A Paradigm Shift? From Free Returns to a Fee for Returns

In recent years, there has been a noticeable shift among eCommerce brands towards charging a fee for returns. While many companies still offer free returns, an increasing number of brands are implementing policies that require customers to pay a fee when returning items. This change has been driven by a variety of factors, including rising costs associated with processing returns, the need to deter fraudulent or excessive returns, and the desire to offset the cost of offering free shipping to customers. This shift has been observed across a range of eCommerce sectors, including fashion, electronics, and home goods, and is likely to continue as brands seek to optimize their profitability and balance the needs of their customers. “In India, about 25%–40% of clothes sold online are returned where a seller pays for forward & reverse logistics with no revenue capture.”-Harsh Vaidya, CEO, WareIQlink Why do Brands Want to Charge for Returns? E-commerce brands may charge for returns for a variety of reasons, including: To cover the cost of processing and handling returns: Returns require additional labor and resources to process, such as restocking, repackaging, and shipping the item back to the warehouse. E-commerce brands may charge a fee to cover these costs. To deter excessive returns: Some customers may abuse the returns process by ordering items with no intention of keeping them, and then returning them after use or damage. Charging for returns can deter this behavior by making customers think twice before making a return. To offset the cost of free shipping: Many e-commerce brands offer free shipping to customers, but this can be costly for the company. By charging for returns, the brand can offset some of the cost of providing free shipping. To incentivize customers to keep their purchases: By charging for returns, e-commerce brands can incentivize customers to carefully consider their purchases before buying. This can lead to fewer returns and a more profitable business. Paradigm Shift Ripples From West to East Many eCommerce fashion and lifestyle brands have varying policies when it comes to returns and fees. Some of these brands may charge for returns, while others offer free returns. Here are some examples of eCommerce brands that may charge for returns. In the United States and Canada, brands such as ASOS, Zara, H&M, Boohoo, TopShop etc. are charging a small fee for returns. The fee varies depending on the location and the type of item being returned. Some Indian eCommerce marketplaces, particularly those that sell high-value items like electronics and appliances, such as Flipkart, Croma etc. have been charging a fee for returns for quite a while now. These fees typically cover the cost of processing and restocking returned items, as well as any associated shipping costs. However, in recent years, many Indian fashion and lifestyle eCommerce brands have moved towards offering free returns as a way to attract and retain customers. This trend has been driven by intense competition in the eCommerce market, as well as rising customer expectations for convenience and flexibility. Recently a news article from The Rest of the World publication revealed how Myntra, the leading fashion and lifestyle marketplace in India, has devised a system to identify and assign scores to customers basis the frequency of their returns. If the score of a customer crosses a specific threshold, a fee will be applied to items they then wish to return. That said, some Indian eCommerce brands may still charge a fee for returns in certain circumstances, such as for items that are heavily discounted or for international orders. Ultimately, the decision to charge for returns will depend on a range of factors, including the company's business model, industry dynamics, and customer preferences. As eCommerce continues to grow and evolve in India, it is likely that the policies around returns and fees will continue to evolve as well. Bracketing: The Main Cause Behind the Rise of Return Fee For years now, customers have been known to employ the tactic of bracketing their online purchases. Bracketing in online purchase refers to a practice where a customer purchases multiple variations or options of a product with the intention of returning some or all of them. For example, a customer might buy a shirt in three different sizes, with the intention of returning the two that do not fit properly. The practice of bracketing is often used by customers as a way to mitigate the uncertainty associated with online shopping, particularly when it comes to sizing and fit. By ordering multiple options, customers can try on the items in the comfort of their own homes and return those that do not fit or meet their expectations. While bracketing can be a useful strategy for customers, it can also pose challenges for eCommerce brands. When customers order multiple variations of a product with the intention of returning some or all of them, it can create additional costs and complexity for the brand in terms of processing returns and managing inventory. As a result, some eCommerce brands have implemented policies to discourage bracketing, such as charging a fee for returns or limiting the number of items that can be purchased in a single order. “Major international corporations such as Zara, H&M, and Uniqlo have begun to implement fees for returns in specific nations to combat the practice of "bracketing," where customers order multiple variations of size, color, or design without intending to keep all the items.”-Harsh Vaidya, CEO, WareIQlink Is Charging a Return Fee Fair? The question of whether charging a return fee for online orders is fair is a complex one and depends on various factors, including the reason for the return, the cost of processing the return, and the overall value proposition offered by the eCommerce brand. On one hand, it can be argued that charging a return fee is fair because it allows eCommerce brands to recover some of the costs associated with processing returns, such as shipping, restocking, and quality control. If a customer is returning an item simply because they changed their mind or made an incorrect purchase, it could be argued that it is reasonable for them to cover some of these costs. On the other hand, it can also be argued that charging a return fee can discourage customers from making purchases in the first place or returning items that they are genuinely dissatisfied with. This can ultimately hurt the customer experience and damage the reputation of the eCommerce brand. “Any time you take away something from consumers or make them pay for something that used to be free, you’re gonna get some outcry over it.”Sky Canaves, senior analyst of retail and e-commerce at Insider Intelligencelink The Future of Paid Returns On one hand, there are indications that eCommerce brands may continue to move away from charging fees for returns in order to remain competitive and meet customer expectations. As online shopping continues to grow in popularity, customers are becoming more accustomed to the convenience and flexibility of free returns and may be less willing to shop with brands that charge fees. At the same time, there are also factors that could lead eCommerce brands to continue or even increase their use of return fees. For example, rising costs associated with processing returns, particularly for large or heavy items, could make it more difficult for eCommerce brands to offer free returns on all products. In addition, the increasing prevalence of bracketing, where customers order multiple variations of a product with the intention of returning some or all of them, could create additional costs for eCommerce brands and incentivize them to implement fees to discourage the practice. Ultimately, the future of charging fees for returns in eCommerce is likely to be shaped by a complex interplay of factors and will depend on the strategies and priorities of individual brands and retailers. “From my perspective, the flat fee for returns is unjust to those customers who experience actual problems, such as incorrect size, subpar fabric quality, etc. Charging a returns fee to this base could have a negative impact on their eCommerce behavior.”-Harsh Vaidya, CEO, WareIQlink

March 05, 2023

Categories:

Order Ship Guide for Seller: Definition, Factors, Processes and 5 Easy Steps to Ship Order Consignments in 2024

Shipping is one of the most important aspects of eCommerce as it enables orders to be dispatched from their storage location and transported to their customer's doorsteps. Customers also understand the significance of having a good shipping experience, with a majority in almost every survey suggesting that they would only return to an eCommerce store if they provided a solid shipping experience. Additionally, upwards of 70% of customers in most major studies specify that a firm’s decision to provide free and ultra-fast shipping affects their purchasing habits positively. Therefore, the impetus is for sellers to capitalize on this sentiment and give customers what they want. Shipping entails a variety of different procedures. In this blog, we will take a look at the meaning of order shipping services, the factors that affect the ability of companies to ship order consignments, the departments involved in the shipping process, and the 5 steps to ship order parcels. What are Order Ship Services? Order ship services refer to the process of delivering products purchased online to the location of the customer that ordered them. It is a critical aspect of eCommerce as it directly impacts the customer experience and can affect their decision to make a repeat purchase from a particular online store. There are several elements to order ship services that businesses must consider to ensure that the process is smooth and efficient. These include: PackagingCarrier facilityRates Order tracking Returns management [contactus_lilgoodness] Factors That Affect a Company’s Ability to Ship Order Consignments Delivery Destinations Your consumers can originate from anywhere in India if you operate an online store. Thus, if you only have one warehouse, providing quick shipment throughout India will be highly expensive. Conversely, if you have several warehouses spread scattered in different regions of the country, you can drastically lower shipping rates while also offering exceptionally increased delivery speed. Some companies like WareIQ also offer intelligent inventory placement to store your products closer to your customers or major transport hubs. Courier Service Rates Shipping firms provide you with an accurate estimate of delivery charges depending on factors such as package weight and dimensions, shipping preferences, delivery speed, and the pickup and drop location. You can compare quotations from various courier services to find the option that fits your requirements and your budget. Also, it is ideal to take your profit margins into account so that even if you need to pay for shipping, you can also turn a profit. You can also include shipping charges in the cost of your goods in order to save money. Packaging Services If the packaging experience you provide to customers is an important aspect of your brand image, providing a personalised unboxing experience is key. You can do this by including additional components such as a marketing insert, personalised note, or making use of a custom-branded box. You can even think about using eco-friendly shipping & packaging and other high-quality materials to demonstrate how concerned your company is about your customers and its environmental footprint. Thus, whenever you ship order consignments, you must take into account the level of special packing and its price. Shipment Dimensions The overall dimensions of your orders are crucial since volumetric weight, a pricing method used by most major shipping companies, is used to determine delivery charges. The size of the package is also taken into account while calculating the shipping cost because it determines the amount of usable space it takes up and leaves available for other parcels. To determine a rough estimate of shipping costs, you must weigh and measure your purchases. Because of how shipping rates are calculated, larger packages usually cost more to ship than smaller ones. However, if you bundle many orders together in the same consignment, it can work out cheaper. Customer Expectations Customer expectations must be taken into account when developing a delivery strategy that works best for your eCommerce firm. In most cases, clients absolutely prefer speedy and free order ship services. You can also make your delivery alternatives more enticing to your customers by having various offers that will enable them to get free shipping or qualify for ultra-fast delivery. Also, you can choose expedited shipping options to get purchases to customers even more quickly. To determine which solutions will work best for your company, it is crucial to compare shipping providers and their shipping services. Which Aspects of the Business are Involved in the Order Ship Process? Order Processing Staff The order processing staff refers to the members of the company that process orders whenever they come in and are also responsible for locating them within the warehouse, packaging it, labelling it and preparing it for dispatch. Depending on your arrangement, this task could either be the responsibility of your company or that of a logistics company that handles order fulfillment and shipment on your company's behalf. Shipping Company Once the order has been dispatched, the onus is on the shipping company to ensure that the consumer receives the item in good condition and in a timely manner. Shipping duties are usually carried out by large courier services such as FedEx, DHL or BlueDart. You can utilise order tracking to send updates to your clients, so they are informed of the whereabouts and the expected arrival date of their purchases while they are in transit or moving through different stages of the delivery process. 3PL Partner Most logistics services are usually provided by a 3PL partner. When an online retailer works with an external logistics company, the firm handles the entire process of delivering orders straight from the fulfillment center where the inventory is kept, to the customer’s doorstep. 3PLs usually provide the services necessary to give your customers a good experience, such as same-day shipping, order tracking and more. They are also responsible for last-mile delivery, where once the package reaches the same city as the customer, an on-ground delivery partner will collect it and transport it to the customer’s location. 5 Simple Steps to Accept and Ship Order Packages in 2023 Step 1: Select an Appropriate Shipping Plan Source Gathering all the pertinent product information is the first stage because shipping regulations for various product types can vary drastically. For instance, the packaging and shipping of garments will differ from the packaging and shipping of perishable products such as food items. Also, transporting commodities such as cleaning supplies and sanitisers will be regarded as perilous materials, and if you manufacture and sell vitamins and supplements, you may require special permissions and other documents. Therefore, it is important to choose a plan that fits the type of product you are shipping. Step 2: Use High-Quality Packaging Materials Source You must choose the proper packaging for the products you are delivering based on the category they fall under. Certain products, such as electronics and other easily-breakable and high-value items, may require additional packaging, while others only need the bare minimum. Two very important factors must be taken into account during this stage to protect your products while they are in transit and give your customers a fantastic unwrapping experience - package your products attractively and with high-quality materials and make sure your shipping provider handles them with care. Step 3: Identify the Fastest and Cheapest Shipping Alternative Source You need to determine which shipping service can deliver the order the fastest while also ensuring that costs don’t skyrocket. This can be done only after evaluating the quotations from several courier providers. Certain companies like WareIQ have partnerships with multiple shipping companies and have advanced services like a smart courier allocator that uses AI to automatically assign the fastest and most cost-effective solution on a per-order basis. This keeps your customers happy while also maintaining low expenditure. Step 4: Attach an Order Label Source You can create a shipping label after selecting the appropriate delivery option for your orders. If your company wants to print its labels in-house, you'll probably require a specific printer that is suitable for the task. If not, many 3PL companies provide labelling and printing services so they can take care of the entire process. Adding order labels is important because it contains all the necessary information related to the order so that in the event of an unforeseen incident, the product and its value can be easily determined by glancing at the label. Step 5: Dispatch the Parcel Source Giving your order to the shipping carrier so they can deliver it to your customer is the next and final stage in the shipping procedure. This will be done after the relevant items have been located, packaged, labelled and prepared for dispatch. The items will be kept ready at the warehouse’s dispatch points so that they can be easily accessed and loaded onto the delivery vehicle, from where they will be transported to the customer’s city and final location. Conclusion: Ship Orders Quickly and Cost-Effectively With WareIQ Order ship services can make or break an eCommerce firm by dictating the type of experience that customers have with it. It is additionally important to provide customers with order ship procedure because that is usually the last interaction they will have with your business before they ultimately receive their order, so you shouldn’t leave them with a bad taste in their mouths in regard to your company. Providing a good shipping experience is simple enough if you cover all the basics, like providing free shipping, ultra-fast delivery and a pleasant unboxing experience. If you need assistance with these services and other eCommerce-related facilities, WareIQ should be your go-to option. WareIQ has emerged as one of India’s leading eCommerce fulfillment companies since being founded in 2019. We provide the entire gamut of eCommerce operations from inventory storage to order ship services. Some of the ways our shipping procedures are better than the rest are listed below: Nationwide Storage Network We have a vast network of fulfillment centers and dark stores located in every major metropolitan region of the country and provide inventory placement recommendations that ensure your products are located within proximity of your customers. Partnerships With Multiple Shipping Companies We have partnered with the leading shipping services in the country and also provide a smart courier allocator that automatically assigns the quickest and most cost-effective option for every order. Ultra-Fast Shipping We provide ultra-fast same-day and next-day shipping through our WareIQ Rush platform, which ensures your customers will always receive their orders on the expected date and time. Customizable Packaging We provide customizable packaging where every element of the package can be tailored to your requirements and preference to ensure your customers have the best possible unboxing experience. Branded Tracking We offer branded tracking facilities through highly customizable order tracking pages where you can include whatever information and design elements you want to showcase. Ship Order: FAQs How does the order ship procedure work?When a customer makes a purchase online, the eCommerce business will package the product, choose a shipping carrier and send the product to the customer's address. What are some of the leading shipping carriers in the country?The leading shipping carriers in India include:- FedEx- DHL- BlueDart- DTDC- Gati What shipping options should eCommerce businesses offer?eCommerce businesses should offer multiple shipping options, including standard shipping, expedited shipping and overnight shipping. How can eCommerce businesses make their order shipping process more efficient?eCommerce businesses can make their order shipping process more efficient by using shipping software to streamline the process, using standardized packaging and optimizing their shipping carrier selection. What is a delivery order?A delivery order is a document that instructs a warehouse, shipping company or carrier to release goods to a particular recipient or destination. It is often used in international trade transactions to authorize the release of goods from a supplier or seller to a buyer or importer. Who issues a delivery order?A delivery order can be issued by different parties depending on the context and the specific requirements of the transaction. In general, a delivery order is issued by the party that has the legal right to instruct the warehouse or carrier to release the goods. What is a shipping order?A shipping order is a document that authorizes the shipment of goods from one location to another. It is often used in logistics and transportation to instruct carriers and other logistics service providers to move goods from a warehouse, factory or another origin point to a designated destination.

March 04, 2023

Accelerating sales and simplifying multi-channel marketplace management to unlock 3x online revenue at lower logistics costs for Lotus Herbals

Read how WareIQ helped Lotus Herbals manage sales and fulfillment across multiple marketplaces in a seamless fashion.

March 04, 2023

Top 10 Cold Storage Companies for Sellers in India That Deal in Warehousing of Perishable and Delicate Goods in 2024

eCommerce is a large, diverse industry that encompasses many different types of goods, with some requiring additional effort and specialized conditions in terms of storage and transportation. For instance, heavy or bulky items would need extra storage space in the warehouse and delivery vehicle, heavy-duty forklifts for loading and unloading, and more. Similarly, perishable goods such as food and beverages would require cold temperatures in order to preserve their freshness and prevent them from expiring. If you are a seller of these types of commodities, partnering with a logistics company that offers these specialized services is crucial if you want to fulfill orders across the country. Fortunately, because there is an ever-increasing demand surrounding the storage, warehouse, and fulfillment of perishable goods, a large number of cold storage logistics companies have emerged to fill the void. In this blog, we will take a look at what cold storage companies are and the top 10 cold storage companies in India currently available. What are Cold Storage Companies? Cold storage companies are specialized storage and logistics providers that offer temperature-controlled warehousing and transportation solutions for perishable goods such as food, beverages, pharmaceuticals and chemicals. These companies utilize state-of-the-art technology to maintain optimal storage conditions for their client's products, ensuring that they are kept at the right temperature, humidity and other environmental factors required for their preservation. The facilities of cold storage companies are equipped with various types of refrigeration systems, including blast freezers, chillers, and temperature-controlled rooms, to provide the necessary conditions for different types of products and can be regulated automatically or manually. These facilities are usually located near transportation hubs such as ports, airports, and major highways, making it easier to transport products to and from the storage facilities. List of Cold Storage Companies in India Company NameFounding YearHeadquartersKey ServicesWareIQ2019Bangalore, KarnatakaOrder fulfilment, cold storage, inventory storage, order management, custom WMSColdman Warehousing & Distribution2012Bangalore, KarnatakaWarehousing, cold storage, distribution, business consulting, food processingSnowman Logistics1996Bangalore, KarnatakaWarehousing, cold storage, round-the-clock operation, 100% power backup, temperature-controlled trucksColdrush Logistics2012Mumbai, MaharashtraCustomisable storage, in-house WMS, cold storage, online temperature monitoring, 100% power backupIndicold2012DelhiWarehousing, cold storage, order processing, packaging, distributionCold Care Group2000Hyderabad, TelanganaCold storage, maintenance, food processing, transportation, and testing facilitiesIndraprastha Cold Storage1952DelhiProduct procurement, cold storage, nationwide distribution, 100% power backup, freshness preservationSiddhi Cold Chain1974DelhiTemperature-controlled warehousing, cold storage, distribution services, order consolidation, 100% power backupGodamwale2016Bhiwandi, MaharashtraWarehousing, cold storage, automation, distribution services, consultancy servicesArihant Cold Storage2007DelhiWarehousing, cold storage, inventory management, cross-docking, order processing [contactus_uth] Top 10 Cold Storage Logistics Companies in India in 2024 WareIQ Source Founding Year: 2019Headquarters: Bangalore, KarnatakaServices Offered: Order fulfillment, cold storage, inventory storage, order management, custom WMS and more.About: WareIQ is an order fulfillment company that has grown to become one of India’s leading 3PL logistics companies. It provides a vast network of fulfillment centers and dark stores, with all of them being equipped with cold storage facilities as well as the latest temperature monitoring and regulating facilities. It has enabled many of its retail clients in food & beverages, dairy segments like Epigamia, Wingreens, Raw Pressery etc. to easily store and transport fresh and frozen produce, as well as pharma and nutraceutical companies like Gynoveda, myUpchar, Wellness Forever, Setu Nutrition etc. to store and transport medicines, with its temperature controlled warehouses & transport facilities. In addition to cold storage facilities, the company also provides value-added services such as personalized custom packaging, branded order tracking and much more, making it an attractive option for sellers who need a well-rounded fulfillment partner. [signup] Coldman Warehousing & Distribution Source Founding Year: 2012Headquarters: Bangalore, KarnatakaServices Offered: Warehousing, cold storage, distribution, business consulting, food processing and more.About: Coldman is one of the top cold storage logistics companies in India. You can avail of Coldman’s services for all of your supply chain needs involving temperature management. They are capable of handling items that need to be stored anywhere between the -20°C to +20°C temperature range. They provide services to almost every type of industry, such as restaurants, food processing companies and confectionaries. They can also handle many types of products, such as fruits and vegetables, poultry and meat, and pharmaceuticals. Furthermore, Coldman has had success offering its services in several countries across the globe. Snowman Logistics Source Founding Year: 1996Headquarters: Bangalore, KarnatakaServices Offered: Warehousing, cold storage, round-the-clock operation, 100% power backup, temperature-controlled trucks and more.About: Snowman is one of the longest-serving cold storage companies, operating constantly since 1996. For temperature-regulated logistics services, such as cold storage, transport and other additional services, Snowman has emerged as a market leader in India. Their integrated distribution strategies and cutting-edge cold storage facilities in large metropolitan areas like Mumbai, Bangalore and Chennai guarantee the maintenance of product quality and temperature integrity from the point of origin to the customer’s doorstep. Coldrush Source Founding Year: 2012Headquarters: Mumbai, MaharashtraServices Offered: Customizable storage, in-house WMS, cold storage, online temperature monitoring, 100% power backup and more.About: Coldrush is one of the leading cold storage companies in India offering top cold storage services in India. Several varieties of cold storage services are offered by Coldrush, such as chilled, frozen and ambient storage. It has multi-capacity chambers that adhere to the strictest requirements for handling products at controlled temperatures. Ever since its founding, Coldrush has carved out a country-wide niche in the industry for sellers who require detailed cold storage solutions. The business has the know-how, experience and in-depth comprehension required to consistently enhance the performance of integrated cold storage supply chains with new solutions. Suggested Read: List of the Best Logistics Companies in Maharashtra Indicold Source Founding Year: 2012Headquarters: DelhiServices Offered: Warehousing, cold storage, order processing, packaging, distribution and more.About: Indicold is dedicated to dominating the Indian market by providing superior and affordable cold chain logistics solutions. Its facilities for the fresh and frozen food industries give its clients a competitive edge, enabling them to prosper in a market that is constantly shifting. The business now conducts business across India, offering its customers speedy and dependable transportation and cold storage services through regulated, overseen partner stores and carriers, making it one of the best cold storage companies for sellers that need all-India distribution. Suggested Read: List of top Warehousing Companies in Delhi. Cold Care Group Source Founding Year: 2000Headquarters: Hyderabad, TelanganaServices Offered: Cold storage, maintenance, food processing, transportation, testing facilities and more.About: One of the most experienced cold storage companies in India, Cold Care Group leads the market in providing cold storage solutions. They manage over 20 cold storage warehouses, as well as offer logistics and refrigerated transportation services. With cutting-edge technology, Cool Care offers comprehensive solutions in the cold storage industry and services for temperature-regulated logistics. They are good if you are looking for affordable services and also if you are looking to reduce your transportation costs. It can store and handle various types of commodities, ranging from vaccines to plant seeds, making it one of the best cold storage logistics companies for sellers who deal in a diverse range of products. Suggested Read: Logistics Companies in Hyderabad in 2023 for Offline and Online Sellers Indraprastha Cold Storage Source Founding Year: 1952Headquarters: DelhiServices Offered: Product procurement, cold storage, nationwide distribution, 100% power backup, freshness preservation and more.About: The longest constantly operational firm among the cold storage companies on this list, Indraprastha Cold Storage provides a wide range of services, including procurement of produce directly from farms, transportation services across India and, of course, cold storage facilities. The company currently has over 500,000 square feet of storage space that are equipped with a variety of safety features such as stainless steel lining and aluminium walls to prevent cross-contamination and odour consolidation so sellers can be assured that their products will always stay fresh. Siddhi Cold Chain Source Founding Year: 1974Headquarters: DelhiServices Offered: Temperature-controlled warehousing, cold storage, distribution services, order consolidation, 100% power backup and moreAbout: One of the most experienced cold storage companies on this list, Siddhi Cold Chain began operations in 1974 and is a subsidiary of Siddhi Enterprises. The company provides a vast swathe of cold storage facilities as well as conventional logistics services. They have over 500,000 square feet of temperature-controlled warehousing space and a distribution network over the entirety of North India. However, it is limited by the fact that it only deals in vegetarian products and also because it does not have comprehensive operations in the rest of the country. Godamwale Source Founding Year: 2016Headquarters: Bhiwandi, MaharashtraServices Offered: warehousing, cold storage, automations, distribution services, consultancy services and more.About: Godamwale is a logistics and cold storage company. It has among the largest and most comprehensive infrastructure of temperature-controlled warehouses and cold storage facilities. It also provides conventional logistics services, such as distribution, order fulfillment and more, making it a one-stop shop for companies that need access to all these facilities and reduce logistics costs, in addition to just cold storage. It also has many big-name clients, including Amazon, Big Basket and Godrej, cementing its reputation as an experienced and well-adjusted 3PL company. Arihant Cold Storage Source Founding Year: 2007Headquarters: DelhiServices Offered: warehousing, cold storage, inventory management, cross-docking, order processing and more.About: Arihant Cold Storage is a cold storage company that provides a variety of temperature-regulated solutions. To keep goods secure, hygienic and always at the right temperature, Arihant Cold Storage employs advanced monitoring technology. Every aspect of storage is efficiently managed by their highly qualified staff. They assure their customers of no damage, temperature abuse or theft because they use various security measures. They are professionals at storing various types of products, ranging from pharmaceuticals to food products. How to Choose the Best Cold Storage Company in India? When selecting the best cold storage company in India, it is crucial to consider various factors to ensure that your perishable and delicate goods are handled with the utmost care and efficiency. Here are some key points to keep in mind: Understanding Your Needs Before choosing a cold storage company, assess your specific requirements. Consider the type of products you deal with, the volume of goods, temperature requirements, and the duration of storage needed. This understanding will help you narrow down your options and find a company that aligns with your needs. Reputation and Experience Look for cold chain logistics companies in India with a solid reputation and extensive experience in the industry. Companies with a proven track record of successfully handling temperature-sensitive goods and providing reliable services are more likely to meet your expectations. Infrastructure and Technology Evaluate the infrastructure and technology offered by the cold storage companies. Ensure they have state-of-the-art facilities, temperature-controlled storage units, backup power systems, and advanced monitoring capabilities to maintain the quality and integrity of your products. Compliance and Certifications Check if the cold storage company complies with industry standards and regulations. Look for certifications like ISO, FSSAI, and other relevant accreditations that demonstrate their commitment to quality and safety standards. Location and Accessibility Consider the location of the cold storage facility in relation to your business operations and distribution network. Opt for a company with strategically located warehouses that offer easy access to major transportation routes for efficient logistics. Customer Support and Services Choose a company that provides excellent customer support and value-added services. Look for features like order tracking, customised packaging, inventory management, and other services that can enhance your overall experience and streamline your supply chain operations. By carefully considering these factors and conducting thorough research on cold storage companies in India, you can select the best partner to meet your warehousing needs and ensure the safe storage and transportation of your perishable and delicate goods. Conclusion: Get Access to Cold Storage and Other Value-Adding Services With WareIQ Cold storage logistics companies are absolutely essential for businesses that deal in products that require very specific temperatures and other environmental regulations. An absence of these facilities can be detrimental to the products as well as your chances of selling them. Thankfully, the landscape of companies providing cold storage facilities has increased dramatically owing to the growing number of retailers that require them. As a seller, it is best to identify your own objectives, requirements and available budget so that you can make a well-informed decision that fits all your constraints. If you need access to cold storage facilities in addition to other fulfillment services, WareIQ can be the option for you. WareIQ is known for providing multiple value-adding facilities, such as cold storage facilities, customizable packaging, branded tracking and more, along with conventional order fulfillment services. Some of them are listed below: Nationwide Storage Network: We have a pan-India storage network consisting of fulfillment centers and dark stores that have cold storage facilities and other advanced services.Branded Packaging: We provide customizable packaging where almost every competent can be tailored to your tastes and preferences.Branded Order Tracking: We help equip you with editable tracking pages so you can customize the design and include whatever information you need.App Store: We have an in-house app store where productivity-enhancing apps can be downloaded to assist in various functions, such as customer feedback and providing shipping badges.Custom WMS: We have an in-built WMS that can update you about your orders and inventory data in real-time, automate multiple functions and integrate with most eCommerce marketplaces. Cold Storage Companies: FAQs What types of products are required to be stored in cold storage?Cold storage companies can store a wide range of products. Some products that need to be stored in cold storage include:- Fresh and frozen food products- Vaccines and pharmaceuticals- Temperature-sensitive items What are the positives of using a cold storage company?The benefits of using a cold storage company include:- Extended shelf life for products- Reduced product waste- Improved product quality and safety- Access to advanced storage and logistics technologies- Broadened scope of products What types of refrigeration systems are used in cold storage facilities?Cold storage facilities use a variety of refrigeration systems, including blast freezers, chillers and temperature-controlled rooms, to maintain the appropriate storage conditions for different types of products. How do cold storage companies maintain the appropriate temperature for stored products?Cold storage companies use advanced temperature monitoring systems and equipment to ensure that stored products are kept at the right temperature, humidity and other environmental factors required for their preservation. Are cold storage companies subject to any regulatory requirements?Yes, cold storage companies are subject to a range of regulatory requirements, including food safety regulations and pharmaceutical storage guidelines, and must comply with these standards to ensure the safety and quality of stored products. Which are the best cold storage logistics companies in India for the food & beverages and pharma industries?A few of the best cold storage companies in India are as follows:1. WareIQ2. Coldman Logistics3. Snowman Logistics4. Coldrush5. Indicold6. Cold Care Group7. Indraprastha Cold Storage8. Siddhi Cold Chain9. Godamwale10. Arihant Cold Storage

March 03, 2023

WareIQ Wallet Update: New ‘Hold’ Feature

Introducing the New Hold Feature to WareIQ Wallet We are excited to announce a new update to our WareIQ Wallet that will be effective from Monday, March 6, 2023. This update introduces a Hold Feature that aims to make our wallet functionality more transparent and enhance the overall experience for our valued customers. Here are the key details of this update: Hold Amount Reservation: When an order is marked as 'Ready to Ship', a hold amount will be reserved from the main wallet. This hold amount will be used to settle the shipping charges when the order is delivered, instead of using the amount from the main wallet.Refund for Cancelled Orders: If an order is cancelled after reaching the 'Ready to Ship' status, the hold wallet amount will be refunded back to the main wallet.Hold Amount Calculation: The hold amount will be calculated based on the product dimensions and shipping zone mentioned in the order, ensuring accurate charges are applied.Additional Charges for RTO Orders: In case of Return to Origin (RTO) orders, when the order status changes to 'RTO', additional return charges will be updated against the original hold amount.Shipping Charges Updates: Any shipping charges updates arising from weight disputes after order delivery will be adjusted in the main wallet as incremental charges when confirmed later. Please note that the hold wallet charges will now be visible along with the primary wallet charges in the passbook. We believe that these updates will enhance the transparency and efficiency of our wallet functionality, providing a seamless experience for our customers.

March 02, 2023

10 Best Shipping and Logistics Companies in Indore for Retailers to Outsource Their Logistical Requirements in 2024

Indore, while not being the capital of Madhya Pradesh, a privilege that is designated to nearby Bhopal, is the largest and most populated city in the state. Located smack bang in the middle of the country, Indore lies on the Malwa plateau and has one of the highest elevations among cities in Central India. It has also been named India’s cleanest city in 2022, a title that it has held continuously for the past 6 years. In addition to these fundamentally positive attributes, the city also has a booming IT sector, with multiple IT parks having sprung up in the past few years. This has enabled the city to have the regional headquarters and offices of multiple big-time brands as well as many emerging startups. The state government has also attempted to boost the economy by promoting a business-conducive environment and the city also has a large presence in the vehicle manufacturing industry, earning it the nickname “The Detroit of India”. However, all these businesses require the presence of fulfillment companies to assist them in their growth prospects. In this blog, we will take a look at the services generally provided by most fulfillment companies and the top 10 logistics companies in Indore. What are Some of the Services Provided by Logistics Companies in Indore? Transportation Facilities This is the primary service provided by virtually all of the major logistics companies in Indore. They generally offer different modes of transportation, such as air, sea, road and rail, to transport goods from one location to another. They also provide other transit-oriented services like booking, consolidation of transport services, loading, unloading and tracking of shipments. A logistics company with a large distribution network that spans the entirety of the country is crucial if you want to capitalize on every sale and ship products to wherever customers are located. Inventory Storage Most logistics companies in Indore provide storage facilities for products and goods. They have warehouses equipped with advanced technology for the efficient storage, retrieval and distribution of goods. They offer services such as inventory management, order fulfillment, and pick and pack fulfillment services. Some companies even make use of advanced software solutions such as WMS software and multiple automations. This allows for inventory to be monitored and analysed in real-time, across eCommerce selling platforms and storage locations. Freight Forwarding Services Freight forwarding is a service where logistics companies organize the transportation of goods from the manufacturer to their final destination. They handle all the logistics involved in the process of moving the goods, including documentation, packing, loading, and insurance. This completely takes away the burden of dealing with complex paperwork, documentation, and other time-consuming tasks from retailers so they can focus on other aspects of their business. Supply Chain Management Logistics companies in Indore generally offer supply chain management services to help businesses streamline their supply chain operations. They provide end-to-end supply chain solutions that optimize the movement of goods and improve overall efficiency. They can also identify any bottlenecks or inefficient processes that are causing disruptions and can provide recommendations to correct them or remove them entirely. Suggested Read: How to streamline shipping processes in 2023? Reverse Logistics Many logistics companies in Indore offer reverse logistics services, which involve the process of moving goods from their final destination back to the manufacturer or distributor after a return has been initiated by a customer or the product has been damaged in transit before reaching them. This service includes return management, repairs and recycling of products. Dealing with returns can be expensive but logistics companies that can handle it on your behalf will save you a lot of financial resources and effort. [contactus_gynoveda] 10 Best Logistics and Shipping Companies in Indore in 2023 WareIQ Source Founding Year: 2019Services Offered: eCommerce fulfillment, real-time tracking, logistics, shipping, warehousing, warehouse management supply chain management, contract logistics, 3PL logistics, and more Founded in 2019, WareIQ is one of the fastest-growing logistics companies in Indore. The organisation offers a vast array of facilities that cover any logistical need that your company might have. Order fulfillment services is its flagship product but it also provides many other, more complex services, including an app store with tools to boost productivity, a personalised WMS that can automate numerous inventory management procedures and monitor inventory data in real-time, integrations with various selling platforms and much more. If you're looking for an alternative that won't hit too hard on the wallet, it also features reasonable pricing and enables you to choose which services you need. Salient Features: Some of the main features that make WareIQ one of the best logistics and shipping companies in Indore are listed below: It consists of a built-in WMS that can automate reordering, manage inventory, and much more.It handles all aspects of reverse logistics in addition to providing returns management.It offers a pan-India storage network, including local dark stores and fulfillment centers.It offers an intelligent shipping allocator and collaborates with over 20 delivery partners and firms.It enables integrations with numerous web-building systems and eCommerce marketplaces, like Flipkart, Magento and others. RCPL Logistics Source Founding Year: 1997Location: Nayapura, Indore RCPL Logistics is a logistics company that was founded in 1997. The business is renowned for giving companies the greatest possible assistance in terms of shipping and transportation facilities. To meet the needs of various businesses, the company offers various services. This includes operating and maintaining a large fleet of trucks, packing and unloading facilities, logistical planning, vehicle transportation, and much more. Salient Features: Some of the main features that make RCPL Logistics one of the best logistics companies in Indore are listed below: It provides various transportation options through air, rail and road.It offers a variety of additional services, such as weatherproof packaging, along with conventional logistics solutions.It has an India-encompassing distribution network.It has warehousing facilities for inventory storage.It can easily shift different types of products with its custom packaging solutions. Vivek Logistics Founding Year: 2010Location: Dewas Naka Indore, Indore One of the leading logistics companies in Indore is Vivek Logistics, which has a long history since being founded in 2010. The company specializes in road and air logistics services, which are defined by punctuality, adaptability, speed, safety and dependability. It also provides services such as the transport of pharmaceuticals, freight forwarding, packing and moving, and much more. Salient Features: Some of the main features that make Vivek Logistics one of the best logistics companies in Indore are listed below: It offers multiple transportation methods through air and road.It can handle delicate items like pharmaceuticals.It provides efficient freight forwarding services.It offers warehousing solutions for inventory storage.It can ship items locally as well as internationally. Speed Movers Logistics Source Founding Year: 2009Location: Navlakha Complex, Indore Speed Movers Logistics is an Indore-based logistics company that was incorporated in 2009. It specializes in offering a wide variety of on-ground transportation services and has a country-wide distribution network. It has a large fleet of enclosed trucks and also provides GPS-equipped tracking services for every order. The company also provides warehousing facilities for product storage and can ship bulky and heavy items with ease. Salient Features: Some of the main features that make Speed Movers Logistics one of the best logistics and shipping companies in Indore are listed below: It has a large fleet of delivery-ready trucks.It provides tracking facilities in real-time.It ensures the safety of your cargo by enclosing it with additional packaging.It offers cost-effective pricing.It provides warehousing services for inventory storage. Suggested Read: List of the Top 10 Logistics Companies in Gujarat in 2023. Life Care Logistics Source Founding Year: 2002Location: Dewas Naka, A.B. Road, Indore Life Care Logistics is an Indore-based logistics company that was founded in 2002. It offers cost-effective logistics solutions that are within reach for most companies. The company has worked hard to establish new industry standards while also focusing constantly on providing clients with the best services possible. Its staff of 800-plus highly skilled and experienced professionals offers effective warehouse management solutions and distribution services under one roof. Salient Features: Some of the main features that make Life Care Logistics one of the best shipping companies in Indore are listed below: It offers advanced features such as temperature-controlled warehouses.It provides a wide range of value-added services such as kitting, packaging, shipping labelling, and more.It provides a wide range of transport services by air, land and sea.It offers inventory management services.It provides a storage network consisting of multiple warehouses. Carryfast Group Source Founding Year: 2011Location: Lasudia Mori, Indore, Madhya Pradesh Carryfast Group is an Indore-based logistics provider that was incorporated in 2011. This logistics provider offers a full range of 3PL services, including inventory management, order processing, express delivery, warehousing, quality assurance, packing and labeling. The company strives to give its clients the best value possible. Regardless of the scale of your shipping requirements, Carryfast Group will help you manage your company's transportation needs. Salient Features: Some of the main features that make Carryfast Group one of the best logistics and shipping companies in Indore are listed below: It provides many value-added services, such as packaging and rake handling.It handles reverse logistics for efficient returns management.It offers a variety of different transportation options.It takes care of inventory management.It offers warehousing services for product storage. BGRL Logistics Source Founding Year: 2017Location: Lasudia Mori, Indore Since its founding in 2017, BGRL Logistics has seeked to offer transportation services for a variety of goods, including tyres and CBUs for the FMCG industry, white and brown goods, vehicle components, alcohol, clothing, pharmaceuticals and yarn. The company's goal is to provide high-quality solutions by utilising cutting-edge technology and fool-proof techniques. Because of this, it has garnered a reputation for being one of the most reputable logistics companies in Indore. Salient Features: Some of the main features that make BGRL Logistics one of the best logistics and shipping companies in Indore are listed below: It can handle a wide variety of products, from industrial materials to household goods.It offers multiple transport options through air, land and sea.It ensures the safety of products in transit by adding additional protective layers.It provides warehousing services that consist of a variety of machinery and equipment.It offers inventory management solutions. Flow Logistics Source Founding Year: 2006Location: Sapna Sangeeta Rd, Indore Flow Logistics is a renowned freight forwarder company with over 20 years of experience established in 2006. The company is also a global logistics services provider and aids in the economical, risk-free transportation of merchandise inventory from its point of origin to its final destination. Their staff can carry out the excellent transportation of shipments through land and sea and offer customer care facilities around-the-clock. Salient Features: Some of the main features that make Flow Logistics one of the best logistics and shipping companies in Indore are listed below: It enables you to ship globally as well as within India.It specializes in ocean freight transportation.It offers 24/7 customer care facilities.It has economical pricing plans.It has a high level of existing customer satisfaction. Trivedi Transport Source Founding Year: 1990Location: Vijay Nagar, Indore Trivedi Transport is a logistics company that was founded in 1990. The company has acclaim throughout India and Nepal for being able to haul just about anything. It can take care of every logistical requirement from packaging to delivery, so you don't need to involve yourself in anything. It offers a wide range of services, including packing and moving, domestic relocation, transportation, warehousing, logistics and residential transferring. Some of the main features that make Trivedi Transport one of the best logistics and shipping companies in Indore are listed below: It provides many value-added services in addition to basic logistics solutions.It offers warehousing and storage services.It can store and transport any type of product, including dangerous and hazardous materials.It offers a wide range of transportation options.It has transportation infrastructure present throughout the country. Maxpace Logistics Source Founding Year: 2006Location: TT nagar, Dewas Naka, Indore Maxpace Logistics was founded in 2008 and is regarded as one of Indore's most reasonably priced, trustworthy and capable logistics providers. It handles every type of household commodity and also provides packaging services, in addition to loading and unloading them in a secure manner. Also, this business offers door-to-door moving services for a wide range of commodities such as cars, motorcycles and more. Salient features: Some of the main features that make Maxpace Logistics one of the best logistics and shipping companies in Indore are listed below: It provides moving and shifting assistance for household goods.It offers a conventional range of logistical services.It can handle even bulky and heavy items.It has more than 15 years of experience in the industry.It offers cost-effective pricing. Suggested Read: Check the List of 10 Best Logistics Companies in Ahmedabad in 2023. How To Choose The Best Logistics Company in Indore for Your Business? Things you should consider while choosing the right logistics company for your business are discussed below: Determine Your Requirements: Before choosing a logistics company, determine your logistics requirements such as transportation mode, warehousing needs, delivery time, etc.Do your Research: Conduct thorough research on logistics companies in Indore. Check their websites, read customer reviews, and ask for referrals from other businesses.Experience and Expertise: Choose a logistics company that has experience and expertise in your industry. They should have a good understanding of your business and logistics requirements.Technology and Infrastructure: Check if the logistics company has the latest technology and infrastructure to handle your logistics needs efficiently. They should have proper tracking and monitoring systems, well-maintained vehicles, and adequate storage facilities.Cost of service: Compare the costs of logistics services offered by different companies. Choose a company that offers competitive pricing without compromising on the quality of their services.Customer Service: Choose a logistics company that provides excellent customer service. They should be responsive, communicate clearly, and be willing to work with you to meet your logistics needs.Insurance and Licenses: Check if the logistics company has the necessary insurance and licenses to operate in Indore. This will ensure that your goods are protected in case of any mishaps during transportation. Conclusion: Enhance Your Logistics Operations With WareIQ Indore is quickly emerging as a good place to conduct business operations for a variety of businesses, including large MNCs, mid-sized companies and small-scale startups. This has resulted in the appearance of many logistics companies looking to find a client base that will take advantage of the services they bring to the table. The main beneficiaries of this competition are the retailers and their customers. In order to out-compete one another, most of these companies need to step up their game and offer the best services for the lowest amount of money. However, you as a seller should also consider your own requirements, budget and objectives in order to make a decision that is right for you. If you need a logistics company in Indore that checks all the boxes, you can consider partnering with WareIQ. WareIQ is one of India’s most rapidly growing 3PL logistics companies. We believe that gaining access to the best facilities does not have to come at astronomical costs. We uniquely blend the use of advanced technology with resource-saving features such as not having any minimum order quantity and being able to pick and choose services that you need. Some of the key solutions we provide are listed below: A nationwide storage network of fulfillment centers and dark stores that enables you to store your products closer to your customers.A partnership with the best courier services in the country and a smart courier allocator that always assigns the most efficient and cost-effective option.An RTO Shield that protects your business from the adverse effects of returns in addition to completely handling your returns management.A custom WMS that aids in inventory management and automates important tasks such as inventory replenishment, tracking in real-time and more.A level of integrations that encompass most eCommerce marketplaces, web-building platforms and courier services. Suggested Read: Logistics companies for Online & Offline Sellers in Surat. Logistics Companies in Indore: FAQs What is the role of a logistics company in Indore?Logistics companies in Indore are responsible for managing the movement and storage of goods and products within the city and beyond. They provide a range of services related to transportation, warehousing, customs clearance, supply chain management and more. Do logistics companies in Indore provide warehousing services?Yes, logistics companies in Indore provide warehousing services. They have warehouses equipped with advanced technology for efficient storage, retrieval and distribution of goods. Can logistics companies in Indore handle hazardous materials?Some logistics companies in Indore are equipped to handle hazardous materials. These companies have the necessary certifications and expertise to handle such materials safely and in compliance with regulations. How do logistics companies in Indore track and monitor shipments?Logistics companies in Indore use advanced tracking and monitoring systems to keep track of shipments. They provide regular updates to their clients on the status and location of their goods. How can you choose the right logistics company in Indore for your business?To choose the right logistics company in Indore for your business, you should consider factors such as:- Experience- Reputation- Range of services- Pricing- Customer service What is the cost of logistics services in Indore?The cost of using a logistics company in Indore depends on factors such as the amount of space required, the length of time goods will be stored, and the services required. You can get your quote here. Why is WareIQ among the top fulfillment and logistics companies in Indore?WareIQ provides a comprehensive range of services that cover every facet of eCommerce and we employ cutting-edge technology to make sure that every procedure is completed accurately and without error. In order to conserve money and resources, we also give you the option to choose only the services you require. Which are the top logistics companies in Indore?The top logistics companies in Indore are:1. WareIQ 2. Speed Movers Logistics3. Life Care Logistics

March 01, 2023

Packaging Customization and Personalization: A Lesser-known Tactic to Boost Customer Delight in eCommerce

Packaging customization personalization in eCommerce logistics can help delight customers and create a positive brand experience. An example of a popular real Indian D2C apparel eCommerce brand that has used packaging personalization and customization to their advantage is Chumbak. Chumbak is an Indian D2C brand that specializes in creating trendy and colorful apparel and accessories. Chumbak uses packaging personalization and customization to their advantage by: Using visually appealing and high-quality packaging that enhances the unboxing experienceIncorporating their brand's unique and colorful design elements into the packaging, making it instantly recognizable and memorable for customers.Offering a customization service where customers can have their own name or message printed on the packagingIncorporating eco-friendly materials for packaging and ensuring their packaging is sustainable and responsible This approach has helped Chumbak to create a unique and memorable customer experience, which has helped to increase customer satisfaction and loyalty. What Kind of Personalization and Customization Options are Available Usually? Here are a few ways to personalize and customize packaging for ecommerce logistics: Custom branding: Add your company's logo or branding elements to the packaging to make it easily recognizable. This can include custom printed boxes, bags or mailing envelopes. Personalized messaging: Include a personalized message or thank you note inside the package to make the customer feel valued. This can be done via a printed card or a handwritten note. Custom packaging inserts: Use custom packaging inserts to create a unique unboxing experience. This can include tissue paper, confetti, or other items that add a touch of elegance to the packaging. Product-specific packaging: Create packaging that is specific to the product being shipped. For example, if the product is a fragile item, use packaging that is specifically designed to protect it during transit. Eco-friendly packaging: Use eco-friendly packaging materials such as biodegradable or recycled materials to appeal to customers who are environmentally conscious. Gift wrapping: Offer gift wrapping as an option for customers who are buying the products as a gift. This can include custom gift wrapping paper or a gift box. By personalizing and customizing packaging, you can create a memorable brand experience for customers and increase the chances of repeat business. It's also important to consider the cost and feasibility of the customization before implementation. Impact of Customization and Packaging Personalizing and customizing packaging in eCommerce logistics can have several positive impacts on your business, including: Brand awareness: Personalizing and customizing packaging with your company's branding can increase brand awareness and make your company more easily recognizable. Customer loyalty: Personalized messaging and unique packaging can make customers feel valued and appreciated, which can increase customer loyalty and repeat business. Unboxing experience: Customizing packaging can create a unique and memorable unboxing experience for customers, which can increase customer satisfaction and positive word-of-mouth marketing. Increased perceived value: Personalized and custom packaging can make the customer feel like they are receiving a premium product, which can increase the perceived value of the product. Environmental consciousness: Eco-friendly packaging options can appeal to customers who are environmentally conscious, which can have a positive impact on the company's reputation and social responsibility. Gift giving: Personalized and custom packaging can make it easy for customers to send the package as a gift which is a great way to reach new customers and increase sales. Overall, personalizing and customizing packaging in eCommerce logistics can help create a positive brand experience for customers, increase customer satisfaction, and ultimately drive sales and revenue for the business. Customization and personalization also impact key business metrics positively. An example of how delighting customers with custom and personalized packaging can help improve eCommerce business growth is as follows: Increased customer loyalty: By providing personalized and custom packaging, eCommerce companies can create a positive and memorable experience for customers, which can lead to increased customer loyalty and repeat business. Positive word-of-mouth: Customers who have a positive experience with a company's packaging are more likely to share their experience with friends and family, which can lead to increased brand awareness and new customers. Enhanced brand reputation: By providing high-quality and personalized packaging, eCommerce companies can enhance their brand reputation, which can lead to increased customer trust and loyalty. Increased revenue: By creating a positive and memorable customer experience through personalized and custom packaging, eCommerce companies can increase customer satisfaction, which can lead to increased revenue through repeat business and new customers. Cost savings: By reducing packaging costs and providing eco-friendly packaging solutions, eCommerce companies can save money and appeal to environmentally conscious customers. Overall, delighting customers with custom and personalized packaging can help eCommerce businesses to improve customer loyalty, increase brand awareness and reputation, and grow revenue. Importance of Order Personalization and Customization in 2023 Order personalization and customization is important in 2023 for eCommerce brands because it helps to create a unique and memorable customer experience. With the rise of eCommerce competition, customers are increasingly looking for more personalized and tailored shopping experiences. By offering personalization and customization options, eCommerce brands can differentiate themselves from their competitors and build stronger relationships with their customers. Additionally, order personalization and customization can help to increase customer satisfaction and loyalty. When customers receive a product that is customized to their preferences, they are more likely to feel satisfied with their purchase and may be more likely to return to the brand in the future. Order personalization and customization can also help to drive sales and revenue growth. By offering personalized and customized products, eCommerce brands can increase the perceived value of their products, which can lead to higher prices and increased sales. How can WareIQ Help? WareIQ's full-stack fulfillment solution has enabled multiple leading brands across categories such as Blissclub, Setu Nutrition etc. create a delightful experience for their customers by utilizing custom packaging material, thank you notes, combo creation etc. This helps brands deliver a premium customer experience and makes the moment of truth - the unboxing experience- unforgettable for clients. In case a brand has a particular requirement for packaging material, we can be flexible about it and help brands fulfill the orders in the way they feel is the best for their customers. With our capable fulfillment operations team, brands can rest assured that their orders are being picked, packed, and shipped in an accurate fashion, without any delays or damages, leading to on-time deliveries which facilitate positive customer sentiment about the brand experience. To know more about our personalization and customization services, visit: WareIQ Order Customization and Personalization

February 25, 2023

What is Post Purchase Dissonance? Definition, Examples, Factors and 7 Methods to Reduce Cognitive Dissonance in Post Purchase Behaviour in 2024

Gaining repeat customers and enticing existing customers to spend more money at your company after they have already made a purchase is a recipe for success for most businesses. This sentiment is backed up by droves of data - retaining 25% of customers can lead to a 95% increase in profitability, repeat customers are estimated to spend up to 67% more than new ones, 82% of companies suggest that focusing on retaining customers is less expensive than acquiring new ones and many businesses imply that 65 to 75% of their existing business comes from repeat customers. With these numbers in mind, it should be your utmost priority to ensure that customers have a good first impression of their experience with your brand and a pleasant Post-Purchase Experience in eCommerce. But, failing to do this can result in post-purchase dissonance and can ruin their chances of ever returning. In this blog, we will take a look at the meaning of post purchase dissonance in addition to examples, factors leading to it, and 7 ways to reduce its occurrence. What is the Meaning of Post Purchase Dissonance? Post purchase dissonance, also known as buyer's remorse, is a psychological phenomenon that occurs when a person experiences feelings of doubt or regret after making a purchase. It is primarily caused by cognitive dissonance that arises when a buyer has made a purchase decision but then experiences a sense of conflict or unease about that decision, which may cause feelings of regret and anger. Post purchase dissonance is a common occurrence that affects many people and it can be especially pronounced in situations where the purchase involves a significant amount of money or emotional investment. For instance, a person who buys a new car may experience post-purchase dissonance if they later find out that they could have purchased the same car for a lower price or that the car does not perform as well as they expected. [contactus_lilgoodness] Instances of Cognitive Dissonance in Post Purchase Behaviour Initiating the Return of a Product Returns are one of the most common forms of post-purchase dissonance. Not all returns are initiated due to cognitive dissonance in post-purchase behavior. However, many instances of returns do stem from customers having regret about making a purchase and take a conscious decision to return it and get their money back. Retailers are expected to have flexible return policies that allow their customers to return items for a variety of reasons and can also put measures in place to shield themselves from the additional costs associated with it. It is important to make sure that customers have a smooth returns experience so that they will consider purchasing from your company in the future. Leaving Negative Online Feedback Oftentimes, post purchase dissonance can manifest in the form of customers leaving negative reviews and customer feedback for e-commerce on a company’s own website or other online forums. Many customers often check the reviews and consensus from other customers before they decide to make a purchase from a business. However, negative reviews are an unavoidable occurrence in the retail business, regardless of how perfect you strive to be. What is important is the way that you handle these negative reviews, an opinion also shared by the majority of customers. For instance, complaints should be responded to and addressed immediately for the satisfaction of both the person who wrote them and for potential customers observing how your business handles them. Unsubscribing From a Paid Service Subscription-based services have become the norm in many types of retail businesses. Customers may be encouraged to subscribe to such services by a well-made ad or a smooth-talking customer service executive, only to regret it after the recurring bills begin to stack up. This is when they try to remove any unessential expenses from their lives, which often include subscriptions to various services. This is where your business should make it easy and swift for customers to delete their subscriptions if they want to, rather than making them jump through various hoops in order to prevent money from being debited from their accounts. Giving up on their business in the short term could result in them having enough satisfaction to give your business a chance again. Factors Leading to Post Purchase Dissonance Having High Involvement in a Purchase Post-purchase dissonance is more likely to occur with high-involvement purchases, such as a house, car or an expensive electronic item. This is because these purchases involve a significant amount of time, effort and money, and consumers want to make sure they have made the right decision. Therefore, consumers generally do a lot of research when it comes to these types of purchases and can easily experience feelings of regret if everything isn’t as it seemed in the beginning. Getting Only Limited Information If a consumer feels that they do not have enough information about the product or service they purchased, they may experience post purchase dissonance. This can happen if the consumer relied on incomplete or inaccurate information or if they were not able to compare the product or service with other options. Customers should be informed about what to expect from products through specifications and measurements. Accurate and detailed product information should be provided to ensure that customers can make well-informed decisions. Having Unmet Expectations Post purchase dissonance can also occur if the consumer's expectations are not met after purchasing the product or service. This can happen if the commodity they purchased does not perform as expected or if the consumer discovers a flaw or defect that was not apparent at the time of purchase. This is especially pronounced for high-value purchases but can still be a factor, regardless of how much the item costs, due to most customers wanting the best value for their money. If the product is lacking in any capacity than what they anticipated, it can lead to feelings of instant regret. Instances of Social Pressure Social pressure can also lead to post purchase dissonance. For instance, if a consumer made a purchase to impress others or to fit in with a particular group, they may experience feelings of regret or embarrassment if they later realize that the purchase was not worth it after having spent their hard-earned money on it. While this isn’t a reflection of the business itself, which may not lead to the customer having negative impressions of their purchase experience, it does play a part in them regretting their purchase, which is also a form of cognitive dissonance in post purchase behaviour. Availability of Alternative Options If a consumer becomes aware of other, more value-for-money or cost-effective options after making a purchase, they may experience post purchase dissonance. This can happen if the consumer discovers a product or service that would have been a better fit for their needs or if they find out that they could have gotten a better deal elsewhere if they waited a little longer or did some more research. 7 Ways to Reduce Post-Purchase Dissonance in 2023 Have a Flexible Returns Policy Source The last thing a consumer wants to do after making a purchase with which they are not satisfied is to put undue amounts of additional effort into learning about your return policy. Returns are undoubtedly inevitable so secretly keeping your policy in small print simply breeds mistrust and creates more dissonance. Note that difficulty in viewing your return policy is the first step in an unsatisfactory returns experience that causes more than 80% of customers to abandon a store. So consider improving the accessibility and transparency of your return policy if you want to lessen post purchase dissonance. Links to your policy can be made available across your website, like the homepage, listing pages, automated chat and FAQ pages, and you can also include a summary of it in the email that customers receive upon placing an order. Give Customers the Ability to Track Their Orders Source Being able to track their packages is viewed by most customers as a right, not a privilege. Many a time, instead of looking forward with anticipation at the arrival of their package, customers experience feelings of regret because the order didn’t arrive at the expected date and time and they didn’t have the information they needed to keep them informed about it. When something similar to this occurs, your company would take all the blame for the results and the impending hard-pressed feelings that come with it. After one late delivery, 17% of customers will cease making purchases from an eCommerce company. If their product isn't delivered within 2 days of the scheduled delivery date, 69% of customers are less inclined to make another purchase from the store. Therefore, make it a point to provide order tracking details along with every purchase. Ensure That Every Detail is Provided to the Customer Source Customers of eCommerce firms generally fall into 2 main categories - those who make impulsive purchases and those who conduct extensive studies on the items they're interested in purchasing. Even though it is challenging to lessen post purchase dissonance for customers that make spur-of-the-moment purchases, the propensity of the latter set of clients to experience it can be reduced by providing the necessary information. Try leveraging content such as product guides and instructional films to provide comprehensive information about your items. You can get ideas by visiting some well-known establishments and seeing what kind of information they are providing. To acquire inspiration for the content and its presentation, look at their listing pages, social media profiles, blogs, and other digital domains. Identify the Root Cause of Their Regret Source Post purchase dissonance frequently results from issues that need to be fixed that afflict many people. Knowing this information will be beneficial for your eCommerce firm since it will help you develop client loyalty by identifying and resolving the sources of customers’ woes. Identifying the root causes that generated the dissonance is more simple than you would assume. To find out more about your consumers' expectations, employ feedback methods like customer surveys, go through existing customer reviews and actively encourage customers to lay out their grievances. Statistics about product returns might also paint a reliable picture. You can use this data to implement practical strategies for lowering post purchase dissonance and improving customer service. Provide Customers With a Noteworthy Unpackaging Experience Source Consumers constantly anticipate the delivery of their online orders and if you don't take advantage of meeting their expectations when it finally arrives, their excitement could rapidly turn to regret. Coupled with lightning-fast delivery, a fantastic unboxing experience can win over your customers and make sure they don’t experience post purchase dissonance. Providing customers with what they need is just one aspect of the unboxing process that can also help to avoid confusion. Custom packaging can be used to offer a memorable unboxing experience as opposed to using a standard brown box. You can also use tactics such as environmentally friendly shipping, packing, adding personalized touches such as a handwritten letter, a thank you note or a unique message and providing samples of other products or promotional coupons within the box. Provide an Easy Way to Offer Product Replacements Source You can place an emphasis on retaining your consumers even if they are experiencing post purchase dissonance. You simply need to give them the impression that if they are dissatisfied with one item, you can provide them with other options in your eCommerce catalogue that they might find appealing. By suggesting this, you can demonstrate you have the desire to work with clients to locate products that meet their demands and that it is a partnership worth preserving. You can convert returns into exchanges by offering tailored suggestions. In order to encourage repeat purchases, you can also offer them the option of receiving their refund within the company’s wallet. Implement Post-Sale Communication With Customers Source Engaging with customers even after they have purchased an item shows them that you value them more than just their money. By doing this, it is pretty simple to decrease post purchase dissonance. To reassure your consumers that you genuinely value their patronage, you can communicate with them on a personal level, such as sending them messages on WhatsApp, highlighting upcoming sales, promoting new products and more. You can also inform them of the information they can expect along with their order, including the order's receipt, shipping status and arrival date. Conclusion: Eliminate Post Purchase Dissonance With WareIQ’s Enticing Services Repeat customers are an essential component of the success of many businesses. Importance should be placed on ensuring they have a positive experience, whether purchasing goods or returning them. Companies should take care to address customer complaints as soon as they crop up and have flexible return or replacement policies in the event that something goes wrong with a product or its delivery. Post purchase dissonance, if not handled with care, can be detrimental to a company’s reputation among existing and prospective customers. With just a little bit of effort and common sense, you can reduce the impacts of post purchase dissonance and even get rid of it almost entirely. Partnering with a 3PL company that offers customer-focused services will ensure that they take your brand seriously, limiting the effects of cognitive dissonance in post purchase behaviour. One such company is WareIQ. WareIQ is one of India’s leading eCommerce fulfillment companies. From order to fulfillment and inventory storage to last-mile delivery and enabling customer feedback, we provide your business with all the tools to ensure your customers have a seamless and positive experience with your brand. Some of the ways we can discourage post purchase dissonance are listed below: Branded Order Tracking We provide customizable eCommerce order tracking pages that can be designed according to your preferences and will help your customers gain real-time insights about their orders in style. Customizable Packaging We provide personalizable packaging where every element can be customized so that you can ensure your customers have a worthy unboxing experience, lowering their chances of feeling regret. Online App Store We have an app store with multiple downloadable apps that include functionality such as being able to provide shipping badges on your product listings to increase trust and being able to easily generate customer reviews so any complaints or feedback can be taken into consideration. Ultra-Fast Delivery We provide same-day and next-day delivery to ensure that packages reach their destinations intact and on time. Returns Management We are a reverse logistics company that completely handles your entire process so that your customers can return items seamlessly and hassle-free. Post Purchase Dissonance: FAQs How common is post purchase dissonance?Post purchase dissonance is a common phenomenon that affects many people, especially in situations where the purchase involves a significant amount of money or emotional investment. What are the symptoms of post purchase dissonance?The symptoms of post purchase dissonance can include:- Feelings of regret or remorse- Anxiety or unease about the purchase- A sense of disappointment or frustration- Physical symptoms such as headaches or stomach aches- Psychological feelings such as anger and disappointment Does post purchase dissonance affect all types of purchases?Post purchase dissonance can affect any type of purchase but there is a greater likelihood that it will occur in situations where the purchase involves a significant amount of money or emotional investment. Can post purchase dissonance lead to returns or refunds?Post purchase dissonance can sometimes lead to returns or refunds if the buyer feels that the product did not meet their expectations or if they regret their purchase. Can post purchase dissonance have long-term effects?Post purchase dissonance is usually a temporary experience but it can have long-term effects on the buyer's perception of the product, brand or seller, which can impact future purchasing decisions.

February 25, 2023

Minimum Order Quantity Explained: Formula to Calculate MOQ & 10 Benefits of MOQ for eCommerce Business in 2024

These days, starting a business is not a big deal, especially in the eCommerce space. People have enough money through their own resources or through investors but what they lack are knowledge and free time. They may know about the basics of demand and supply but don’t know how the nuances of running an eCommerce business or various factors that affect online business growth in multiple ways. Those factors can be efficient inventory management, warehouse management, streamlined last-mile deliveries, payment collections, etc. In eCommerce, inventory plays a crucial role. It is the biggest asset of a business among all its resources. Buying goods or raw materials isn't always easy for a seller. You need to find a trustworthy company that not only sells the necessary supplies at the right price but also allows you to order the most suitable amount possible and preferably, does not impose a minimum order quantity (MOQ). It is critical to understand how minimum order quantity works and why some suppliers may employ it. If appropriately controlled, it can help you boost your profits with increasing cash flow. MOQ can impact several aspects of an eCommerce business, including inventory management, pricing strategy, and customer experience. In this blog, we'll dive into the importance of MOQ and provide tips calculating MOQ and for finding the right balance between maximizing sales and minimizing costs. What is Minimum Order Quantity (Meaning of MOQ)? Minimum order quantity is the least number of units of a product that a retailer offers to sell to their customers at a particular time. In the eCommerce industry, it is mostly offered by a manufacturer or supplier in the context of production activity. A merchant can ask you to order an MOQ for a certain amount of money. MOQs are a reflection of the financial limits faced by suppliers while fulfilling an order. These can include expenditures associated with material, machinery, and completion of that order, such as shipping costs. It is maintained by suppliers to maintain sales margins and lower the operational and logistical costs of the business. What are the Different Types of Minimum Order Quantity (MOQ)? Simple Minimum Order Quantity Many businesses are not retailers although they have to fulfill a single order. The lowest limit could be the minimum order quantity or the least amount spent on the purchase. For example, a bike dealer directly buys bikes from the manufacturer but sells them in individual units. They maintain MOQ with a limited amount of stock with keeping in mind the constraints of economic factors by their target buyers. Complex Minimum Order Quantity Here, a retailer deals with many constraints at one time by taking care of various metrics such as price charts, quantity, quality, etc. A good example of this is orders placed by a grocery store owner or a chemist. A chemist has to fulfill orders for several medicines at a time for which they have to store different types of medicines in varying quantities. How does Minimum Order Quantity Affect Inventory? For both the supplier and the buyer, the minimum order quantity has a significant impact on inventory. Sellers who pick a high minimum quantity must produce and store large amounts and thus, their inventory management is affected by the MOQ. Buyers, on the other hand, must determine whether they require their product's MOQ, or else find another supplier with a lower minimum order quantity or explore various other inventory storage solutions. Buyers must think about things like storage capacity and the potential savings from acquiring products in bulk. Main Point of Difference Between Low MOQ and High MOQ High Minimum Order Quantity (MOQ) Suppliers with a high minimum order may need to keep a large amount of inventory with them to fulfill orders. Suppliers may need more time to fulfill orders if they want to keep inventory levels low and adopt just-in-time inventory management. Inventory requirements that are larger involve a lot of working capital and take up a lot of warehouse space. However, they save administrative expenses since products or raw materials can be ordered less frequently, resulting in savings further down the supply chain. While stockouts are less likely, there is a higher chance of products becoming obsolete with a high minimum value, particularly in the case of electronics. Low Minimum Order Quantity (MOQ) Suppliers don't require as much inventory on hand for orders with a low minimum order quantity because the typical order size is likely to be smaller. This could result in lower inventory levels and higher inventory turnover. A low minimum value might put a strain on your sales team, forcing them to manage more customers and work more to generate leads. Because orders are placed more frequently, administrative costs are higher. While low MOQ suppliers suffer the danger of running out of stock, they also run the risk of obsolescence. How to Calculate Minimum Order Quantity? There is no particular formula to calculate MOQ. It depends on various factors of a business like its size, location, operational sector, etc. It is built up to accommodate each supplier's unique problems and business needs. Businesses must select whether they want a lower minimum order quantity with a higher price when purchasing from their suppliers or vice versa. The more you buy from suppliers, the easier it is for them to cut costs per unit, which is why this system exists. Even though there is no set quantity for MOQ, there are a few things to consider when determining the optimum MOQ. Estimating Demand Demand forecasting considers product type, competition, seasonality, and other factors when calculating how many units you will sell as a merchant while ordering inventory. This information can assist you in making your next purchase decision. Inventory and demand forecasting go hand in hand in this equation. You might find that the manufacturer's minimum order quantity isn't far off from what you'd be able to sell. You'll also want to factor in your overall timeline for preparing the inventory to be shipped, which should include lead times, freight transit times, receipt of goods in the warehouse from your third-party logistics service provider (3PL), and any other potential delays, as you may find the need to order inventory sooner than expected. Knowing Your Break-Even Point If you want to set your minimum order quantity, you'll need to know what your break-even point is. When you recover the customer acquisition cost and your customer returns through email marketing efforts, you will get a better idea during the second transaction for DTC orders. Consider the lowest per-unit monetary amount you're willing to charge in exchange for a larger order value for wholesale agreements. It can't be so low that your profit margins suffer but if you're not merely paying for lesser amounts at a greater price, discounted prices are expected. Calculating Holding Capacity and Cost Some items are more costly to store than others (due to size, duration of storage, and special ecommerce warehousing requirements). It's more cost-effective to keep such items out of your inventory for as long as possible. The true cost of storing all of your products will reflect in your inventory holding cost, which you must consider before spending extensively on inventory. Framing Your MOQ Strategy Let's assume that you have high demand at all times. Suppose on average, your partners order 200 units per order, and you need to sell at least 150 units per order to break even. If your partners or clients have previously agreed to buy 200-unit orders, you might need to set your minimum order quantity to 200 units, or even lower to 150. Benefits of Minimum Order Quantity for Multichannel eCommerce Sellers and Buyers in 2023 A seller who sells their products on multiple channels including their websites through means such as dropshipping and 3rd party fulfillment has to strongly take care of the minimum order quantity. These days, retailers taking advantage of multi-location warehousing rely on order management software to manage all their orders and inventory. It helps them to cut costs on individual products which are transferred to buyers. Benefits for Sellers Better Cash Flow A seller should stock the right volume of inventory so that is not too high that they have to hold it for long periods of time where their money remains withheld and not too low where they cannot fulfill all their orders. Proper maintenance of minimum order quantity helps them to save more efficiently and have a better cash flow. Low Inventory Costs Storing a high volume of inventory is expensive. You not only need to pay to rent storage but also on tracking and maintaining inventory levels and keeping it safe. You will have to spend a lot of money to buy a high volume of inventory which is stuck for a long time. Assurance of Profit If an MOQ is set, orders are at the lowest amount after calculating the profit and it will not affect the inventory and transportation cost. This gives the business a guaranteed profit margin. Benefits for Buyers Increase in Savings When a seller saves money while selling a product, the effects trickle down to the buyers as well. This makes the end customer receive discounted prices from a seller who effectively manages inventory levels using minimum order quantity. Fresher Inventory A buyer buying products from a seller who follows MOQ will get fresh items because the seller stores the least amount of inventory that is needed. Steps to Implement Minimum Order Quantity (MOQ) Every idea, if tried and tested, can yield promising results compared to carrying out ideas that have not been researched. So for MOQ, these are the steps to achieve a better output. Calculate the Target MOQImplement the MOQ Calculate the Target Minimum Order Quantity This is the most essential thing to do while implementing minimum order quantity. You cannot purchase a lot of items and keep your inventory stocked with just those products. If these items are not going to get sold shortly then: There will be less space in your inventory to store other items.Your money will be stuck until the products are sold.The products could get expiredThe value of the products gets loweredThey start to need more maintenanceCosts will accumulate with time So for an easy check on this, you can take the following precautions: Figuring Out Demand Forecast the demand that you will need to fulfill in the future. Adjust your minimum order quantity per seasonal demands, the nature of the products, etc. Calculate the Break-Even Point Know the break-even point of a single product before you place an order in bulk. Consider All Possible Costs You must calculate all the costs associated with different minimum order quantity levels such as holding and transportation costs. Some products are expensive to store depending on their size, duration of storage, and special storage conditions. (e.g., fruits, vegetables) Implement the Minimum Order Quantity After all the trouble to calculate the right minimum order quantity, implementing MOQ is also a major task for the buyer. While implementing the MOQ, you may need to rent a warehouse, secure it, connect it to logistics partners, keep track of it, keep updating it, and add services like branded shipping, dropshipping fulfillment, etc. to it. You can also partner with a third-party fulfillment provider who will take care of all these things and give you extra benefits like multi-warehousing with MOQ, access to high-tech inventory management software, connections to more courier aggregators, RTO indicators, etc. Conclusion: Successfully implementing Minimum Order Quantity with WareIQ in 2023 As you we have discovered, MOQ is important for eCommerce players who are maintaining multiple shops at a time on multiple selling platforms. They have a lot of things to focus on. Instead of micromanaging things that will consume all of their time, they should focus on other important aspects and manage the business. WareIQ can be a solution for this. It provides you with the facility of multiple warehousing or fulfillment centers in different locations.You get an actual count of your inventory before initiating MOQs.You will have to spend less on warehouse (inventory) management after MOQ.It sends you a reminder for low inventory.It eases your holding capacity for a long time.It lowers your freight rate by placing your inventory near areas of high demand.It helps you to find the best logistic partner to make your fulfillment hassle-free.It enables you to promise your customers same-day and next-day delivery.It has features such as RTO Shield to prevent high costs associated with product returns. WareIQ offers sellers a full-stack platform. They also offer fulfillment centers near the recipient, which is something that not every eCommerce company can do. To save time, you can obtain all of your logistical needs in one place: inventory management, shipping orders, customer delivery concerns, and performance analysis. To enable firms to offer two-day deliveries, WareIQ maintains a network of fulfillment centers across India. They also collaborate with third-party companies to assist in the operations of their services, such as last-mile delivery. WareIQ handles issues that arise during order fulfillment, such as damaged or lost inventory, and responds immediately to provide a positive customer experience. To keep your cash flowing, they offer COD remittance twice weekly. Finding the most efficient and dependable choice for your delivery, as well as managing returns, are all taken care of. Minimum Order Quantity (MOQ): FAQs (Frequently Asked Questions) What does a minimum order mean?The smallest amount of a product that can be ordered in one delivery, usually to spread shipping expenses across a reasonable number of units, is known as the minimum order. We do not have an MOQ, and all of our wholesale products are sold in modest pack sizes through advanced shipping services. How do you find the minimum order quantity?There is no such formula for calculating it. MOQ depends on various factors like the size of the business, type of business, nature of the product, season for sale, and much more. What is MOQ in Supply Chain?The minimum order quantity, or MOQ, is the smallest order size that a supplier will accept. The smallest number of units is frequently used. Suppliers can, however, specify the minimum order quantity based on the order value. What is the purpose of MOQ?The goal of minimum order quantity is for suppliers to maximize their earnings while simultaneously getting rid of more inventory and weeding out "discount shoppers." What is EOQ & MOQ?Economic Order Quantity (EOQ) is a formula used in inventory management to calculate the optimal order quantity for a particular product. It takes into account the cost of ordering, the cost of holding inventory, and the demand for the product. The goal of using EOQ is to minimize the total inventory costs, which includes both the cost of ordering and the cost of holding inventory.Minimum Order Quantity (MOQ) is the minimum quantity of a product that a supplier is willing to sell to a customer. MOQs are often set to ensure that the supplier can produce or procure the product at a cost-effective price point. For example, a supplier may have a higher production cost for smaller quantities, and so may set an MOQ to ensure that they can cover their costs and make a profit. MOQs can vary depending on the product, supplier, and market conditions. How do you fix the minimum order quantity?If you are a buyer there is typically nothing that can fix the minimum order quantity (MOQ) set by a supplier. However, there are a few strategies you can use to try to negotiate a lower MOQ or find ways to work around it:1. Negotiate with the supplier: If you are a valuable customer or can demonstrate that you have a significant demand for the product, you may be able to negotiate a lower MOQ with the supplier.2. Look for alternative suppliers: If the MOQ set by your current supplier is too high for your needs, you can research other suppliers who may offer a lower MOQ.3. Group orders: Consider combining orders with other buyers to reach the supplier's MOQ. This strategy can help you save on shipping costs and reduce the overall cost per unit.4. Adjust your purchasing strategy: You can adjust your ordering frequency or the quantity you order each time to work within the supplier's MOQ. This strategy may require some planning and forecasting, but it can help you avoid overstocking or tying up too much capital in inventory.

February 25, 2023

Warehouse Vs Fulfillment Center: 5 Key Differences to Help You Choose the Best Storage Solution For Your Business in 2024

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. Read along to know which storage infrastructure works best for your online business: Warehouse vs Fulfillment Center. 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 distribution services is what your business requires. What are Warehouses and When are they Needed for your Business? It is common to compare a warehouse and fulfillment centers although they have significant differences. An 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. The warehouse layout is designed in a way to ensure efficient fulfillment of orders. 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. [contactus_lilgoodness] What are Fulfillment Centers & When are they Needed for your Business? 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 in 2024 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. Suggested Read: Types of Warehouses in eCommerce 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 benefits 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 in 2024? Source 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 with our pan India fulfillment network and have a hassle-free experience and raise satisfaction levels to new heights. [signup] Difference Between Warehouse and Fulfillment Center FAQs (Frequently Asked Questions) What is the relationship between Warehouse and Fulfillment center?A fulfillment center is a sizable structure that houses inventory for a company, much like a warehouse. However, it also has a number of other uses. In contrast to warehouses, where products are kept for longer periods of time, fulfillment centers keep items for only a brief time before shipping them out. What is fulfillment in a warehouse?Fulfillment in a warehouse refers to the process of receiving, processing, picking, packing, and shipping orders to customers. It involves managing inventory, organizing products, and coordinating the movement of goods within the warehouse to ensure that orders are processed accurately and efficiently. Does WareIQ have its own warehouse and fulfillment services?Yes, WareIQ has its large network of warehouse and fulfillment centers which helps to store inventory closer to your customers enabling same day or next day delivery services. What is the difference between warehouse, distribution center and fulfillment center?While the terms warehouse, distribution center, and fulfillment center are often used interchangeably, the key difference is;-The primary function of a warehouse is storage of inventory.-The primary function of the distribution center is to distribute products to their final destination.-The primary function of the fulfillment center is to fulfill customer orders. Do fulfillment centers manage inventory? Yes, fulfillment centers do take care of sorting inventory and keep track of inventory in the warehouse but their main goal is to efficiently ship the orders out to customers as soon as possible. How many square feet are required for a fulfillment warehouse?It will depend upon your growth plan and business type because eventually you would not want to move into, or rent or lease a space that you will immediately outgrow. How are WareIQ’s fulfillment centers and warehouses? WareIQ has an extensive and elastic network of fulfillment centers present across tier-1, tier-2 & tier-3 cities in all zones. Few of the features:• Rapid ramping up of fulfillment infrastructure as required (21 days to go live)• Warehouses of various sizes available - large-sized, medium-sized & small-sized• Highly capable warehouse operations team to enable custom kit creation when required• Temperature controlled fulfillment centers to reduce spoilage of temperature sensitive products• Dark Stores for inventory placement near demand centers, enabling faster delivery Is the Amazon warehouse and fulfillment center the same?Amazon warehouses are called fulfillment centers too because Amazon warehouses not only store products but also serve as distribution centers where associates pick, pack, and ship orders to the end customer.

February 25, 2023

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