Beginners Guide: What is Retail Fulfillment? Definition, Types, Challenges, and Strategies for Fulfilling Retail Orders in 2023
In some scenarios, customers may go to a shop and enquire about a product that is currently out of stock at the shop. The shopkeeper would have a few different ways to convey the news to the customer, without displeasing them. They could say that the stock is overdue to high demand and that fresh stocks of the product would be available in 2-3 days or something of that nature. This example encapsulates what retail fulfillment is, where a seller is trying to obtain the product for the customer. Similarly, the same process is followed by online retailers. You, as a seller, should work according to the supply and demand of relevant products. These days, a lot of sellers have gravitated to selling products online. You can see the same products with the same benefits at similar rates offered by different sellers on multiple selling channels. All of them may not have the product physically at their eCommerce warehouse but they still continue to sell it. The question is, how? The reason behind it is that they all take advantage of retail fulfillment. What is Retail Fulfillment? The process of assembling and eCommerce shipping a customer's order is known as retail fulfillment. After a consumer places an order online, an eCommerce merchant is responsible for packaging the shipment with the correct products and placing the box into transit, which is the primary difference from conventional stores, where customers browse and purchase items themselves. It is a specialized branch of logistics that is more intricate, complex, and distinct from DTC (direct-to-consumer) fulfillment. Sending goods to stores necessitates a higher level of quality control, precision, and attention to detail. You will need the necessary tools to interact with each merchant separately to ensure a pleasant encounter. [contactus_lilgoodness] What are the Types of Retail fulfillment? Retail fulfillment can be classified into 3 categories: In-House Fulfillment ModelDropshipping ModelThird-Party Fulfillment (3PL) Model In-House Fulfillment Model In-house fulfillment model is where an eCommerce seller provides order fulfillment on their own. It is either done by a small-scale business, where the scale is small enough for it to be done in-house, or a huge business which has its own resources such as in-house warehouses, human resources, and its own supply chain network. Here are the pros and cons of the In-house fulfillment model Pros: Ability to focus on individual product delivery: A small business with few delivery orders can easily focus on individual deliveries they need to fulfill. A big business can also focus on individual delivery with its in-house fulfillment system. They can customize delivery according to the buyer's preference. Opportunity to save costs on bulk orders: If a buyer orders more than a single product and wants it to be delivered to the same address, the cost of delivery decreases due to taking advantage of economies of scale. Access to door-step branding: An employee with a company that does in-house fulfillment can contact customers directly, on behalf of the company. It will increase the brand presence and add extra value to your orders. Access to direct feedback: Similarly to the point above, company personnel can contact customers directly to solve any query, issue or get customer feedback. They can directly guage the customer’s preferred experiences and solve any issues on the spot. Cons: Increase in prices: In the case of a small business where the seller has to fulfill every order themselves, prices can definitely add up. For big businesses, it can be expensive if they have to deliver products to different places. Need for dedicated resources: Sellers have to put in all their effort to provide suitable order fulfillment. They need to invest in dedicated resources in order to provide a good retail experience to their customers. Increase in time consumption: Good retail fulfillment takes time. A delivery initiated from South India that has to be delivered to North India could take at least 3 days if you are not an expert, which would seem like ages in todays world of same-day and next-day delivery. Limited growth potential: If you are taking care of an essential aspect of your business such as retail fulfillment, you may end up neglecting other tasks such as product development and marketing. Suggested Read: What is Small Business Order Fulfillment? Dropshipping Model Dropshipping Model is where a seller does not stock inventory in their own warehouses. They get orders from their website and other selling platforms and dispatches them from an OEM warehouse or a fulfillment center. The seller functions as an aggregator. What does OEM Means? Here are the pros and cons of dropshipping model: Pros: Requires less space: A physical seller's storage space is required to showcase their shop and to store their products. An online seller can showcase their products on online selling platforms or their dropshipping website, negating the need to have a huge store. Removes the need to manage inventory: With no storage needed for products, a seller does not need to manage inventory. Sellers also do not need to hire resources for such work. Provides flexibility to your business: It gives you the benefit of running your business remotely from anywhere on the globe. It does not matter if you are working from your office or any other location. You can still do all the same things you could if you were physically present such as confirming and fulfilling orders. Cons: Lack of self-branding: Under the dropshipping model, a seller cannot do self-branding as per their requirements. They never handle the product directly. The only thing they can do is provide customised order invoices. Difficulty in quality control: The product is never accessed by the seller because orders are just confirmed and sold through dropshipping. The chances of poor quality control measures can increase without the seller's knowledge. Reduced profit margins: The model is quite cost-effective and maintenance-free so many sellers are adopting similar business models. Thus. competition is higher than in other models so profit margins are lower. Dependence on OEMs: Here, sellers do not have the freedom to fulfill the items according to their preferences. They will have to accept guidelines from the manufacturers regarding their timing, working style, rate fluctuations, etc. Differences Between B2B Fulfillment and Retail Fulfillment B2B fulfillment is not the same as retail fulfillment. It's a general term for sending things in bulk to any company. Shipping boxes from one business address to another is what B2B fulfillment is all about. It could entail delivering items to a store or a corporate facility for staff to utilize, such as shipping documents from one office to another. B2B fulfillment includes retail fulfillment. Traditionally, this meant things would end up on store shelves, but with the growth of eCommerce, it can also mean products would end up on the pages of a retailer's online shop or marketplace. If a merchant sells their goods to a retailer, they could end up in the seller's shop, godown, warehouse or fulfillment center, or micro-fulfillment centers. On the other hand, in retail fulfillment, the seller plus retailer never asks merchants to deliver products to them. The retailer can directly send it to the buyer or a third-party fulfillment center. [table id=3 /] In order to know about other types of fulfillment, you can read direct order fulfillment and D2c fulfillment here. What are the 6 Steps Involved in the Retail Fulfillment Process in 2023? There are several steps involved in retail fulfillment and they are listed below: Receiving New Inventory New inventory must be sent to your fulfillment center for storage. Each SKU will require its own storage area (bin, shelf, or pallet). You must process, organize, document, and stow inventory once it arrives at a fulfillment facility. You'll need to order additional inventory as you are continuously selling products. Reorder quantity management for retail fulfillment needs a deeper grasp of inventory forecasting as well as strong collaboration with manufacturers. If you want to opt for retail fulfillment, you'll need a warehouse management strategy that includes organization, infrastructure, software, and processes for inventory tracking, as well as stations dedicated to each retail fulfillment process. Warehousing You'll be able to use those products to fill customer orders after inventory storage is complete. To avoid stockouts, keep an eye on stock levels and set reorder points so that you can order more inventory if it falls below a certain level. Your shipping costs will be heavily influenced by where you keep and ship your things (i.e., the farther away from the shipping destination, the more expensive the delivery will typically be). Picking and Packing Orders When a customer places an order, a picking list should be generated. The seller must start gathering the items needed to complete the request. Items from one order must be stored separately from those need for other orders. You can pack an order once all of the products have been selected. To save money on shipping, use boxes, poly mailers, and packaging materials that will both protect your products and add up to the smallest possible dimensional weight. Shipping Orders When you ship orders, keep an eye on the ship date as well as the promised delivery date or estimated timeline. If your online store's delivery policy requires orders to be shipped the same day, make sure you are in line with fulfilling the policy. Processing of Returns Customers will almost certainly return eCommerce orders at some point, and you must be prepared. Reverse logistics management that is well-designed can cut expenses and mitigate problems connected with returns and exchanges. Retail Ratings, Issues, and Chargebacks A logistic company is judged by its retail fulfillment process which includes the duration of delivery, accuracy, and rating by others. These days, if a fulfillment company does not meet the retailer’s expectations, the retailers may fine them which is called cashback. This cashback can be fixed or a percentage of the chargeable amount. Suggested Read: Beginner's Guide to Retail Distribution. What are the Challenges and Solutions in the Retail Fulfillment Process? Growing Order Volume With the passing years, online shopping is growing so the number of orders is increasing proportionally. This is leading to an increase in order fulfillment demands and handling thousands of orders is not an easy task. If you are providing a bad experience to your customers, there are high chances that you will lose them in the long run. In this situation, it is better to opt for 3rd party fulfillment companies. Lack of Visibility of Delivery Routes The retailers who fulfill the customer's demand through dropshipping methods have the pain of lack of visibility of the delivery route and it is amplified by partnering with any third party fulfillment company. Inefficient Manual Processes With a high number of orders which need to have 100 % accuracy at the scheduled time, manual processes need to be reduced as much as possible. Manually it is nearly impossible to manage retail fulfillment centers, track inventory, navigate, assign drivers and manage any other logistical processes. This reduces efficiency, kills time, and hinders growth due to which the customer experience suffers. Choice Between One or Many Retail Fulfillment Providers As a seller, when you choose multiple channels to sell your product on, you should also tie-up with several logistics companies. They offer fulfillment services in different locations, for different kinds of products and have different specializations. You can also partner with fulfillment companies, that will track the record and accuracy of different retail logistics companies and will give you the best option. Scheduling with Customers These days, many people shift their locations for work, studies and other purposes, which is also a reason for buying products online. Time is of the utmost importance to them which means that the sooner they receive their parcel, the more satisfied they will be and the more positive reviews your business will receive. Conclusion: Does Your Business Require Retail Fulfillment? Technology has driven our life into a different world. Today in India, we have 100s of unicorns. Each of them caters to new technology and has similar ideas and creative goals which are usually to encourage eCommerce retailers like you, to partner with them to outsource various requirements. For this, you need them to plan your investment budget and set a timeline. You just need to play it smart and you can also earn revenue. A great example of this is Amazon. As we know it is the biggest online retailer in India but doesn't have a single physical store and offers only a few core products that they sell using their own brand while offline sellers like BigBazar went bankrupt. The pattern of bankruptcy shows BigBazar invested millions in procuring products, investing in new physical stores, warehousing, hiring in-house experts, etc. As a business, when it comes to increasing sales or expanding your operations, you should always be open to adopting new trends and technology. If you are a seller, you should opt for multiple selling options and if you choose to sell online, retail fulfillment is one of the necessities to sustain your growth and increase your reachability over the nation and across the globe if you aspire to do so. WareIQ is one of the emerging players in the retail fulfillment space. WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading full-stack eCommerce fulfillment company 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. WareIQ manages the entire range of complex operations in the eCommerce fulfillment process, such as inbound functions like scanning and quality check, 100% accurate Pick and Pack, and inventory management across all channels, with a centralized platform for core fulfillment and shipping operations and post-shipping apps for a delightful experience and zero to minimal supply chain leakages. 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”. WareIQ’s Ecommerce WMS, a centralised 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 retail 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] Retail Fulfillment FAQs (Frequently Asked Questions) What is fulfillment in retail?The process of preparing, organizing, and shipping an order so that it reaches its intended destination, which is usually the location of the person who placed it, is known as retail fulfillment. A fulfillment service can handle some or all of this procedure. What is the most important aspect of retail fulfillment? Order Fulfillment is the most important aspect of retail fulfillment. Having your orders delivered on-time, accurate, and in line with the specifications of the ordered items is paramount to a continued relationship with the customers. Is retail fulfillment an approach?Yes, retail fulfillment is an approach. By this we mean, it is an approach to manage inventory, customer orders, and shipping in a retail setting and making sure that orders to customers are delivered quickly and efficiently. Is there any benefit with a third-party logistics company (3PL) in retail fulfillment? There are many benefits to working with a 3PL provider, especially one that specializes in retail fulfillment. What are the steps involved in the Retail Fulfillment Process?• Receiving New Inventory • Ecommerce Warehousing• Picking and packing • Shipping Orders• Post shipping experience What is the process of optimization in Retail Fulfillment?• Selecting a fulfillment Center • Integrated Fulfillment Software • Shipping Time WareIQ, as a retail fulfillment partner, optimises the entire fulfillment process for same/next day delivery.
March 06, 2023
A Paradigm Shift? From Free Returns to a Fee for Returns
In recent years, there has been a noticeable shift among eCommerce brands towards charging a fee for returns. While many companies still offer free returns, an increasing number of brands are implementing policies that require customers to pay a fee when returning items. This change has been driven by a variety of factors, including rising costs associated with processing returns, the need to deter fraudulent or excessive returns, and the desire to offset the cost of offering free shipping to customers. This shift has been observed across a range of eCommerce sectors, including fashion, electronics, and home goods, and is likely to continue as brands seek to optimize their profitability and balance the needs of their customers. “In India, about 25%–40% of clothes sold online are returned where a seller pays for forward & reverse logistics with no revenue capture.”-Harsh Vaidya, CEO, WareIQlink Why do Brands Want to Charge for Returns? E-commerce brands may charge for returns for a variety of reasons, including: To cover the cost of processing and handling returns: Returns require additional labor and resources to process, such as restocking, repackaging, and shipping the item back to the warehouse. E-commerce brands may charge a fee to cover these costs. To deter excessive returns: Some customers may abuse the returns process by ordering items with no intention of keeping them, and then returning them after use or damage. Charging for returns can deter this behavior by making customers think twice before making a return. To offset the cost of free shipping: Many e-commerce brands offer free shipping to customers, but this can be costly for the company. By charging for returns, the brand can offset some of the cost of providing free shipping. To incentivize customers to keep their purchases: By charging for returns, e-commerce brands can incentivize customers to carefully consider their purchases before buying. This can lead to fewer returns and a more profitable business. Paradigm Shift Ripples From West to East Many eCommerce fashion and lifestyle brands have varying policies when it comes to returns and fees. Some of these brands may charge for returns, while others offer free returns. Here are some examples of eCommerce brands that may charge for returns. In the United States and Canada, brands such as ASOS, Zara, H&M, Boohoo, TopShop etc. are charging a small fee for returns. The fee varies depending on the location and the type of item being returned. Some Indian eCommerce marketplaces, particularly those that sell high-value items like electronics and appliances, such as Flipkart, Croma etc. have been charging a fee for returns for quite a while now. These fees typically cover the cost of processing and restocking returned items, as well as any associated shipping costs. However, in recent years, many Indian fashion and lifestyle eCommerce brands have moved towards offering free returns as a way to attract and retain customers. This trend has been driven by intense competition in the eCommerce market, as well as rising customer expectations for convenience and flexibility. Recently a news article from The Rest of the World publication revealed how Myntra, the leading fashion and lifestyle marketplace in India, has devised a system to identify and assign scores to customers basis the frequency of their returns. If the score of a customer crosses a specific threshold, a fee will be applied to items they then wish to return. That said, some Indian eCommerce brands may still charge a fee for returns in certain circumstances, such as for items that are heavily discounted or for international orders. Ultimately, the decision to charge for returns will depend on a range of factors, including the company's business model, industry dynamics, and customer preferences. As eCommerce continues to grow and evolve in India, it is likely that the policies around returns and fees will continue to evolve as well. Bracketing: The Main Cause Behind the Rise of Return Fee For years now, customers have been known to employ the tactic of bracketing their online purchases. Bracketing in online purchase refers to a practice where a customer purchases multiple variations or options of a product with the intention of returning some or all of them. For example, a customer might buy a shirt in three different sizes, with the intention of returning the two that do not fit properly. The practice of bracketing is often used by customers as a way to mitigate the uncertainty associated with online shopping, particularly when it comes to sizing and fit. By ordering multiple options, customers can try on the items in the comfort of their own homes and return those that do not fit or meet their expectations. While bracketing can be a useful strategy for customers, it can also pose challenges for eCommerce brands. When customers order multiple variations of a product with the intention of returning some or all of them, it can create additional costs and complexity for the brand in terms of processing returns and managing inventory. As a result, some eCommerce brands have implemented policies to discourage bracketing, such as charging a fee for returns or limiting the number of items that can be purchased in a single order. “Major international corporations such as Zara, H&M, and Uniqlo have begun to implement fees for returns in specific nations to combat the practice of "bracketing," where customers order multiple variations of size, color, or design without intending to keep all the items.”-Harsh Vaidya, CEO, WareIQlink Is Charging a Return Fee Fair? The question of whether charging a return fee for online orders is fair is a complex one and depends on various factors, including the reason for the return, the cost of processing the return, and the overall value proposition offered by the eCommerce brand. On one hand, it can be argued that charging a return fee is fair because it allows eCommerce brands to recover some of the costs associated with processing returns, such as shipping, restocking, and quality control. If a customer is returning an item simply because they changed their mind or made an incorrect purchase, it could be argued that it is reasonable for them to cover some of these costs. On the other hand, it can also be argued that charging a return fee can discourage customers from making purchases in the first place or returning items that they are genuinely dissatisfied with. This can ultimately hurt the customer experience and damage the reputation of the eCommerce brand. “Any time you take away something from consumers or make them pay for something that used to be free, you’re gonna get some outcry over it.”Sky Canaves, senior analyst of retail and e-commerce at Insider Intelligencelink The Future of Paid Returns On one hand, there are indications that eCommerce brands may continue to move away from charging fees for returns in order to remain competitive and meet customer expectations. As online shopping continues to grow in popularity, customers are becoming more accustomed to the convenience and flexibility of free returns and may be less willing to shop with brands that charge fees. At the same time, there are also factors that could lead eCommerce brands to continue or even increase their use of return fees. For example, rising costs associated with processing returns, particularly for large or heavy items, could make it more difficult for eCommerce brands to offer free returns on all products. In addition, the increasing prevalence of bracketing, where customers order multiple variations of a product with the intention of returning some or all of them, could create additional costs for eCommerce brands and incentivize them to implement fees to discourage the practice. Ultimately, the future of charging fees for returns in eCommerce is likely to be shaped by a complex interplay of factors and will depend on the strategies and priorities of individual brands and retailers. “From my perspective, the flat fee for returns is unjust to those customers who experience actual problems, such as incorrect size, subpar fabric quality, etc. Charging a returns fee to this base could have a negative impact on their eCommerce behavior.”-Harsh Vaidya, CEO, WareIQlink
March 05, 2023
Order Ship Guide for Seller: Definition, Factors, Processes and 5 Easy Steps to Ship Order Consignments in 2023
Shipping is one of the most important aspects of eCommerce as it enables orders to be dispatched from their storage location and transported to their customer's doorsteps. Customers also understand the significance of having a good shipping experience, with a majority in almost every survey suggesting that they would only return to an eCommerce store if they provided a solid shipping experience. Additionally, upwards of 70% of customers in most major studies specify that a firm’s decision to provide free and ultra-fast shipping affects their purchasing habits positively. Therefore, the impetus is for sellers to capitalize on this sentiment and give customers what they want. Shipping entails a variety of different procedures. In this blog, we will take a look at the meaning of order shipping services, the factors that affect the ability of companies to ship order consignments, the departments involved in the shipping process, and the 5 steps to ship order parcels. What are Order Ship Services? Order ship services refer to the process of delivering products purchased online to the location of the customer that ordered them. It is a critical aspect of eCommerce as it directly impacts the customer experience and can affect their decision to make a repeat purchase from a particular online store. There are several elements to order ship services that businesses must consider to ensure that the process is smooth and efficient. These include: PackagingCarrier facilityRates Order tracking Returns management [contactus_lilgoodness] Factors That Affect a Company’s Ability to Ship Order Consignments Delivery Destinations Your consumers can originate from anywhere in India if you operate an online store. Thus, if you only have one warehouse, providing quick shipment throughout India will be highly expensive. Conversely, if you have several warehouses spread scattered in different regions of the country, you can drastically lower shipping rates while also offering exceptionally increased delivery speed. Some companies like WareIQ also offer intelligent inventory placement to store your products closer to your customers or major transport hubs. Courier Service Rates Shipping firms provide you with an accurate estimate of delivery charges depending on factors such as package weight and dimensions, shipping preferences, delivery speed, and the pickup and drop location. You can compare quotations from various courier services to find the option that fits your requirements and your budget. Also, it is ideal to take your profit margins into account so that even if you need to pay for shipping, you can also turn a profit. You can also include shipping charges in the cost of your goods in order to save money. Packaging Services If the packaging experience you provide to customers is an important aspect of your brand image, providing a personalised unboxing experience is key. You can do this by including additional components such as a marketing insert, personalised note, or making use of a custom-branded box. You can even think about using eco-friendly shipping & packaging and other high-quality materials to demonstrate how concerned your company is about your customers and its environmental footprint. Thus, whenever you ship order consignments, you must take into account the level of special packing and its price. Shipment Dimensions The overall dimensions of your orders are crucial since volumetric weight, a pricing method used by most major shipping companies, is used to determine delivery charges. The size of the package is also taken into account while calculating the shipping cost because it determines the amount of usable space it takes up and leaves available for other parcels. To determine a rough estimate of shipping costs, you must weigh and measure your purchases. Because of how shipping rates are calculated, larger packages usually cost more to ship than smaller ones. However, if you bundle many orders together in the same consignment, it can work out cheaper. Customer Expectations Customer expectations must be taken into account when developing a delivery strategy that works best for your eCommerce firm. In most cases, clients absolutely prefer speedy and free order ship services. You can also make your delivery alternatives more enticing to your customers by having various offers that will enable them to get free shipping or qualify for ultra-fast delivery. Also, you can choose expedited shipping options to get purchases to customers even more quickly. To determine which solutions will work best for your company, it is crucial to compare shipping providers and their shipping services. Which Aspects of the Business are Involved in the Order Ship Process? Order Processing Staff The order processing staff refers to the members of the company that process orders whenever they come in and are also responsible for locating them within the warehouse, packaging it, labelling it and preparing it for dispatch. Depending on your arrangement, this task could either be the responsibility of your company or that of a logistics company that handles order fulfillment and shipment on your company's behalf. Shipping Company Once the order has been dispatched, the onus is on the shipping company to ensure that the consumer receives the item in good condition and in a timely manner. Shipping duties are usually carried out by large courier services such as FedEx, DHL or BlueDart. You can utilise order tracking to send updates to your clients, so they are informed of the whereabouts and the expected arrival date of their purchases while they are in transit or moving through different stages of the delivery process. 3PL Partner Most logistics services are usually provided by a 3PL partner. When an online retailer works with an external logistics company, the firm handles the entire process of delivering orders straight from the fulfillment center where the inventory is kept, to the customer’s doorstep. 3PLs usually provide the services necessary to give your customers a good experience, such as same-day shipping, order tracking and more. They are also responsible for last-mile delivery, where once the package reaches the same city as the customer, an on-ground delivery partner will collect it and transport it to the customer’s location. 5 Simple Steps to Accept and Ship Order Packages in 2023 Step 1: Select an Appropriate Shipping Plan Source Gathering all the pertinent product information is the first stage because shipping regulations for various product types can vary drastically. For instance, the packaging and shipping of garments will differ from the packaging and shipping of perishable products such as food items. Also, transporting commodities such as cleaning supplies and sanitisers will be regarded as perilous materials, and if you manufacture and sell vitamins and supplements, you may require special permissions and other documents. Therefore, it is important to choose a plan that fits the type of product you are shipping. Step 2: Use High-Quality Packaging Materials Source You must choose the proper packaging for the products you are delivering based on the category they fall under. Certain products, such as electronics and other easily-breakable and high-value items, may require additional packaging, while others only need the bare minimum. Two very important factors must be taken into account during this stage to protect your products while they are in transit and give your customers a fantastic unwrapping experience - package your products attractively and with high-quality materials and make sure your shipping provider handles them with care. Step 3: Identify the Fastest and Cheapest Shipping Alternative Source You need to determine which shipping service can deliver the order the fastest while also ensuring that costs don’t skyrocket. This can be done only after evaluating the quotations from several courier providers. Certain companies like WareIQ have partnerships with multiple shipping companies and have advanced services like a smart courier allocator that uses AI to automatically assign the fastest and most cost-effective solution on a per-order basis. This keeps your customers happy while also maintaining low expenditure. Step 4: Attach an Order Label Source You can create a shipping label after selecting the appropriate delivery option for your orders. If your company wants to print its labels in-house, you'll probably require a specific printer that is suitable for the task. If not, many 3PL companies provide labelling and printing services so they can take care of the entire process. Adding order labels is important because it contains all the necessary information related to the order so that in the event of an unforeseen incident, the product and its value can be easily determined by glancing at the label. Step 5: Dispatch the Parcel Source Giving your order to the shipping carrier so they can deliver it to your customer is the next and final stage in the shipping procedure. This will be done after the relevant items have been located, packaged, labelled and prepared for dispatch. The items will be kept ready at the warehouse’s dispatch points so that they can be easily accessed and loaded onto the delivery vehicle, from where they will be transported to the customer’s city and final location. Conclusion: Ship Orders Quickly and Cost-Effectively With WareIQ Order ship services can make or break an eCommerce firm by dictating the type of experience that customers have with it. It is additionally important to provide customers with order ship procedure because that is usually the last interaction they will have with your business before they ultimately receive their order, so you shouldn’t leave them with a bad taste in their mouths in regard to your company. Providing a good shipping experience is simple enough if you cover all the basics, like providing free shipping, ultra-fast delivery and a pleasant unboxing experience. If you need assistance with these services and other eCommerce-related facilities, WareIQ should be your go-to option. WareIQ has emerged as one of India’s leading eCommerce fulfillment companies since being founded in 2019. We provide the entire gamut of eCommerce operations from inventory storage to order ship services. Some of the ways our shipping procedures are better than the rest are listed below: Nationwide Storage Network We have a vast network of fulfillment centers and dark stores located in every major metropolitan region of the country and provide inventory placement recommendations that ensure your products are located within proximity of your customers. Partnerships With Multiple Shipping Companies We have partnered with the leading shipping services in the country and also provide a smart courier allocator that automatically assigns the quickest and most cost-effective option for every order. Ultra-Fast Shipping We provide ultra-fast same-day and next-day shipping through our WareIQ Rush platform, which ensures your customers will always receive their orders on the expected date and time. Customizable Packaging We provide customizable packaging where every element of the package can be tailored to your requirements and preference to ensure your customers have the best possible unboxing experience. Branded Tracking We offer branded tracking facilities through highly customizable order tracking pages where you can include whatever information and design elements you want to showcase. Ship Order: FAQs How does the order ship procedure work?When a customer makes a purchase online, the eCommerce business will package the product, choose a shipping carrier and send the product to the customer's address. What are some of the leading shipping carriers in the country?The leading shipping carriers in India include:- FedEx- DHL- BlueDart- DTDC- Gati What shipping options should eCommerce businesses offer?eCommerce businesses should offer multiple shipping options, including standard shipping, expedited shipping and overnight shipping. How can eCommerce businesses make their order shipping process more efficient?eCommerce businesses can make their order shipping process more efficient by using shipping software to streamline the process, using standardized packaging and optimizing their shipping carrier selection. What is a delivery order?A delivery order is a document that instructs a warehouse, shipping company or carrier to release goods to a particular recipient or destination. It is often used in international trade transactions to authorize the release of goods from a supplier or seller to a buyer or importer. Who issues a delivery order?A delivery order can be issued by different parties depending on the context and the specific requirements of the transaction. In general, a delivery order is issued by the party that has the legal right to instruct the warehouse or carrier to release the goods. What is a shipping order?A shipping order is a document that authorizes the shipment of goods from one location to another. It is often used in logistics and transportation to instruct carriers and other logistics service providers to move goods from a warehouse, factory or another origin point to a designated destination.
March 04, 2023
Accelerating sales and simplifying multi-channel marketplace management to unlock 3x online revenue at lower logistics costs for Lotus Herbals
Read how WareIQ helped Lotus Herbals manage sales and fulfillment across multiple marketplaces in a seamless fashion.
March 04, 2023
Top 10 Cold Storage Companies for Sellers in India That Deal in Warehousing of Perishable and Delicate Goods in 2023
eCommerce is a large, diverse industry that encompasses many different types of goods, with some requiring additional effort and specialized conditions in terms of storage and transportation. For instance, heavy or bulky items would need extra storage space in the warehouse and delivery vehicle, heavy-duty forklifts for loading and unloading and more. Similarly, perishable goods such as food and beverages would require cold temperatures in order to preserve their freshness and prevent them from expiring. If you are a seller of these types of commodities, partnering with a logistics company that offers these specialized services is crucial if you want to fulfill orders across the country. Fortunately, because there is an ever-increasing demand surrounding the storage, warehouse and fulfillment of perishable goods, a large number of cold storage companies have emerged to fill the void. In this blog, we will take a look at what cold storage companies are and the 10 best options currently available in India. What are Cold Storage Companies? Cold storage companies are specialized storage and logistics providers that offer temperature-controlled warehousing and transportation solutions for perishable goods such as food, beverages, pharmaceuticals and chemicals. These companies utilize state-of-the-art technology to maintain optimal storage conditions for their client's products, ensuring that they are kept at the right temperature, humidity and other environmental factors required for their preservation. The facilities of cold storage companies are equipped with various types of refrigeration systems, including blast freezers, chillers, and temperature-controlled rooms, to provide the necessary conditions for different types of products and can be regulated automatically or manually. These facilities are usually located near transportation hubs such as ports, airports, and major highways, making it easier to transport products to and from the storage facilities. [contactus_uth] Top 10 Cold Storage Logistics Companies in India WareIQ Source Founding Year: 2019Headquarters: Bangalore, KarnatakaServices Offered: Order fulfillment, cold storage, inventory storage, order management, custom WMS and more.About: WareIQ is an order fulfillment company that has grown to become one of India’s leading 3PL logistics companies. It provides a vast network of fulfillment centers and dark stores, with all of them being equipped with cold storage facilities as well as the latest temperature monitoring and regulating facilities. It has enabled many of its retail partners to easily store and transport fresh and frozen produce, owing to its distribution platform's expansiveness. In addition to cold storage facilities, the company also provides value-added services such as personalized custom packaging, branded order tracking and much more, making it an attractive option for sellers who need a well-rounded fulfillment partner. Coldman Warehousing & Distribution Source Founding Year: 2012Headquarters: Bangalore, KarnatakaServices Offered: Warehousing, cold storage, distribution, business consulting, food processing and more.About: Coldman is one of the top cold storage logistics companies in India. You can avail of Coldman’s services for all of your supply chain needs involving temperature management. They are capable of handling items that need to be stored anywhere between the -20°C to +20°C temperature range. They provide services to almost every type of industry, such as restaurants, food processing companies and confectionaries. They can also handle many types of products, such as fruits and vegetables, poultry and meat, and pharmaceuticals. Furthermore, Coldman has had success offering its services in several countries across the globe. Snowman Logistics Source Founding Year: 1996Headquarters: Bangalore, KarnatakaServices Offered: Warehousing, cold storage, round-the-clock operation, 100% power backup, temperature-controlled trucks and more.About: Snowman is one of the longest-serving cold storage companies, operating constantly since 1996. For temperature-regulated logistics services, such as cold storage, transport and other additional services, Snowman has emerged as a market leader in India. Their integrated distribution strategies and cutting-edge cold storage facilities in large metropolitan areas like Mumbai, Bangalore and Chennai guarantee the maintenance of product quality and temperature integrity from the point of origin to the customer’s doorstep. Coldrush Source Founding Year: 2012Headquarters: Mumbai, MaharashtraServices Offered: Customizable storage, in-house WMS, cold storage, online temperature monitoring, 100% power backup and more.About: Coldrush is one of the leading cold storage companies in India. Several varieties of cold storage services are offered by Coldrush, such as chilled, frozen and ambient storage. It has multi-capacity chambers that adhere to the strictest requirements for handling products at controlled temperatures. Ever since its founding, Coldrush has carved out a country-wide niche in the industry for sellers who require detailed cold storage solutions. The business has the know-how, experience and in-depth comprehension required to consistently enhance the performance of integrated cold storage supply chains with new solutions. Suggested Read: List of the Best Logistics Companies in Maharashtra Indicold Source Founding Year: 2012Headquarters: DelhiServices Offered: Warehousing, cold storage, order processing, packaging, distribution and more.About: Indicold is dedicated to dominating the Indian market by providing superior and affordable cold chain solutions. Its facilities for the fresh and frozen food industries give its clients a competitive edge, enabling them to prosper in a market that is constantly shifting. The business now conducts business across India, offering its customers speedy and dependable transportation and cold storage services through regulated, overseen partner stores and carriers, making it one of the best cold storage companies for sellers that need all-India distribution. Cold Care Group Source Founding Year: 2000Headquarters: Hyderabad, TelanganaServices Offered: Cold storage, maintenance, food processing, transportation, testing facilities and more.About: One of the most experienced cold storage companies in India, Cold Care Group leads the market in providing cold storage solutions. They manage over 20 cold storage warehouses, as well as offer logistics and refrigerated transportation services. With cutting-edge technology, Cool Care offers comprehensive solutions in the cold storage industry and services for temperature-regulated logistics. They are good if you are looking for affordable services and also if you are looking to reduce your transportation costs. It can store and handle various types of commodities, ranging from vaccines to plant seeds, making it one of the best cold storage logistics companies for sellers who deal in a diverse range of products. Suggested Read: Logistics Companies in Hyderabad in 2023 for Offline and Online Sellers Indraprastha Cold Storage Source Founding Year: 1952Headquarters: DelhiServices Offered: Product procurement, cold storage, nationwide distribution, 100% power backup, freshness preservation and more.About: The longest constantly operational firm among the cold storage companies on this list, Indraprastha Cold Storage provides a wide range of services, including procurement of produce directly from farms, transportation services across India and, of course, cold storage facilities. The company currently has over 500,000 square feet of storage space that are equipped with a variety of safety features such as stainless steel lining and aluminium walls to prevent cross-contamination and odour consolidation so sellers can be assured that their products will always stay fresh. Siddhi Cold Chain Source Founding Year: 1974Headquarters: DelhiServices Offered: Temperature-controlled warehousing, cold storage, distribution services, order consolidation, 100% power backup and moreAbout: One of the most experienced cold storage companies on this list, Siddhi Cold Chain began operations in 1974 and is a subsidiary of Siddhi Enterprises. The company provides a vast swathe of cold storage facilities as well as conventional logistics services. They have over 500,000 square feet of temperature-controlled warehousing space and a distribution network over the entirety of North India. However, it is limited by the fact that it only deals in vegetarian products and also because it does not have comprehensive operations in the rest of the country. Godamwale Source Founding Year: 2016Headquarters: Bhiwandi, MaharashtraServices Offered: warehousing, cold storage, automations, distribution services, consultancy services and more.About: Godamwale is a logistics and cold storage company. It has among the largest and most comprehensive infrastructure of temperature-controlled warehouses and cold storage facilities. It also provides conventional logistics services, such as distribution, order fulfillment and more, making it a one-stop shop for companies that need access to all these facilities and reduce logistics costs, in addition to just cold storage. It also has many big-name clients, including Amazon, Big Basket and Godrej, cementing its reputation as an experienced and well-adjusted 3PL company. Arihant Cold Storage Source Founding Year: 2007Headquarters: DelhiServices Offered: warehousing, cold storage, inventory management, cross-docking, order processing and more.About: Arihant Cold Storage is a cold storage company that provides a variety of temperature-regulated solutions. To keep goods secure, hygienic and always at the right temperature, Arihant Cold Storage employs advanced monitoring technology. Every aspect of storage is efficiently managed by their highly qualified staff. They assure their customers of no damage, temperature abuse or theft because they use various security measures. They are professionals at storing various types of products, ranging from pharmaceuticals to food products. Conclusion: Get Access to Cold Storage and Other Value-Adding Services With WareIQ Cold storage logistics companies are absolutely essential for businesses that deal in products that require very specific temperatures and other environmental regulations. An absence of these facilities can be detrimental to the products as well as your chances of selling them. Thankfully, the landscape of companies providing cold storage facilities has increased dramatically owing to the growing number of retailers that require them. As a seller, it is best to identify your own objectives, requirements and available budget so that you can make a well-informed decision that fits all your constraints. If you need access to cold storage facilities in addition to other fulfillment services, WareIQ can be the option for you. WareIQ is known for providing multiple value-adding facilities, such as cold storage facilities, customizable packaging, branded tracking and more, along with conventional order fulfillment services. Some of them are listed below: Nationwide Storage Network: We have a pan-India storage network consisting of fulfillment centers and dark stores that have cold storage facilities and other advanced services.Branded Packaging: We provide customizable packaging where almost every competent can be tailored to your tastes and preferences.Branded Order Tracking: We help equip you with editable tracking pages so you can customize the design and include whatever information you need.App Store: We have an in-house app store where productivity-enhancing apps can be downloaded to assist in various functions, such as customer feedback and providing shipping badges.Custom WMS: We have an in-built WMS that can update you about your orders and inventory data in real-time, automate multiple functions and integrate with most eCommerce marketplaces. Cold Storage Companies: FAQs What types of products are required to be stored in cold storage?Cold storage companies can store a wide range of products. Some products that need to be stored in cold storage include:- Fresh and frozen food products- Vaccines and pharmaceuticals- Temperature-sensitive items What are the positives of using a cold storage company?The benefits of using a cold storage company include:- Extended shelf life for products- Reduced product waste- Improved product quality and safety- Access to advanced storage and logistics technologies- Broadened scope of products What types of refrigeration systems are used in cold storage facilities?Cold storage facilities use a variety of refrigeration systems, including blast freezers, chillers and temperature-controlled rooms, to maintain the appropriate storage conditions for different types of products. How do cold storage companies maintain the appropriate temperature for stored products?Cold storage companies use advanced temperature monitoring systems and equipment to ensure that stored products are kept at the right temperature, humidity and other environmental factors required for their preservation. Are cold storage companies subject to any regulatory requirements?Yes, cold storage companies are subject to a range of regulatory requirements, including food safety regulations and pharmaceutical storage guidelines, and must comply with these standards to ensure the safety and quality of stored products. Which are the best cold storage logistics companies in India for the food & beverages and pharma industries?A few of the best cold storage companies in India are as follows:1. WareIQ2. Coldman Logistics3. Snowman Logistics4. Coldrush5. Indicold6. Cold Care Group7. Indraprastha Cold Storage8. Siddhi Cold Chain9. Godamwale10. Arihant Cold Storage
March 03, 2023
10 Best Shipping and Logistics Companies in Indore for Retailers to Outsource Their Logistical Requirements in 2023
Indore, while not being the capital of Madhya Pradesh, a privilege that is designated to nearby Bhopal, is the largest and most populated city in the state. Located smack bang in the middle of the country, Indore lies on the Malwa plateau and has one of the highest elevations among cities in Central India. It has also been named India’s cleanest city in 2022, a title that it has held continuously for the past 6 years. In addition to these fundamentally positive attributes, the city also has a booming IT sector, with multiple IT parks having sprung up in the past few years. This has enabled the city to have the regional headquarters and offices of multiple big-time brands as well as many emerging startups. The state government has also attempted to boost the economy by promoting a business-conducive environment and the city also has a large presence in the vehicle manufacturing industry, earning it the nickname “The Detroit of India”. However, all these businesses require the presence of fulfillment companies to assist them in their growth prospects. In this blog, we will take a look at the services generally provided by most fulfillment companies and the top 10 logistics companies in Indore. What are Some of the Services Provided by Logistics Companies in Indore? Transportation Facilities This is the primary service provided by virtually all of the major logistics companies in Indore. They generally offer different modes of transportation, such as air, sea, road and rail, to transport goods from one location to another. They also provide other transit-oriented services like booking, consolidation of transport services, loading, unloading and tracking of shipments. A logistics company with a large distribution network that spans the entirety of the country is crucial if you want to capitalize on every sale and ship products to wherever customers are located. Inventory Storage Most logistics companies in Indore provide storage facilities for products and goods. They have warehouses equipped with advanced technology for the efficient storage, retrieval and distribution of goods. They offer services such as inventory management, order fulfillment, and pick and pack fulfillment services. Some companies even make use of advanced software solutions such as WMS software and multiple automations. This allows for inventory to be monitored and analysed in real-time, across eCommerce selling platforms and storage locations. Freight Forwarding Services Freight forwarding is a service where logistics companies organize the transportation of goods from the manufacturer to their final destination. They handle all the logistics involved in the process of moving the goods, including documentation, packing, loading, and insurance. This completely takes away the burden of dealing with complex paperwork, documentation, and other time-consuming tasks from retailers so they can focus on other aspects of their business. Supply Chain Management Logistics companies in Indore generally offer supply chain management services to help businesses streamline their supply chain operations. They provide end-to-end supply chain solutions that optimize the movement of goods and improve overall efficiency. They can also identify any bottlenecks or inefficient processes that are causing disruptions and can provide recommendations to correct them or remove them entirely. Suggested Read: How to streamline shipping processes in 2023? Reverse Logistics Many logistics companies in Indore offer reverse logistics services, which involve the process of moving goods from their final destination back to the manufacturer or distributor after a return has been initiated by a customer or the product has been damaged in transit before reaching them. This service includes return management, repairs and recycling of products. Dealing with returns can be expensive but logistics companies that can handle it on your behalf will save you a lot of financial resources and effort. [contactus_gynoveda] 10 Best Logistics and Shipping Companies in Indore in 2023 WareIQ Source Founded in 2019, WareIQ is one of the fastest-growing logistics companies in Indore. The organisation offers a vast array of facilities that cover any logistical need that your company might have. Order fulfillment services is its flagship product but it also provides many other, more complex services, including an app store with tools to boost productivity, a personalised WMS that can automate numerous inventory management procedures and monitor inventory data in real-time, integrations with various selling platforms and much more. If you're looking for an alternative that won't hit too hard on the wallet, it also features reasonable pricing and enables you to choose which services you need. Some of the main features that make WareIQ one of the best logistics and shipping companies in Indore are listed below: It consists of a built-in WMS that can automate reordering, manage inventory, and much more.It handles all aspects of reverse logistics in addition to providing returns management.It offers a pan-India storage network, including local dark stores and fulfillment centers.It offers an intelligent shipping allocator and collaborates with over 20 delivery partners and firms.It enables integrations with numerous web-building systems and eCommerce marketplaces, like Flipkart, Magento and others. RCPL Logistics Source RCPL Logistics is a logistics company that was founded in 1997. The business is renowned for giving companies the greatest possible assistance in terms of shipping and transportation facilities. To meet the needs of various businesses, the company offers various services. This includes operating and maintaining a large fleet of trucks, packing and unloading facilities, logistical planning, vehicle transportation and much more. Some of the main features that make RCPL Logistics one of the best logistics companies in Indore are listed below: It provides various transportation options through air, rail and road.It offers a variety of additional services, such as weatherproof packaging, along with conventional logistics solutions.It has an India-encompassing distribution network.It has warehousing facilities for inventory storage.It can easily shift different types of products with its custom packaging solutions. Vivek Logistics One of the leading logistics companies in Indore is Vivek Logistics, which has a long history since being founded in 2010. The company specializes in road and air logistics services, which are defined by punctuality, adaptability, speed, safety and dependability. It also provides services such as the transport of pharmaceuticals, freight forwarding, packing and moving, and much more. Some of the main features that make Vivek Logistics one of the best logistics companies in Indore are listed below: It offers multiple transportation methods through air and road.It can handle delicate items like pharmaceuticals.It provides efficient freight forwarding services.It offers warehousing solutions for inventory storage.It can ship items locally as well as internationally. Speed Movers Logistics Source Speed Movers Logistics is an Indore-based logistics company that was incorporated in 2009. It specializes in offering a wide variety of on-ground transportation services and has a country-wide distribution network. It has a large fleet of enclosed trucks and also provides GPS-equipped tracking services for every order. The company also provides warehousing facilities for product storage and can ship bulky and heavy items with ease. Some of the main features that make Speed Movers Logistics one of the best logistics and shipping companies in Indore are listed below: It has a large fleet of delivery-ready trucks.It provides tracking facilities in real-time.It ensures the safety of your cargo by enclosing it with additional packaging.It offers cost-effective pricing.It provides warehousing services for inventory storage. Life Care Logistics Source Life Care Logistics is an Indore-based logistics company that was founded in 2002. It offers cost-effective logistics solutions that are within reach for most companies. The company has worked hard to establish new industry standards while also focusing constantly on providing clients with the best services possible. Its staff of 800-plus highly skilled and experienced professionals offers effective warehouse management solutions and distribution services under one roof. Some of the main features that make Life Care Logistics one of the best shipping companies in Indore are listed below: It offers advanced features such as temperature-controlled warehouses.It provides a wide range of value-added services such as kitting, packaging, labelling and more.It provides a wide range of transport services by air, land and sea.It offers inventory management services.It provides a storage network consisting of multiple warehouses. Carryfast Group Source Carryfast Group is an Indore-based logistics provider that was incorporated in 2011. This logistics provider offers a full range of 3PL services, including inventory management, order processing, express delivery, warehousing, quality assurance, packing and labeling. The company strives to give its clients the best value possible. Regardless of the scale of your shipping requirements, Carryfast Group will help you manage your company's transportation needs. Some of the main features that make Carryfast Group one of the best logistics and shipping companies in Indore are listed below: It provides many value-added services, such as packaging and rake handling.It handles reverse logistics for efficient returns management.It offers a variety of different transportation options.It takes care of inventory management.It offers warehousing services for product storage. BGRL Logistics Source Since its founding in 2017, BGRL Logistics has seeked to offer transportation services for a variety of goods, including tyres and CBUs for the FMCG industry, white and brown goods, vehicle components, alcohol, clothing, pharmaceuticals and yarn. The company's goal is to provide high-quality solutions by utilising cutting-edge technology and fool-proof techniques. Because of this, it has garnered a reputation for being one of the most reputable logistics companies in Indore. Some of the main features that make BGRL Logistics one of the best logistics and shipping companies in Indore are listed below: It can handle a wide variety of products, from industrial materials to household goods.It offers multiple transport options through air, land and sea.It ensures the safety of products in transit by adding additional protective layers.It provides warehousing services that consist of a variety of machinery and equipment.It offers inventory management solutions. Flow Logistics Source Flow Logistics is a renowned freight forwarder with over 20 years of experience established in 2006. The company is also a global logistics services provider and aids in the economical, risk-free transportation of merchandise inventory from its point of origin to its final destination. Their staff can carry out the excellent transportation of shipments through land and sea and offer customer care facilities around-the-clock. Some of the main features that make Flow Logistics one of the best logistics and shipping companies in Indore are listed below: It enables you to ship globally as well as within India.It specializes in ocean freight transportation.It offers 24/7 customer care facilities.It has economical pricing plans.It has a high level of existing customer satisfaction. Trivedi Transport Source Trivedi Transport is a logistics company that was founded in 1990. The company has acclaim throughout India and Nepal for being able to haul just about anything. It can take care of every logistical requirement from packaging to delivery, so you don't need to involve yourself in anything. It offers a wide range of services, including packing and moving, domestic relocation, transportation, warehousing, logistics and residential transferring. Some of the main features that make Trivedi Transport one of the best logistics and shipping companies in Indore are listed below: It provides many value-added services in addition to basic logistics solutions.It offers warehousing and storage services.It can store and transport any type of product, including dangerous and hazardous materials.It offers a wide range of transportation options.It has transportation infrastructure present throughout the country. Maxpace Logistics Source Maxpace Logistics was founded in 2008 and is regarded as one of Indore's most reasonably priced, trustworthy and capable logistics providers. It handles every type of household commodity and also provides packaging services, in addition to loading and unloading them in a secure manner. Also, this business offers door-to-door moving services for a wide range of commodities such as cars, motorcycles and more. Some of the main features that make Maxpace Logistics one of the best logistics and shipping companies in Indore are listed below: It provides moving and shifting assistance for household goods.It offers a conventional range of logistical services.It can handle even bulky and heavy items.It has more than 15 years of experience in the industry.It offers cost-effective pricing. Suggested Read: Check the List of 10 Best Logistics Companies in Ahmedabad in 2023. How To Choose The Best Logistics Company in Indore for Your Business? Things you should consider while choosing the right logistics company for your business are discussed below: Determine Your Requirements: Before choosing a logistics company, determine your logistics requirements such as transportation mode, warehousing needs, delivery time, etc.Do your Research: Conduct thorough research on logistics companies in Indore. Check their websites, read customer reviews, and ask for referrals from other businesses.Experience and Expertise: Choose a logistics company that has experience and expertise in your industry. They should have a good understanding of your business and logistics requirements.Technology and Infrastructure: Check if the logistics company has the latest technology and infrastructure to handle your logistics needs efficiently. They should have proper tracking and monitoring systems, well-maintained vehicles, and adequate storage facilities.Cost of service: Compare the costs of logistics services offered by different companies. Choose a company that offers competitive pricing without compromising on the quality of their services.Customer Service: Choose a logistics company that provides excellent customer service. They should be responsive, communicate clearly, and be willing to work with you to meet your logistics needs.Insurance and Licenses: Check if the logistics company has the necessary insurance and licenses to operate in Indore. This will ensure that your goods are protected in case of any mishaps during transportation. Conclusion: Enhance Your Logistics Operations With WareIQ Indore is quickly emerging as a good place to conduct business operations for a variety of businesses, including large MNCs, mid-sized companies and small-scale startups. This has resulted in the appearance of many logistics companies looking to find a client base that will take advantage of the services they bring to the table. The main beneficiaries of this competition are the retailers and their customers. In order to out-compete one another, most of these companies need to step up their game and offer the best services for the lowest amount of money. However, you as a seller should also consider your own requirements, budget and objectives in order to make a decision that is right for you. If you need a logistics company in Indore that checks all the boxes, you can consider partnering with WareIQ. WareIQ is one of India’s most rapidly growing 3PL logistics companies. We believe that gaining access to the best facilities does not have to come at astronomical costs. We uniquely blend the use of advanced technology with resource-saving features such as not having any minimum order quantity and being able to pick and choose services that you need. Some of the key solutions we provide are listed below: A nationwide storage network of fulfillment centers and dark stores that enables you to store your products closer to your customers.A partnership with the best courier services in the country and a smart courier allocator that always assigns the most efficient and cost-effective option.An RTO Shield that protects your business from the adverse effects of returns in addition to completely handling your returns management.A custom WMS that aids in inventory management and automates important tasks such as inventory replenishment, tracking in real-time and more.A level of integrations that encompass most eCommerce marketplaces, web-building platforms and courier services. Suggested Read: Logistics companies for Online & Offline Sellers in Surat. Logistics Companies in Indore: FAQs What is the role of a logistics company in Indore?Logistics companies in Indore are responsible for managing the movement and storage of goods and products within the city and beyond. They provide a range of services related to transportation, warehousing, customs clearance, supply chain management and more. Do logistics companies in Indore provide warehousing services?Yes, logistics companies in Indore provide warehousing services. They have warehouses equipped with advanced technology for efficient storage, retrieval and distribution of goods. Can logistics companies in Indore handle hazardous materials?Some logistics companies in Indore are equipped to handle hazardous materials. These companies have the necessary certifications and expertise to handle such materials safely and in compliance with regulations. How do logistics companies in Indore track and monitor shipments?Logistics companies in Indore use advanced tracking and monitoring systems to keep track of shipments. They provide regular updates to their clients on the status and location of their goods. How can you choose the right logistics company in Indore for your business?To choose the right logistics company in Indore for your business, you should consider factors such as:- Experience- Reputation- Range of services- Pricing- Customer service What is the cost of logistics services in Indore?The cost of using a logistics company in Indore depends on factors such as the amount of space required, the length of time goods will be stored, and the services required. You can get your quote here. Why is WareIQ among the top fulfillment and logistics companies in Indore?WareIQ provides a comprehensive range of services that cover every facet of eCommerce and we employ cutting-edge technology to make sure that every procedure is completed accurately and without error. In order to conserve money and resources, we also give you the option to choose only the services you require. Which are the top logistics companies in Indore?The top logistics companies in Indore are:1. WareIQ 2. Speed Movers Logistics3. Life Care Logistics
March 01, 2023
Packaging Customization and Personalization: A Lesser-known Tactic to Boost Customer Delight in eCommerce
Packaging customization personalization in eCommerce logistics can help delight customers and create a positive brand experience. An example of a popular real Indian D2C apparel eCommerce brand that has used packaging personalization and customization to their advantage is Chumbak. Chumbak is an Indian D2C brand that specializes in creating trendy and colorful apparel and accessories. Chumbak uses packaging personalization and customization to their advantage by: Using visually appealing and high-quality packaging that enhances the unboxing experienceIncorporating their brand's unique and colorful design elements into the packaging, making it instantly recognizable and memorable for customers.Offering a customization service where customers can have their own name or message printed on the packagingIncorporating eco-friendly materials for packaging and ensuring their packaging is sustainable and responsible This approach has helped Chumbak to create a unique and memorable customer experience, which has helped to increase customer satisfaction and loyalty. What Kind of Personalization and Customization Options are Available Usually? Here are a few ways to personalize and customize packaging for ecommerce logistics: Custom branding: Add your company's logo or branding elements to the packaging to make it easily recognizable. This can include custom printed boxes, bags or mailing envelopes. Personalized messaging: Include a personalized message or thank you note inside the package to make the customer feel valued. This can be done via a printed card or a handwritten note. Custom packaging inserts: Use custom packaging inserts to create a unique unboxing experience. This can include tissue paper, confetti, or other items that add a touch of elegance to the packaging. Product-specific packaging: Create packaging that is specific to the product being shipped. For example, if the product is a fragile item, use packaging that is specifically designed to protect it during transit. Eco-friendly packaging: Use eco-friendly packaging materials such as biodegradable or recycled materials to appeal to customers who are environmentally conscious. Gift wrapping: Offer gift wrapping as an option for customers who are buying the products as a gift. This can include custom gift wrapping paper or a gift box. By personalizing and customizing packaging, you can create a memorable brand experience for customers and increase the chances of repeat business. It's also important to consider the cost and feasibility of the customization before implementation. Impact of Customization and Packaging Personalizing and customizing packaging in eCommerce logistics can have several positive impacts on your business, including: Brand awareness: Personalizing and customizing packaging with your company's branding can increase brand awareness and make your company more easily recognizable. Customer loyalty: Personalized messaging and unique packaging can make customers feel valued and appreciated, which can increase customer loyalty and repeat business. Unboxing experience: Customizing packaging can create a unique and memorable unboxing experience for customers, which can increase customer satisfaction and positive word-of-mouth marketing. Increased perceived value: Personalized and custom packaging can make the customer feel like they are receiving a premium product, which can increase the perceived value of the product. Environmental consciousness: Eco-friendly packaging options can appeal to customers who are environmentally conscious, which can have a positive impact on the company's reputation and social responsibility. Gift giving: Personalized and custom packaging can make it easy for customers to send the package as a gift which is a great way to reach new customers and increase sales. Overall, personalizing and customizing packaging in eCommerce logistics can help create a positive brand experience for customers, increase customer satisfaction, and ultimately drive sales and revenue for the business. Customization and personalization also impact key business metrics positively. An example of how delighting customers with custom and personalized packaging can help improve eCommerce business growth is as follows: Increased customer loyalty: By providing personalized and custom packaging, eCommerce companies can create a positive and memorable experience for customers, which can lead to increased customer loyalty and repeat business. Positive word-of-mouth: Customers who have a positive experience with a company's packaging are more likely to share their experience with friends and family, which can lead to increased brand awareness and new customers. Enhanced brand reputation: By providing high-quality and personalized packaging, eCommerce companies can enhance their brand reputation, which can lead to increased customer trust and loyalty. Increased revenue: By creating a positive and memorable customer experience through personalized and custom packaging, eCommerce companies can increase customer satisfaction, which can lead to increased revenue through repeat business and new customers. Cost savings: By reducing packaging costs and providing eco-friendly packaging solutions, eCommerce companies can save money and appeal to environmentally conscious customers. Overall, delighting customers with custom and personalized packaging can help eCommerce businesses to improve customer loyalty, increase brand awareness and reputation, and grow revenue. Importance of Order Personalization and Customization in 2023 Order personalization and customization is important in 2023 for eCommerce brands because it helps to create a unique and memorable customer experience. With the rise of eCommerce competition, customers are increasingly looking for more personalized and tailored shopping experiences. By offering personalization and customization options, eCommerce brands can differentiate themselves from their competitors and build stronger relationships with their customers. Additionally, order personalization and customization can help to increase customer satisfaction and loyalty. When customers receive a product that is customized to their preferences, they are more likely to feel satisfied with their purchase and may be more likely to return to the brand in the future. Order personalization and customization can also help to drive sales and revenue growth. By offering personalized and customized products, eCommerce brands can increase the perceived value of their products, which can lead to higher prices and increased sales. How can WareIQ Help? WareIQ's full-stack fulfillment solution has enabled multiple leading brands across categories such as Blissclub, Setu Nutrition etc. create a delightful experience for their customers by utilizing custom packaging material, thank you notes, combo creation etc. This helps brands deliver a premium customer experience and makes the moment of truth - the unboxing experience- unforgettable for clients. In case a brand has a particular requirement for packaging material, we can be flexible about it and help brands fulfill the orders in the way they feel is the best for their customers. With our capable fulfillment operations team, brands can rest assured that their orders are being picked, packed, and shipped in an accurate fashion, without any delays or damages, leading to on-time deliveries which facilitate positive customer sentiment about the brand experience. To know more about our personalization and customization services, visit: WareIQ Order Customization and Personalization
February 25, 2023
What is Post Purchase Dissonance? Definition, Examples, Factors and 7 Methods to Reduce Cognitive Dissonance in Post Purchase Behaviour in 2023
Gaining repeat customers and enticing existing customers to spend more money at your company after they have already made a purchase is a recipe for success for most businesses. This sentiment is backed up by droves of data - retaining 25% of customers can lead to a 95% increase in profitability, repeat customers are estimated to spend up to 67% more than new ones, 82% of companies suggest that focusing on retaining customers is less expensive than acquiring new ones and many businesses imply that 65 to 75% of their existing business comes from repeat customers. With these numbers in mind, it should be your utmost priority to ensure that customers have a good first impression of their experience with your brand and a pleasant Post-Purchase Experience in eCommerce. But, failing to do this can result in post-purchase dissonance and can ruin their chances of ever returning. In this blog, we will take a look at the meaning of post purchase dissonance in addition to examples, factors leading to it, and 7 ways to reduce its occurrence. What is the Meaning of Post Purchase Dissonance? Post purchase dissonance, also known as buyer's remorse, is a psychological phenomenon that occurs when a person experiences feelings of doubt or regret after making a purchase. It is primarily caused by cognitive dissonance that arises when a buyer has made a purchase decision but then experiences a sense of conflict or unease about that decision, which may cause feelings of regret and anger. Post purchase dissonance is a common occurrence that affects many people and it can be especially pronounced in situations where the purchase involves a significant amount of money or emotional investment. For instance, a person who buys a new car may experience post-purchase dissonance if they later find out that they could have purchased the same car for a lower price or that the car does not perform as well as they expected. [contactus_lilgoodness] Instances of Cognitive Dissonance in Post Purchase Behaviour Initiating the Return of a Product Returns are one of the most common forms of post-purchase dissonance. Not all returns are initiated due to cognitive dissonance in post-purchase behavior. However, many instances of returns do stem from customers having regret about making a purchase and take a conscious decision to return it and get their money back. Retailers are expected to have flexible return policies that allow their customers to return items for a variety of reasons and can also put measures in place to shield themselves from the additional costs associated with it. It is important to make sure that customers have a smooth returns experience so that they will consider purchasing from your company in the future. Leaving Negative Online Feedback Oftentimes, post purchase dissonance can manifest in the form of customers leaving negative reviews and customer feedback for e-commerce on a company’s own website or other online forums. Many customers often check the reviews and consensus from other customers before they decide to make a purchase from a business. However, negative reviews are an unavoidable occurrence in the retail business, regardless of how perfect you strive to be. What is important is the way that you handle these negative reviews, an opinion also shared by the majority of customers. For instance, complaints should be responded to and addressed immediately for the satisfaction of both the person who wrote them and for potential customers observing how your business handles them. Unsubscribing From a Paid Service Subscription-based services have become the norm in many types of retail businesses. Customers may be encouraged to subscribe to such services by a well-made ad or a smooth-talking customer service executive, only to regret it after the recurring bills begin to stack up. This is when they try to remove any unessential expenses from their lives, which often include subscriptions to various services. This is where your business should make it easy and swift for customers to delete their subscriptions if they want to, rather than making them jump through various hoops in order to prevent money from being debited from their accounts. Giving up on their business in the short term could result in them having enough satisfaction to give your business a chance again. Factors Leading to Post Purchase Dissonance Having High Involvement in a Purchase Post-purchase dissonance is more likely to occur with high-involvement purchases, such as a house, car or an expensive electronic item. This is because these purchases involve a significant amount of time, effort and money, and consumers want to make sure they have made the right decision. Therefore, consumers generally do a lot of research when it comes to these types of purchases and can easily experience feelings of regret if everything isn’t as it seemed in the beginning. Getting Only Limited Information If a consumer feels that they do not have enough information about the product or service they purchased, they may experience post purchase dissonance. This can happen if the consumer relied on incomplete or inaccurate information or if they were not able to compare the product or service with other options. Customers should be informed about what to expect from products through specifications and measurements. Accurate and detailed product information should be provided to ensure that customers can make well-informed decisions. Having Unmet Expectations Post purchase dissonance can also occur if the consumer's expectations are not met after purchasing the product or service. This can happen if the commodity they purchased does not perform as expected or if the consumer discovers a flaw or defect that was not apparent at the time of purchase. This is especially pronounced for high-value purchases but can still be a factor, regardless of how much the item costs, due to most customers wanting the best value for their money. If the product is lacking in any capacity than what they anticipated, it can lead to feelings of instant regret. Instances of Social Pressure Social pressure can also lead to post purchase dissonance. For instance, if a consumer made a purchase to impress others or to fit in with a particular group, they may experience feelings of regret or embarrassment if they later realize that the purchase was not worth it after having spent their hard-earned money on it. While this isn’t a reflection of the business itself, which may not lead to the customer having negative impressions of their purchase experience, it does play a part in them regretting their purchase, which is also a form of cognitive dissonance in post purchase behaviour. Availability of Alternative Options If a consumer becomes aware of other, more value-for-money or cost-effective options after making a purchase, they may experience post purchase dissonance. This can happen if the consumer discovers a product or service that would have been a better fit for their needs or if they find out that they could have gotten a better deal elsewhere if they waited a little longer or did some more research. 7 Ways to Reduce Post-Purchase Dissonance in 2023 Have a Flexible Returns Policy Source The last thing a consumer wants to do after making a purchase with which they are not satisfied is to put undue amounts of additional effort into learning about your return policy. Returns are undoubtedly inevitable so secretly keeping your policy in small print simply breeds mistrust and creates more dissonance. Note that difficulty in viewing your return policy is the first step in an unsatisfactory returns experience that causes more than 80% of customers to abandon a store. So consider improving the accessibility and transparency of your return policy if you want to lessen post purchase dissonance. Links to your policy can be made available across your website, like the homepage, listing pages, automated chat and FAQ pages, and you can also include a summary of it in the email that customers receive upon placing an order. Give Customers the Ability to Track Their Orders Source Being able to track their packages is viewed by most customers as a right, not a privilege. Many a time, instead of looking forward with anticipation at the arrival of their package, customers experience feelings of regret because the order didn’t arrive at the expected date and time and they didn’t have the information they needed to keep them informed about it. When something similar to this occurs, your company would take all the blame for the results and the impending hard-pressed feelings that come with it. After one late delivery, 17% of customers will cease making purchases from an eCommerce company. If their product isn't delivered within 2 days of the scheduled delivery date, 69% of customers are less inclined to make another purchase from the store. Therefore, make it a point to provide order tracking details along with every purchase. Ensure That Every Detail is Provided to the Customer Source Customers of eCommerce firms generally fall into 2 main categories - those who make impulsive purchases and those who conduct extensive studies on the items they're interested in purchasing. Even though it is challenging to lessen post purchase dissonance for customers that make spur-of-the-moment purchases, the propensity of the latter set of clients to experience it can be reduced by providing the necessary information. Try leveraging content such as product guides and instructional films to provide comprehensive information about your items. You can get ideas by visiting some well-known establishments and seeing what kind of information they are providing. To acquire inspiration for the content and its presentation, look at their listing pages, social media profiles, blogs, and other digital domains. Identify the Root Cause of Their Regret Source Post purchase dissonance frequently results from issues that need to be fixed that afflict many people. Knowing this information will be beneficial for your eCommerce firm since it will help you develop client loyalty by identifying and resolving the sources of customers’ woes. Identifying the root causes that generated the dissonance is more simple than you would assume. To find out more about your consumers' expectations, employ feedback methods like customer surveys, go through existing customer reviews and actively encourage customers to lay out their grievances. Statistics about product returns might also paint a reliable picture. You can use this data to implement practical strategies for lowering post purchase dissonance and improving customer service. Provide Customers With a Noteworthy Unpackaging Experience Source Consumers constantly anticipate the delivery of their online orders and if you don't take advantage of meeting their expectations when it finally arrives, their excitement could rapidly turn to regret. Coupled with lightning-fast delivery, a fantastic unboxing experience can win over your customers and make sure they don’t experience post purchase dissonance. Providing customers with what they need is just one aspect of the unboxing process that can also help to avoid confusion. Custom packaging can be used to offer a memorable unboxing experience as opposed to using a standard brown box. You can also use tactics such as environmentally friendly shipping, packing, adding personalized touches such as a handwritten letter, a thank you note or a unique message and providing samples of other products or promotional coupons within the box. Provide an Easy Way to Offer Product Replacements Source You can place an emphasis on retaining your consumers even if they are experiencing post purchase dissonance. You simply need to give them the impression that if they are dissatisfied with one item, you can provide them with other options in your eCommerce catalogue that they might find appealing. By suggesting this, you can demonstrate you have the desire to work with clients to locate products that meet their demands and that it is a partnership worth preserving. You can convert returns into exchanges by offering tailored suggestions. In order to encourage repeat purchases, you can also offer them the option of receiving their refund within the company’s wallet. Implement Post-Sale Communication With Customers Source Engaging with customers even after they have purchased an item shows them that you value them more than just their money. By doing this, it is pretty simple to decrease post purchase dissonance. To reassure your consumers that you genuinely value their patronage, you can communicate with them on a personal level, such as sending them messages on WhatsApp, highlighting upcoming sales, promoting new products and more. You can also inform them of the information they can expect along with their order, including the order's receipt, shipping status and arrival date. Conclusion: Eliminate Post Purchase Dissonance With WareIQ’s Enticing Services Repeat customers are an essential component of the success of many businesses. Importance should be placed on ensuring they have a positive experience, whether purchasing goods or returning them. Companies should take care to address customer complaints as soon as they crop up and have flexible return or replacement policies in the event that something goes wrong with a product or its delivery. Post purchase dissonance, if not handled with care, can be detrimental to a company’s reputation among existing and prospective customers. With just a little bit of effort and common sense, you can reduce the impacts of post purchase dissonance and even get rid of it almost entirely. Partnering with a 3PL company that offers customer-focused services will ensure that they take your brand seriously, limiting the effects of cognitive dissonance in post purchase behaviour. One such company is WareIQ. WareIQ is one of India’s leading eCommerce fulfillment companies. From order to fulfillment and inventory storage to last-mile delivery and enabling customer feedback, we provide your business with all the tools to ensure your customers have a seamless and positive experience with your brand. Some of the ways we can discourage post purchase dissonance are listed below: Branded Order Tracking We provide customizable eCommerce order tracking pages that can be designed according to your preferences and will help your customers gain real-time insights about their orders in style. Customizable Packaging We provide personalizable packaging where every element can be customized so that you can ensure your customers have a worthy unboxing experience, lowering their chances of feeling regret. Online App Store We have an app store with multiple downloadable apps that include functionality such as being able to provide shipping badges on your product listings to increase trust and being able to easily generate customer reviews so any complaints or feedback can be taken into consideration. Ultra-Fast Delivery We provide same-day and next-day delivery to ensure that packages reach their destinations intact and on time. Returns Management We are a reverse logistics company that completely handles your entire process so that your customers can return items seamlessly and hassle-free. Post Purchase Dissonance: FAQs How common is post purchase dissonance?Post purchase dissonance is a common phenomenon that affects many people, especially in situations where the purchase involves a significant amount of money or emotional investment. What are the symptoms of post purchase dissonance?The symptoms of post purchase dissonance can include:- Feelings of regret or remorse- Anxiety or unease about the purchase- A sense of disappointment or frustration- Physical symptoms such as headaches or stomach aches- Psychological feelings such as anger and disappointment Does post purchase dissonance affect all types of purchases?Post purchase dissonance can affect any type of purchase but there is a greater likelihood that it will occur in situations where the purchase involves a significant amount of money or emotional investment. Can post purchase dissonance lead to returns or refunds?Post purchase dissonance can sometimes lead to returns or refunds if the buyer feels that the product did not meet their expectations or if they regret their purchase. Can post purchase dissonance have long-term effects?Post purchase dissonance is usually a temporary experience but it can have long-term effects on the buyer's perception of the product, brand or seller, which can impact future purchasing decisions.
February 25, 2023
Minimum Order Quantity Explained: Formula to Calculate MOQ & 10 Benefits of MOQ for eCommerce Business in 2023
These days, starting a business is not a big deal, especially in the eCommerce space. People have enough money through their own resources or through investors but what they lack are knowledge and free time. They may know about the basics of demand and supply but don’t know how the nuances of running an eCommerce business or various factors that affect online business growth in multiple ways. Those factors can be efficient inventory management, warehouse management, streamlined last-mile deliveries, payment collections, etc. In eCommerce, inventory plays a crucial role. It is the biggest asset of a business among all its resources. Buying goods or raw materials isn't always easy for a seller. You need to find a trustworthy company that not only sells the necessary supplies at the right price but also allows you to order the most suitable amount possible and preferably, does not impose a minimum order quantity (MOQ). It is critical to understand how minimum order quantity works and why some suppliers may employ it. If appropriately controlled, it can help you boost your profits with increasing cash flow. MOQ can impact several aspects of an eCommerce business, including inventory management, pricing strategy, and customer experience. In this blog, we'll dive into the importance of MOQ and provide tips calculating MOQ and for finding the right balance between maximizing sales and minimizing costs. What is Minimum Order Quantity (Meaning of MOQ)? Minimum order quantity is the least number of units of a product that a retailer offers to sell to their customers at a particular time. In the eCommerce industry, it is mostly offered by a manufacturer or supplier in the context of production activity. A merchant can ask you to order an MOQ for a certain amount of money. MOQs are a reflection of the financial limits faced by suppliers while fulfilling an order. These can include expenditures associated with material, machinery, and completion of that order, such as shipping costs. It is maintained by suppliers to maintain sales margins and lower the operational and logistical costs of the business. What are the Different Types of Minimum Order Quantity (MOQ)? Simple Minimum Order Quantity Many businesses are not retailers although they have to fulfill a single order. The lowest limit could be the minimum order quantity or the least amount spent on the purchase. For example, a bike dealer directly buys bikes from the manufacturer but sells them in individual units. They maintain MOQ with a limited amount of stock with keeping in mind the constraints of economic factors by their target buyers. Complex Minimum Order Quantity Here, a retailer deals with many constraints at one time by taking care of various metrics such as price charts, quantity, quality, etc. A good example of this is orders placed by a grocery store owner or a chemist. A chemist has to fulfill orders for several medicines at a time for which they have to store different types of medicines in varying quantities. How does Minimum Order Quantity Affect Inventory? For both the supplier and the buyer, the minimum order quantity has a significant impact on inventory. Sellers who pick a high minimum quantity must produce and store large amounts and thus, their inventory management is affected by the MOQ. Buyers, on the other hand, must determine whether they require their product's MOQ, or else find another supplier with a lower minimum order quantity or explore various other inventory storage solutions. Buyers must think about things like storage capacity and the potential savings from acquiring products in bulk. Main Point of Difference Between Low MOQ and High MOQ High Minimum Order Quantity (MOQ) Suppliers with a high minimum order may need to keep a large amount of inventory with them to fulfill orders. Suppliers may need more time to fulfill orders if they want to keep inventory levels low and adopt just-in-time inventory management. Inventory requirements that are larger involve a lot of working capital and take up a lot of warehouse space. However, they save administrative expenses since products or raw materials can be ordered less frequently, resulting in savings further down the supply chain. While stockouts are less likely, there is a higher chance of products becoming obsolete with a high minimum value, particularly in the case of electronics. Low Minimum Order Quantity (MOQ) Suppliers don't require as much inventory on hand for orders with a low minimum order quantity because the typical order size is likely to be smaller. This could result in lower inventory levels and higher inventory turnover. A low minimum value might put a strain on your sales team, forcing them to manage more customers and work more to generate leads. Because orders are placed more frequently, administrative costs are higher. While low MOQ suppliers suffer the danger of running out of stock, they also run the risk of obsolescence. How to Calculate Minimum Order Quantity? There is no particular formula to calculate MOQ. It depends on various factors of a business like its size, location, operational sector, etc. It is built up to accommodate each supplier's unique problems and business needs. Businesses must select whether they want a lower minimum order quantity with a higher price when purchasing from their suppliers or vice versa. The more you buy from suppliers, the easier it is for them to cut costs per unit, which is why this system exists. Even though there is no set quantity for MOQ, there are a few things to consider when determining the optimum MOQ. Estimating Demand Demand forecasting considers product type, competition, seasonality, and other factors when calculating how many units you will sell as a merchant while ordering inventory. This information can assist you in making your next purchase decision. Inventory and demand forecasting go hand in hand in this equation. You might find that the manufacturer's minimum order quantity isn't far off from what you'd be able to sell. You'll also want to factor in your overall timeline for preparing the inventory to be shipped, which should include lead times, freight transit times, receipt of goods in the warehouse from your third-party logistics service provider (3PL), and any other potential delays, as you may find the need to order inventory sooner than expected. Knowing Your Break-Even Point If you want to set your minimum order quantity, you'll need to know what your break-even point is. When you recover the customer acquisition cost and your customer returns through email marketing efforts, you will get a better idea during the second transaction for DTC orders. Consider the lowest per-unit monetary amount you're willing to charge in exchange for a larger order value for wholesale agreements. It can't be so low that your profit margins suffer but if you're not merely paying for lesser amounts at a greater price, discounted prices are expected. Calculating Holding Capacity and Cost Some items are more costly to store than others (due to size, duration of storage, and special ecommerce warehousing requirements). It's more cost-effective to keep such items out of your inventory for as long as possible. The true cost of storing all of your products will reflect in your inventory holding cost, which you must consider before spending extensively on inventory. Framing Your MOQ Strategy Let's assume that you have high demand at all times. Suppose on average, your partners order 200 units per order, and you need to sell at least 150 units per order to break even. If your partners or clients have previously agreed to buy 200-unit orders, you might need to set your minimum order quantity to 200 units, or even lower to 150. Benefits of Minimum Order Quantity for Multichannel eCommerce Sellers and Buyers in 2023 A seller who sells their products on multiple channels including their websites through means such as dropshipping and 3rd party fulfillment has to strongly take care of the minimum order quantity. These days, retailers taking advantage of multi-location warehousing rely on order management software to manage all their orders and inventory. It helps them to cut costs on individual products which are transferred to buyers. Benefits for Sellers Better Cash Flow A seller should stock the right volume of inventory so that is not too high that they have to hold it for long periods of time where their money remains withheld and not too low where they cannot fulfill all their orders. Proper maintenance of minimum order quantity helps them to save more efficiently and have a better cash flow. Low Inventory Costs Storing a high volume of inventory is expensive. You not only need to pay to rent storage but also on tracking and maintaining inventory levels and keeping it safe. You will have to spend a lot of money to buy a high volume of inventory which is stuck for a long time. Assurance of Profit If an MOQ is set, orders are at the lowest amount after calculating the profit and it will not affect the inventory and transportation cost. This gives the business a guaranteed profit margin. Benefits for Buyers Increase in Savings When a seller saves money while selling a product, the effects trickle down to the buyers as well. This makes the end customer receive discounted prices from a seller who effectively manages inventory levels using minimum order quantity. Fresher Inventory A buyer buying products from a seller who follows MOQ will get fresh items because the seller stores the least amount of inventory that is needed. Steps to Implement Minimum Order Quantity (MOQ) Every idea, if tried and tested, can yield promising results compared to carrying out ideas that have not been researched. So for MOQ, these are the steps to achieve a better output. Calculate the Target MOQImplement the MOQ Calculate the Target Minimum Order Quantity This is the most essential thing to do while implementing minimum order quantity. You cannot purchase a lot of items and keep your inventory stocked with just those products. If these items are not going to get sold shortly then: There will be less space in your inventory to store other items.Your money will be stuck until the products are sold.The products could get expiredThe value of the products gets loweredThey start to need more maintenanceCosts will accumulate with time So for an easy check on this, you can take the following precautions: Figuring Out Demand Forecast the demand that you will need to fulfill in the future. Adjust your minimum order quantity per seasonal demands, the nature of the products, etc. Calculate the Break-Even Point Know the break-even point of a single product before you place an order in bulk. Consider All Possible Costs You must calculate all the costs associated with different minimum order quantity levels such as holding and transportation costs. Some products are expensive to store depending on their size, duration of storage, and special storage conditions. (e.g., fruits, vegetables) Implement the Minimum Order Quantity After all the trouble to calculate the right minimum order quantity, implementing MOQ is also a major task for the buyer. While implementing the MOQ, you may need to rent a warehouse, secure it, connect it to logistics partners, keep track of it, keep updating it, and add services like branded shipping, dropshipping fulfillment, etc. to it. You can also partner with a third-party fulfillment provider who will take care of all these things and give you extra benefits like multi-warehousing with MOQ, access to high-tech inventory management software, connections to more courier aggregators, RTO indicators, etc. Conclusion: Successfully implementing Minimum Order Quantity with WareIQ in 2023 As you we have discovered, MOQ is important for eCommerce players who are maintaining multiple shops at a time on multiple selling platforms. They have a lot of things to focus on. Instead of micromanaging things that will consume all of their time, they should focus on other important aspects and manage the business. WareIQ can be a solution for this. It provides you with the facility of multiple warehousing or fulfillment centers in different locations.You get an actual count of your inventory before initiating MOQs.You will have to spend less on warehouse (inventory) management after MOQ.It sends you a reminder for low inventory.It eases your holding capacity for a long time.It lowers your freight rate by placing your inventory near areas of high demand.It helps you to find the best logistic partner to make your fulfillment hassle-free.It enables you to promise your customers same-day and next-day delivery.It has features such as RTO Shield to prevent high costs associated with product returns. WareIQ offers sellers a full-stack platform. They also offer fulfillment centers near the recipient, which is something that not every eCommerce company can do. To save time, you can obtain all of your logistical needs in one place: inventory management, shipping orders, customer delivery concerns, and performance analysis. To enable firms to offer two-day deliveries, WareIQ maintains a network of fulfillment centers across India. They also collaborate with third-party companies to assist in the operations of their services, such as last-mile delivery. WareIQ handles issues that arise during order fulfillment, such as damaged or lost inventory, and responds immediately to provide a positive customer experience. To keep your cash flowing, they offer COD remittance twice weekly. Finding the most efficient and dependable choice for your delivery, as well as managing returns, are all taken care of. Minimum Order Quantity (MOQ): FAQs (Frequently Asked Questions) What does a minimum order mean?The smallest amount of a product that can be ordered in one delivery, usually to spread shipping expenses across a reasonable number of units, is known as the minimum order. We do not have an MOQ, and all of our wholesale products are sold in modest pack sizes through advanced shipping services. How do you find the minimum order quantity?There is no such formula for calculating it. MOQ depends on various factors like the size of the business, type of business, nature of the product, season for sale, and much more. What is MOQ in Supply Chain?The minimum order quantity, or MOQ, is the smallest order size that a supplier will accept. The smallest number of units is frequently used. Suppliers can, however, specify the minimum order quantity based on the order value. What is the purpose of MOQ?The goal of minimum order quantity is for suppliers to maximize their earnings while simultaneously getting rid of more inventory and weeding out "discount shoppers." What is EOQ & MOQ?Economic Order Quantity (EOQ) is a formula used in inventory management to calculate the optimal order quantity for a particular product. It takes into account the cost of ordering, the cost of holding inventory, and the demand for the product. The goal of using EOQ is to minimize the total inventory costs, which includes both the cost of ordering and the cost of holding inventory.Minimum Order Quantity (MOQ) is the minimum quantity of a product that a supplier is willing to sell to a customer. MOQs are often set to ensure that the supplier can produce or procure the product at a cost-effective price point. For example, a supplier may have a higher production cost for smaller quantities, and so may set an MOQ to ensure that they can cover their costs and make a profit. MOQs can vary depending on the product, supplier, and market conditions. How do you fix the minimum order quantity?If you are a buyer there is typically nothing that can fix the minimum order quantity (MOQ) set by a supplier. However, there are a few strategies you can use to try to negotiate a lower MOQ or find ways to work around it:1. Negotiate with the supplier: If you are a valuable customer or can demonstrate that you have a significant demand for the product, you may be able to negotiate a lower MOQ with the supplier.2. Look for alternative suppliers: If the MOQ set by your current supplier is too high for your needs, you can research other suppliers who may offer a lower MOQ.3. Group orders: Consider combining orders with other buyers to reach the supplier's MOQ. This strategy can help you save on shipping costs and reduce the overall cost per unit.4. Adjust your purchasing strategy: You can adjust your ordering frequency or the quantity you order each time to work within the supplier's MOQ. This strategy may require some planning and forecasting, but it can help you avoid overstocking or tying up too much capital in inventory.
February 25, 2023
3 Easy & Practical Steps to Sell on Meesho and Open a Meesho Seller Account in 2023
Meesho was founded in 2015 as an eCommerce selling platform and is currently headquartered in Bangalore. With a user base of over 2.6 million sellers across India, it is quickly emerging as one of the top online marketplaces in the country, taking on the likes of eBay and Snapdeal. The company’s focus is to provide an affordable alternative to some of the bigger names in the industry and offers a vast variety of categories and pricing options to consumers, as reflected by the more than 50 lakh product options on tap. In addition, Meesho also offers a relatively simple setup and vetting process compared to competitors, which makes it easier for small and medium-sized businesses to get onboarded and start selling their products to a large audience. In this blog, we take a deep dive into why you should sell on Meesho, how you can set up a Meesho seller account, the challenges faced by becoming a Meesho seller, and how WareIQ can assist with fulfilling Meesho orders. Why Should You Sell on Meesho? Least Commission Rates in the Industry While most large online marketplaces charge a commission rate of anywhere between 5% to 20%, Meesho uniquely charges much lower rates. While the company labels it as 0% commission, it is closer to a spectrum of 1.1% to 1.4% depending on the commodity type and category. However, this is still extremely low compared to industry standards and thus, enables retailers to achieve higher profit margins by pricing their goods accordingly. High commission fees can often detract from a retailer’s ability to be profitable so the low rates offered by Meesho can be a game-changer, especially for smaller businesses that run on much tighter margins to stay afloat. And, this is the main reason people prefer to sell on meesho. Lack of Collection Fees In a similar stance to the collection of a commission on every product sold, most eCommerce selling platforms also impose a collection fee and a set of fixed fees on every product that is sold. By the time all these fees are deducted, sellers are barely left with anything other than the scraps, after doing the hard work of researching and developing a product that ultimately generates the sale. Fortunately for retailers who sell on Meesho, there are no chargeable fixed or collection fees, which assists in them getting more money in their own pockets. 24/7 Operation Retailers who sell on Meesho can take advantage of the fact that it does not have to abide by the same restrictions and timings that a brick-and-mortar store does. This means that the window to generate interest amongst potential customers and ultimately make a sale, increases exponentially. No longer do sellers have to open their shops and patiently wait for customers to arrive. Rather, they can be doing something productive in terms of the business or even in their personal lives, knowing full well that orders can be generated, regardless of whether they are physically present at the office or not. eCommerce retail waits for no one as all the infrastructure that is needed to fulfill an order is already in place. Penalty-Free Returns One of the biggest eCommerce pain points for retailers who sell online is getting return-to-origin (RTO) requests from customers. Most other online marketplaces penalise sellers in some way or another, regardless of the reason for the return. Returns can often be initiated due to the fault of the retailer, such as when the wrong item is packed or the product is damaged in transit. However, the majority of returns happen from the customer’s end, such as them finding a better deal elsewhere, having buyer’s remorse or the product not meeting their expectations, so it is generally unfair for the buyer to incur the expenses in these circumstances. Retailers who sell on Meesho can breathe a sigh of relief as they are not penalised for returns, regardless of the reason and all the forward and reverse logistics are handled by Meesho itself. No Hidden Shipping Fees Unexpected shipping fees are one of the biggest contributing factors to customers abandoning their carts. Retailers often have to implement various strategies to combat the impact of shipping charges in order to maintain their profit margins. However, Meesho sellers can be reassured that they do not have to pay a single dime in shipping expenses while selling on the platform. Meesho uses the tactic of bundling the shipping cost into the price of the product. For example, if a seller prices a product at ₹300, Meesho will display the price on the listing page as ₹350, to account for delivery expenses. This means that retailers who sell on Meesho will never have to incur the price of shipping, which can alleviate a very big hurdle. [contactus_lilgoodness] 3 Easy Steps to Setup a Meesho Seller Account and Start Selling on Meesho in 2023 Set Up a Meesho Seller Account If you want to sell on Meesho, the initial step you need to take is to create a Meesho Seller Account. Go to Meesho.com and click on “Become a Supplier” on the upper right of the page. You will then be redirected to the registration page to fill out your mobile number. After you have done that, select “Start Selling”. You will then be taken to the Meesho Supplier Panel where you will have to type the OTP that was sent to your phone. You can then enter your preferred email and create a password. You can opt to receive notifications on Whatsapp if you need to. After that, click “Create Account”. The only things you need to sell on Meesho are: Active bank accountGSTIN (only if your sales exceed 40 lakhs)PAN card Begin Listing Your Products The next step to sell on meesho is to list the products you want to sell, go to the Meesho Seller Panel and click on “Catalogs Upload”. There are 2 methods to upload products listings on Meesho so you can choose the one that suits your requirements: Bulk Upload Listings Learn to Upload Bulk Catalogs and Become a Meesho Seller Select the “Add New Catalog in Bulk” option, mention your product category and choose the appropriate one from the list. After doing that, you will get an option to download a template or create your own. If you do not have your own, click “Download Template”. Once it is downloaded, you will get access to an excel-like spreadsheet. Enter the details in the form, using the instructions mentioned on the first sheet and enter the product descriptions on the second sheet. Once you have filled out all the information, go back to the previous page and select “Upload File”. Add Single Listings Select the “Add Single Catalog” option and repeat the same process of selecting your product category. After that, upload the relevant pictures to the website. Then, enter the product details and if there are multiple variations, click the “Copy Input Details to All Products” box and edit them individually from there. Finish providing the remaining details and click on “Submit Catalog”. Suggested Read: eCommerce Catalog Management Learn to upload a single catalog and sell it on Meesho Receive Orders and Deliver Them Once you have finished setting up your account and listing your products, you will start to receive orders from interested customers. You will get order notifications through your Meesho Supplier Panel and by email, whenever you get a new order. You can then choose to accept or reject it. The order can either be fulfilled by Meesho themselves or through your chosen 3PL fulfillment provider. You have now become a successful Meesho seller. Suggested Read: How to sell on Snapdeal? Challenges Faced by Retailers Who Sell on Meesho Enormous Delivery Expenses Because Meesho incurs all the burdens and costs associated with shipping and distribution themselves, it results in much higher delivery expenses than other platforms. Sellers are often good at finding ways to evade extensive shipping charges but implementing various strategies in terms of their pricing. However, Meesho doesn’t have this luxury and just has a standard practice of increasing the listing price by a percentage of what they would pay for the shipping charges. While sellers don’t directly face any of the heat that stems from rising shipping prices, they could be in for a rude awakening if Meesho decides that this policy isn’t feasible and starts to charge sellers for delivery. Varying Degrees of Quality Control Meesho doesn’t have very strict quality-checking procedures so oftentimes, customers will order a product, only to find that is damaged or that the materials used are substandard. While this may not be the fault of sellers who take it upon themselves to perform rigid quality checks on their own products, it does damage the reputation of the platform as a whole, including all the retailers that sell on, due to the fact that customers might associate the entire platform as not being reliable. This can result in lower sales and trust in companies that sell on Meesho. Slow Delivery and Inconsistent Customer Support Many customers often complain about Meesho products not being delivered on time. This reflects badly on sellers, many of whom rely on Meesho’s delivery service. Customers often associate a bad experience, not just with the selling platform but with the brand itself. If any issue does arise in the delivery process, customers are often greeted by lackluster customer service that doesn’t answer their queries or solve their issues. This can have severe consequences for brands that are trying to attain repeat customers. Suggested Read: You can also read how to sell on Etsy. Conclusion: Is it a Good Option to Sell on Meesho in 2023? Meesho is one of the few eCommerce marketplaces that prioritise the well-being of their sellers, over themselves and at times, even over their own customers. While this may seem like a decision that may not require much thought, retailers who sell on Meesho are also faced with their own unique challenges, just like any other selling platform, while also offering a variety of benefits such as being able to achieve the highest profit margins in the industry. Ultimately, the decision should come down to the short-term and long-term goals of the company, the nature of its products, the business strategy, and the type of audience they want to target. Retailers would be best suited to sell on Meesho while also selling on other marketplaces, in order to achieve the highest level of visibility and market share. If you are an aspiring eCommerce retailer or you already have an eCommerce business and are looking to expand, you can opt to partner with WareIQ. WareIQ is one of India’s fastest-growing eCommerce fulfillment providers that uses the most advanced technology in the industry to leverage the performance of our users and help them excel. We help users conveniently sell and manage their orders and inventory across more than 20 of the biggest eCommerce marketplaces, through our custom WMS. Users can track their inventory across multiple fulfillment centers and get real-time updates as and when any changes occur, manage all their past and present order data across every platform they sell on, forecast demand using historical data to determine the appropriate amount of inventory to store, make use of intelligent inventory placement solutions that are closest to their customers and much more. We also offer services that encompass the entire suite of fulfillment operations to achieve faster delivery speeds at more cost-effective pricing. Sell on Meesho: FAQs (Frequently Asked Questions) Can retailers sell on Meesho without GST?Retailers who do not exceed an annual sales revenue of 40 lakhs can sell without needing to pay GST. However, for most retailers, their sales volumes will exceed this amount and will have to pay GST. How does Meesho work for resellers?Resellers can share listings on Meesho with the people in their circle or on social media, which can earn them a profit per sale that they make. The products are supplied by the retailers who have opted in for this scheme. How much does Meesho charge?The commission rates on Meesho are as low as 0%. What products can I sell on Meesho?1. Women (Western and Ethnic Wear)2. Clothing for Men3. Clothing for Kidswear4. Makeup products5. Skincare products6. Jewellery7. Home Decor Products8. Kitchen Appliances9. Electronics Applicances. Does Meesho refund money if a product is returned?If a product is returned, Meesho offers a full refund to the seller that will be credited to their source account, in case it is an online transfer and credited to their registered bank account, in case it is a COD order. Is product selling on Meesho profitable?Meesho does not require suppliers to pay a commission; as a result, you can sell your goods on Meesho and make money without doing so. Does Meesho have its own warehouses?No, Meesho leases warehouses and logistics operations from other companies and consolidates it in a user-friendly manner for sellers. What services does WareIQ offer to Meesho sellers?WareIQ offers services such as a WMS that can integrate with multiple selling platforms, including Meesho and can synchronise inventory monitoring and provide real-time updates across all of them. We also provide order fulfillment for Meesho sellers that includes delivery to the end customer at the fastest and cheapest rates.
February 25, 2023