14 Best Ways to Reduce RTO Charges in eCommerce in 2022

14 Best Ways to Reduce RTO Charges in eCommerce in 2022

Businesses these days are involved in cut-throat competition, mainly on online selling platforms. They try to offer all the services they can to create a better online purchasing experience for their customers. One of them is the return option for buyers. One of the painful realities that online retailers must accept is that there will be customers that seek to return their orders. In order to reduce RTO frequencies, sellers employ a variety of tactics. If a retailer wants to be profitable in the eCommerce space, they need to reduce RTO costs. If not, their profit margins will fall or it may also start creating difficult scenarios. It is widely known that it’s impossible to reduce RTO requests to zero but taking care of a few things can optimize and reduce RTO charges to a certain extent. To achieve significant RTO reduction, you need to first understand it in detail. What is RTO or Return to Origin? The term return-to-origin or RTO, is often used in the eCommerce industry. The initiation of the return of a product and its return to the seller's warehouse is referred to as RTO. A package may be returned to the vendor for various reasons. An eCommerce business will incur more costs as a result of this. Setting strategies to reduce RTO costs is vital for the a business to maintain their profit margins and not incur extra costs. What are RTO Related Costs? When an online seller or selling channel provides the facility of free shipping, they add the shipping charges to the final selling price of the product. In certain cases where the sale is done but the product is in the process of being returned, all costs associated with the returns process are known as RTO related costs. For a seller, RTO reduction equals higher profitability. Let us understand the different RTO related costs and how to achieve RTO reduction. Charges for the Shipment to be Delivered and Returned Product delivery is chargeable for sellers, which they account for in the final selling price. If an RTO is initiated, it costs the seller twice the amount which they will not make back during the sale. Therefore, sellers need to find ways to reduce RTO costs. Costs for Repackaging Products are packed after picking them from the shelves of a warehouse, godown, or fulfillment center. Products are customized with multi-layer packaging and the invoices are posted on the outer packet which includes the receiver's address, barcodes, order number etc. In the event of an RTO, this packaging needs to be removed and put back in the inventory. Later when the same item is ordered again by another customer the seller needs to pack it again. Thus, sellers need to find ways to reduce RTO packaging costs. Cost Incurred due to Product Damage Through online selling, order fulfillment is done by achieved by travelling large distances. These products are picked up and kept with hundreds of other products, which could cause damage if they are not placed in a proper manner. This could result in an initiation of RTO because of product damage before it has even reached the buyer. Companies need to analyse how to reduce RTO caused by product damage. Costs During Handling of Recalled Inventory Storing and managing inventory costs a huge amount of money to a seller. Holding a product for a while can proportionately increase the cost, to the amount of time and addition of new products being added. Sellers seek to reduce RTO storage costs by investing in better inventory management facilities. Costs Incurred due to Expiration Passing of time makes a lot of products redundant. Christmas trees are mostly sold during the Christmas season. It applies for most festive seasons so if the product is delayed in transit, it may lose its importance and value due to which a seller will have to store it for a long period which may result in it becoming old fashioned and irrelevant. Practices That Can Help Sellers Reduce RTO Costs You can have the best products and most efficient fulfillment strategy but you will still get RTO requests. RTO reduction can be achieved but it can never be entirely mitigated. To reduce RTO charges, sellers can keep a few things in mind: Store Inventory Near High Traffic Order Placement Locations: It will not only help a seller in saving shipment charges but also to reduce RTO costs as distances to fulfill orders will decrease. Covering less distance is also effective in terms of limiting product damage. Choose Logistics Partners with Competitive Freight Rates: Freight rates in the supply chain matter a lot. Dynamic increases in fuel prices, and not using optimized vehicles can double the freight rate. If your logistics partner offers cost-effective rates, it can reduce RTO charges. Opt for RTO Insurance: This is a recent concept where eCommerce logistics companies and fulfillment companies give sellers an option of RTO insurance. If an RTO occurs, these fulfillment companies will bear the cost instead of the retailer, resulting in RTO reduction. Choose a Third-party Fulfillment Partner: The third-party fulfillment companies give all-in-one solutions to a seller. It stores your inventory at the best location with high order traffic at the cheapest freight rates, provides individual buyer RTO rates, gives the option of RTO insurance, and provides facilities like RTO shields. All these factors can reduce RTO costs. How to Reduce RTO Frequency in eCommerce? 14 Proven Ways To make your business more profitable, you can apply some tricks to reduce RTO charges. These tested tricks are as follows: Optimize Product Descriptions In online selling, people always complain about the difference between a products’ appearance on the website versus reality. When a customer buys a product, they read the product descriptions to get an exact idea of the product. So try to write a good description of the products with accurate facts and figures about its features and dimensions. Provide Order Tracking Many times, ordered products are not received by a buyer because the buyer is not present at the location. If the seller provides tracking and order scheduling facilities, the buyer can plan and receive it accordingly. Offer Multiple Modes of Payment These days, people are more reliant on UPI or card payments. So if the placed order is COD and the receiving person does not have cash (higher chance in the case of expensive products), the delivery partner should have multiple options of payment available. Convert Returns/Refunds into Exchanges If the seller turns the returns into exchanges, a buyer who often requests for RTOs will have to receive the parcel or they will not get the paid amount. In the case of COD, they can be noted and deprived of the COD option in the future. Check Customer Availability Before Attempting Delivery Most of the time, last mile delivery partners deliver products during the day which may be working hours for the buyer and they may not be present at the given location. So for the delivery, the delivery partner can first check the availability of the customer and schedule a time or change location after verifying the details. This will reduce RTO frequencies significantly. Alert for Consumers with High Initiation of RTOs These days with the help of technology and software, sellers have options to get the numbers of RTO frequency of individual buyers. If a person has a high rate of RTO requests, a seller could ban or restrict them from placing certain orders. Locations are also blacklisted by a few selling platforms as per bad fulfillment experiences. Offer Faster Shipping (Same/Next-Day Shipping) When a buyer orders a product, they expect to get it as soon as possible. They may find some other way to obtain it sooner or buy it from an offline market and when the order finally arrives, an RTO request gets sent. So, a seller should ensure to deliver products on the same day or the next day after the order has been confirmed to reduce RTO requests. Offer a Branded Post-Shipping Experience When a buyer reads the feedback about certain products and brands, they invariably find some feedback related to a bad delivery experience. Chances are that many customers may not have received their orders due to similar problems. The solution to reducing these kinds of RTO requests is to provide a branded shipping experience to your customers. Pick and pack it nicely, send confirmation messages, Message them the tracking ID/number, allow buyers to choose a favorable time to receive it and finally ask them to write a review. Reduce Cash on Delivery Losses Data shows COD orders are mostly converted to RTO requests and from a customer's point of view, they don’t want to pay before they get the product. In this scenario, a seller has multiple options to reduce RTO requests: Verification of Shipping Address A seller can verify the shipping address before dispatching the product to a logistics company. In case it is incorrect, which can turn into an RTO request, the seller or the logistics company can instruct the buyer to correct the shipping address to achieve a successful delivery. The address can be verified with address proof documents of the buyer. Profiling of Risky Orders Make a database of risky fulfillment and mark them according to different parameters. Then choose whether you want to give them an option for COD or ask them to pay before the order delivery. Providing Dashboard Analytics Discover indications that contribute to your RTO losses by getting RTO information at a state/city/pincode level. To better understand delinquent behavior and implement the learnings into your business plan, get full order review reports. This will reduce RTO requests that are fraudulent. Customization of Business Model Learn algorithms, evolve, and localize the learnings over time to continually increase accuracy based on your company's demands. To make it even more flexible, you can create your own flagging rules. Furthermore, blacklist specific persons based on email addresses, phone numbers, and other factors to reduce RTO costs. Automation of Important Processes As your eCommerce firm expands, automation becomes increasingly important. Set up automated workflows to automatically accept or reject red-flagged orders based on risk factors, saving time and money in the process. To maximize your business and decrease operating expenses and reduce RTO charges, automate order confirmations, payment collections and other operations. Conversion of Risky COD Orders to Prepaid Orders: If there are higher chances of RTO requests with an individual customer, only give them the option to pay before order placement. Prepaid orders result in RTO reduction and if an RTO request still occurs, allow an exchange instead of a refund. Optimizing Website Experiences in 5 Ways to Reduce RTO in eCommerce You may have observed that brand appearance matters a lot in its positioning. In online selling, the appearance of a brand depends upon its website. Websites increase brand value and with good brand value, RTO reduction of a product can be achieved: These are some ways to make your website more effective:   Implement a Return Policy For eCommerce businesses, return policies should be a set of rules created by a retailer or a selling platform to manage returns and exchange unwanted merchandise that a customer has purchased. It should tell the buyers what items can be returned and for what reasons, according to a timeframe over which returns could be initiated. Enhance Product Illumination When a product fails to meet the standards set out on the business’ website, it is a key contributor to product returns. It's disheartening to receive a shipment after waiting weeks for it, just to open it and discover it's not what you expected or required. Ways to reduce RTO requests in this regard are: Create an attention-grabbing headline summary.Summarize the product definition with a bulleted list of key characteristics and features.Use a paragraph to expand on what makes the product unique. Instead of focusing on describing benefits, focus on giving a solution.To persuade the consumer to buy, end with trust, social truths, urgency, and a call-to-action. Value Consumer Reviews If you have a high number of RTOs then there must be some reason why the majority of customers are not accepting the delivery. You can try to get feedback from the buyer who didn’t accept the delivery or read reviews of buyers who have written about their post order experience. Read all and then try to provide a solution. Introduce Product Videos If customers are returning items because they don't meet the product description's expectations, you might want to consider adding a video function to your product detail page. Brand films are now a highly effective technique for increasing conversion rates, reducing RTO requests and more individuals determine that after watching a product commercial, they can better imagine themselves using the product. Provide a Post-Purchase Confirmation Message Sending a post-purchase message(mail) to your customers can be a very effective way to reduce returns. Reduce objections that lead to refunds and keep customers enthused about what they just ordered by informing consumers about the product between order and shipment. Strategies to Decrease RTOs in eCommerce with WareIQ According to a recent study by KPMG, return shipments can make up to 20% of total shipments in e-commerce. This rate climbs to 40% in case of Cash on delivery (COD) orders. Return to Origin (RTO) is a nightmare for sellers as it significantly increases the logistic costs. RTOs rates are expected to increase even further in India with demand surges in tier 2 and 3 cities. Given the situation, reverse logistics has become an integral part of a business plan. Given the convenience of online shopping and the lack of risk, buyers can frequently return items without second thoughts. RTO logistics become extremely important to decrease this trend as well as the costs involved. The sheer amount of revenue lost by companies through return items is about 20% of the sale, and that’s exactly where WareIQ pitches in to help you save the costs. We optimize your return order logistics and improve overall efficiency with the help of insights derived from customer data, customer retention metrics and return policies. How Does WareIQ Help eCommerce Businesses in Reducing RTOs in 5 Ways? Quick TAT (Turn around time): Logistic partners provide an estimated delivery timeline based on which the customers anticipate the delivery. If it fails to reach them as per this expectation, there is a risk of an RTO and the customer opting to order from a competitor. This also affects the customer retention rate. With WareIQ’s Prime-like shipping, data-driven insights, PAN-India network of warehouses and excellent supply chain management system, orders reach the customers on time as promised. This ensures a higher rate of First attempt delivery, thus reducing the breach of TAT.Higher and Efficient First Attempt Strike Rate (FASR): Delivery success in the first attempt ensures happy customers and helps in their retention. This is an important metric since lower returns imply lower logistics costs on RTO. With WareIQ’s structured incentive plans, delivery partners are encouraged to deliver maximum shipments in the first attempt thereby increasing the FASR.Improved Non-delivery Report (NDR) conversion: Knowing the customer’s intent before performing the last mile delivery can save a lot of time costs related to RTOs. This can be achieved by validating the attempted shipments by directly communicating with customers via phone calls, SMS, e-mail, WhatsApp, etc. Any change of preference or cancellation or order can be recorded and shared to the shipping partner in real-time to decide whether to “Reattempt the delivery” or “Make RTO”. Performing this manually at scale is almost impossible. With WareIQ’s innovative solutions, most of it can be automated via IVR (Interactive voice response) calling, auto-SMS, auto-mailer, WhatsApp alerts, etc. This also keeps the customer well informed and creates an impact on improving the delivery conversion percentage. In the auto NDR process, the customer will get an IVR call immediately after a failed delivery or when the NDR remark is updated by the delivery personnel. Automation makes the entire process quick and efficient.Wrong or Incomplete Address: Amidst the huge traffic across the supply chain and sometimes because of consumer’s ignorance, deliveries often end up attached with wrong or incomplete addresses. This is also one of the major reasons for RTO. Address validation becomes important in this context. WareIQ ensures this authenticity with various checks on the same. This increases the chances of successful delivery. In case of an incorrect address, shipping is cancelled prior to dispatch. It allows not only for lower RTO but also avoids wasteful shipping costs.Automated Partner Pin Code Allocations: With WareIQ’s cutting edge technology, pin code allocation is automated. This altogether eliminates the hassles of manual allocations thus reducing logistics costs & shipping costs & RTO as well as increasing fulfillment serviceability and speed of delivery. Making changes in allocations is complex and takes a good amount of time. The system analyzes historic RTO percentages and cost per shipment (forward + RTO) to optimize the allocation and ensure that the courier with the lowest possible cost is chosen for the given pin codes. Such efficiency and cost reductions are not possible with manual processes. This also saves a lot of time in processing and shipping the orders. RTO Shield WareIQ's RTO Shield provides eCommerce/D2C firms with a comprehensive checkout strategy to reduce RTO losses and increase revenue. Why WareIQ’s RTO Shield? Request a refund for any RTO order that was predicted to be safe by the company.Smart COD checkout option based on technology to detect problematic customers and save on shipping costsDisable COD for untrustworthy and blacklisted customers automatically.Identification and deletion of duplicate ordersVerification of shipping addresses and intelligent shipping selections based on address completeness Benefits of RTO Shield Increase conversions and decrease cart abandonment.The quickest checkout time is under 10 seconds.Identify high RTO risk consumers using data sets from telecom, banks, hyperlocal, and OTT providers.Identify scammers using previous data on their past purchasing behavior and win over them. How Does it Work? Integrate the website/application with WareIQ3 months of historical data will be needed to train the model to predict accurately.Go live in 3 to 5 days Sign Up Now with WareIQ to avail our superior fulfillment tech platform & app store & enhance your online business growth by reducing RTOs with RTO Shield. Reduce RTO FAQs What is an RTO or Return to Origin?When an order is not delivered due to some issue or is delivered and is sent back to the seller for a particular reason, the process of return is called RTO. It impacts the seller because it is an extra expense that has to be incurred by the seller. How does RTO impact an eCommerce seller?It negatively affects an eCommerce business due to loss of money, time, energy and increases the chances of product damage. If an order offers free delivery and an RTO is initiated, the entire delivery and return logistics costs are borne by the seller. How can a seller reduce RTO costs?There are several ways to reduce RTO costs such as optimizing logistic costs, partnering with fulfillment centers, verifying addresses, promoting COD orders, marking higher individuals with high rates of RTOs, using an RTO shield, etc. How does WareIQ help eCommerce brands reduce RTO via RTO Shield?WareIQ's RTO Shield or Return to Origin Shield gives eCommerce and D2C businesses a complete checkout strategy and helps reduce RTO losses and increase revenue.

May 16, 2022

Flipkart Gold Seller Guide: Advance Towards Gold Tier Selling in 2022

Flipkart Gold Seller Guide: Advance Towards Gold Tier Selling in 2022

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

May 16, 2022

Top 10 Warehousing Companies in India in 2022

Top 10 Warehousing Companies in India in 2022

Warehousing is key to your success in supply chain management, and that is why it is essential to use the best warehouse companies in India. Warehouses need an integrated management system that includes professionals in different areas. These individual specialists help complete tasks concerning the financial aspects and stockouts, extending the business core. Warehouses provide a safe place to store goods until they are needed and are used to store goods and provide them with the appropriate packaging. They make sure that there are no shortages by ensuring that products are available when needed. Hence, they act as a bridge for the flow of goods or other materials, ensuring that demand is met with supply and reducing the difficulty in working around a fluctuating supply and demand problem. Proper warehousing is critical to boosting productivity and reducing costs. Warehouses have been changed from a storage space to a process that facilitates the efficient distribution of products between production and consumption. Warehouses exist in three different types: public, private, and bonded. Read along to find the list of top warehousing companies in India to decide which company will best suit your needs. What are Warehousing Companies? A warehousing company is responsible for storing products and goods purchased from a manufacturer, looking after those items at a facility, and then delivering them to another location for final fulfillment. For example, many eCommerce businesses buy products in bulk from their suppliers, who ship them to their warehouses to be stored. Online businesses partner with eCommerce fulfillment companies which have warehouses where they store, pick and pack products and ship them to end customers efficiently. Why are Warehousing Companies Important? Warehouses have been around for years. Today, they offer more than just storing items – may also provide services to optimize the supply chain and reduce necessary costs. Read on to find out the answers about the importance of using such services. If you need a warehouse company that can monitor and track your storage needs effectively, you should contact them now before you need their services. Goods only need to be released when they are required. Better Inventory Management 8% of small businesses do not track their inventory, and of those who do, 24% don't have any stock. Late orders and delayed processing mean frustrated customers and wasted time. Warehouse companies provide you with a centralized, convenient location to store your goods. With a warehouse, you will be able to track and manage inventory more efficiently and ship and distribute products. In case a product is out of stock, you will know right away and can provide your customers with alternative options in the meantime. More Efficient Packing and Processing Most warehouse facilities provide you with all the equipment and supplies you need to store, ship, and process shipments from customers. Pallet racks, loading docks, and packing materials are just a few examples of products you can employ to save time and money. Warehouses maximize flexibility by eliminating the need to arrange pickup or hire more employees for fulfillment. They can pack goods and classify them according to their legality and customer needs. It means that businesses have to write less code because the warehouse will do most of it and save money on logistics. Superior Customer Service 88% of online customers will pay more for faster delivery speeds. Over 63% of consumers expect to know an estimated or guaranteed delivery time. Better yet, they are willing to pay more for this service. A business's reputation can be quickly tarnished, which will hurt its revenue over time. If you fail to deliver orders on time, your company will suffer. With warehousing companies, you can return products more quickly and optimize distribution. They reduce errors and the chance of damage to goods while preventing your products from being lost or stolen in the order fulfillment process. Price Stabilization To maintain a continuous line of products, you can store your materials for a later release. A warehouse allows this by creating a demand-resource system where resources are available when needed. For example, if you own a sports equipment manufacturing and distribution company, you can store ski accessories in your warehouse so that when winter is over, they are still available. It ensures consistent stock levels to maximize your profits. Improved Risk Management Warehouses can store perishable items and may have refrigeration, depending on the type of storage you need. Warehouses offering cold storage for products keep your products at the right temperature and prevent them from spoiling or changing in colour or texture. They also help extend the products’ shelf life and ensure customer satisfaction. Additionally, your inventory will be insured, so you will have a better chance of being compensated if they're damaged. Advantages and Disadvantages of Partnering with Warehousing Companies When deciding whether or not to outsource your company's warehouse operations, you must consider several factors – you may be looking for a way to expand, but company growth is heavily contingent on your space.  New opportunities imply significant changes in storage needs. While not as environmentally friendly as other options, warehouses can efficiently and economically handle these needs with unique, expansive models such as CrossDocks WMS. Consider warehousing as an option for your business and whether there are any drawbacks before making your decision. Advantages of Partnering with Warehousing Companies Warehousing can significantly enhance your company. Under the right circumstances, you will benefit from warehousing your products, and overseas vendors will ship at as-needed intervals to reduce overstock and inventory.  Significantly Lower Investments Contract warehousing is a great option for a wholesaler, manufacturer, importer, or other small business that needs to store products, as its costs less money and time than regular warehouses. Warehousing using contracts lets small companies invest in obtaining and storing goods for a specific time, rather than investing in large warehouses to store items. Warehousing companies keep your inventory, allowing you to have less space and money invested. Safety, Security, and Insurance If you wish to guard your wares, leave them under contract warehousing and keep a watch for any breaches. Typically, you do not have to worry about safety when renting a warehouse, as a renter – usually the owner – handles security and rent collection. The products are insured, covered by a guarantee, and are closely monitored with video surveillance. Location and Distribution The location of a good contract warehouse can significantly impact the company's success and profitability because of availability. While warehouses are expensive and time-consuming, contracting with them allows you to store your inventory in multiple locations, giving you easy access to your stock no matter where you are. Flexibility and Scalability Ease of scalability is a benefit to using  warehousing companies – you can use as much or as little space as possible. Since different companies need different amounts of storage at different times, this saves time and money. The benefits of renting space in a warehouse are scalable and offer many other pricing options. Unlike having your own warehouse which needs considerable investment, here, you have the flexibility of renting rooms from different warehouses that often cater to various clients.  Access to Unlimited Distribution Centers and Technology Enabled Solutions Ecommerce distribution and delivery become easier through tech-enabled eCommerce warehousing companies. You can use leveling software that connects to all of your online stores, providing instant fulfillment. You can also receive real-time inventory monitoring reports and automate the order process by tracking and reminding people when it’s time to reorder. Inventory Tracking The distribution of your company’s products is handled by warehousing companies. The most efficient way to get real-time data on products in transit is to streamline the tracking process by providing SKU information, batch numbers, or serial numbers. You can also get activity information about your inventory with comprehensive auditing. Disadvantages of Partnering with Warehousing Companies Though there are some potential negatives, the benefits of outsourcing warehousing typically outweigh them every time. Complex Reverse logistics There are a few factors that can impact the efficiency of reverse logistics with warehousing firms. Reverse logistics is the set of post-sales activities that are related to recapturing value and attempting to end a product's life cycle following sales. It's also called backflow, meaning an order goes from front to back. When a company is unable to sell its products, it must ship the product back for the manufacturer or distributor. However, the costs for shipping and selling are higher for companies with electronic commerce. When the number of returns spikes in a certain area, it slows down warehouse operations and can lead to higher customer dissatisfaction. It can also be problematic for retailers online who rely on 3PLs to handle such exchanges. Less Control The main disadvantage of using third-party warehousing companies is that you give up some control over your supply chain and distribution networks. The third party takes this responsibility, communicating with customers and suppliers. This doubles the risks. 3PLs usually offer a partnership with a company, but this can be risky. Usually, it is not enough to mitigate the risks. As a part of this partnership, companies have to sacrifice control over their supply chain and distribution network. Top 10 Warehousing Companies in India Many top third-party logistics (3PL) warehousing companies handle warehousing, fulfillment, logistics, and distribution services. 3PLs and logistics providers specialize in distribution, warehousing, and fulfillment services. The core competency of these companies is logistics, and they do it well. Nowadays, many individuals start their own successful online retail businesses from anywhere globally. A 3PL company is often necessary to help their products efficiently deliver to customers. It includes Amazon, which used third-party logistics in the early stages of its company before establishing a logistics arm for itself. WareIQ Source WareIQ is an eCommerce fulfillment company that consolidates all aspects of fulfillment for eCommerce business into one platform. They also provide fulfillment centers near the recipient, an aspect in which not every eCommerce company has a competitive advantage. To save time, it is best to get all your logistic needs from one place: managing inventory, shipping orders, solving delivery problems for customers, and analyzing performance. WareIQ has a network of fulfillment centers across India to help businesses offer two-day deliveries. They also work with third-party providers to support their services' operations, like last-mile deliveries. WareIQ's State-of-Art Warehouses WareIQ offers integrated customer support services, such as messaging and calling. Its features include integrating your online store and eCommerce channels and sending the products. WareIQ can manage orders by picking, packing, and shipping them to customers with the same efficiency level as a ground team. It can also store products in warehouses and update inventory in real-time. WareIQ deals with problems during order fulfillment, like quickly damaged or lost inventory and returns promptly for a perfect customer experience. They offer COD remittance twice weekly to keep your cash flow. Your deliveries are handled by finding the most efficient and reliable option and managing returns. Emiza Source Emiza is one of India’s leading ecommerce warehousing companies. It has warehouses across 7 cities in India. Emiza's fulfilment centres help their eCommerce customers with speedier delivery and distribution, as well as simplified consumer returns. Shippers frequently have agreements in place with warehouses of 3PLs like Emiza that consistently handle huge amounts of business. These agreements allow Emiza to deliver the best shipping and distribution rates to eCommerce players, which are then passed on to the client. Returns are collected and sent to the warehouse facility in the event of an improper order, where the proper procedure is followed. Read the blog on best 3PL for small businesses to get access to the list of 3PL providers. Stockarea Source Stockarea has a network of 100+ warehouses across 10+ cities in India in 2022 & caters to its customer’s inventory storage, & movement needs. It has warehouses of all sizes & functions - General warehouse, Bonded warehouse, Cold storage, Food grade warehouse etc. Central Warehousing Corporation Source Central Warehousing Corporation is a statutory body under the Government of India. Its mission is to provide socially responsible and environmentally friendly integrated warehouse and logistics solutions that are dependable, cost-effective, and value-added. It is a government-owned public warehouse operator that was founded in 1957 to help the agricultural sector with logistics. Its aim is To reduce warehousing, handling, and distribution losses & to provide seamless forward and backward integration in areas such as port handling, procurement and distribution, cold chain, warehousing financing, 3PL, consultant services, multimodal transport, and others to plan and diversify across the logistics value chain. Gati Source Gati is an Indian company with a long-standing relationship with the express distribution industry, responsible for many of the innovative innovations in the logistics industry. With an income of INR 1700 crores per year, Gati provides customers across various sectors with integrated Express Distribution and customized Supply Chain Solutions. They are among the top warehousing companies in India. Gati has a fleet of 5000+ vehicles available in India comprised of air, rail, and road transportation. Additionally, Gati has 7000 business partners who work as Gati Associates. Snowman Source Snowman Logistics provides a variety of logistic solutions for companies in India. Responsible for everything from refrigerated transportation to infrastructure, Snowman Logistics delivers the opportunity for frozen and chilled items to return to their natural state with the help of their transportation division. The company has many warehouses throughout the country and owns a fleet of 293 trucks. With their advanced logistics, customers always get what they need when and where needed, maximizing customer satisfaction. VRL Logistics Source VRL is a global logistics company that offers tailored warehouse and 3PL solutions for the needs of its many customers. VRL makes it possible for you to be confident in your deliveries as it has been a dependable company since its inception. They provide economical Priority Cargo, Courier Service, and Air Chartering. Many of VRL's corporate partners use the parcel service to transport goods within India because it offers its largest transportation network. The system has also strategically placed trans-shipment hubs to meet customers' needs better. IndoSpace Source IndoSpace is India's leading industrial warehousing provider that operates in a variety of capacities, with facilities for various types of products. It was the pioneer of modern industrial real estate in India with a partnership with Everstone, which invests in India-focused private equity firms. In 2018, IndoSpace partnered with GLP, which has $89 billion AUM. The IndoSpace-GLP partnership allows IndoSpace to leverage GLP's expertise in fund management, development, and operational resources. The IndoSpace platform manages three funds – one core fund and two development funds – and is a joint venture vehicle established with the help of a large Canadian pension plan. The other two funds are opportunistic investments where the companies have combined equity commitments for over $1 billion. IndoSpace holds more than 40 million sq. ft. of industrial/warehouse property. It can also be named Best Developer of Industrial/Warehouse Real Estate in India for six years. The company is also known as the Best Developer of Industrial/Warehouse Real Estate in India for the last six consecutive years by Euromoney. It has been named the Firm of the Year – India by PERE. Mahindra Logistics Source Mahindra Logistics Limited, a portfolio firm of Mahindra Partners, provides integrated third-party supply chain and people transportation solutions to various business sectors. Mahindra Partners has a market capitalization of $20.7 billion. With Warehouse Management Systems (WMS), they have automated traditional warehouses to increase operational efficiency, increase inventory visibility etc. Kotak Logistics Source For many years, Kotak Logistics has been successfully serving its clients in the heart of India with the country's oldest heritage port. They are a top warehousing company and are rapidly growing as a professional group. It has demonstrated experience with advanced operations at major ports & also provides services like road freight, air freight, and ocean freight. Conclusion Should you opt for warehousing companies for your eCommerce needs, the factors to keep in mind include the size of your business, the amount of capital you have, and other resources that can be allocated to your eCommerce logistics strategy. Suppose you have a warehouse that meets the needs of your eCommerce inventory and maintains a process for order management. In that case, taking care of your eCommerce warehouse should be enough to meet customer expectations. One of the biggest reasons to leave warehousing to professionals is the sheer scale. Expert warehouses have access to technology and systems to keep track of every item stored in their facility that most small businesses can't afford. If you want to scale your business quickly, consider a third-party fulfillment center. Large companies like Amazon can continue to grow without relying on warehouses with an efficient system. 3PL fulfillment companies provide access to pan-India network of fulfillment & micro-fulfillment centers to the small businesses & medium sized businesses & help them offer the same service level as larger enterprises in this scenario. One can manage and fix all logistics issues, from inventory to fraud—the perfect solution for organizations as it is a one-stop shop. Hence, less time is wasted on shipping and more time is allotted for focusing on business growth. These are the salient advantages of partnering with a 3PL provider: A Time-saving Tool It is often difficult to organize everything from inventory tracking to customer orders. A 3PL provider will take this challenging task away from you and keep tabs on your products. With more space and a better organizational system, you will have an easier time with everything. Accuracy 3PL services provide warehousing for eCommerce and help by taking the fulfillment process of picking and packing off their plate. They have staff specializing in each part of the order fulfillment process and work to identify any supply chain optimizations. Their technology and procedures ensure that products are delivered to customers on time for a good customer experience. Unlimited Growth Online business needs to be growing to be successful. They can use 3PL services from top providers to take care of warehousing to concentrate on other functions. These warehouses can be an asset for your business, contributing to growth. WareIQ is one of India’s leading and fastest growing full-stack eCommerce fulfillment companies that offer a variety of services from same-day and next-day delivery, shipping badges and RTO Shield, to state of the art technological solutions such as our custom WMS and our intuitive, well designed app store. We can take care of your brand’s entire fulfillment requirements and ensure that you and your customers get the best order fulfillment in the country and have a hassle-free experience and raise satisfaction levels to new heights. Over 300 of the fastest-growing eCommerce brands such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, already trust WareIQ with the fulfillment process of their companies, so they can focus entirely on core aspects of their businesses such as sales, marketing and R&D. You can also reap all these amazing benefits while stepping up your eCommerce game. We are tailored to every kind of business and offer the most competitive prices in the industry.  Sign Up Now with WareIQ to take advantage of our superior fulfillment tech platform & accelerate the growth of your online business.

May 12, 2022

Warehouse and Fulfillment Center: What Are the 5 Key Differences?

Warehouse and Fulfillment Center: What Are the 5 Key Differences?

Companies that solely take care of a fulfillment warehouse, usually partner with businesses that work with non-commercial, or B2B orders that deal with large amounts of products. More substantial companies & retailers have their own warehouse and fulfillment center facilities, where they can store their redundant products, or rent storage to partake with other businesses. Generally, it's a cost-effective idea for small and medium-sized businesses to lease warehouse and fulfillment center space, depending on the terms of the contracts. In case you're looking to store your business’s inventory until they’re in demand, or small warehouse and fulfillment spaces aren't working out for you, a fulfillment warehouse is what your business requires. What Are Warehouses? When Are They Needed? It is common to compare a warehouse and fulfillment centers although they have significant differences. A ecommerce warehouse is a structure where goods and products are stored for a huge period of time. It is a facility designed to store the inventory of a business in large volumes until they are needed to fulfill an order. A fulfillment warehouse is equipped with high shelves, piled with numerous goods, forklifts, and employees moving all around the structure. Operationally, what happens in a warehouse is a static job. Supply chain management includes warehouse management and fulfillment services. What Are Fulfillment Centers? When Are They Needed? In the product supply chain, warehouse and fulfillment centers are two distinct but equally significant components. A fulfillment center, like a warehouse, is a huge structure that houses a company's goods. It does, however, serve a variety of other uses. Unlike warehouses, where products are stored for longer durations, fulfillment centers and micro fulfillment centers only hold items for brief lengths of time before shipping them out. These centers fulfill B2B and B2C orders for retailers, eCommerce companies, corporations, and other businesses. Fulfillment centers are responsible for the complete order fulfillment process in terms of operations. Order fulfillment is the process that begins with the sale of a product and ends with the customer's post-delivery experience. It includes all you need to know about receiving, processing, and delivering orders. After a customer purchases a product from an eCommerce site, inventory is selected, boxes are packed, and labels are applied before being dispatched to the customer's address. Fulfillment centers can handle both B2B and B2C orders, which either refer to large volumes of products sent to a big-box retailer or orders delivered directly to a customer's home. Outsourcing eCommerce fulfillment is a great option because it covers everything from inventory management to negotiating prices with carriers. Outsourcing order fulfillment to a third-party logistics provider can help sellers manage inventory, improve customer experience, and enables more time to be spent on the core activities of the business. The goal of ecommerce fulfillment services is to respond rapidly to incoming requests and deliver products efficiently. Unlike a warehouse, inventory in a fulfillment center does not sit around for long. While startups and small businesses may initially fulfill orders in-house, using a fulfillment warehouse is an important element of scaling up. These terms are sometimes used interchangeably, and warehouse and fulfillment services are frequently provided by the same organization. However, there are significant disparities between the two. Understanding the relationship between a warehouse and fulfillment center, as well as the necessity for both, can help order processing and inventory management greatly. Warehouse Vs Fulfillment Center: 5 Key Differences Although the terms warehouse and fulfillment center are sometimes interchangeable, they have very different meanings. Both of these structures house inventory for firms that sell products online. Every fulfillment center is a warehouse, however, a warehouse and fulfillment center aren't always equal. Fulfillment and warehouse logistics are quite similar and can be easily mistaken. Consider geometry courses to help you remember the difference. A fulfillment center and a warehouse are like squares and rectangles when compared. Rectangles are squares, but squares are not rectangles. The main distinctions are the degree of tasks completed inside and the requirements of clients they are each expected to serve. There are many differences between warehouse and fulfillment center services, which are listed below. [table id=2 /] What are the Advantages and Disadvantages of a Warehouse? Advantages of a Warehouse Products are always available: The primary advantage of warehouses is that products are available at all times, so companies need not worry about running short of stock when a need arises. As a result, retailers can focus on other vital issues rather than worrying about product shortages. In other words, just as a salaried individual who saves money does not have to worry about liquidity during a contingency, corporations with warehouses do not have to worry about the supply of goods since they have enough stock to fulfill any increase in customer demand. Sales are never lost: If a company does not have a warehouse and receives a large order from a customer unexpectedly, it has no choice but to refuse the order because there is a limit beyond which it cannot produce goods unannounced, which will result in lost sales and customers gravitating to competitors, causing the company to lose market share. Wastage is reduced: Warehouses have all of the facilities needed to safely store perishable items for extended periods, resulting in less wastage. If commodities are not housed in a warehouse, the possibilities of them being damaged are higher. In other words, because of warehouses, a corporation does not have to worry about wastage if sales are lower than expected. Disadvantages of Warehouses High setup costs: The most significant disadvantage of having a warehouse is the high initial setup cost, which many small businesses cannot pay, forcing them to rely on public warehouses or rented warehouses to store their goods. Simply said, high setup expenses are one of the most significant barriers to a company establishing its own warehouse for storing its items. Additional administrative costs: Another disadvantage of warehouses is that, in addition to the initial setup costs, the company must also pay regular expenses such as warehouse employee salaries, electricity bills, and other administrative fees, all of which lower earnings. The benefits of having a warehouse must outweigh the ongoing administrative costs for the warehouse to be successful. Negligible increase in sales: Warehouses can only assist in keeping a steady supply of items to match consumer demand; however, if a firm believes that establishing warehouses will aid in raising sales, it is incorrect; When a company has a solid product and a good marketing strategy, there will be an automatic reflection in the sales volumes. In other words, warehouses can help ensure that a company's product never runs out, but if the company's product isn't good, owning a warehouse is pointless and wastes resources. As can be seen from the points above, owning a warehouse has both advantages and disadvantages, which is why a firm should weigh the key factors before deciding whether or not to either set up its own fulfillment warehouse or rent out a warehouse from a dedicated company. What are the Advantages and Disadvantages of a Fulfillment Center Advantages of a Fulfillment Center Enables the company to focus on core aspects of the business: Using a fulfillment center allows you to delegate the fulfillment process to a trusted partner, allowing you to concentrate on growing and promoting your business, increasing sales, and sourcing products.  You can enhance the growth of your business when your eCommerce warehouse and  fulfillment services are streamlined. Reduction in payroll and benefit costs: Even if you have internal fulfillment personnel, as your business grows, more manpower will be required, which means increased payroll costs and benefit packages, which will eat into your profits. You may also have problems with employee turnover, which can be costly when you consider the time it takes to train personnel to do their roles properly. Minimizing overhead costs: There are numerous fees associated with managing your fulfillment requirements. Warehouse rental, additional employees & salary, equipment, utilities, and warehouse management software will all be expenses. You can forecast your budget and estimate earnings if you choose a warehouse and fulfillment company to manage these areas because you will know the ongoing costs associated with the collaboration. Enables huge shipping discounts: You will almost certainly incur more shipping charges as an individual business than if you partner with a fulfillment center. Because of the volume of goods they manage, fulfillment centers can negotiate lower shipping prices with numerous carriers. Furthermore, because of their proximity to your consumer and how carriers calculate shipping prices, shipping rates would be lower as a whole. Management of Inventory: Inventory management must be done correctly. Managing the inventory of your business can be time-consuming and expensive. Partnering with a fulfillment company relieves you of that load. To monitor and report inventory, the most advanced inventory management systems and software systems are utilized. You always have real-time access to information, so you know how much inventory you have and what you need to reorder. Disadvantages of a Fulfillment Center Although there are a few disadvantages to working with a fulfillment center, certain customers have unique reasons for keeping their fulfillment operations in-house. These are the most significant barriers that hinder business owners from working with a fulfillment center. Relinquishing control: Business owners prefer to have complete control over every element of their daily operations, including warehouse fulfillment services. If you collaborate with a top-rated fulfillment company, the shift will be seamless. All of the advantages will become apparent in a short period, and the ultimate results will speak for themselves.  Limitations on customization: When it comes to fulfilling orders, some businesses want to put their distinctive spin on things. The most prevalent areas of customization include handwritten or personalized notes, as well as brand-specific packing materials. It’s true that when you outsource to a fulfillment center, some of these nuances may have to be sacrificed but the lower prices which you can pass on to your clients, coupled with the extra time you can spend building your business, will make up for these tiny things. Possibility of increased costs: While most clients will save money by working with a fulfillment center, there are times when doing so may increase costs, even if shipping fees are saved. This is especially common among merchants who trade in modest amounts and volumes. In the end, these smaller customers may benefit from a fulfillment center collaboration since it allows them to focus on sales, marketing, and overall business growth. Mistakes made by vendors: When you outsource to a fulfillment center, you may not be aware of an issue right away, whether your vendor sends too little or too much product, the wrong product, or worse, damaged items. You may not even be aware of an issue until you receive complaints from a customer. Working with a fulfillment center will help you avoid these problems because we'll keep track of your warehouse and fulfillment process from start to finish. Customers should keep in mind, though, that these things do happen, and that they should be prepared when they do. Fulfillment Warehouse and Fulfillment Center: Which Storage Solution is Suitable for Your Business? Each warehouse and fulfillment service has a distinct purpose. Making the best decisions for your company is critical as a business owner. The capacity to reach a wider network with full operational integration to sustain customer satisfaction is the difference between a fulfillment warehouse and a regular warehouse. Unless the purpose is only to store products for a long period, a fulfillment center's consolidated services are more valuable. Companies who choose to run their fulfillment in-house, limit their options. They're trapped with a limited number of locations if they rely on only one or two warehouse and fulfillment centers, and they struggle to optimize for speedy shipping, which can impair the customer experience. The capacity to pivot fast and go where the people are has become increasingly vital to fulfilling the changing needs necessary for customer satisfaction today. Customers demand the convenience of quick shipping at no additional expense. A warehouse simply lacks the capabilities to provide speedy, flexible fulfillment in a long-term manner. If you want to take advantage of warehouse and fulfillment services, WareIQ can be of great help. WareIQ is one of India’s leading and fastest growing full-stack eCommerce fulfillment companies that offers a variety of services from same-day and next-day delivery, shipping badges and RTO Shield, to state of the art technological solutions such as our custom WMS and our intuitive, well designed app store. We can take care of your brand's entire fulfillment requirements and ensure that you and your customers get the best order fulfillment in the country and have a hassle-free experience and raise satisfaction levels to new heights. Over 300 of the fastest-growing eCommerce brands such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, already trust WareIQ with the fulfillment process of their companies, so they can focus entirely on core aspects of their businesses such as marketing and R&D. You can also reap all these amazing benefits while stepping up your eCommerce game. We are tailored to every kind of business and offer the most competitive prices in the industry. Sign Up Now with WareIQ to take advantage of our superior fulfillment tech platform & accelerate the growth of your online business.

May 09, 2022

What is Retail Fulfillment? 6 Steps to Fulfill Retail Orders in 2022

What is Retail Fulfillment? 6 Steps to Fulfill Retail Orders in 2022

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 the similar rates offered by different sellers on multiple selling channels. All of them may not have the product physically at their 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 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. 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 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 such an important aspect of your business such as retail fulfillment, you may end up neglecting other tasks such as product development and marketing. 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. Here are the pros and cons of dropshipping model: Pros: Requires less space: A physical sellers 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 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 sellers 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 by 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 center or fulfillment centers 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? There are several steps involved in retail fulfillment and 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 prices 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. 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, manuel 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 fulfilment 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 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. 300+ brands, such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, have trusted WareIQ as a reliable partner in their growth journeys. No minimum order quantity requirements make it suitable even for small businesses, having low order quantities, to take advantage of the latest trends such as next day delivery and same-day delivery. The onboarding process is simple, convenient and less time consuming, while the pricing policy is clear and transparent. WareIQ also undertakes strict safety precautions at its warehouses and complete ownership of the operations, thereby minimising the risk exposure of WareIQ customers. Thus WareIQ will definitely prove to be a more reliable and trusted long-term fulfillment partner compared to dropshipping and conventional 3PL companies. Sign Up Now with WareIQ to avail our superior fulfillment tech platform & enhance your online business growth.

May 09, 2022

What is D2C Fulfillment? 10 Reasons Why D2C Brands Need a Fulfillment Partner

What is D2C Fulfillment? 10 Reasons Why D2C Brands Need a Fulfillment Partner

Nowadays, e-Commerce logistics businesses are more convenient for both customers and sellers, and the modern world has already started to adopt this means of selling. In 2022, the benefits of D2C fulfillment by selling directly to the consumer are well known, such as better supply chain exposure, stronger customer relationships, and no middlemen involved. Also, there are numerous positive stories about D2C brands that have succeeded in getting a fast start. However, the quicker your company grows, the more critical it is to ensure that your D2C fulfillment operations can scale efficiently and capitalize on growth opportunities. What is D2C Fulfillment?  D2C fulfillment, also known as direct-to-consumer fulfillment, is an e-commerce shipping model in which a merchant sells directly to the end consumer through digital channels rather than relying on intermediaries such as retailers, distributors, or wholesalers to reach their target market. The involvement of these intermediaries may reduce your profit level and take more time to get your targeted customers. D2C brands are responsible for handling their stock and fulfilling and shipping orders that they can do in-house, such as through dropshipping or by outsourcing the process to a 3PL. What are the Processes Involved in Direct to Consumer Fulfillment? The process begins when a customer places an order and concludes when they receive it. If the buyer needs to return a product, direct-to-consumer fulfillment will also handle the return logistics procedure. Here is the list of processes in direct to customer fulfillment: Receiving Inventory The initial step in the D2C fulfillment process is receiving inventory from the company warehouse or from whole sellers. You should be very careful in counting the incoming stock lists to avoid future issues. Once you count the entries of the inventory, you need to inspect the quantity and quality of merchandise to ensure that you have received the proper amount of stock. Bar codes on incoming products are used in the receiving and storage processes and later, in the retrieval of goods from internal storage. Storing Inventory When goods arrive at the fulfillment center, they are inventoried and distributed immediately or sent to short-term or long-term storage. The next phase would be the proper storage of inventory. It is a good practice to store the appropriate goods, in relation to their demand, instead of hoarding vast amounts of inventory in the anticipation of future sales. Processing the Order The picking and packing process of a product is dictated by an order processing management system for every newly received order. Order management software integrates with an eCommerce website's shopping cart to automatically initiate order processing in the online marketplace. Picking the Relevant Product One of the most important processes in direct-to-consumer fulfillment is picking the right items ordered by your customers. The process of picking the required item will either be automated or performed by a dedicated picking team, based on the packing slip's instructions. Product size, color, and number of units are some of the metrics mentioned in the packing slip, that are used to determine the right product to be picked Packing the Order The next interesting process after picking the required items is packing them properly. The packing team or robots will select the packing materials. Because space on delivery trucks is limited, optimizing the dimensional weight (or DIM weight) is critical for expediting transport while potentially lowering shipment costs. Return shipping material will be included by the packing teams when customers want to exchange or return the item for a refund. Shipping the Order The order is routed through a transportation channel or shipping aggregator before being delivered to the customer. Shippers and carriers calculate the billable costs of freight based on the volume. Even if the actual weight is low, as in the case of garments or other similar products, packing it to achieve the least DIM is often worth it to keep the packaging from significantly increasing the overall package weight and thus, the cost of the entire shipment. Delivery to the Final Customer The final process is delivery which means handing over the product to the customer. Shipping routes frequently use multiple carriers. For example, the carrier may pick up a package at the fulfillment center that will later be delivered to the customer's home by another carrier. These hybrid shipping methods are used for a variety of reasons such as delivery estimates and costs provided by each carrier. Why do D2C Brands Need a Fulfillment Partner? Top 10 Reasons The final stage of supply chain management is D2C fulfillment. Direct to Consumer fulfillment enables products to be delivered to the desired location. Below is the list of benefits that D2C brands experience by collaborating with a fulfillment partner: Enhanced Customer Satisfaction DSC Fulfillment companies devote their efforts to providing quick and efficient order fulfillment services. Working with a fulfillment company provides you with skilled staff and warehouse management systems. Your orders will be expertly packed and shipped, resulting in increased customer satisfaction. Obtaining Valuable Business Expertise  Companies need to value insights offered by their D2C fulfillment partners to be successful. When you find the perfect fulfillment partner and build a strong working relationship, the fulfillment company can be critical to the growth of your business. Furthermore, your partner is a valuable resource for queries about inventory planning, packaging, shipping, and other fulfillment-related topics. Adaptable Warehouse Space  Expansion and growth are crucial for any eCommerce company. However, the sudden increment in demand and supply may force you to scramble for additional warehouse space and fulfillment capacity. When you work with a direct-to-consumer fulfillment company, especially one that uses a variable cost model for the fulfillment, you can quickly and easily scale up or down your fulfillment requirements, based on demand. Differentiation From the Competition In today's competitive market, it is nearly impossible for D2C brands to differentiate themselves just on the basis of pricing or product offerings. However, by focusing on providing a stellar customer experience during the fulfillment process, your brand can differentiate itself from the competition and establish a much stronger emotional bond with its customers. Increasing the Value of Your Offerings Every touchpoint in the order fulfillment process, especially the moment of delivery, must be streamlined if you want to be perceived as a premium service. It is much easier to justify high-end pricing when buyers believe they're getting an exclusive experience. According to a study, more than 75% of customers are willing to spend more at a company that provides a superior customer experience. Increasing Your Scalability The most difficult aspect of D2C fulfillment is scalability. Order fulfillment services are a fantastic way for brands to improve customer experiences, but they also pose one of the biggest obstacles in 2C fulfillment, because eCommerce shipping firms with a high volume of orders face unique challenges. D2C brands have a big edge over traditional stores through their ability to manage the entire consumer experience.  Improving Customer Service  It is often simpler to keep customers than it is to find new ones. Most order fulfillment companies offer phone or email support 24 hours a day, seven days a week, allowing for simple returns and exchanges. A D2C fulfillment partner can also provide you with assured delivery dates or same-day delivery services. It helps to improve the overall customer experience. Minimizing Operating Costs It is expensive to ship your packages, hire employees, buy packaging supplies, sustain quality control, and rent space. You can avoid these overhead costs by partnering with a D2C fulfillment company and sharing resources and space with other sellers. In short, 3PL fulfillment services will minimize your operating costs by outsourcing fulfillment for D2C businesses where you wouldn't hire or supervise any staff or worry about fulfillment logistics. Reducing Shipping Costs Many people will ignore outsourcing fulfillment requirements because they perceive it as an additional cost. However, D2C fulfillment service companies can save you money in various areas, including shipping costs. To begin with, a direct to consumer fulfillment partners may have fulfillment centers and shipping partners located throughout the country and even abroad. They ensure that your goods are closer to your buyers by balancing your inventory across this vast network of fulfillment centers.  Accelerating Delivery Speed The impact of being able to access numerous warehouses scattered across the country extends to reduced shipping times. Outsourcing fulfillment lets you deliver faster by locating inventory closer to your buyers. It is a huge benefit for retail businesses. Most consumers expect their purchases to arrive in two days or less. You may need a strong D2C fulfillment partner to meet those high demands and compete with the country's largest chain retailers. What are the Key Services Offered by D2C Fulfillment Companies? Inbound Logistics  Products are delivered in bulk to the warehouse, and inventoried, according to their demand, expiry date, and other metrics. Warehousing  Storing inventory is mandatory to deliver them securely to your customers. Your products are stored at the fulfillment center until they are shipped to the consumer. Inventory Management Once you have stored your inventory in a D2C fulfillment provider's warehouse, they will manage it for you. They will monitor and maintain optimal inventory levels to avoid understocking and overstocking.  Distribution Centers or Direct to Consumer Fulfillment Centers  D2C Fulfillment companies will offer distribution center services where the required goods will shift from the warehouse to these distribution centers to initiate the delivery process to the end customers. Packing and Moving  Sending orders in generic, lifeless brown boxes creates an unpleasant and impersonal client experience. The D2C fulfillment partner takes care of this by efficiently packing the orders securely with premium materials and attractive designs so that they can be shipped as soon as possible. Last-Mile Delivery Customers prefer to have their orders delivered to their homes rather than shopping in large crowds and queuing for payment, particularly during the pandemic. As a result, this requirement forces online retailers to invest in last-mile delivery management software to manage their last-mile delivery services, which are provided by d2c fulfillment partners. Returns and Outbound Logistics  Returns, also known as reverse logistics, are an essential component of direct-to-consumer fulfillment. Shippers and carriers pick up packages from the warehouse and deliver them to customers. Setting up an efficient returns process for your customers will increase your sales and reduce wastage. Route Planning and Optimization  Evaluating the most cost-effective route and mitigating any roadblocks and delays is known as route planning. It is more difficult than simply determining the shortest path between two points. D2C fulfillment companies also offer this effective service. Tracking Solutions  Customers who shop online expect real-time updates on the status of their orders. D2C fulfillment partners invest in cutting-edge technology to provide tracking solutions. It assists in ensuring efficient order mapping and timely communication with customers via fulfillment statuses. Centralized Delivery Planning  Fulfillment companies put a lot of focus on providing centralized delivery planning. Centralized delivery planning entails making decisions holistically at a higher level rather than independently at the local level. Automation  Automation eradicates the need for manual data entry, resulting in a more streamlined order fulfillment process that can process higher volumes of orders with fewer people involved. Four Different Ways of Fulfilling Direct-to-Consumer orders There are various ways to fulfill the demands of the D2C brands, and here is a list of  the 4 most prominent solutions: In-House Fulfillment In-house order fulfillment, also known as self-fulfillment, occurs when a merchant completes all the steps of the fulfillment process internally without the assistance of a drop shipper or fulfillment company. At this stage, in-house fulfillment typically consumes a significant amount of valuable time that could be spent on obtaining more customers, developing new products, and launching marketing campaigns. Both warehouse space and warehouse management are required for in-house fulfillment. Fulfillment Through an External Partner Fulfillment through an external partner is when a third-party order fulfillment company handles the shipping, storing, and order or refund processing. Employees of the fulfillment company will take on the entire fulfillment process, from receiving inventory from manufacturers to delivering products to the end customer. Inventory is stored in a 3PL-controlled warehouse, which means that companies that use outsourced fulfillment do not need to invest in their own warehouse facilities. Companies that do not have enough storage space or personnel may opt for this option. Independent 3PL Fulfillment Third-party fulfillment companies are experts in direct-to-consumer fulfillment. When you work with a 3PL, you have complete control over the entire process. You can select which 3PL warehouse locations you should use for storage and shipments. Your products can be shipped in your own brands' packaging, and your 3PL can add package inserts to customize and personalize the customer experience. Furthermore, fulfillment centers also provide various services to assist you in growing your business.  Hybrid Model A hybrid fulfillment model is used by a company that uses a combination of the above order fulfillment options. A company, for example, may process some orders in-house, such as specially made items or easily perishable goods. Some businesses use drop-shipping for infrequently purchased items or that they would not want to store in-house, such as huge or expensive items. It is ideal for businesses requiring more flexibility or experiencing rapid growth. Factors to Consider when choosing a D2C Fulfillment Service You cannot randomly choose a D2C fulfillment service for your business, and the wrong choice may bring a poor reputation and significant losses to your brand image. There are a few factors that you should consider when choosing a D2C fulfillment service, and these are listed below: Price Hard-earned money is extremely, especially for a budding eCommerce retailer., As a business owner, you need to think about your requirements and available budget while choosing a D2C fulfillment service. Fulfillment services are a huge process for your business, and it is necessary to enquire about charges for various services. Try to compare the prices of 2 to 3 companies and pick the more reasonable and cost-effective option. It is not a good idea to opt for the cheapest service which may not be professional. Operational Network Apart from price, you need to consider various other things, including investigating their shipping network. If you plan on expanding your business operations, you would need a fulfillment company that already provides services in locations that you would want to expand to. Flexibility and Location Customers have grown accustomed to same-day delivery as even more eCommerce businesses strive to reduce the time between ordering and receipt of the product. When choosing a fulfillment service, the goal is to ensure that the products arrive at their destination as soon as possible and their services are flexible. The shorter the required time for delivery, the happier your customers will be. As a result, location is important when selecting a provider for your company, and don't forget to consider their flexibility. Inventory Management and Daily Reporting The next essential factor to consider is their inventory management and daily reporting services. Details about inventory levels are necessary for your business, and it is the D2C fulfillment provider's responsibility to analyze and report them on a daily basis. Look for a fulfillment provider who handles inventory management and provides regular and accurate reporting on your inventory levels to save time. It allows you to easily manage your stock levels and ensure a smooth order flow. Quality of Fulfillment Quality of fulfillment is an unavoidable factor to consider when selecting a fulfillment service provider for your business. There is a study that shows 50% of customers will not shop again on the same platform if they had a bad experience such as a delay in delivery, poor packing and damaged packing, etc. They expect to have a smooth delivery, customer support, and return options, which are not possible in self-fulfillment. Check the quality of the D2C fulfillment service by enquiring about previous client encounters, quality control procedures, etc., and choose the provider once you feel satisfied with their quality control levels. Existing Client Base The final factor to consider by you for choosing a fulfillment service provider is their existing client base. Knowledge about the experience that previous and current customers of the fulfillment company can equip you with all the tools that you need to determine if they are the right fit for your requirements. Why Should You Choose WareIQ as a D2C Fulfillment Partner? Delivering the orders to your customers directly without intermediaries is not an easy task without the help of a fulfillment service. If you want your D2C brand to shine better in this competitive world, hire the best fulfillment service company after considering the factors involved in developing your business. Check every detail listed above, such as the process involved and the benefits of hiring the fulfillment service company. WareIQ stands apart from the rest as one of the best D2C fulfillment partners for businesses of every size and domain.  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 – an Amazon Prime-like experience but accessible to everyone. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfillment centers, micro-fulfillment centers & urban dark stores near their customersAccess to all major national & hyperlocal last-mile couriers at discounted rates for making same/next day deliveries possibleEasy integration across multiple online platforms & marketplaces enhancing multi-channel sellingHorizontal marketplaces: Flipkart, Amazon, etc.Vertical marketplaces: Nykaa, Myntra, etc.D2C platforms: Shopify, Magento, WooCommerce, etc.Social commerce platforms: BikayiAccess to a superior centralized tech platform for eCommerce operationsML-based prediction engine for efficient warehouse network design & smart inventory placementCentralized platform for core fulfillment & shipping operationsPost-shipping apps for delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customized offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in eCommerce warehousing and data-driven decision making. WareIQ’s WMS, a 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 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. 300+ brands, such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, have trusted WareIQ as a reliable partner in their growth journeys. No minimum order quantity requirements make it suitable even for small businesses, having low order quantities, to take advantage of the latest trends such as next day delivery and same-day delivery. The onboarding process is simple, convenient and less time consuming, while the pricing policy is clear and transparent. WareIQ also undertakes strict safety precautions at its warehouses and complete ownership of the operations, thereby minimising the risk exposure of WareIQ customers. Thus WareIQ will definitely prove to be a more reliable and trusted long-term fulfillment partner compared to dropshipping and conventional 3PL companies. Sign Up Now with WareIQ to avail our superior fulfillment tech platform & enhance your online business growth. Direct to Consumer Fulfillment FAQS What is D2C Fulfillment (direct-to-consumer)?DTC (direct to consumer) is a way of marketing items directly to customers. The intermediary is either totally or partially removed from the sales process when using DTC. Suppliers offer their items directly to clients, with no merchants or wholesalers involved. Why are D2C Fulfillment products becoming more popular?D2C Market is the new Retail Market. Some of the important factors that lead to D2C brand growth are lowering the prices of products, focusing on customer-related policies, quality assurance, consumer engagement, supplying products on demand What are the core benefits of D2C Branding?D2C Fulfillment companies have more data at their disposal to help them better understand what their customers want and why. The D2C business model gives brands more control over the brand image. D2C Brands can form direct relationships with their customers, and on-demand delivery which increases the quality of sales. How does D2C Fulfillment contribute to the supply chain network?Products are normally stored in a central site or a few satellite locations in a D2C firm. D2C businesses deliver things in packages directly to customers. As a result, shipping and handling is an important aspect of the supply chain. Why do customers like the D2C business delivery model?D2C businesses provide the most streamlined, convenient, and easy buying option, making them an appealing alternative to visiting a physical location.D2C is the new trend, more than 80% of active buyers consider buying online, and then the product is made available to buy through the d2c business model. What is the difference between B2C and D2C?The main difference in B2C and D2C business models is that D2C companies sell their product directly to their customers via outlet or website without any middleman or wholesaler or retailer. On the other side B2C businesses sell their products to end consumers through any sales channel. What is the reason that D2C brands fail?When properly marketed, D2C brands can generate massive demand, but without a logistics partner in place, they would struggle to make a profit. Major reason being, D2C brands not having the time or resources to set-up new warehouses or hire staff/labor to fulfill a high volume of orders. Does WareIQ offer D2C fulfillment?Yes, WareIQ provides direct to consumer fulfillment service. WareIQ stands apart from the rest as one of the best D2C fulfillment partners for businesses of every size and domain. Is D2C the same as ecommerce?Depending on the products sold on its platform, an eCommerce website may or may not be a D2C business. For instance, Flipkart is not a D2C ecommerce website on the other hand KamaAyurveda’s own website is D2C.

May 09, 2022

What is Direct Fulfillment? How is it Different from Amazon FBA?

What is Direct Fulfillment? How is it Different from Amazon FBA?

eCommerce retailers are constantly striving to offer the best services to their customers at the most competitive rates to out-shine their rivals. There are many important decisions to be made, especially in terms of order fulfillment because that is the most visible aspect to the customer and they get to experience it first hand. There are many different methods of order fulfillment and today we take a look at one of the more unconventional ones - direct fulfillment. Read further to understand what it is, how it works and if it would be the right fit for your business. What is Direct Fulfillment? Direct fulfillment is the process of shipping goods ordered by a customer directly, using the company’s own facilities and resources, and not relying on a 3PL fulfillment company for any aspect of the fulfillment process. Another process is that wholesale sellers make a large number of product purchases, obtained from the producer, after which separation of the goods into distinct categories occurs, in order to sell to retailers. The distributor then sells the products to the end consumers. This is known as Indirect distribution. Fulfillment By Amazon (FBA) is a service provided by Amazon that helps their clients with storage, packaging, shipping guidelines, and other aspects of the fulfillment process. This reduces the burden on sellers. Sellers ship their products to an Amazon fulfillment center, where the products are stored in warehouses, according to their demand, expiry date, etc. The products are then shipped whenever they are needed. When an order is placed, the employees in Amazon are always physically getting ready to prepare, package, and ship the products. What are the Benefits of Direct Fulfillment? There are many benefits in the process of direct order fulfillment, especially during the inception of an online retailer, where customers would be fewer and demand would still be on the lower side. A few benefits of direct order fulfillment are Ability to consolidate important information on client purchasing habits.Ability to separate yourself from the competition.First-hand look as to the performance of certain products and client feedbackFaster supply of your goods to your customer'sRemoval of payments and credit to a third-party distributorDirect relationship with your clientsExpanded number of ASINsBuy request no neededUnavailable assuranceHassle-free reverse logisticsNo outbound delivery costs How do I get started with Direct Order Fulfillment? Direct order fulfillment starts with the following steps: The online retailer gets client requests and orders.The company checks stock and by the same token, acknowledges or dismisses the order request.The company initiates the fulfillment of each order from the area allocated by Amazon (commonly a stockroom) and drops the request if they don't have stock in that area.The company satisfies the order request by utilizing the chosen transporter and transport strategy during the arrangement. If you are currently an Amazon vendor 1. If it's not too much trouble, record a help case in your Vendor Portal mentioning the desire to be set up on Drop Ship Central and Direct Fulfillment. If you are not currently an Amazon vendor Train your onboarding contact that you would like the "DF (Direct Fulfillment)" box checked during arrangement on Vendor CentralDuring the Vendor Central arrangement process, you will get a challenge to pursue Drop Ship Central, the administrative entry for dealing with your immediate satisfaction queries.As a component of the guided setup process, you will be asked to (1) pick your conveyance name preference (utilize Amazon's transportation mark as opposed to giving your delivery name); (2) provide your fulfillment warehouse data; (3) provide your hours of operations, occasion, and termination plans; and (4)select a transporter.In around 48 hours, you will get the last guidance to transfer your stock feed data into Drop Ship Central. What are the Advantages and Disadvantages of Direct Order Fulfillment? Advantages Of Direct Fulfillment You can oversee your own branded shipping, stock, and orders.As long as you have the space, can print address names, pick and pack, and stand in line at a mailing station, you can satisfy orders on your behalf.It functions reliably, assuming your clients are nearby, the operations are sensible, and the transportation costs are negligible, particularly when order volumes are relatively low.Rather than most 3PLs, you can store and transport transitory or perishable merchandise, such as blossoms or lithium batteries.You can be located closer to your clients since this choice accompanies more client contact.  Disadvantages Of Direct Fulfillment This strategy requires a lot of staff to oversee customer service and other eCommerce fulfillment processes. This is likely removing diverting your attention away from developing the business.You need to have adequate warehouse space to store items.To ensure quick international shipping, would require a lot of capital and resources than partnering with a 3PL fulfillment company.Human blunders can happen when orders expand in size and complexity, particularly on the off chance that you are not utilizing automation to assist in dealing with your stock. Read our blog about Seller Fulfilled Prime to get a better understanding of other services Amazon has to offer. What are the Main Points to Keep in Mind while Choosing Direct Fulfillment? Fulfillment companies new to direct order fulfillment and multi-level marketing (MLM) organizations might battle with one or more of the extraordinary prerequisites needed to successfully serve their customers. Nature of Business Retailers with expanding business operations are best suited to benefit from direct order fulfillment. Such businesses have the monetary means and available manpower to take on the process of fulfilling customer orders on their own, without needing to bank on Amazon’s fulfillment services. Retailers that seek to reduce their order fulfillment and logistics costs can do so by distributing to customers directly and don’t need to pay any fees to a 3PL fulfillment company. Reduced Delays Retailers who rely on Fulfillment by Amazon frequently face challenges relating to inventory receiving times. The receiving process, which would initially take 5 days, can now take upwards of 30 days. This lengthy delay can severely reduce the availability of inventory. By independently taking care of order fulfillment processes, companies can make use of their entire inventory, which would result in an increase in sales. Benefit to small businesses Small businesses generally find Fulfillment by Amazon to be a useful tool and can adopt Amazon’s offerings as their main fulfillment strategy with Direct Fulfillment as a backup. Retailers who make use of Fulfillment by Amazon have access to standardized shipping devoid of any hassles. Amazon takes care of the storage of inventory, packing, and shipping aggregation for all orders that come in. Smaller businesses can also use direct order fulfillment as a backup option to transfer more of their products. Fulfillment by Amazon (FBA) vs Direct Fulfillment: What are the Differences? Given the benefits, it shouldn’t shock anyone that most third-party sellers on Amazon utilize its Fulfillment by Amazon (FBA) service. With FBA, sellers' items automatically qualify for Amazon Prime and Super Saver Shipping. They can likewise exploit Amazon's customer service experience, and this all means acquiring more deals than contending with non-FBA sellers. Notwithstanding, not all that sparkles is gold. Amazon's FBA has its disadvantages as well, and numerous sellers frequently select to deal with this aspect of eCommerce logistics themselves.  If you're a third-party seller deciding on direct order fulfillment, you might need to enlist external assistance to help you in dealing with the logistical portion of your business. Fulfillment, direct or otherwise, has become well known and has progressed as necessities have ascended over the last ten years. Innovation is a major tool in terms of dealing with the entire cycle and monitoring individual shipments as well as the stock in the warehouse. For the vast majority of businesses, the goal is to get to the same level of assurance that Amazon Prime offers in terms of reliability and quality. The differences between direct fulfillment and FBA are listed below: [table id=5 /] Conclusion Direct order fulfillment facilitates your enterprise to manage expenses and mitigates dangers while at the same time enhancing your capacity to serve customers. You get all the recognition for providing professional services but conversely, you also get all the blame if something goes wrong. It is a primary step and doubtlessly, a hard one. If you feel that your business needs to outsource its fulfillment requirements to a 3PL company, WareIQ can definitely be of service. 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 – an Amazon Prime-like experience but accessible to everyone. 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 empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfilment centres, micro-fulfillment centers & urban dark stores near their customersAccess to all major national & hyperlocal last-mile courier services at discounted rates for making same/next day deliveries possibleEasy integration across multiple online platforms & marketplaces enhancing multi-channel sellingHorizontal marketplaces: Flipkart, Amazon etc.Vertical marketplaces: Nykaa, Myntra etc.D2C platforms: Shopify, Magento, WooCommerce etc.Social commerce platforms: BikayiAccess to a superior centralised tech platform for eCommerce operationsML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfilment & shipping operationsPost-shipping apps for delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfilment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing and data-driven decision making. 300+ brands, such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, have trusted WareIQ as a reliable partner in their growth journeys. No minimum order quantity requirements make it suitable even for small businesses, having low order quantities, to take advantage of the latest trends such as next day delivery and same-day delivery. The onboarding process is simple, convenient and less time consuming, while the pricing policy is clear and transparent. WareIQ also undertakes strict safety precautions at its warehouses and complete ownership of the operations, thereby minimising the risk exposure of WareIQ customers. Thus WareIQ will definitely prove to be a more reliable and trusted long-term fulfillment partner compared to dropshipping and conventional 3PL companies. Sign Up Now with WareIQ to avail our superior fulfillment tech platform & enhance your online business growth. Direct Fulfillment FAQs (Frequently Asked Questions) What does direct fulfillment order mean?The term "direct fulfillment" refers to sending an order directly to the customer. Direct fulfillment is when your eCommerce company sells D2C (direct to consumer) and ships orders to your customers. However for wholesalers, if you are selling products to other online retailers, you will ship the orders of your products in large quantities. What are direct fulfillment centers?A direct fulfillment center is a site where products and orders are shipped directly to customers  or individual shoppers. These multi-million-square-foot warehouses store products, pick and pack orders, ship orders, and manage product returns. What is Amazon’s direct fulfillment program?Amazon Direct Fulfillment is a backend service of Amazon fulfillment. A vendor that is a part of the Amazon direct fulfillment program can ship products directly to consumers when Amazon runs out of product. What is the difference between FBA and Direct Fulfillment?In FBA, Fulfilled by Amazon, You ship a portion of your inventory to Amazon fulfillment centers, where it is held until a buyer decides to purchase it. However,  in the case of Direct Fulfillment, vendors ship their products directly to the customers.

May 07, 2022

What is Pick and Pack Fulfillment Service? A Detailed Guide on Warehouse Processes in 2022

What is Pick and Pack Fulfillment Service? A Detailed Guide on Warehouse Processes in 2022

It is a known fact that selling is not an easy task and when it comes to online selling, retailers need to make a lot of efforts to sell a product. You could create a website or go on multiple channels, list products, take care of door-step delivery, and a lot more. Among all the selling processes, order fulfillment is one of the most important tasks after a buyer places an order.  Receiving and sending orders entails a complicated set of interconnected procedures known as Order Fulfillment. In the process of fulfilling an order, storage, picking, packing, distribution and receipt of the product by the customer are the important stages. Pick and pack fulfillment services are one of the earliest and most crucial stages in order fulfillment. It not only guarantees that the product can be sold to the buyer’s preferred location but is also useful in branding, marketing, and tracking the product. This article will introduce you to the principles of pick and pack fulfillment as well as show you how to handle picking and packing. What is Pick and Pack Fulfillment Service? An online seller, after receiving an order on their website or another channel, sends an order confirmation message to the customer and then initiates order fulfillment. In the order fulfillment process, pick and pack fulfillment is the earliest process that a seller initiates. As the name pick, pack and ship fulfillment suggests, it is the process where ordered products are picked and packed, following a standardised process.  In a fulfillment providing company, the supply chain must be streamlined with picking and packing fulfillment to reduce the logistics costs.  Picking is choosing the appropriate product from storage, in the least amount of time, after an order has been placed. Dedicated companies that provide picking and packing fulfillment, have a sophisticated way of doing it. It is further classified into piece picking, batch picking, zone picking, and wave picking. Packing is placing the things in the correct sized box with the proper packaging materials to ensure that they arrive at their final destination unharmed and at the lowest possible cost. Packing should involve efficiently placing orders within the fewest number of boxes and use the right type of packing material(s) for each product to reduce shipping costs and maintain order accuracy. Many warehouses include a warehouse management system (WMS) that can assist in determining which box is the best fit for the order at hand. What are the Methods of Pick and Pack Fulfillment Service? Methods of pick and pack fulfillment may vary depending on the size, location, tie-ups with fulfillment centers, registration on different selling platforms, etc. A seller can change the picking and packing styles as per business requirements. Here are the standard pick and pack fulfillment methods that most companies do to fulfilling orders. Piece picking method In this method, a single product is picked and sent for packing and further processes.The retailer’s pick and pack fulfillment partner picks the order from the seller's shop, warehouse, or fulfillment center shelves and initiates the order fulfillment process. Mostly piece picking is done by small businesses, luxury or heavy product sellers. For them, piece picking is the easiest pick and pack method. Batch picking method The batch picking method is an organized way of consolidating numerous orders to deliver to different locations. It is done, once a seller recieves orders in large numbers. The orders are picked up in batches according to the pick-up location of the fulfillment center and the location of the customer. You can have a single SKU for several orders, it makes sense to bundle those orders together which will save time and resources. It is also done by small retailers, once they get a good amount of orders. Zone picking method In this method, objects are picked up zone-wise and later transferred to another zone till it is delivered. It requires a strong fulfillment network, complex coordination, and technology to achieve the most accurate results by the fulfillment center. Zone picking will need a good pick and pack Warehouse Management Software to handle and automate all the complex processes involved. Wave picking method It is a combination of batch picking and wave picking methods. Here, a person arranges the batches of products according to their zonal movement. Then they transfer the batches to the respected delivery personnel in different zones. These days, most of the good fulfillment centers are doing the same. It saves time, energy, and cost.  What are the Benefits of Pick and Pack Fulfillment Service for eCommerce Businesses? Suppose you are an eCommerce seller and do multi-channel selling, you get orders across the nation, and you can fulfill hundreds of orders in a single day. While focusing on your core work of selling, you will have to take up a new responsibility of pick and pack fulfillment and also keeping track of hundreds of orders. You will need dedicated resources and capital for it. You might not be able to solve disputes across the country, so this is where pick and pack fulfillment companies can help. They will store your inventory in their fulfillment centers. From the fulfillment centers, they will pick, pack and transport it to a shopping aggregator or courier service, which will then distribute it to the final location. In case you are a small seller, you can focus on the core aspects of your business such as expansion, marketing, development of new products and refining existing ones, instead of spending time and resources fulfilling orders miles away from your shop or godown.  The benefits of pick and pack fulfillment through pick, pack and ship services are listed below: Fulfillment of orders 24x7: A seller through online selling sells 24x7 so they should also have access to pick, pack and ship services fulfillment 24x7 for faster delivery and customer satisfaction. Pick, pack and ship services receive, pick, and pack items around the clock. Access to branded packing: Most fulfillment companies provide branded packing services that help you with customized packing. It saves you the cost of packaging and transportation and also the hassle of trying to make your packaging appealing to attract more customers. Transportation to the best courier service: To make pick and pack fulfillment a better experience for both the seller and their customers, this pick, pack and ship services drop off the ordered items to the best logistics providers and courier services in a certain delivery area. They have enough experience to know who offers better delivery service in that area/city/state/region where orders need to be shipped. Customized pick and pack fulfillment methods: Orders are picked and packed after analyzing and bifurcating the ordered items according to their demand and estimated delivery time. They use the wave picking method in which they save cost, time, and energy. Professional fulfillment staff: These pick and pack fulfillment companies are professionals in the field of pick, pack and ship services and order fulfillment. They have a number of solutions for any mishap that could occur and contacts to resolve them in the shortest amount of time possible and at the cheapest rates. WareIQ's Reverse Logistics Enhanced reverse logistics: After selling the product, companies need to have a comprehensive reverse logistics service in place in order to combat any wastage that could occur. Pick and pack fulfillment services take care of the entire reverse logistics process.  Why should you choose a 3rd-Party Pick and Pack Fulfillment Service? In the era, where multiple unicorn start-ups are mostly outsourcing resources, there is a huge demand for pick, pack and ship services. Oyo outsources rooms, Ola outsources cars, etc. So the idea here is to not get stuck in micro-management and distract from the core task. Some services which you are able to outsource to pick and pack fulfillment companies are: Branded Shipping Branded shipping is the shipping of a product by a seller to the buyer’s address which includes packing, packaging slips & labels, sending order confirmation messages with tracking details, highlighting product presentations and adding various personalized touches. It is an opportunity to brand your business which can be done by an expert to reiterate the proper message to the target MQLs that may become SQLs in the future. WareIQ Branded Tracking Technology and automation Pick and pack businesses use cutting-edge technology and have well-trained service teams to provide high-quality, professional pick and pack fulfillment services among much more. Most pick, pack and ship services provide access to an online management system that allows you to monitor, authorize, and cancel purchases that are submitted by your company at any time. Order fulfillment Pick and pack fulfillment service providers are experts and equipped with high-tech devices, and software to mitigate any errors in the order fulfillment process. They pick items in batches, according to various metrics which make it more accurate when transferring goods from one place to another. They also use dedicated vehicles customized according to the product size, area of delivery, freight charges, and much more. Multi-channel selling If you are a multi-channel eCommerce seller, choosing a pick and pack fulfillment partner is beneficial from your business’s point of view. They provide multiple options to you such as custom picking and packing where all the sales done on multiple platforms can be fulfilled from the same location and packed in a customized manner according to the requirements of the channel. Streamlining processes Because a pick and pack fulfillment company’s major duty is to execute the supply chain in the most efficient and cost-effective way possible, there are fewer distractions for them and their employees, as well as other obligations that get in the way. When organizations have to manage major processes themselves, it isn't usually the case because individuals are continually pushed in different directions. The supply chain can be reconfigured considerably more readily if required. Pick, pack and ship services are knowledgeable about the most recent technologies and procedures, as well as the full process from start to finish. This is especially useful if there are any problems or unexpected events along the way. A 3PL pick and pack fulfillment service can put your mind at ease if you're unsure about the capabilities or requirements of your business. Assistance and scalability Scalability refers to a company's ability to handle increasing workloads and the potential for expansion. The capacity to alter space and labor based on inventory and products is another advantage of employing a 3PL fulfillment company. Many pick and pack logistics companies have deliberately established facilities throughout the country to ensure efficiency and nationwide delivery at low prices that enable higher profit margins. This can lead to a re-engineering of distribution markets, which might be a blessing in disguise during periods of rapid expansion. Reverse logistics Pick and pack fulfillment cannot be completed without a return policy. Pick, pack and ship services are done by dedicated fulfillment companies. In case of a return, they will have to perform all the similar steps in the regular supply chain, but in reverse. If a bad delivery is a bad experience for a buyer then a bad return is similar for a seller. What are the Main Points to Consider while Choosing a Pick and Pack Fulfillment Service? Hidden Fees & Additional Costs You are in a business so you have to record the expenses. Before you choose a fulfillment partner for order fulfillment, you should know all their terms and conditions. Read twice about the minimum fee, storage costs, and pallet fees are all possible fees. Inquire about fees and compare them. Also, keep an eye on any hidden costs. Knowledge About Your Pick and Pack Fulfillment Partner Visit the warehouse of your potential pick and pack fulfillment service if at all feasible, or at least contact prior and current clients to learn more about the company. Pay attention to your encounters with them; the way they respond to you will most likely be similar to how they respond to your clients after you start working with them. Also, request a demonstration of any systems that will be used. Before committing, it's a good idea to get a thorough idea of their skills. Contract Duration  Check their terms and conditions regarding the duration of the contract they are offering. If you want a long-term contract then how long they can offer a partnership contract with you would be important and in case you do not feel like continuing with them then how easily can you discontinue the contract is just as important.  Prior Track Record  Always check online for any positive or negative evaluations of your potential pick and pack fulfillment service. It is always a good idea to get a sense of how other vendors and customers feel about a firm before committing. Check how long they have been in business and other metrics such as prior mishaps and how they were handled by the company. Handling of Bad Situations A business is always accountable. Before going ahead with a pick and pack fulfillment company, it is important to know what the company's procedure is if your product gets misplaced, whether they keep track of damaged goods and how often they count them. There should be full transparency between you and your pick, pack and ship fulfillment service.  Software and Technology Check to see if your potential pick and pack fulfillment service has a reliable warehouse management system (WMS), if they can link to your sales channels to automatically retrieve orders, and can provide real-time data. It should all be automated by technology and all the information about your products in the warehouse or the process of fulfillment should be at your fingertips. It will help you to be answerable to your customers directly. Conclusion: Should You Outsource Your Pick and Pack Fulfillment Service Needs? When you grow as a business, you start delegating the work to your manager, supervisors, and other employees. You hire experts with years of experience in certain fields, so similarly, you should do the same with your company’s requirements. You need to choose a cost-effect pick and pack fulfillment company for all your shipping and warehousing needs. They provide adaptable solutions for organizations of all sizes. If your firm is short on space, manpower, or time-related resources, a pick and pack fulfillment company can relieve tension while also saving you time and money, all of which affect your bottom line. Examine your alternatives and select the one that best suits your company.  WareIQ has emerged as one of the trusted Order Fulfillment companies equipped with all the resources in pick, pack and ship services, warehousing, logistics and much more. Established in 2019, 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 – an Amazon Prime-like experience but accessible to everyone. 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 empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfilment centres, micro-fulfillment centers & urban dark stores near their customersAccess to all major national & hyperlocal last-mile courier services at discounted rates for making same/next day deliveries possibleEasy integration across multiple online platforms & marketplaces enhancing multi-channel sellingHorizontal marketplaces: Flipkart, Amazon etc.Vertical marketplaces: Nykaa, Myntra etc.D2C platforms: Shopify, Magento, WooCommerce etc.Social commerce platforms: BikayiAccess to a superior centralised tech platform for eCommerce operationsML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfilment & shipping operationsPost-shipping apps for delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfilment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing and data-driven decision making. WareIQ’s WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. 300+ brands, such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, have trusted WareIQ as a reliable partner in their growth journeys. No minimum order quantity requirements make it suitable even for small businesses, having low order quantities, to take advantage of the latest trends such as next day delivery and same-day delivery. The onboarding process is simple, convenient and less time consuming, while the pricing policy is clear and transparent. WareIQ also undertakes strict safety precautions at its warehouses and complete ownership of the operations, thereby minimising the risk exposure of WareIQ customers. Thus WareIQ will definitely prove to be a more reliable and trusted long-term fulfillment partner compared to dropshipping and conventional 3PL companies. Sign Up Now with WareIQ to avail our superior fulfillment tech platform & enhance your online business growth. Pick and Pack Service FAQs (Frequently Asked Question) What is the meaning of a pick and pack service?In the order fulfillment process, pick and pack is an important stage. All items in a customer's order are first picked (collected) from their respective storage locations. Following that, the things are packed (packaged) and are then ready to be shipped  to the consumer. How do you define pick and pack warehouse?Warehouses have inventory stored that will be picked and packed as soon as an order is placed. What is the meaning of pick and pack fee?The fee associated with picking a piece of inventory out from a warehouse and packing it for shipment is called a pick and pack fee. What other services WareIQ offers?Apart from picking & packing products in WareIQ’s fulfillment centers, WareIQ offers full stack fulfillment services to ecommerce businesses, starting from cold storage facilities, customised packaging, access to tech platform with easy integrations with 20+online marketplaces & platforms, ML based inventory forecasting, analytics, order tracking, shipping & last mile delivery, post shipping apps like RTO insurance, weight lock, customer feedback, branded tracking etc. What is the meaning of pick in fulfillment?The process of selecting a specified amount of inventory from a fulfillment center and preparing it to fulfill an order placed by a single end customer is known as order picking. In shipping, what does pack mean?Before the product is labeled and dispatched to the end consumer, the items are packed i.e. items are placed into the proper box, together with the packing materials and documentation. What is the difference between picking, packaging, and shipping?Pick, pack, and ship is the process of selecting the appropriate item, selecting the appropriate box and packing supplies, and shipping it to the consumer. It may appear easy, but there is a complex system in place to ensure that your item arrives on time and in perfect condition.

May 07, 2022

What is eCommerce Logistics? 10 Latest Trends in 2022

What is eCommerce Logistics? 10 Latest Trends in 2022

A change in consumer mindset encourages evolution in the way eCommerce retailers plan on serving them. Two years ago, what began as a force majeure became a habit, where customers were able to receive everything that they could possibly think of, right at their doorstep. The answer is vast as to what is eCommerce logistics. The eCommerce industry’s heavy reliance on a solid supply chain backbone has triggered a revolution in the eCommerce logistics industry. But what is eCommerce logistics and what are the factors that it encompasses? Let’s take a look. What is eCommerce Logistics? eCommerce Logistics is the complete supply chain process undertaken by an eCommerce company to get their products from the seller or warehouse to the customers and back via reverse logistics if needed. All the proper systems and processes need to be in place for the millions of packages being shipped across the country, to multiple different locations, daily. eCommerce logistics begins with moving inventory from the origin point and ends at the customer's destination, once they take ownership of their order. What are the Processes Involved in eCommerce Logistics? As mentioned above, eCommerce logistics refers to the entire series of processes, from receiving an online order to the safe delivery of the package to the customer by the estimated date and time. The processes involved in eCommerce Logistics are listed below: Inventory Management: This process is highly critical to keeping regular track of inventory. While stacking products in the warehouse or fulfillment center, warehouse management should occur where the high demand products must be kept handy or easily reachable, followed by the goods where their accessibility is in proportion to their demand. eCommerce logistics companies need to put in measures to ensure the safety and security of the inventory in their warehouses or storage spaces. Order Preparation: The next step is to gather the inventory and prepare the final order per the customer’s request. The next step is packaging and labelling. Products are packaged in a single SKU or a kit with several SKUs before being labelled as per their batches and destinations. Many companies have adopted eco-friendly packaging and labelling to lure more aware customers. Shipping Processes: Safe and timely delivery of orders is critical to the overall customer experience. This involves updating the customer regularly with the whereabouts of their package and ensuring that there are no errors or delays while shipping or transporting the product to their location. Returns Management: Around one-third of all products bought online are returned to eCommerce companies. The reverse logistics process comes into play when the customer or delivery agent triggers the return request. However, brick and mortar stores experience lower returns than online retail as the customers get the look and feel of the product before buying. However, both models employ a different set of logistical procedures to reach the final goal. How Does eCommerce Logistics Differ from Brick and Mortar Logistics?  [table id=15 /] How to Choose the Right Type of eCommerce Logistics for Your Business? Know Your Requirements An eCommerce business has many requirements for which they need to hire an eCommerce logistics partner. However, shortlisting a 3PL eCommerce logistics company, the retailer should have an understanding of their own requirements, the services of the eCommerce logistics company they seek to partner with and their available budget. An eCommerce company can ascertain which eCommerce logistics company would be the best fit for them through the following points: Customer demand per day: This refers to how many orders the retailer receives in a day and how much they expect to receive in the future.Product categorization: Grouping products into different categories helps companies better understand their eCommerce shipping requirements. For instance, perishable products require time and temperature-sensitive eCommerce logistics, while glassware demands fragile-safe transportation.Technological requirements: It is important to understand what technological services you require for daily operations and which companies provide those services. Staff Requirements: This is determined by the amount of demand and what would be the maximum and minimum operational load.Speed of Order Fulfillment: This depends on the number of orders that need to be fulfilled per day and which parts of the country those orders need to travel to.Storage Space needed: It is important for businesses to understand the scale of their operations and how much storage space they would need for available, unsold inventory. Find Suitable Partners After assessing all the requirements that are needed in different areas, eCommerce retailers can scout for eCommerce logistics companies that offer the same services. It is important to weigh your options as per the following criteria to find the best eCommerce logistics partner: Customer Service and Customisation: All businesses live to serve their customers. If the customer is dissatisfied, it affects sales and, in turn, the company’s growth. Online retailers need to check if the eCommerce logistics partner can provide decent customer service, what their success rate is and whether their services can be customised as per the customer and the product that the business caters to. Performance History: The performance of eCommerce logistics companies influences the operations of an online retailer. Therefore the eCommerce business must collect all the relevant information on their past performance to analyse their track record, and identify certain failures and how they were addressed. same-day or next-day deliveries have become the norm these days, and the eCommerce logistics company must be able to provide these services. If the eCommerce business has certain demands, the eCommerce logistics partner must keep a provision for exceptional distribution timelines like 10-minute deliveries without affecting the service quality. Omnichannel Presence: With severe competition coupled with rising customer expectations, it has become essential for businesses to employ multiple channels for order fulfillment. Before onboarding an eCommerce logistics provider, the business must ascertain if the 3PL company has an omnichannel presence to be able to reach as many customers as possible. Besides distribution, the partner should also provide multiple channels to ensure seamless communication and data flow between the two organisations. Technological Capability: This drives business operations productively. There are many tools utilised by 3PL eCommerce logistics providers such as a Warehouse Management System (WMS), platforms to fulfill and track orders, inventory and distribution management and any other cloud-based tech that empowers a business’ supply chain. Having a good onboard tech platform improves efficacy and productivity, leading to fewer errors and higher performance. Their system should also be able to integrate with other fulfillment services to enable seamless transfer of data and insights between multiple platforms, smooth order fulfillment and customer service. Financial Strength: Without a solid financial backbone, no company can thrive. If an eCommerce logistics partner is monetarily weak, it can take down the eCommerce business’ supply chain, thus affecting the latter’s market image. Therefore, every company must thoroughly check the 3PL provider’s financial books before sealing the deal. The eCommerce logistics provider must also be able to survive all kinds of business disruptions with stable financial backing. Having good relations with banks and financial institutions proves helpful in many different situations. If the eCommerce logistics provider assures them of such support, they could be the ideal business partner. Scalability: The eCommerce logistics provider should have an expandable business model that inflates as the eCommerce business grows its reach. The logistics provider should be able to adapt to the growing demand and expansion of the retailer they have partnered with. Geographical Reach: Today, eCommerce businesses thrive on their reachability of tier 2, 3, 4 and lower towns and villages. The deeper and quicker their reachability, the more orders they can receive and fulfill, thus securing a better customer satisfaction ratio and obtaining access to new customers in different regions of the country. Overall Cost: The overall package deal offered by the eCommerce logistics provider is very important to observe. Your company should be able to afford an eCommerce logistics provider, with all the services they offer, rather than paying less for a company that does not offer important services. Companies need to strike the right balance between services and cost. What are the Top 10 Latest Trends in eCommerce Logistics? eCommerce Warehousing This practise is focused on storing inventory and products for the daily operations of an eCommerce business. eCommerce warehouses are storage spaces dedicated to operating an online retail business. An eCommerce business needs to ensure that it operates and sets up storage closer to its customer hubs to reduce the time and expense of transporting goods. Partners like WareIQ help store the inventory closer to areas of high customer demand, thus enabling businesses to offer shortened delivery timelines. Inventory Management Many new trends in inventory management have emerged in light of the pandemic and other disruptions like the Ukraine-Russia war. A few such developments are the Just-in-Case method of managing inventory and the extensive automation of the supply chain. Just-in-Time meant procuring the inventory as and when the demand arises. The Just-in-Case method pushes businesses to procure excess inventory to avoid hassles in case of a contingency like a lockdown or an interruption due to war. This inventory management trend has seen an upsurge in the past few months by eCommerce companies wary of being unable to meet the existing or increased customer demand due to unforeseen contingencies. The shortage of workforce and other interruptions have pushed companies to look for measures that can support and maintain the speed and efficiency of the supply chain. Automating important processes is one such method. Advanced tech like AI and Machine Learning are driving the evolution of eCommerce logistics management systems like WareIQ. These tools enable real-time tracking of inventory nationwide which has pushed the efficacy levels higher, especially in the case of cross-country shipping. Order Packaging & Labelling Sustainability is not the only trend catching up with eCommerce packaging; minimalistic design is also gaining mileage. Besides eco-friendly packaging material, companies prefer labels and designs with minimal amounts of text and designs. This trend has taken the ‘Less is more’ opinion to the next level. For example, Apple’s plain white boxes usually outshine other manufacturers. Sending the orders in generic, uninspiring brown boxes will create an unwelcoming and impersonal client experience. Instead, choosing an eCommerce logistics firm that provides branded packaging services can help companies create a brand and raise the visibility of their business. Besides just visual appeal, companies are also using packaging to communicate with customers. Adequate packaging needs three layers. When orders get punched, there's a label printed and stuck on another two layers of packaging and then dispatched. eCommerce logistics companies provide a wide variety of packaging strategies. For instance, bubble foil, padded paper and plastic emailer bags help to prevent the damage of goods during transportation. Order Shipping Shipping the order to the customer safely and on time has always been the priority for eCommerce businesses. But they can never ignore the affordability of the shipping charges. While companies have been tying up with eCommerce logistics providers for decades now, the pandemic has proved that loyalty is overrated. It has changed the priority from allegiance to cost and benefits. There has been an upsurge in the spot pricing market for shipping, wherein companies shy away from long term contracts and focus on getting the best price for their shipping right now. Another trend that is catching up is the need for business intelligence behind every shipment. Advanced tech backs every order from the origin to the customer and back. Weight Locking This is a great trick to avoid product weight discrepancies in order shipping services. When the eCommerce logistics partner picks up the order from the business’ warehouse, it weighs and measures the dimensions again before pushing the parcel out to the customer. Unfortunately, many times, there happen to be differences in the weight of the package due to unavoidable variations in weighing machines. There are a few useful hacks to ensure that this doesn’t happen: Calculate the Volumetric Weight of the shipment. This is done by multiplying the product of package dimensions in centimetres by 5000 (which may vary as per the carrier). The resulting weight will remain the same globally. For odd-sized packages, automating the weighing system helps avoid discrepancies in a manual cubic calculation.Associate with a supportive eCommerce logistics partner who resolves such discrepancies in a timely and effective manner.Click pictures while weighing the package which helps as an application of proof in case of a dispute Order Tracking Online retail customers want real-time information on the whereabouts of their shipments. Therefore, companies invest in advanced tech like superior order management systems to ensure effective mapping of the orders and timely communication with the customer through fulfilment statuses. Last-Mile Delivery It needs to offer sustainability, timeliness, safety, flexibility, real-time updates and much more. These criteria define a significant share of a customer’s experience with an eCommerce retailer. And the statistics say that it is an essential part of customer engagement. Moreover, peak season has become a perennial trend. Customers prefer to receive their orders at home than shopping amongst huge crowds and queuing up for payments, especially during the pandemic. As a result, they push online retailers to invest heavily in last-mile delivery management software to manage last-mile deliveries and recruit and retain the right personnel. Fast Shipping No words can stress the significance of fast shipping. Customer expectations have crossed all boundaries, pushing eCommerce companies to strive toward delivering orders within ten minutes. This scenario is in the process of making next-day delivery obsolete. This requirement has pioneered the invention of dark stores across the nation to cater to the growing demand for superfast supplies. One can only imagine how much faster it can possibly get. Same Day & Next Day Delivery Many eCommerce companies now focus on speedy deliveries so that customers get guaranteed next day or even same-day delivery.  Quick commerce is the next generation of online delivery systems which enables the delivery of items within a concise time bracket of one or two days, or less than 10 minutes for some business models. As a convenience, delivery speed and efficiency continue to define customer experience. eCommerce returns (RTO) and Reverse Logistics An unsatisfied customer will initiate a return, and many eCommerce logistics companies oblige. This trend has given birth to advanced reverse logistics. Superior technology, sustainability, and creativity are driving the backward supply chain.  With a high share of products bought online being returned, the eCommerce industry has been forced to revisit its return policies and invest in reverse logistics. Conclusion: Do You Need to Outsource Your eCommerce Logistics? eCommerce is no longer linear, and fulfillment is now Omnichannel. eCommerce customers may order online via mobile apps, phones, or online marketplaces. They may want home delivery, in-store delivery or curbside delivery. All those fulfillment systems need to be taken care of by eCommerce logistics partners for efficacy and punctuality. eCommerce logistics strategies help to level up a business’s digital presence by bringing radical shifts in the business paradigm. Hiring a logistics partner is one such remarkable strategy. Here are a few benefits of delegating the task to an external expert.  The eCommerce industry is slated to experience massive growth and evolution in the coming years. As customer demand widens, every nook and corner of the sector will need to be organised. eCommerce businesses cannot manage these processes on their own. The expectations are too heavy to be borne solely by them. Delegation of the major parts of logistics can assist them in taking some load off. Teamwork will play a vital role in the sector’s development. Experienced players like WareIQ can lead your expansion story with creative ideas and are bound to enhance and improve supply chain processes. Established in 2019, 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 – an Amazon Prime-like experience but accessible to everyone. 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 empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfilment centres, micro-fulfillment centers & urban dark stores near their customersAccess to all major national & hyperlocal last-mile couriers at discounted rates for making same/next day deliveries possibleEasy integration across multiple online platforms & marketplaces enhancing multi-channel sellingHorizontal marketplaces: Flipkart, Amazon etc.Vertical marketplaces: Nykaa, Myntra etc.D2C platforms: Shopify, Magento, WooCommerce etc.Social commerce platforms: BikayiAccess to a superior centralised tech platform for eCommerce operationsML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfilment & shipping operationsPost-shipping apps for delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfilment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing and data-driven decision making. WareIQ’s WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. 300+ brands, such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, have trusted WareIQ as a reliable partner in their growth journeys. No minimum order quantity requirements make it suitable even for small businesses, having low order quantities, to take advantage of the latest trends such as next day delivery and same-day delivery. The onboarding process is simple, convenient and less time consuming, while the pricing policy is clear and transparent. WareIQ also undertakes strict safety precautions at its warehouses and complete ownership of the operations, thereby minimising the risk exposure of WareIQ customers. Thus WareIQ will definitely prove to be a more reliable and trusted long-term fulfillment partner compared to dropshipping and conventional 3PL companies. Sign Up Now with WareIQ to avail our superior fulfillment tech platform & enhance your online business growth.

May 05, 2022

What Is eCommerce Shipping? A Detailed Guide On Strategies & Processes

What Is eCommerce Shipping? A Detailed Guide On Strategies & Processes

Transportation of a product procured from an online retailer by a customer to their door is known as eCommerce shipping. The above is a simple definition. However, today's eCommerce shipping involves highly complex processes - ordering, picking and packing, labeling, shipping, tracking, communication, and returns - that work seamlessly to deliver the product at the right place, time, and price. What is eCommerce Shipping? eCommerce is a critical function of online retail as it is a crucial differentiator in satisfying and retaining a customer. Any business strategy of an eCommerce set-up must consider the capability to ensure the timely delivery of a purchased product safely at a reasonable cost. Developing and implementing the right shipping process with the right partners ensures a controlled and inexpensive delivery operation. The goal of an eCommerce shipping plan is to have an inexpensive and efficient process that delivers the product safely and on time, every time. The advent of eCommerce has given rise to fast deliveries of products that one shops for from the comfort of their home. Thus, eCommerce shipping has become a vital aspect of a successful eCommerce business, as it offers both convenience and quick deliveries to customers.  Hence, an eCommerce business that delivers a product purchased online quickly, safely, and on time can sway buyers, increasing sales and retaining loyal customers. Poorly-planned shipping for the eCommerce process may significantly impact the success of an eCommerce business. A weak shipping process implementation could lead to late deliveries, high shipping costs, unfulfilled or misplaced orders, wrong items shipped, ambiguous return policies, and poor or damaged packaging, thus, impacting the business What are the Processes Involved in eCommerce Shipping? The shipping process in eCommerce involves receiving an order and handling and packing the product for final delivery to the door. The eCommerce shipping process has three preliminary stages: Order receiving Ensures the ordered items are in stock. Order processing Ascertains order information for accuracy  (e.g., checks if the delivery address is correct). Order fulfillment Determines ordered items are picked, packed, and kept ready for the shipping company to pick them up for delivery. What are the Various Costs Associated with eCommerce Shipping? eCommerce shipping and logistics costs are complex, and hence an overview of the various expenses associated with eCommerce shipping is given below: Shipping costs Shipping costs are calculated by considering the following - Dimensions (lxbxh) – volumetric and gross weight All shipping carriers assess both volumetric and gross weight for calculating shipping costs. The higher weight of the two is considered, and the rates are calculated accordingly. The gross weight is the package's actual weight, and the volumetric weight considers the size (l x b x h) of the box to determine the shipping cost. The distance to the door The distance between a package's origin and destination is considered when calculating shipping costs. Thus, the distance between two different points of origin, and shipping to the same destination, may significantly differ. And so, the longer the shipping distance, the higher the shipping cost. Shipping rates structures Generally, most eCommerce businesses use the following two shipping rate options: Flat rate shipping  As the name suggests, the rate charged is uniform for all orders within a particular range, like weight range (volumetric or gross), order value, delivery distance, or some other categorization. The disadvantage of this rate structure is that a few orders will be overpriced and others underpriced. Real-time rates With this option, the website displays the actual shipping rates offered by the carrier per the weight of the package, type of service, and the shopper's location.  This rate structure charges the correct amount to ship the package to the shopper's location.  Free shipping Most eCommerce businesses increase their sales conversions by offering free shipping. For most consumers shopping online, free shipping is one of the main reasons for completing a purchase on a particular site, thus building customer loyalty. eCommerce businesses can offer free shipping without losing money, as follows: Incorporating shipping costs into product costing. Offering free shipping for a minimum purchase value. Providing a loyalty program and charging a fee in place of free shipping on all orders. Handling costs Handling fees cover everything other than shipping costs. It includes staffing costs for picking and packing items, labeling, loading/unloading the vehicle, and other fulfillment services. Packaging Packaging affects shipping costs and customer experience, affecting the brand image. The delivery person and the packaging represent a brand that the customer personally interacts with first-hand. A well-executed packaging is a vital feature that fosters brand loyalty and customer retention. Conversely, poor or easily damaged packaging leads to a disappointed customer.   The right packaging There are plenty of packaging options from which one may choose. For example, consider the following to help determine the right packaging option: The type of product.The shape of the product.Weight (volumetric or gross) of the product.Is the product over-dimensional?Fragility or durability of the product.Does the manufacturer supply the product with packaging?Whether to go for plain packaging or brand the packaging. Custom packaging Though custom packaging will be expensive, top-quality packaging can help one's brand stand out in a competitive environment. Good packaging can create a memorable experience, go viral, and build brand loyalty. Sustainable packaging With rising eCommerce sales, the waste generated increases. Further, the widespread awareness of the current global environment scenario means that choosing sustainable eCommerce shipping and packaging solutions will help improve one's brand image, leading to increased sales. Shipping carrier used Outsourcing shipping services to a 3PL can help the eCommerce businesses expand operationally and negotiate better shipping discounts - lowering overall costs and increasing profits. A sizeable 3PL network of fulfillment centers can also help eCommerce stores with lower shipping costs and transit times. Surcharges Extra costs added to a base rate are surcharges. Any charge exclusive of the regular shipping and handling rates affects the shipping price. Here are a few surcharges: Fuel surcharge: it covers the fluctuating price of oil. It’s a percentage of the shipping cost and changes once a week.Over dimension surcharge: means an oversized or bulky non-standard package, which is non-stackable or fragile. Such packages get charged more.Surcharge for remote territories: are additional fees carriers charge for delivering packages to remote areas, like beyond city limits or the service area covered by the carrier.Dangerous/Hazardous goods: pose a possible risk to other packages carried with it and a delivery person or people near it. Hence such packages incur surcharges.  Returns eCommerce returns have now grown into a massive issue. The Paypers’ 2021-2022 Report says shoppers return anywhere from 10% to 40% of their eCommerce purchases.  For businesses, returns create challenges in terms of higher logistical costs, increased handling costs, and risk frauds. Also, if the customer returns the product in a damaged condition, the business bears the costs involved in either product refurbishing or disposal. The returns process can be daunting, inconvenient, and frustratingly slow for shoppers. What are the Best Practices in eCommerce Shipping? Adopting the best practices for eCommerce shipping is vital for achieving success as this is the differentiator that helps one stand out amongst a host of competitors.  It is also proven that nearly 50 to 60% of online shoppers don't buy from eCommerce stores offering high shipping costs.  Hence, the practices listed down below should be followed. Form a team "You are only as strong as your team." — Dominique Wilkins. So go ahead and form a team. It is vital that the business generates leads, attracts shoppers to your site, increases conversions, and handles customers' concerns on shipping efficiently, effectively, and courteously. Accordingly, the following teams will be required sooner or later to grow a successful business: The marketing team: designs flyers and promotions to attract visitors to the site. The marketing team also carries out communications of such promotions to customers. Communication could be by emails, sms', blogs, vlogs, social media, and online advertisements.  The web designers and developers team: ensure the site is attractive and easy to navigate for potential customers. Like the product listings and offers, the content is explicit and without ambiguity. Customers must also be able to notice the various shipping options and policies available, preferably before checking out.  The fulfillment team: ensures that the orders received are processed quickly. The correct items per the order are picked, packed, shipped accurately, and on time.  The customer service team: is one of the most critical. A missed or delayed delivery is most aggravating for a customer. They must know how each phase in the product lifecycle affects the customer and how to respond to customer concerns satisfactorily. Concerns could be about a particular ongoing promotion, shipping options or policies, and myriad other issues. Set the right goals It is essential to set a goal for yourself. You must know where you wish to go and how to get there. One must review one's path from time to time and then make a course correction if required considering where one wishes to be. Then decide on a strategy that would best help one achieve the desired goal. Set SMART (Specific, Measurable, Achievable, Relevant, and Time-based) business goals for yourself. Then decide on a strategy. The goals must be clear and concise, which will ensure a profitable shipping strategy with an efficient shipping process and operations.  Here are a few questions that one needs to answer to set goals and strategy. What is your target market? Do you wish to acquire international customers or stay domestic? Do you want to brand yourself, or is it simply a side-hustle? Do you want to generate more business and earn profits? How would you do it?How can one increase conversions? By offering free shipping or various shipping options or offering competitive price rates, one can increase conversions.How can you increase the average order value? Maybe by offering free shipping for minimum order quantity/value or a flat shipping rate to high-value or multiple products bundled together.How can you expand the market or increase the target audience? You may do that by partnering with a large 3PL having an extensive network of fulfillment centres. Thus, being able to ship to new geographies or by introducing newer, fast-moving products.How to decrease costs – by exploring possibilities of tying up with major carriers or 3PL, try cheaper packaging options or alternate suppliers offering to ship the product to the customer directly. Furthermore, by showing more affordable products than existing suppliers, increasing efficiency by streamlining the operations through process reviews, and thorough education of fulfillment teams, one can decrease costs. Right return policy The reverse logistics process in eCommerce entails collecting a purchased product from a customer and putting the returned item in stock if undamaged. This process is a cost concern for an eCommerce business and, if mismanaged, will affect its profitability. Generally, a customer happy with a business's return policy will shop with the same retailer again. The reverse is also true: shoppers unhappy with the returns process will, in all likelihood, never shop with that business again. Hence, have a customer-friendly return policy and process returns quickly.  Right shipping strategy Here are the following shipping strategies that one may use per one requirement. Several eCommerce businesses have successfully used many of the below-mentioned shipping aggregation methods as a strategy: Real-time rates Display rates in real-time directly from major carriers. Though this strategy will get you the best rates, it cannot be used as a promotional tool because there could be marked variation in rates.  Benefits: Cheapest shipping option.You can offer to ship to new geographies at lower costs for expanding your business since you can take advantage of scale. Same-day delivery Same-day delivery requires a highly efficient fulfillment with equally efficient logistics operations. The disadvantage involves deploying plenty of resources, making the entire process costly.  Benefits: The fastest delivery time will be the USP (unique selling point) to increase conversions. With increased conversions, one's reputation and brand image increase, leading to higher revenues.On the flip side, one should not adopt same-day delivery as the first go-to strategy. Instead, a two-day or overnight shipping would be a more uncomplicated strategy to implement initially.Once a robust team is in place handling the fulfillment efficiently and a capable, trustworthy shipping partner is signed up, you could then think of offering same-day delivery service to your customers. Free shipping Most customers shopping online expect to be offered free shipping.  Benefits: It fulfills the customer's expectations.It directly improves conversion rates, which builds customer loyalty and retention, thus leading to higher profits. Though free shipping is free for the customer, ensure that higher product margins cover this cost, else you will lose money on every sale. Flat rate or table rate shipping One way to avoid offering free shipping is to provide flat or table rate shipping to the customer.  A flat rate charged for shipping any product ignores the type or size of the product or order value.  Table rate shipping offers a low flat rate for shipping a product close to the fulfillment center, which progressively increases with the distance from the fulfillment center to the destination. Depending on the minimum order value or order quantity, one could also charge a flat rate. Beyond a specific order value, one could offer free shipping if the costs are covered in the sale price of the product sold. Alternative shipping strategies You could try any of the above strategies that you are sure will not affect your bottom line. You could also think of alternative strategies like combining various shipping strategies to improve customer satisfaction and profits.  This kind of alternative strategy could lend itself to designing new promotions.  Here are a few: Offer standard and express shipping with assured delivery time at checkout so that customers requiring fast delivery can opt for it. OfferfFree shipping is it drives customers to your site. At the time of checkout, ensure to offer express shipping at a higher rate for faster delivery.Offer Tracking services for shipments.Offer branded shipping. Ensure the customer can track product shipments by providing a tracking service. Today, most eCommerce shipping solutions and 3PL offer tracking services that you could leverage. What are the Benefits of eCommerce Shipping? Automated shipping process One can control the eCommerce shipping process with automated shipping. The system updates the inventory, the order tracking numbers, the courier reports, and the order delivery reports.  An automated eCommerce shipping system replaces all manual processes, thus reducing human error and streamlining the fulfillment operations.  An eCommerce shipping solution helps you import and export files, confirm/cancel orders, update inventory status, and choose the courier service. Sales channels integration Any eCommerce shipping solution will automatically sync the purchase orders with your sales to start further fulfillment operations. You can thus process the orders and provide the tracking details and status updates to your customers in real-time.  Save time and money With an automated solution, you gain access to multiple channels and can offer faster deliveries at discounted eCommerce shipping rates enabling you to reach more customers. Non-delivery reports Orders not delivered and returned are a massive loss for any eCommerce business. Automated eCommerce shipping solutions can reduce this loss to a large extent. Reports detailing the delivered and undelivered orders are easily generated using automated solutions. You can even determine which courier/carrier partner was responsible for the delivered and undelivered packages and take action accordingly. At the end of each month, you may analyze which partner is diligent and saves money for you and which doesn't. Returns management For an eCommerce seller, handling order returns is the most challenging. An automated eCommerce shipping solution will help manage your returns. The system will effectively manage returns and make your customers' shopping journey a wonderful experience. Thus, an automated eCommerce shipping solution will help you with the following benefits. Quicker deliveries.Customer satisfaction, repeat purchase, and retention.Improved reputation and brand value.Higher sales and increased profitsSave time and money How to Choose an eCommerce Shipping Service for Your Business? Small eCommerce business owners must partner with a suitable eCommerce shipping carrier to offer cost-effective shipping solutions to customers. When choosing an eCommerce shipping service that is right for your business, one must consider cost, shipping schedules, and type of packaging.Customers must be able to track their orders.Have a return service that is friendly and efficient A 2018 research by Deloitte recorded that 72% of the shoppers said that free shipping was the number one reason to shop online. Today, many customers expect free eCommerce shipping for their online purchases with a one or two-day delivery time.  Established companies could easily attain this goal, but this would be an enormous undertaking for small business owners.  Though small eCommerce businesses may find it impossible to offer this strategy, by accepting the challenge of providing free eCommerce shipping, they could gain a loyal and grateful customer who will come back to shop repeatedly. eCommerce businesses must strive continuously to review their shipping and fulfilment strategy and processes to be successful. However, the overall process becomes easier to manage once you partner with the right shipping partners.  Conclusion eCommerce is growing at a rapid pace. eCommerce Shipping is a challenging activity for any business, let alone an eCommerce business. Every business must find the most appropriate shipping strategy to adopt. It's not a one size fits all solution. Different companies have their challenges, and it will take time and continuous fine-tuning to arrive at the most optimum solution and strategy. Evaluate your strategy periodically to ensure that you continue to deliver the best service, with the best customer experience, as an outcome at the lowest price possible. WareIQ can help fulfil all your eCommerce shipping requirements in addition to a host of other services. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfilment centres, micro-fulfillment centers & urban dark stores near their customersAccess to all major national & hyperlocal last-mile couriers at discounted rates for making same/next day deliveries possibleEasy integration across multiple online platforms & marketplaces enhancing multi-channel sellingHorizontal marketplaces: Flipkart, Amazon etc.Vertical marketplaces: Nykaa, Myntra etc.D2C platforms: Shopify, Magento, WooCommerce etc.Social commerce platforms: BikayiAccess to a superior centralised tech platform for eCommerce operationsML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfilment & shipping operationsPost-shipping apps for delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfilment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing and data-driven decision making. WareIQ’s WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. 300+ brands, such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, have trusted WareIQ as a reliable partner in their growth journeys. No minimum order quantity requirements make it suitable even for small businesses, having low order quantities, to take advantage of the latest trends such as next day delivery and same-day delivery. The onboarding process is simple, convenient and less time consuming, while the pricing policy is clear and transparent. WareIQ also undertakes strict safety precautions at its warehouses and complete ownership of the operations, thereby minimising the risk exposure of WareIQ customers. Thus WareIQ will definitely prove to be a more reliable and trusted long-term fulfillment partner compared to dropshipping and conventional 3PL companies. Sign Up Now with WareIQ to avail our superior fulfillment tech platform & enhance your online business growth.

May 03, 2022