImportant for warranty tracking, fraud prevention, and managing returns effectively.Fashion//FootwearHighEssential as it is a high return category, prevent bad returns - wrong products, defects to creep in inventory Health and Wellness (Supplements, OTC)HighNeeded for product safety, batch recalls, and regulatory compliance.Medical DevicesHighEssential for regulatory compliance, product tracking, and recall management.Beauty and Personal CareMediumNecessary for high-value products and limited editions to manage returns and authenticity.Home AppliancesMediumImportant for tracking warranties, ensuring accurate returns processing, and service history.Books and MediaLowMinimal need as batch-level tracking is enough for low-value products.Low-Cost Home GoodsLowUnnecessary for inexpensive items like kitchenware and décor, where serialization adds cost.Toys and GamesLowGenerally not needed unless dealing with high-value collectibles, making serialization unnecessary for most items.Stationery and Office SuppliesLowLow priority as these items are low-value, and batch-level tracking is sufficient.Fast Fashion - Low valueLowSerialization adds unnecessary overhead in high-turnover, short lifecycle items. Cost Analysis: When Serialization Makes Sense Let’s consider a scenario where you process 5,000 orders per month. If serialization costs INR 2 per unit, that results in an additional INR 10,000 per month. In high-value industries like electronics or luxury goods, this investment can prevent returns fraud, enhance product traceability, and improve customer satisfaction. However, for low-cost verticals, this additional overhead could be avoided by using simpler tracking systems like batch-level tracking. Conclusion: Tailoring Serialization to Your Business Needs Serialization can greatly enhance inventory accuracy and supply chain transparency, but it’s not a one-size-fits-all solution for every eCommerce business. For high-value, regulated, or perishable goods, serialization of inventory is a critical investment that offers substantial long-term benefits. But for low-cost, fast-moving items, the added complexity and costs of serialization may not be justified. By understanding the specific needs of your industry and your fulfillment operations, you can decide whether serialization of inventory is a strategic advantage or an unnecessary expense and add it to your Standard Operating Procedure for Inventory Management Excellence.

September 10, 2024
Flipkart Dussehra Sale 2024: Streamlining Inventory Management

Flipkart Dussehra Sale 2024: Streamlining Inventory Management

The Flipkart Dussehra Sale 2024 is anticipated to be a significant event in the Indian e-commerce landscape, coinciding with the festive season traditionally seeing a surge in consumer spending. In 2023, Flipkart reported a staggering 50% increase in sales during its Dussehra Sale compared to the previous year, with millions of customers taking advantage of exclusive offers across various categories, including electronics, fashion, and home essentials. This year, as the Dussehra festival approaches, expected to begin on October 21st and run through October 24th, the excitement is building around the big Dussehra Sale on Flipkart, which promises to deliver enticing discounts and promotions. Effective inventory management will be crucial for Flipkart capitalising on this shopping frenzy. Businesses must prepare to handle increased demand efficiently, ensuring they meet customer expectations while minimising stockouts and overstock situations. This article will delve into essential Flipkart inventory management tips for Dussehra Sales, explore how Flipkart manages its inventory, and discuss strategies to optimise Flipkart delivery on Dussehra. Stay tuned as we uncover the best practices that can help businesses thrive during this peak shopping season. Understanding the Flipkart Dussehra Sale The Flipkart Dussehra Sale is one of the most anticipated shopping events of the year. It aligns with the festive spirit of Dussehra, which celebrates the victory of good over evil. Scheduled to run from October 21 to October 24, 2024, this sale is expected to attract millions of shoppers eager to take advantage of exclusive discounts. It offers a wide range of products. In the previous year, Flipkart reported record-breaking sales during its Dussehra promotions, highlighting the event's potential for driving significant revenue and customer engagement. During the big Flipkart Dussehra Sale, consumers can expect to find a plethora of deals, including discounts on electronics, fashion, home essentials, and more. With the Flipkart Dussehra offer, shoppers can enjoy substantial savings, making it an ideal time for businesses to optimise their inventory management strategies. Understanding Flipkart's inventory management dynamics during such high-stakes sales is essential for ensuring that stock levels meet customer demand without leading to excess inventory. The Significance of Inventory Management in Flipkart Dussehra Sale Effective inventory management is crucial for the success of the Flipkart Big Dussehra Sale. By optimising their inventory strategies, sellers can ensure they have the right products in stock to meet customer demand while minimising the risk of stockouts and overstocking. This enhances the overall shopping experience and leads to increased sales and profitability. Aligning Stock with Customer Demand During the Flipkart Dussehra Sale, customer demand can fluctuate significantly across different product categories. By leveraging historical sales data and market trends, sellers can accurately forecast demand and stock the most popular items in sufficient quantities. This alignment between supply and demand helps prevent lost sales due to stockouts and ensures customers can find the desired products. Enhancing Operational Efficiency Robust inventory management strategies streamline various aspects of the selling process, from order processing to fulfilment. By implementing real-time inventory tracking systems, sellers can gain visibility into their stock levels and automate replenishment as needed. This efficiency translates into faster order processing, reduced handling times, and timely deliveries, ultimately enhancing customer satisfaction. Optimising Cash Flow and Profitability Maintaining the right balance between stock levels and customer demand is crucial for optimising cash flow and profitability during the Flipkart Dussehra Sale. Overstocking can lead to excess inventory and tied-up capital, while stock outs result in lost sales opportunities. Effective inventory management strategies help sellers strike a balance, ensuring they have sufficient stock to meet demand without tying up too much capital in unsold inventory. Leveraging Data-Driven Insights Sellers can gain valuable insights into product performance, pricing strategies, and marketing effectiveness by analysing sales data and customer behaviour during the Flipkart Dussehra Sale. These insights can inform future inventory decisions, helping sellers optimise their stock levels, adjust pricing, and refine their marketing campaigns for even greater success in subsequent sales events. Inventory management is critical to a successful selling strategy during the Flipkart Dussehra Sale. By aligning stock with customer demand, enhancing operational efficiency, optimising cash flow, and leveraging data-driven insights, sellers can maximise their sales and profitability while delivering a seamless shopping experience to their customers. Flipkart Inventory Management Tips for Dussehra Sale To maximise success during the Flipkart Dussehra Sale, sellers must adopt effective inventory management strategies tailored to the unique challenges of this peak shopping period. Here are some essential Flipkart inventory management tips for Dussehra Sale that can help ensure a smooth operation and enhance customer satisfaction: 1. Demand Forecasting Accurate demand forecasting is crucial for stocking the right quantity of products. Sellers should analyse historical sales data from previous Dussehra sales and current market trends to predict which items will be in high demand. Utilising analytics tools can significantly improve forecasting accuracy. 2. Real-Time Inventory Tracking Implementing advanced inventory management software allows sellers to monitor stock levels in real-time. This capability ensures that sellers are always aware of their inventory status, enabling them to replenish stock promptly and avoid overselling during the Dussehra sale of Flipkart. 3. Safety Stock Maintenance Maintaining a safe stock buffer is essential to manage unexpected spikes in demand. This strategy helps prevent stockouts, ensuring that popular items remain available throughout the sale. Sellers should calculate optimal safety stock levels based on historical sales data and lead times. 4. SKU Optimisation Identifying and prioritising fast-moving products is vital for maximising sales. Sellers should focus on optimising their stock-keeping units (SKUs) by ensuring that high-demand items are adequately stocked while minimising slower-moving products. 5. Supplier Coordination Establishing strong relationships with suppliers can lead to better terms and quicker replenishments. Sellers should communicate their inventory needs effectively to ensure timely stock delivery, especially given the logistical challenges during the festive season. 6. Warehouse Optimisation Streamlining warehouse operations for efficient picking, packing, and shipping is critical. Sellers can enhance customer satisfaction by optimising warehouse layouts and processes, which reduces lead times and improves overall efficiency. 7. Multi-Channel Inventory Management Using integrated inventory management systems is crucial for sellers operating across multiple platforms. This approach helps maintain consistent inventory levels across all channels, preventing overselling and ensuring that stock is available for all customers. By implementing these Flipkart inventory management tips for the Dussehra Sale, sellers can effectively prepare for the anticipated surge in demand, ensuring they meet customer expectations while maximising sales opportunities during this festive season. How Does Flipkart Manage Its Inventory During the Dussehra Sale? As one of India's leading e-commerce platforms, Flipkart has developed a robust inventory management system to handle the surge in demand during the Dussehra sale. By leveraging advanced technologies and data-driven insights, Flipkart ensures that popular products are always in stock while minimising excess inventory. Demand Forecasting Flipkart uses historical sales data, market trends, and customer behaviour to forecast demand for the Flipkart Dussehra Sale accurately. This information is also used to determine optimal stock levels for each product category, ensuring that the right quantities are available to meet customer expectations. Centralised Inventory Management Flipkart maintains a centralised inventory management system that provides real-time visibility into stock levels across its network of warehouses. This allows the company to efficiently allocate inventory based on demand patterns and ensure timely replenishment of popular items. Supplier Collaboration Flipkart works closely with its supplier network to ensure a smooth supply chain during the Dussehra sale. Regular communication and collaboration help align inventory levels with anticipated demand, minimising the risk of stockouts and ensuring that products are available for delivery. Warehouse Optimisation Flipkart's warehouses are strategically located across India to facilitate efficient order fulfilment during peak sales periods. The company has invested in advanced warehouse management systems and automation and trained personnel to handle the increased volume of orders during the Flipkart Dussehra Sale. Flexible Logistics To ensure timely Flipkart delivery on Dussehra, the company has partnered with multiple logistics providers and developed a flexible delivery network. This allows Flipkart to adapt to changing demand patterns and ensure that orders reach customers within the promised timeframe. Customer-Centric Approach Flipkart strongly emphasises customer satisfaction, reflected in its inventory management strategies. By maintaining optimal stock levels, offering a wide range of products, and ensuring reliable delivery, Flipkart aims to provide a seamless shopping experience during the Dussehra sale. By implementing these strategies, Flipkart is well-equipped to handle the challenges of the Flipkart Dussehra Sale and deliver a superior customer experience. The company's focus on data-driven decision-making, supplier collaboration, and operational efficiency has made it a leader in the Indian e-commerce landscape. Vital Strategies for Timely Flipkart Delivery on Dussehra During the Flipkart Dussehra Sale, timely and efficient delivery is paramount to ensuring customer satisfaction and maintaining the platform's reputation. Flipkart employs several strategies to streamline its delivery operations as shoppers flock to take advantage of the Dussehra offers. Key Delivery Strategies Enhanced Logistics Network: Flipkart has developed a robust logistics network with multiple fulfilment centres strategically located across India. This allows for quicker dispatch and delivery of products, especially during peak sale periods like the big Dussehra sale of Flipkart. Real-Time Tracking: Customers can track their orders in real-time, providing transparency and reassurance. This feature is crucial during high-demand sales events, as it informs customers about their delivery status. Flexible Delivery Options: Flipkart offers various delivery options, including same-day delivery and scheduled delivery slots, to cater to diverse customer needs. This flexibility enhances the shopping experience, especially during festive seasons when time is of the essence. Partnerships with Local Couriers: Collaborating with local courier services allows Flipkart to extend its delivery reach and ensure that products are delivered promptly, even in remote areas. This is particularly important during the Flipkart Dussehra sale when demand surges. Increased Delivery Workforce: During the Flipkart Dussehra Sale, the company scales up its delivery workforce to handle the increased volume of orders. This proactive approach minimises delays and ensures customers receive their purchases on time. Customer-Centric Approach Customer Support: Flipkart provides dedicated customer support during the sale to address delivery-related queries or concerns. This commitment to customer service enhances trust and loyalty among shoppers. Promotional Offers on Delivery: To further entice customers, Flipkart may offer discounted or free delivery options on select products during the Dussehra sale, making it more appealing for shoppers to complete their purchases. By focusing on efficient logistics, real-time tracking, and customer support, Flipkart ensures its delivery operations are well-prepared for the Dussehra Sale. This commitment to excellence enhances the shopping experience and reinforces Flipkart's position as a leader in the Indian e-commerce market. You may also like to read: Flipkart Diwali Sale: Inventory Strategies to Manage High Demand and Improve Fulfillment Conclusion The Flipkart Dussehra Sale represents a pivotal opportunity for businesses to boost sales during one of India's most festive shopping periods. Effective inventory management is essential for success, enabling sellers to accurately forecast demand, maintain optimal stock levels, and ensure timely replenishment. As the Flipkart Dussehra Sale approaches, sellers should prioritise these inventory management tips and delivery strategies to maximise their impact and capitalise on the festive spirit, ultimately driving sales and fostering customer loyalty. How can WareIQ help sellers streamline inventory management during the Flipkart Dussehra Sale? WareIQ can help sellers by offering: Real-Time Inventory Tracking: Monitor stock levels to prevent stockouts. Automated Replenishment: Set alerts for timely restocking. Data Analytics: Gain insights on sales trends for informed decision-making. Pan-India fulfilment Network: Ensure fast and efficient deliveries. These features empower sellers to effectively manage their inventory and meet the increased demand during the Flipkart Dussehra Sale. FAQs About Flipkart  Dussehra Sale How can WareIQ help sellers during the Dussehra Sale?WareIQ can assist sellers by providing advanced inventory management solutions, including real-time tracking, automated replenishment, and data analytics. With WareIQ's extensive fulfilment network, sellers can optimise their inventory placement and ensure timely deliveries, enabling them to navigate the challenges of the Dussehra Sale successfully.When is the Flipkart Dussehra Sale 2024?The Flipkart Dussehra Sale is scheduled to start on October 21, 2024, and will run until October 24, 2024. Prime members can access the sale a day earlier, on October 20, 2024.What types of products can I find during the Dussehra sale on Flipkart?During the Dussehra sale on Flipkart, you can expect a wide range of products, including electronics, fashion, home appliances, and more, with discounts of up to 80% on select items.Are there any special offers for bank customers during the sale?Yes, Flipkart often provides additional discounts for customers using specific bank cards, such as SBI, Kotak, and HDFC Bank. These offers can include instant discounts or cashback.How does Flipkart ensure timely delivery during the Dussehra Sale?Flipkart enhances its logistics network by increasing its delivery workforce and optimising warehouse operations to ensure efficient Flipkart delivery on Dussehra, minimising delays during the high-demand period.Can I return items purchased during the Flipkart Dussehra Sale?Yes, Flipkart's return policy applies to items purchased during the Dussehra Sale. If customers are unsatisfied with their purchase, they can return products within the specified return window. However, it's important to note that some products, such as certain types of cosmetics and hygiene-related items, do not have a return policy.

September 04, 2024