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The Ultimate Beginner’s Guide to Start Selling on Facebook and 10 Best Tips for Retailers Who Sell on Facebook in 2024

The Ultimate Beginner’s Guide to Start Selling on Facebook and 10 Best Tips for Retailers Who Sell on Facebook in 2024

Few platforms have the reach of Facebook when it comes to social media. Despite the rise of trendier social media apps in the last few years, Facebook users continue to outweigh users of other platforms, which means that no matter what industry you're in, there are likely to be a lot of prospective clients when you sell on Facebook. According to surveys, an increasing proportion of online customers are making purchases directly on social media platforms rather than through an eCommerce site. You can use this step-by-step guide if you want to sell on Facebook but don't know where to begin. What is the Facebook Marketplace? Facebook launched the Marketplace in 2016 and it immediately became a popular platform for selling things to local buyers. When selling locally, Facebook Marketplace is a safer and more user-friendly tool to utilize than other platforms such as eBay. Facebook distinguishes itself even further from the competition by allowing eligible vendors to offer nationwide shipping for products in specific categories, giving them a significantly bigger client base than local-only sellers. How big is it? Facebook has 2.9 billion active users per month, with an estimated 800 million Marketplace users every month. People often think of the Facebook Marketplace as a clearinghouse for people's used or unwanted home items because of its origins as a local buy/sell platform. However, because of its shipping capabilities, it is also ideal for retail arbitrage, which is the practice of purchasing in-demand things from a retail store and reselling them online at a greater price. If you're new to the Facebook Marketplace, take some time to explore and see what products are available. Snapshot of sample Facebook marketplace [contactus_gynoveda] Why Should You Sell on Facebook? Online purchasing is the way to go. People choose to stay indoors and shop on the internet due to the uncertainties and risks of stepping outside. We recognize that the global crisis has forced you to offer your products on internet marketplaces. One of these is the Facebook Marketplace, a business option available to all Facebook users. Why should you use this platform instead of others for online selling? Here are some of the reasons why: Fast Shipping Facilities are Available Retailers that sell on Facebook can change the distance between themselves and nearby customers. Interested consumers in your neighbourhood may readily inspect your products and because they are nearby, you can deliver them the same day. Some dealers would also have it delivered to the homes of their customers across different locations. Your Products are Visible to All Customers Potential clients can simply see your product on the Facebook Marketplace. If customers search for "electric fan," all products are listed, so yours will not be overlooked. It includes an easy-to-use design that allows users to easily view your product's photographs, details, and contact information. It also has a Messenger button, so a potential consumer can simply contact you to discuss the price, delivery method, and so on. Your Brand can Recieve More Publicity Facebook Marketplace may also be used to list your products and inform customers that you have a Facebook Page. This helps potential buyers recognize your brand and business. You can link your Facebook Page to your product listings so that people are redirected to it, resulting in more Facebook likes. Having a Facebook Page also increases confidence from potential clients and demonstrates that your company is credible and responsive. Suggested Read: Why Should You Sell Products On Instagram? 4 Easy Steps to Start Selling on Facebook in 2024 Step 1: Setting Up Your Facebook Marketplace Account You can access the Facebook Marketplace if you already have an active Facebook account. You should see a "Marketplace" tab on the left side of your Facebook homepage. If not, type "Marketplace" into the search bar and it will appear. If you don't have a Facebook account, it's simple to create one. Follow the below steps: Navigate to Facebook.com and select "Create New Account"Enter your information and then click "Sign Up" After that, your account will be ready to use. You will need to fill in some information so that you appear to be a natural person - this is a vital step that will make you more trustworthy in the Marketplace. People will not want to buy from you if your account lacks at least a profile picture and some basic information. It's as simple as that. You can access the Facebook Marketplace after your account is ready. Step 2: Finding Out What You Should Sell on Facebook Facebook Marketplace, like eBay seller and Craigslist seller, allows you to sell almost anything. Your first step to selling on Facebook is to go around your house, garage, or attic to determine if you have anything valuable enough to resell. This can include anything from old furniture to outdated electronics, video games, kitchen equipment, books, and so on. Look around the Marketplace to discover what other people are selling in your neighbourhood. Take note of other merchants' product descriptions and photographs while you're at it. What information did you find useful as a potential customer and where do you see room for improvement? Did the seller, for example, provide the product's dimensions and well-lit images shot from several angles? Remember your insights when you create your own listings. Before you begin selling on the Facebook Marketplace, conduct some product research to ensure that what you're offering is profitable. This is an important step, especially for sellers who want to start or grow an eCommerce business on Facebook. Data is essential for effective product research; it evaluates how many units of a given product sell over time and at what price, as well as how many other suppliers compete for the same clients within a specific niche.  Step 3: Determining Where to Source Products to Sell on Facebook How can you actually get your hands on these items now that you know what will sell on Facebook? In general, product sourcing for Facebook is similar to product sourcing for eBay. The retail arbitrage approach, in our opinion, is the greatest way to go, so we'll start there.  In reality, 26% of Amazon sellers engage in retail arbitrage, and more than half generate $1,000 or more in monthly sales. It works fine on eBay, so there's no reason why it shouldn’t work on Facebook. You will have consumers if there are people in your neighbourhood looking for the same things. Remember that people notice drastically marked-up things and Facebook users aren't afraid to slam sellers who try it. It is best to set reasonable prices for your arbitrage products and ignore unfounded objections. Eventually, you'll start receiving messages from buyers. Step 4: Listing Your Items Now that we've covered product research and sourcing, let's talk about how to create your listings and start generating revenue. It is simple to list things for sale on Facebook. For this example, we'll use a desktop but you can alternatively list things from your phone. Click "Marketplace" in the left-hand menu on the Facebook homepageThen select "Create new listing"Then, click "Select your listing type." You have the option of selecting "Item for Sale," "Vehicle for Sale," "Home for Sale or Rent" or "Create Multiple Listings"Select "Item for Sale."Fill in all of your product information and upload product photos Example Screen Shot 10 Best Tips for Retailers Who Sell on Facebook Take Advantage of Facebook Marketplace Categories Customers can browse a variety of categories on the Facebook Marketplace while looking for their next best deal. Facebook Marketplace's primary categories are: Household & GardenClothes and AccessoriesElectronicsFamilClassifiedsHobbiesEntertainmentHousingVehiclesJobs To begin with, clients contact you more frequently when you publish in their sought category, so you can absolutely demonstrate your customer service expertise.  Explore Categories to Learn About the Hottest Trends If you want to dominate while you sell on Facebook, do a thorough study of the Facebook Marketplace categories before listing products. Do you notice a listed item that has a lot of likes? Examine it and see how the products are displayed. What products are in the "best things for today" feed listings and what makes them the best? The more you learn, the better you will understand how similar things in each category appeal to potential consumers and how you can improve them in terms of aesthetics, pricing, and description - especially if you intend to sell clothes, jewellery, or accessories. Make Good Use of FB Categories For Branding Being on the Facebook Marketplace already makes your brand visible. However, posting as an expert in specific categories will help in making your company's name stick in people's thoughts and help you build a brand voice on the site. Don't be afraid to be perceived as a "familiar local" in a particular category. Because of your reputation, you have the opportunity to become a trusted seller and create strong customer relationships. Once you have that reputation, potential buyers know you don't indulge in questionable practices, such as underbidding or providing deceptive descriptions of your items. This is especially important if you intend to sell your things locally. As a result, you get even more trust and sales. Improve Your Ad Performance and Tax Transparency If you post advertisements on the Facebook Marketplace, your customers will go directly to your website to check it out and the product category is required because it determines the taxes they pay. Not only that but designating product categories boosts ad performance by narrowing down the exact categories that potential clients browse. As a result, consumers don't have to scan the entire Facebook Marketplace but they may only browse things that interest them. Maximize the Use of Messaging and Communication Communication and messaging are essential. Because of the social nature of the Facebook Marketplace, you may receive a flood of private messages inquiring about the price, availability, and other details about your listed items. It could mean you're on the right track. If you own a small business with a few products, you should make time to personally respond to all attempted communications in order to generate leads. But if you become inundated with messages and the queries keep repeating themselves, you can employ an automated solution or dedicated customer care team. Organize Smooth and Safe Transactions Because the Facebook Marketplace lacks a built-in transaction system, you do not pay a selling fee. This is undeniably advantageous but it also implies that it is in your best interest as a seller to plan the most effective method for secure payments, shipments, and pickup alternatives. Arrange Instant Payment Options via Third Party Platforms First and foremost, use a credit card-accepting instant electronic payment method such as PayPal, Venmo, or CashApp. Customers can install a third-party payment provider on the Facebook Marketplace to complete transactions. One of the most common scams for retailers that sell on Facebook involves the customer cancelling the purchase after you've sent an item and are unable to reclaim it. You can avoid this by providing fraud investigation services. This added functionality makes third-party payment systems more enticing in terms of transaction security for both reputable merchants and purchasers. Provide Payment, Shipping and Pickup Information Upfront Another smart customer care practice is to include the payment method and shipping/pick-up information in the item's description, which is visible immediately next to the price. Before making a purchase, the bulk of your potential clients will search the Facebook Marketplace and carefully examine the listings. This means that in order to save their time, you must exhibit your transparency and make a good impression. You can explain any further facts after the customer contacts you directly. The more trust you build upfront, the more likely it is that both you and the buyer can focus on the transaction itself, rather than worrying about the security of your bank accounts. Take the Necessary Precautions Be truthful, but always be cautious and prudent while conducting Facebook Marketplace transactions. Don't disregard anything that raises a red flag during the chat with a potential customer. Always inspect their profile - no friends or a stock photo in place of their profile image may indicate that this individual does not plan to buy anything and that their profile is a false profile made specifically to conduct fraud. If you intend to meet the buyer in person, always meet in a public spot (such as a crowded parking lot or a café). If you phone ahead of time, your local police station may even allow you to coordinate the pickup in their lobby. Upload Enticing Product Images and Descriptions By using high-resolution images and detailed product descriptions, you can provide your customers with whatever information they need to make a well-informed decision. This will also legitimize your business and your product listings in the eyes of customers and can be the push they need in order to purchase a product. Customers often abstain from purchasing products that don’t have all the information laid out in a clear manner. Conclusion Selling on the Facebook Marketplace has its own set of advantages and disadvantages. Meanwhile, you will frequently compare it to other online marketplaces but unlike others, Facebook Marketplace has developed a novel concept of social commerce. The concept of commerce has always arisen from human connection and Facebook has always been about connecting people. With rising competition and multichannel selling tactics, the Facebook Marketplace allows you to reach out to your existing buyer network. If you are an eCommerce retailer that needs assistance with storing inventory or fulfilling orders, consider partnering with WareIQ. WareIQ is an eCommerce fulfillment company that offers a wide range of eCommerce fulfillment services such as inventory storage across a nationwide network of fulfillment centers, a custom WMS that can integrate with multiple selling platforms and track inventory in real-time, ultra-fast shipping through a partnership with more than 20 shipping companies and much more. Sell on Facebook: FAQs What items cannot be sold on Facebook?Most items can be sold on Facebook unless they are considered illegal or are frowned upon. Is selling on Facebook Marketplace worthwhile?It's nice to sell fresh, trendy items but steady eCommerce best-sellers sometimes go unnoticed. Facebook Marketplace is an excellent platform for selling common household things such as furniture, cleaning supplies, books and glassware. These kinds of things will always be in demand. How to set up a Facebook business page?Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. How to create product listings on Facebook?Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Is it possible to be duped on Facebook Marketplace?Fraudsters on Facebook Marketplace can also defraud sellers. In one classic case, they'll pretend to have overpaid for an item you're selling and upload a screenshot purportedly demonstrating the transaction. They will request that the difference be repaid. How to increase conversions and sales from facebook store?To increase your conversions and sales, first thing that should be focussed on is increasing audience. In order to grow your Facebook audience, you can start promoting your Facebook posts – if you have the budget – or simply through increasing your Facebook business page activity (that include posting strategy, engaging with followers and etc).You can also indulge in facebook groups of your niche. Start by searching for Facebook groups related to your store and post about your store in those, which may help increase your traffic, boost your conversions and improve sales. How much does it cost to sell on Facebook Marketplace?In general facebook does not charge for listing items on marketplace. But there is selling fee involved which is 5% for each shipment or $0.40 flat fee for shipments of $8 or less. Facebook deducts this from final payout automatically.

August 30, 2022

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Omnichannel Order Management: A Detailed Guide on the Meaning, Examples and Benefits of Omni Channel Management to eCommerce Retailers in 2024

Omnichannel Order Management: A Detailed Guide on the Meaning, Examples and Benefits of Omni Channel Management to eCommerce Retailers in 2024

What we already know is that consumer expectations in retail have shifted. This isn't anything new. Many of these shifts in the online consumer behavior can be attributed to the on-demand economy. Instant satisfaction is the word of the game. So, what can businesses do to retain and attract customers? The solution is straightforward. Make purchasing simple by providing outstanding customer service, timely shipping and convenient fulfillment options. Omnichannel order management is critical to edging out competitors and remaining at the forefront of the ever-changing retail landscape and in this blog, we will take a detailed look at what it is. What is Omnichannel Order Management? A software system that allows you to access customer, order, and inventory information across multiple selling channels is known as omnichannel order management. It manages all orders across the company while providing the necessary information for eCommerce and point-of-sale systems to function properly. Omnichannel order routing, store fulfillment and enterprise inventory are among the primary features. It also serves as a customer support platform, allowing you to see a comprehensive view of your business with real-time information in a single, unified location. In brief, omnichannel order management enables customers to shop and return items from any location. A comprehensive omnichannel OMS empowers both your employees and your consumers. [contactus_gynoveda] Examples of the Working of Omnichannel Order Management Regardless of which channel captures an order, it goes through a number of states and steps that are all contained within the omnichannel order management system. Because no two orders are alike, the lifetime of each order may differ - certain phases or steps may be particularly unique to that specific order. When a customer buys a product, the game is on. Time and honesty are critical. What's the status of my order? How quickly will it be shipped? When can I expect it? These are the burning questions that your customers want to know the answers to. Assume a customer in Nagpur places an online order for a variety of products. After capturing the order, the OMS concludes that the quickest way to get the product into the hands of the consumer is to fulfill it from the Mumbai warehouse. However, it is quickly established that one of the items in that warehouse is out of stock. This results in an exception because the entire order cannot be fulfilled there. The order gets diverted for fulfillment from the Hyderabad warehouse location in a matter of minutes. Depending on available inventory and delivery speed, the order could have been fulfilled from either warehouse. In this case, however, intelligent order routing indicated that the Hyderabad shop was the most efficient option. Top 10 Benefits of Omnichannel Order Management Source Consumer expectations indicate that they desire a consistent experience regardless of their habits along their purchasing process. This has generated difficulties for manufacturers and omnichannel retailers alike, as inventory and orders must now be managed across all channels. Adopting an omnichannel order management system would boost your client satisfaction. Furthermore, omnichannel order management can assist firms in improving operational efficiency and lowering expenses. Here are the top ten advantages of omnichannel order management for your company: Improved Customer Experience By controlling inventory and orders across all sales channels through omnichannel order management, manufacturers can deliver a smooth shopping experience for their customers. There are numerous reasons why improving customer experience is critical. Customers who are satisfied with a firm are more inclined to return and promote it to others. Customer satisfaction can also lead to decreased acquisition costs because satisfied consumers are less likely to take their business elsewhere. Finally, a better customer experience and customer feedback can make your consumers happy, that is always something to strive for. Enhanced Operational Efficiency By eliminating the need to manually reconcile inventory and orders across numerous channels, omnichannel order management can help manufacturers enhance operational efficiency. Because it has a direct impact on the bottom line, operational efficiency is critical for any firm. A corporation can save money and enhance revenue flow by streamlining its ecommerce operations and reducing waste. Furthermore, increased operational efficiency can help a business compete more effectively in the market by lowering costs and increasing productivity. Finally, operational efficiency is critical for every company that wishes to prosper. Increased Cost Savings If you want to enter a new market, you don't have to open a new store in a new area - you can simply create a website and sell from your present location, allowing you to enter new markets from the comfort of your own home. Then there are the less tangible sources of cost savings. By employing omnichannel order management, you will eliminate the need for middlemen or third-party services by keeping everything in-house. Other cost savings come from improving client retention and centralizing all of your customers' data. Boosted Sales Figures Every company's lifeblood is sales. A company cannot live without sales. This is why higher sales are critical for companies of all sizes. To begin with, increased sales equal more revenue. This is critical for every organization since it allows them to reinvest in their operations, develop their activities and hire new employees. Increased sales can also lead to better brand recognition and awareness. Customers are more inclined to view a company favourably and suggest it to others when they see it selling more products or services. Ultimately, greater revenues signify a company's progress and expansion is critical for any company that wants to succeed in the long run. Businesses can secure their continued success and longevity by expanding their revenue]. If you want to enhance sales for your company, there are several things you may do: Create a Good Marketing Strategy for Your Company: This will ensure that potential buyers are aware of your products or services and what distinguishes them. Concentrate on delivering exceptional customer service; when clients have a pleasant experience with your company, they are far more likely to return and refer you to others.Always Be on the Lookout for Innovative Ways to Reach Out to Potential Customers: Make sure you're doing everything you can to get your business in front of as many people as possible, whether it is through online marketing or traditional techniques like print ads or word-of-mouth marketing. Improved Customer Retention Omnichannel order management can help manufacturers boost client retention by providing a better customer experience. Furthermore, happy clients are more likely to refer people to your company, which can help you acquire new customers. Customers who are satisfied are also more loyal and less likely to switch to a competitor. So, while increased customer retention can lead to increased sales and profits, it can also assist you with building a stronger, more loyal client base.  Enhanced Supply Chain Management By offering visibility into inventory and orders across all channels, omnichannel order management can help manufacturers enhance supply chain management. Today, supply chain management (SCM) is crucial for enterprises. Organizations can increase their overall performance and competitiveness by using an efficient and effective SCM system, monitoring its success and making changes as necessary. Increased Visibility By providing visibility into inventory and orders across all channels, an omnichannel order management approach can assist manufacturers in making better decisions about safety stock levels and promotions. Businesses that sell their products or services through several channels are more likely to be seen by potential customers. Companies can boost their chances of getting found by clients looking for what they have to offer by being present on many platforms. Improved Data Quality Omnichannel order management can help firms enhance data quality by offering visibility into inventory and orders across all channels. This improved data quality can lead to better stock-level and promotion decisions. Improved data quality is crucial for various reasons: Making sound business decisions requires accurate and dependable dataHigh-quality data can assist businesses in improving their operational efficiency and performanceGood data can assist businesses in developing more effective marketing strategies and better targeting their advertising effortsbetter data quality can help organizations of all sizes Reduced Risk Manufacturers can reduce risk by enhancing data quality and real-time inventory visibility with an omnichannel order management approach. One of the most serious concerns about selling online is the possibility of fraud. Businesses can avoid this risk by having several points of contact with their customers when employing an omnichannel approach. This allows any questionable behaviours to be swiftly discovered and addressed.  Another risk of selling online is the possibility of losing consumer information. Customers often enter their personal information such as their name, address and credit card number, when purchasing products or services online. Unauthorized parties may gain access to this information if it is not adequately safeguarded. Improved Decision-Making Improved data quality and visibility are essential omnichannel order management benefits that help manufacturers make better decisions about stock levels and promotions. Making decisions is a vital element of running a business and the capacity to make better judgments can mean the difference between success and failure. A successful decision is influenced by a number of elements and understanding these factors can help you make better decisions in your own business. How to Determine if You Need Omnichannel Order Management for Your Company in 2024? Customers nowadays are, without a doubt, more connected than ever before. They c can easily switch between online and offline channels, frequently utilizing numerous devices to research and acquire products or services. As a result, in order to compete, firms must embrace omnichannel order management. Omnichannel order management seeks to deliver a consistent experience for customers regardless of how they interact with your company. This entails developing uniform messaging and branding across all channels and making it simple for customers to switch between them. It is crucial to remember, however, that not all firms will need to take an omnichannel approach. A single-channel technique may be sufficient in some circumstances. If you are unsure whether an omnichannel strategy is appropriate for your company, consider the following factors: Your Clients Do your clients seamlessly switch between online and offline channels? If this is the case, an omnichannel approach is most likely required to properly reach them. Your Products and Services Are your items or services complicated, necessitating substantial research prior to purchase? If this is the case, an omnichannel selling strategy will be beneficial in supplying customers with information. Your Competitors Are your competitors utilizing an omnichannel strategy? If this is the case, you may need to do so as well in order to remain competitive. Finally, only you can decide whether an omnichannel strategy is best for your company. However, if you want to reach more people and deliver a better experience, it is something to think about. 3 Ways to Improve Your Omnichannel Order Management Examine Your Existing Order Management Technique First, you should examine your present inventory and order management systems. How do you handle inventory and orders? Do you have a system that can be scaled as more sales channels are added? Is inventory synchronized across all of the channels via which you sell, or is it siloed? Do you use spreadsheets to keep track of your inventory or do you have a more advanced method? As your company grows, this can become a costly mistake. Spreadsheets are time-consuming and prone to human mistakes. They also lack the real-time features that order management software provides. If a customer places an order, you'll have to manually move inventory in your spreadsheets throughout the fulfillment process. As you add additional channels, the likelihood of costly errors grows. The sooner you transition to a unified order management system, the more efficient your omnichannel order management will be. Recognize Your Customer's Journey The sooner you transition to a unified order management system, the better. Knowing how an omnichannel solution could fit into your organization begins with understanding your customer journey. Where do your customers shop for your product? Do you have a physical presence? If yes, do your clients prefer curbside pickup? Are people requesting refunds without visiting the store? Are they engaging with your brand on social media? Do you have products available on big marketplaces such as Amazon and Flipkart? The bigger the number of touchpoints and channels, the greater the requirement for omnichannel order management software that connects them all. The more stem, the better. Consider the Various Options You Have There are various solutions available if you believe your eCommerce organization requires an omnichannel order management system to help you manage your shipping and logistics across several platforms. For example, if you need a comprehensive order and inventory management platform, there are many solutions that make it easy to expand into additional channels, and customer information, inventory and order management can be synced across all platforms. If you sell across many channels and need to streamline fulfillment, consider working with a 3PL like WareIQ, which also provides direct connections with major omnichannel solutions. Conclusion Omnichannel order management is not a new concept but it has grown in importance in recent years as consumers have grown more comfortable purchasing online and on mobile devices. The value of omnichannel order management is obvious for both retailers and customers. It can help retailers enhance revenue, inventory visibility and customer loyalty. It delivers a more convenient and smooth buying experience for customers. However, order management for merchants using the omnichannel method is not without difficulties. It can be time-consuming and costly for merchants to adopt and it necessitates close collaboration across many departments inside the organization. Despite the hurdles, many companies are using omnichannel order management to sell across multiple channels. Brick-and-mortar retailers must discover ways to provide the same degree of convenience and customer service as their online competitors in order to compete in today's market. If you are an omnichannel seller that needs assistance with managing and fulfilling orders across platforms, consider partnering with WareIQ. WareIQ is one of India’s fastest-growing eCommerce fulfillment companies. We employ advanced technology to provide a vast number of eCommerce services. In regards to omnichannel order management, we provide a custom WMS that can integrate with more than 12 of the biggest eCommerce marketplaces such as Amazon, eBay, Flipkart, Meesho and more so that you can consolidate and view all your order and inventory data through one single dashboard. Omnichannel Order Management: FAQs What exactly is the function of an omnichannel order management system?An order management system (OMS) is a digital method of managing an order's lifecycle. It keeps track of all information and processes such as order entry, inventory management, fulfillment, and after-sales support. An OMS provides visibility to both the company and the buyer. What are the best practices for omnichannel order management?These practices will save you time, money, and hassle:- Manage all of your inventory in one spot- Accept automation- Re-examine your packing techniques- Create a system for dealing with returned objects- Train your employees What are the characteristics of omnichannel order management?Some common characteristics of omnichannel order management are mentioned below:- Highly scalable order processing- Multi-channel order aggregation and processing- Increased customer visibility- Data integration across platforms How much does an Omnichannel Order Management system cost?The cost of an Omnichannel Order Management system can vary depending on the complexity of the system, the number of users, and the level of customization required. On average, prices can range from a few thousand dollars to tens of thousands of dollars. Contact us directly to know in detail or to request a quote. How can I choose the right Omnichannel Order Management system for my business?Consider your specific business needs and choose a system that offers the features you require. Research and compare different options, read customer reviews and seek recommendations from industry experts. It's also important to evaluate the vendor's level of support and reliability.

August 30, 2022
WareIQ | Up to Speed | Latest Product Updates & News | Newsletter Issue #3

WareIQ | Up to Speed | Latest Product Updates & News | Newsletter Issue #3

We are back with a new set of updates for you! Our brilliant engineering and product teams are working continuously towards enhancing our platform to meet all the needs of eCommerce brands - D2C and marketplace sellers, both! New Releases & Updates Updated Webapp Analytics Tab A new, more intuitive look! The revamped analytics tab now possesses graphical enhancements in the form of charts, graphs, and highlights, for the shipping and inventory sections, making analyzing data intuitive and easy. Launching price offload feature for our same-day delivery service https://www.youtube.com/watch?v=fK-A1uIkkvo&t=9s Now with WareIQ RUSH app, you can choose to offload the cost of service utilization directly onto the customers, fully or partially. Interested? Register here to get early access. Unified multi-brand portfolio view One dashboard for all insights across multiple brands Our merchant application has been modified to access data of multiple brands into a single dashboard. This will help in improving the accessibility & visibility of critical data. House of Brands and Multi-brand Portfolio companies can utilize this for easy monitoring & reporting purposes. Daily automated reports for real-time issue-resolution Get automated reports encapsulating failed orders in the last 24 hours every day. The mail will include the reason for failure and failed order count. Address such issues & resolve escalations in real-time now. Supercharge Supply Chain with WareIQ Smart Fulfillment Platform Features WareIQ Shipping Badges App https://www.youtube.com/watch?v=mqMEvqG-UVE Boost online conversions by displaying fast delivery timelines Display pin code-based delivery timelines on your product page to enhance the buyer's trust in your brand and improve your online conversion rate. Furthermore, our shipping badges app also captures pin code level demand data. Leverage this to sharpen your business growth plans. Watch the video here to know more. WareIQ Network Planner: Optimize your fulfillment network for faster & cheaper shipping Leverage our Network Planner to figure out which warehouse combination provides you with the fastest deliveries at the cheapest shipping cost. Moreover, our advanced algorithms provide you with automated recommendations regarding fulfillment network optimization.  Use these insights to modify your fulfillment network & boost your logistics performance across critical KPIs. WareIQ Up to Speed Up to Speed is WareIQ’s monthly product newsletter, encompassing all product releases, updates and feature launches. Subscribe to the newsletter to get stay ‘up to speed’ with the latest happenings and offerings from WareIQ. You can also subscribe to the same on our LinkedIn handle: WareIQ Up to Speed

August 30, 2022
What is Smart Warehouse Management System? Features, Components, Best Practices and Primary Benefits of Having a Smart Warehousing Technology in 2024

What is Smart Warehouse Management System? Features, Components, Best Practices and Primary Benefits of Having a Smart Warehousing Technology in 2024

The term "competitive advantage" describes the qualities that give a business an edge over its rivals in the market. For example, these characteristics might lower the price of goods or services, influence consumer preference, or prevent competitors from entering the market. One crucial area where businesses can obtain a significant competitive advantage is logistics. A rising percentage of individuals are purchasing goods online today. eCommerce is expanding at a rate of about 20% per year. Today's warehouses use collaborative mobile robots, automated picking solutions, warehouse analytics, and warehouse management systems (WMS) to boost productivity and meet demand. Every day, technological advances enable us to complete tasks more quickly, effectively, and without much trouble. Because of this, the concept of smart warehousing technology isn't some far-fetched science fiction fantasy; instead, it is a quickly developing necessity. A "smart warehouse" offers businesses significant benefits in the marketplace. Let's examine the advantages in the market achieved by switching to a smart warehouse. What is Smart Warehouse Management System? The epitome of warehouse automation is a smart warehouse (in other words, automating various components of your warehousing operations). A smart warehouse management system is equipped with several automated and networked technology, similar to smart houses. Together, these technologies improve the warehouse's production and efficiency while reducing the number of human workers and their faults. In manual warehouses, we typically saw personnel going around with lists, picking things, placing them into carts, and then transporting them to the shipping docks. In contrast, orders are received automatically, after which the system validates if the products are in stock. The requested items are subsequently put into containers by robot carts and then sent to the workers for pickup using the pickup lists. Real-time updates, the optimization of manual activities, and more automation are all achievable with smart warehousing technology but not in conventional warehouses. This tactic allows employees the time to concentrate on assignments of high value. A fully automated warehouse reduces human interaction while increasing operational scalability. The smart warehousing market is predicted to grow from $3,944.06 million in 2021 to $9,400.10 million in 2027, according to a report by Research and Markets. Customers' expectations are changing as warehouses get more sophisticated. Conventional warehouses cannot meet modern client needs. Smart warehousing technology must be implemented to address the issues that today's supply chains are experiencing. Source How is Smart Warehousing Different From a Manual Warehouse? As the name implies, a manual warehouse relies on employees to install and carry out tasks like picking products, putting them in carts, and bringing them to the shipping port. These tasks are now automated in smart warehouses. The WMS automatically receives orders and determines whether the products are in stock. If so, the pickup lists are sent to the robotic carts, which put the products in containers before giving them to the workers for the following action. If not, the warehouse and distribution services management system alerts you to make the necessary stock purchases. Key Features Of Smart Warehousing The result of several networked warehousing technologies working together is smart warehouses. They outline a technological ecosystem in which products are automatically received, recognised, arranged, sorted, and pulled for transportation. When implementing smart warehousing technology, it's important to remember some characteristics that make a system successful. Some of these qualities include: Agility Agile smart warehouses are required to quickly adapt to manage the rapidly changing variables in today's world as warehousing operations become more complicated. The smart warehouse management system should constantly optimise the movement of goods from storage to shipment. Furthermore, in the event of a brief stock overflow, smart warehouse operations should keep an eye out for chances for temporary storage and third-party logistics (3PL) providers. Agility is also a vital component of the many software programmes used in a smart warehouse. This suggests that all systems should be compatible with various platforms, sales systems, and other warehousing features. As they are frequently regarded as standards in many industries, one may consider employing software as a service (SaaS) solutions. Suggested Read: Why is Supply Chain Agility Crucial to eCommerce? Storage Scalability  With the future in mind, smart warehouses must be sufficiently scalable. They will be able to accept significant product influxes and sudden product releases in this way. This brings up a further important aspect of SaaS solutions. Adding new capabilities to smart warehousing solutions may be challenging if you have an on-premise cloud solution. While upgrades are being made, the entire system could occasionally need to be shut down. This may cause a significant slowness in the warehouse. This restriction is not an issue for a SaaS solution because updates can be made immediately, and new features may be added without affecting performance. Inventory Visibility  Data visibility has become critical for most supply chain software as technology advances. This is incredibly important right now. Software solutions should be prepared to update and store data instantly as supply chains and warehouse activities become more complicated. Customers and stakeholders want to use the real-time data the smart warehousing system provides to access the location of their products right now. Smart warehouses should make it possible for interested parties to find what they need quickly. Data visibility is crucial not just for client retention but also offers the business itself a wealth of relevant information. Thanks to real-time data, operators get a bird's-eye view of the entire warehouse and how its various divisions perform. [contactus_lilgoodness] Components Of Smart Warehousing Technology An intelligent warehouse consists of several interconnected parts and technologies that work together to achieve a single objective. Thanks to each piece of this puzzle, the warehouse operates at its peak efficiency. Consequently, effective communication between those components must be ensured to construct a smart warehouse. Here is a list of the essential elements that a smart warehouse needs to have. Robotics In Warehousing Warehouse robotics is the first thing that comes to mind when we think of logistics innovation. They raise productivity and decrease labour expenses while also increasing order accuracy. The main advantage is that your team won't be distracted by time-consuming chores and can instead concentrate on how to enhance and optimise operations. Employing robotics in warehouse management in the following ways- Automated Picking- Robotics is the ideal automatic picking tool since they ensure that orders are picked up two to three times more quickly than usual. The picker and these robots can rapidly and accurately remove charges from the shelves. Enhances inventory visibility- Despite their futuristic appearance, drones significantly improve inventory visibility for your warehouse operations. These machines can roam your warehouse independently and carry out inventory audits, cycle counts, item searches, etc. Artificial Intelligence Supply chain data is analysed and learned from by artificial intelligence (AI) to assist you in keeping one step ahead of any possible problem. Integrating AI can completely alter your warehouse operations by forecasting the future and assisting you in making wise business decisions. Using artificial intelligence: Enhances Storage: Your AI-powered system can notify you if you are going to run out of storage space. You can then plan to decrease inventory levels or improve storage space. Reduces Risks: AI may assist you in anticipating future crises like overstocking, understocking, shipment delays, etc., by analysing historical sales data, real-time market movements, current inventory levels, and other data points. With this information at your disposal, you can try to prevent such circumstances. Warehouse Management Systems (WMS)  The usage of a WMS is the icing on the smart warehouse technology. You can monitor how well your warehouse's daily operations are going and see if there is anything you can do to make them more effective with a WMS system. Since most WMS solutions can gather real-time data and produce visual reports, they aid in exposing any flaws in warehouse operations. One can take the necessary measures to address problems and resume operations after viewing a WMS report. Guided Automated Vehicles Automated Guided Vehicles (AGVs) are a valuable tool for speeding up your warehouse putaway, loading, and stocktake processes for storage and retrieval. Forklifts and pallet carts are self-guided AGVs and follow digital pathways within the plant as they load and unload pallets, cartons, and other containers. The option to add and expand your accessibility to AGV tools is necessary, which aligns intending to grow your business. In addition, these vehicles can be introduced in your warehouse without requiring a total redesign of your layout and systems. Robots and Drones Drones are used for safe and simple access to distant, challenging regions within a warehouse. Drones are outfitted with cameras, sensors, RFID, or barcode scanners, making them quicker and more precise than manual methods. Other inventory activities locate objects, carry out stocktakes, and do cycle counts. Cobots, or collaborative robots, on the other hand, cooperate with people and automate laborious or repetitive tasks like machine feeding, material handling, or assembly tasks. Internet Of Things The Internet of Things (IoT) entails several internet-connected gadgets that exchange data and communicate with one another. Robots may connect with all the technological systems required in intelligent warehouse systems, such as a warehouse management system (WMS). For instance, a product is delivered to a warehouse. A radio-frequency identification (RFID) scanner reads the tags as the cargo is received, informing a warehouse management system (WMS) of which and how many items were received. RFID here aids in inventory management and organization. Robots are then told by the WMS where those items should be stored on the warehouse floor. Everything is automatic and seamless without any critical data being lost. Without IoT, each process step would need to be carried out manually by a human employee. As a result, the vast amount of data about each product that passes through these systems is prone to inaccuracy. But because of IoT, humans are almost entirely removed from the process, accelerating it and lowering error rates. The Global IoT in Warehouse Market is anticipated to reach USD 17.93 billion by 2025, rising at a CAGR of approximately 21.21% by the end of 2025, according to a 2019 analysis. Automated Storage and Retrieval Systems Automated systems for storing information and retrieving it are not new. However, although they have increased throughput and accuracy, they have also frequently come under fire for being pricey, inconvenient, and rigid. Despite this, modern AS/RSs preserve all initial benefits, such as lower labour costs and restrictions, modularity, and improved accuracy, while continuing to look better. To make your warehouse more innovative and effective, you don't need to redesign it completely; instead, start by using the technologies that make sense for your company and its activities. You'll then realise that any warehouse can transform into a smart warehouse. 7 Top Benefits Of Having A Smart Warehouse Management System in 2024 Today's warehouses use collaborative mobile robots, automated picking solutions, warehouse analytics, and warehouse management systems (WMS) to boost productivity and meet demand. A smart warehouse offers businesses significant benefits in the marketplace. Let's examine the advantages in the market achieved by switching to a smart warehouse and its perks. Expedited Shipment Order processing requires a disproportionately long length of time in a conventional warehouse. To pick products and fill orders, associates frequently spend a lot of time moving about the warehouse floor. Picking mistakes also add to the processing, sorting, and packaging of order delays. The average warehouse is thought to have a picking error rate of 1% to 3%. Intelligent warehouse solutions can almost eliminate picking errors. First, automated picking methods and collaborative mobile robots reduce order picking time and spare warehouse workers from long walks. These elements aid in expedited order shipping. Second, only from the product's price importance, shipping time is crucial for eCommerce customers when making a purchase.  In this era of eCommerce dominance, faster shipping is a crucial competitive advantage. Minimises Human Error The warehousing process is intricate, volume-driven, and has many moving elements. Therefore, manually picking, packing, and shipping items at a warehouse will likely result in human error. However, you can drastically lower human error while saving on labour costs with the appropriate intelligent warehouse technology. Digitizing warehouse procedures increases order accuracy, allowing you to guarantee a great customer experience. It might be as easy as adopting an inventory scanner system, integrating automated order processing, or investing in automated guided vehicles (AGVs) to accept, pick, and dispatch orders. Increased Utilization Of Warehouse Space Smart warehouses can make better use of their available space. For example, because traffic and aisle congestion is reduced compared to traditional warehouses, automated picking and mobile sorting solutions can enable higher racks and narrower aisles, increasing the number of goods that can be stored in the same amount of space. Utilizing warehouse space more effectively lowers overhead expenses per sold item. The operator may pass these cost savings to customers through lower prices or increased profit margins. Lower Expenses Result In Lower Prices Average labour costs account for about two-thirds of warehouse operating costs, and for the warehousing sector as a whole, average wages have been increasing for more than a decade. Smart warehouses optimise the effectiveness of human warehouse associates and reduce the need for human labour, which helps to cut operational expenses. Consumers may pay less for goods and services due to these cost savings. Customers frequently base their purchasing decisions on product prices; thus, being able to charge less for comparable goods is a huge competitive advantage. Expedites The Fulfilment Of Orders Due to a lack of technology and logistics automation, inventory distribution, and inventory allocation, all of which are essential to improving the fulfilment process, retail fulfillment is frequently delayed. You and your team will also need to devote more time to logistics operations as your order volume increases, taking away from other crucial business activities. Data is gathered and aggregated through smart warehousing methods, technology, and automation, providing insights on enhancing the fulfillment services. The outcome? is a quick, accurate, and effective fulfilment procedure that meets consumer expectations. For instance, WareIQ is a distribution and fulfilment partner with a robust retail fulfilment infrastructure and distribution management system supported by cutting-edge digital logistics technology. Orders are automatically routed to one of our fulfilment centres that store your inventory as soon as they are created or loaded into your WareIQ dashboard. Our tech distributes orders to our picking team, who receives a packing list of the items, amounts, and storage locations at our facility to obtain and finish their collection of products. Efficient Warehouse Optimization Utilizing intelligent technologies can increase warehouse productivity and streamline the process of various fulfilment procedures. With advanced analytics powered by machine learning algorithms, warehouse managers can monitor inventory flow, improve storage, and lessen process chokepoints. The data-driven strategy makes monitoring important performance indicators easier and allows the warehouse to operate more efficiently and provide better customer service. The early detection of issues and potential threats in the supply chain is another capability of such cutting-edge systems. Data on inventory and supplier concerns gives warehouse managers the ability to be more proactive than reactive. Enhanced Customer Services Every item in a warehouse finally makes its way to the buyer. Customer service, experience, and satisfaction should therefore be given careful consideration. Smart warehousing solutions allow companies to better engage with customers, adapt to changing demands, provide support, and enhance the overall experience. Because of faster shipping, lower costs, and quicker responses, businesses can expand their customer base. Additionally, this will improve client satisfaction and the overall customer experience. Best Practices For Smart Warehouse Management System Smart warehousing technology helps to prevent unnecessary bottlenecks and empty shelves. Here is a list of smart warehouse best practices to assist supply chain decision-makers in getting the most out of automation and smart warehouse technology. Re-Consider Your Warehouse Structure For the best results, smart warehousing needs more room and well-organized spaces. Therefore, starting with a warehouse set up to become smart technology-ready is crucial. Finding the parts of your warehouse operations that require technical help is the first step in optimising your warehouse space. For instance, a WMS may not directly affect the design of the warehouse layout, but it may impact how you arrange your equipment and workstations. Take the time to prepare your warehouse layout design before investing in technology to enhance warehouse operations. This will help you save money on storage and accelerate the fulfilment process without using any technology. Smart Warehouse Optimization The warehouses must utilise the most recent technologies and procedures because the eCommerce sector is demanding. Optimising warehouse layouts, slotting, and inventory movement is critical to keep up with the supply chain's dynamic nature and the consumer's constantly shifting demands. Regular warehouse audits are necessary for smart warehouse optimization, and the findings must be implemented. Practice Demand Forecasting WareIQ's fully integrated fulfilment network offers the data and analytics required to assist with demand forecasting if you need to anticipate which products your consumers will want at various periods of the year. Intelligent inventory forecasting using previous orders and information about impending events can help you manage inventory, reduce shrinkage, save money on storage, and maintain satisfied customers. With the correct information, you can choose when to conduct a flash sale, stop selling a product that isn't doing well, or decide how much inventory to order based on seasonality. Conclusion Any warehouse operation can be considerably optimised with the help of smart warehousing. Most of the process is automated with the best smart warehouse systems, from suppliers to customers, with few mistakes. Also Read warehouse management vs inventory management Increasing numbers of warehousing businesses will employ automation as it becomes more prevalent. Deep technology today is developing an ecosystem of smart warehouses that deliver the agility, flexibility, and responsiveness supply chains require in terms of visibility and visibility. WareIQ's Tech-Enabled Smart Warehousing Solutions WareIQ, a 3PL warehousing company in India provides cutting-edge innovative warehousing solutions as a full-stack, tech-enabled fulfilment partner. You can maintain competitiveness by working with a tech-savvy fulfilment partner like WareIQ, which offers smart warehousing solutions. Retail organisations, whether new or established, use the most modern technologies to improve the cost-effectiveness and efficiency of operations, from warehouse receiving to the fastest shipping. With best-in-class technology, WareIQ is a nationwide fulfilment service provider that offers online merchants an advanced, end-to-end supply chain solution. WareIQ may help you decrease shipping costs, shorten transit times, and offer more value to your consumers by automating warehouse processes, including selecting, packaging, shipping, inventory management, and more. Additionally, WareIQ merchants have access to a strong fulfilment network that enables cost-effective 2-day shipping and further expansion into fulfilment facilities abroad. [signup] Smart Warehouse Management System FAQ: Frequently Asked Questions What are the advantages of a smart warehouse?Companies can process those returns more quickly than they could with traditional warehouses thanks to smart warehouses. Collaborative mobile robots are one intelligent automation approach that can significantly improve picking accuracy. Why is smart warehousing essential?Customers demand economical, quick, and dependable shipping. To meet these client expectations, smart warehousing enables logistics teams to operate better thanks to technology and automation solutions. What is a Smart Warehouse Management System?A Smart Warehouse Management System (WMS) is a software solution designed to help businesses manage their inventory and streamline warehouse operations. What are the benefits of using a Smart Warehouse Management System?Benefits include increased visibility and control over inventory, improved accuracy of stock levels, reduced labor costs, and increased efficiency in order fulfillment. What features should a Smart Warehouse Management System have?Essential features include inventory management, real-time tracking, order management, and reporting. Advanced features may include automated picking, shipping, and receiving processes, mobile compatibility, and integration with other systems such as enterprise resource planning (ERP) software. What comes from smart warehousing?Real-time updates, the optimization of manual activities, and more automation are all achievable with smart warehousing but not in conventional warehouses. This tactic allows employees the time to concentrate on assignments of high value. A fully automated warehouse reduces human interaction while increasing operational scalability. How much does a Smart Warehouse Management System cost?The cost of a Smart WMS can vary greatly based on factors such as the number of users, the complexity of the system, and the level of customization required. On average, prices can range from a few thousand dollars to tens of thousands of dollars. Contact us directly for quotes. How can I choose the right Smart Warehouse Management System for my business?Consider your specific business requirements and choose a system that offers the features you need. Research and compare different options, read customer reviews and seek recommendations from industry experts. Make sure to also evaluate the vendor's level of support and reliability.

August 29, 2022
What is a Logistics Center? Definition, Types, Functions and Components of Logistics Distribution Hub in 2024

What is a Logistics Center? Definition, Types, Functions and Components of Logistics Distribution Hub in 2024

Logistical operations are a primary aspect of eCommerce as it is responsible for important processes such as transporting finished goods from suppliers to the storage facilities of retailers and, ultimately, successfully delivering orders to their end customers. A variety of different operations involved in the organization of resources, storage of inventory, transportation of goods and more can be grouped under the logistics umbrella. While some retailers separate their storage facilities and logistics procedures into distinct segments, others consolidate them into a single function through logistics centers that provide standard warehouse functions and logistics facilities. Read along to get an in-depth look into what a logistics center is, the various types that are used, the components within them and elements that are involved in the functioning of a logistics center.  What is a Logistics Center? A logistics center is a warehouse-like facility where conventional warehouse operations such as storage of inventory, picking and packing of goods and preparing orders for dispatch are carried out alongside various logistical processes such as first-mile delivery, transporting goods, last-mile delivery and others. Logistics centers can comprise a single location or multiple locations depending on the requirements of a business, and they can also vary in terms of the functions they perform. For instance, some logistics centers can be used as storage facilities, while others are primarily used as distribution hubs. This assists retailers in streamlining and monitoring multiple important fulfillment processes under one roof that are divided into many different categories. [contactus_lilgoodness] 5 Typical Functions of a Logistics Center Storage and Handling of Materials The primary function of a logistics center is the storage of inventory till it needs to be transported to another location or delivered to a customer. Logistics centers also act as distribution hubs by receiving inventory and materials from suppliers or other destinations and arranging them in an organised way so that they can be easily accessed when they need to be shipped out.  Preparing Orders for Dispatch The ultimate goal of storing inventory is the hope to eventually sell it to customers to generate revenue. Since logistics centers are responsible for storing inventory, they are also required to prepare orders when they need to be dispatched and this involves locating the item, packaging it, labeling it, and loading it onto the relevant vehicle so that it can be transferred to its next destination. Inventory Management This involves using a warehouse management system (WMS) to accurately store inventory based on various criteria such as popularity, dimensions, expiry date and more. The goal is to make products as easily accessible as possible so they can instantly be located and dispatched. Additionally, the WMS software also keeps track of changes to inventory levels in real-time and updates it to reflect when items are added or removed from storage. Transportation of Products Logistics involves transporting goods to various destinations until they are successfully delivered to their final customer. Logistics centers act as dispatch points for various products to be stored till the time they need to be dispatched or transferred to an alternative location. Thus, they are often equipped with loading facilities such as parking bays, cranes, forklifts and more to enable products to be transported to their next location. Providing Information and Insights Since there are so many different activities that take place in a logistics center, with most of it being tracked by a WMS or other advanced software, insights into many different aspects such as identifying high-demand and low-demand products, order frequency, success rates and performance of various processes are provided. This enables firms to monitor and analyse this data to streamline important processes and remove obsolete ones. 5 Types of Logistics Centers in eCommerce Fulfillment Centers This type of logistics center can handle a wide variety of processes in addition to the storage of inventory. Retailers can often access fulfillment centers through 3PL companies and are often equipped with state-of-the-art inventory management software and automated machinery to optimise tasks such as selecting, packaging and dispatching products. Fulfillment centers are generally part of a much larger, nationwide network so inventory can be stored based on certain factors such as proximity to customers and distribution hubs. Fulfillment centers are often the starting point for last-mile delivery operations and are designed to swiftly dispatch orders so that delivery executives can fulfil them. Distribution Hubs Distribution hubs are often used interchangeably with fulfillment centers. However, they lack many of the facilities and services that are offered by fulfillment centers and are primarily used as transit stops for inventory to be distributed to its final location, whether it is to be stored in a fulfillment center, dispatched to be shipped to another destination, sent out for last-mile delivery or transported to a brick and mortar store in the case of brands that follow a hybrid system of online and physical retail. On-Demand Warehouses On-demand warehouses are a type of logistics center that retailers can use to store their inventory on a temporary basis. The amount of storage they require is leased to them by an external company or warehouse operator for the specific timeframe they need it for and hence, it is a lot cheaper than conventional fulfillment centers or storage hubs. This works for retailers that deal in seasonal products or that may not have the resources to store products on their own or acquire large amounts of storage space. On-demand warehouses offer enhanced flexibility due to their provisional nature but they do have some drawbacks such as a lack of consistency and uncertainty when the lease is up. Dark Stores This type of logistics center, also referred to as a micro fulfillment center, behaves like a scaled-down version of a fulfillment center. It is a retail store that is designed to cater to local customers in a given area by allowing retailers to store their goods so that they can quickly dispatch customer orders. While it does not directly sell goods to the public, the minuscule nature of dark stores allows them to be quickly set up in different localities in large numbers and are best used by retailers that sell perishable products such as food, beverages, groceries and other items that have a short expiry date, because they are located in close proximity to customers. They also allow sellers to separate their inventory storage into multiple dark stores to avoid excess strain on their primary fulfillment centers.  Processing Centers These logistics centers work in a similar manner to distribution hubs but consist of heightened order processing capabilities. While conventional distribution hubs can do basic processing tasks such as locating, packing and shipping an item, processing centers take a more nuanced approach by being able to deal with specialized goods such as fresh seafood, assemble and install product components, having value-added features such as temperature controlled, dust-proof storage facilities and much more. Their functions are like a fusion between a distribution hub and a factory due to its increased capabilities. What are the Components Commonly Found in a Logistics Center? Shipping Terminals These terminals are generally equipped with heavy machineries such as cranes, forklifts and other industrial-grade machinery in order to be able to lift and load bulky and regular-sized items alike onto transit vehicles such as ships, trains or trucks. This is an important component of a logistics center as it is responsible for being able to initiate the transport of products and raw materials to their final destinations. Intermodal Dispatch Points This aspect of a logistics center is responsible for loading, unloading and transporting products by different means such as air, road, rail or sea. They generally comprise large loading docks, parking bays for multiple large vehicles and separate entries and exits for different purposes such as transfer, dispatch or loading of products. They also have many facilities to store high-risk goods, ensure that products are stored safely and provide the appropriate amount of security to ensure that there is no theft or pillaging of items. Last-Mile Transport Hubs They act as distribution hubs and are designed to cater to fulfill orders to local areas. There are generally at least one or more locations present in cities with a significant customer presence, and products are transported from other fulfillment center locations and stored in these hubs so that they can eventually be picked up by delivery executives so that last-mile delivery to the final customer can commence. Conclusion: How WareIQ can Help Improve Your eCommerce Logistics Through Its Wide Network of Logistics Centers in 2024? Using a logistics center is a must for an eCommerce business, regardless of which type they choose. Inventory storage and logistics are 2 key components of eCommerce and a logistics center provides a way to merge them so that they can both be operated and monitored from the same location. This enables more transparency across processes and can assist firms in streamlining their inventory management and logistical procedures. If you are an eCommerce retailer that needs help with storing your products or improving your logistics, WareIQ can be the solution. WareIQ is an Indian eCommerce fulfillment company that is one of the most rapidly growing in the country due to our use of advanced technology to tackle a wide range of eCommerce requirements from inventory management to order fulfillment. A few ways we can help improve your storage and logistics requirements are listed below: We offer a nationwide network of fulfillment centers and dark stores with intelligent inventory placement that stores your inventory in close proximity to your customers and transport hubsWe provide a custom WMS that can integrate with more than 12 eCommerce selling platforms and can track inventory across multiple fulfillment centers in real-timeWe offer a choice of more than 20 of the biggest shipping aggregators in the country and always assign the quickest and most cost-effective option for every orderWe offer value-added services such as an app store that has a catalogue of multiple applications to enhance the productivity of various eCommerce functionsWe provide an RTO Shield to mitigate the damage caused by returns and provide insurance against RTOs Logistics Center: FAQs (Frequently Asked Questions) What is the primary purpose of a logistics center?Logistics centers perform the functions of both a fulfillment center and a distribution hub. The main purposes are to store products and get them ready to be dispatched to other locations. Why are dark stores useful?Dark stores can provide additional storage space and take pressure off the primary fulfillment centers of a retailer. Additionally, they provide quicker delivery to areas that immediately surround them than conventional warehouses as goods only need to travel short distances to reach customers. Is there a difference between a warehouse and a logistics center?Yes, warehouses are only concerned with the storage of inventory whereas logistics centers have mutiple other functions such as transportation of goods and order processing. Can logistics operations be offloaded to a 3PL company?Yes, there are multiple 3PL companies that provide logistics services. However, we recommend WareIQ for the use of advanced technology and transparent pricing. Does WareIQ offer other services in addition to logistics?Yes, WareIQ offers a variety of eCommerce services in addition to logistics such as order fulfillment, branded tracking, a custom WMS, NDR support and much more. 

August 27, 2022
What are Inbound And Outbound Logistics? Top 7 Ways To Optimize Inbound And Outbound Logistics Processes [Ultimate Guide 2024]

What are Inbound And Outbound Logistics? Top 7 Ways To Optimize Inbound And Outbound Logistics Processes [Ultimate Guide 2024]

In the 21st-century economy, firms battle for efficiency. Whether it is inbound and outbound logistics, marketing, finance, or another area of the business, it is survival of the fittest. Since the dawn of the industrial era, logistics has been subject to continuous improvement, and optimization always pays off, especially when it comes to inbound and outbound processes. Better ways of procuring materials, and better ways of distributing products contribute to an efficient firm and a healthier bottom line. This process is related to the concept of supply chain management (SCM). Generally, inbound logistics and outbound logistics work in sync to create a better supply chain. Manual inbound and outbound logistics management processes are important. Technology has changed the rules of the game. A mixture of machine learning, AI, and complex algorithms are now used to ensure better eCommerce logistics management. What is Inbound Logistics? Inbound logistics is the means by which materials and other products are obtained by a firm which encompasses all the activities that are involved such as ordering, receiving, storing, transporting and managing the goods. Inbound logistics is focused on the supply aspect of eCommerce. Examples of Inbound Logistics Procedures Sourcing of Materials and Goods: This includes choosing prospective vendors, getting pricing estimates and negotiating with suppliers.Placing Orders: This includes purchasing the relevant materials that the retailer needs for operating their business.Transporting Products: This involves figuring out which transport method would be the best option, partnering with 3PL logistics companies and finding the quickest routes.Receiving the Goods: This involves unloading the cargo and receiving the goods so they can be stored. What is Outbound Logistics? Outbound logistics entails the storage and transportation of products to their relevant locations and all the processes involved in it such as picking, packing, delivery and customer support. Outbound logistics focuses on the demand aspect of eCommerce. Examples of Inbound Logistics Procedures Warehouse Management: This involves the use of a WMS to automate and streamline various warehouse processes such as picking, packing labelling of orders.Inventory Management: This involves managing inventory in the warehouse so it can be stored in the most efficient and accessible manner and doesn't take up unnecessary space.Order Dispatch: This involves the transport of goods from the warehouse to the storage hub in the same city where the order needs to be delivered.Last-Mile Delivery: This involves the order being picked up by a delivery executive so that it can be successfully delivered to the final customer. Inbound and Outbound Logistics: 4 Key Differences Both inbound logistics and outbound logistics are key to product quality and customer experience. Efficiency in these inbound and outbound processes is essential for a business’s success. This post, therefore, is a pointer to both the inbound process in the fulfillment warehouse and the outbound processes and their optimization. [table id=21 /] Read on to understand how to tune inbound and outbound logistics to avoid wastage, delays, and overall inefficiencies. [contactus_gynoveda] Inbound Logistics Processes: 3 Steps To Success Fine-tune these 3 steps for an optimized inbound logistics process:  Sourcing of Raw MaterialsReceipt of GoodsReverse logistics Sourcing Of Raw Materials The first step in the manufacturing of goods is the sourcing of raw materials. Businesses need to buy raw materials of good quality in the right quantity from trusted suppliers. A key process here is maintaining records of raw materials so that overstocking of raw materials is avoided. Maintaining good communication with suppliers is essential. Coordination with suppliers and setting a transportation framework is an essential parts of the inbound logistics process in the warehouse. Receipt of Goods The optimal receipt of goods involves careful planning. After placing an order for raw materials with the supplier, the business needs to make advance load appointments. Docks need to be reserved for the unloading of inventory. By doing this, businesses know where to receive raw material stocks when they arrive. The unloading area should be assigned and inventory should be unloaded and stored in the designated area for a short period of time. Reverse Logistics When goods are moved from the end-user/customer back to the manufacturer, the process is referred to as reverse logistics. This is an essential part of the modern inbound logistics process in the warehouse. The return of goods to eCommerce firms and refurbishing, remanufacturing, or disposing of products are part of this process and are handled by reverse logistics companies. Outbound Logistics Processes: 4 Steps To Success Fine-tune these 4 steps for an optimized outbound logistics process: Order ProcessingPicking and PackingShipping and SortingEnd-User Delivery Order Processing The outbound logistics process begins with the customer placing an order, which is then confirmed by the warehouse. A Warehouse Management System (WMS) is used to streamline this process and mitigate any errors that could have otherwise occurred. Picking and Packing After order confirmation, the ordered product is picked from the inventory. Meanwhile, in the background, the WMS updates inventory records and adjusts the product count and SKUs. These products are then packaged and labeled (you can read about shipping labels here). The carrier service sorts out these products. Shipping and Sorting After packing and sorting, the goods are picked up by freight trucks, which ship them to the pertinent distribution center. After the goods have reached the closest distribution center (to the customer), the orders are picked up by the relevant delivery personnel. This process is carried out by shipping companies. End-User Delivery End-user delivery is the last step that finishes off the inbound and outbound processes of logistics. Whether the delivery is to an individual or a supermarket, this end-user delivery is the final step of the inbound and outbound logistics chain. 5 Most Prominent Inbound And Outbound Logistics Challenges faced in 2024 Knowing the challenges that businesses could face in the field of logistics gives retailers a handle on how to deal with them. These are the top 5 challenges in inbound and outbound logistics processes. Poor Knowledge of Transportation Status Revenue, efficiency, and productivity of a business can be affected by poor visibility of the product through the logistics process. Inbound and outbound processes in logistics involve multiple transacting stakeholders. This makes poor visibility a huge challenge. The status quo is the low visibility of transportation operations. Not knowing the execution status of orders results in inefficient planning and a poor customer experience. If stakeholders aren’t in the knowledge loop at various stages of the delivery process, it may result in an inefficient transaction.  To stay on top of the game, firms need to notify customers of the transportation status of the ordered goods from the time of order placement up to the delivery, in real-time. High Operational Costs Transportation of ordered goods is one of the highest costs that factor into the purchase price. The cost of this process is steadily rising. The reasons for this high cost are: Rising fuel pricesManagement and administration costsPoor visibilityPoor coordinationSeveral transportation modes These operational costs are usually passed down to the customer and are an important factor in customer satisfaction. Inefficiency in Internal Operations When plant operations are sub-optimized, i.e. inefficient, it negatively impacts the overall business revenue. These inefficiencies could be any of the following:  Inaccurate inventory dataInexperienced manpowerPoor handling of materialsWastageInefficient input of products Such inefficiency results in sub-par products and a poor customer experience. Business profits dive, competitiveness decreases, and goodwill is reduced. Mismanagement of Delivery Fleet Resulting in Low Productivity In today's hyper-competitive market, products need to be delivered on time, every time. Sometimes it is the delivery fleet that is the problem. The areas of concern in the delivery fleet could be: Poor vehicle maintenanceUnoptimized route planningToo many stoppagesBad driver performance Not handling these issues could mean delayed deliveries, higher operational costs, lowered customer trust, and a decline in the goodwill of the business.  Decision-Making Based on Inaccurate Facts/Data Broadly speaking, business decisions made based on relevant data are more likely to be sound. Making decisions without proper data is akin to playing guesswork with your finances. When eCommerce logistics companies decide on a key deliverable, such as inbound logistics processes in the warehouse without data, it may be a recipe for failure. Data helps businesses understand the performance of various metrics in the inbound and outbound logistics chain. Risk assessment is possible only with valid data. The lack of data could also mean that core internal processes are not being performed properly. 7 Ways to Optimize Inbound and Outbound Logistics in 2024 Modern technology has simplified every area of business operations, including logistics. The vast array of digital technology now enables easy optimization in inbound and outbound logistics. The effort is to smooth out processes and decrease logistics costs while enhancing productivity. Follow these 7 ways to optimize your inbound and outbound logistics processes: Relying on Automation Automating logistics allows for the use of the best delivery routes. This is done using intelligent route optimization software. A mix of analytics, machine learning, GPS tracking, and dynamic routing is used to select the best routes. Productivity is enhanced due to the use of tracking various stages of the inbound and outbound logistics processes. Whether it is the unloading of goods, in-plant operations, or any other area of logistics management, businesses stand to save a lot of money by sticking to time frames. Suggested Read: How Do Delivery Route Planning Apps Help in Delivery Route Optimisation? Managing Advanced Logistics Current logistics management systems allow businesses to stay up-to-date. Certain varying factors like freight charges and other dynamic factors can have a detrimental impact on inbound and outbound logistics. Stay on top of dynamic changes using advanced logistics management. Keeping your eye on current rates can save you plenty of money, time, and effort. Providing A Better Customer Experience By optimizing inbound logistics and giving customers end-to-end visibility of transportation operations, businesses can enhance customer experience. End-users can track their shipment at any stage of the delivery and this is an essential part of modern logistics management. By planning production and ETAs appropriately, businesses can communicate with customers without any errors. This is an essential part of an effective inbound and outbound logistics system. Developing Vendor Inbound Compliance Standards (VICS) Developing standards for business processes apply to all areas of business operations. It is no different with inbound and outbound logistics. Modern businesses deal with an array of suppliers and vendors. This makes streamlining business processes crucial. To do this, businesses design Vendor Inbound Compliance Standards (VICS) which are then used as guidelines by all stakeholders. These lead to a steady, uninterrupted flow of logistics. Developing Strategic Supplier Relationships Efficient logistics operations depend on strategic relationships built with third-party suppliers, carriers, and logistics providers. Optimizing such relationships result in efficient logistics operations. The key parameters that need to be examined for this are:  The volume of goods deliveredOther shipping activitiesOn-time, in-full deliveriesPricing models Analyzing suppliers based on these parameters is a breeze using current logistics management platforms. Businesses can know how their operations are being impacted and by which suppliers. This can then be the roadmap for future strategic relationships. Optimizing Communication  In the world of logistics, communication equals efficiency. Inbound and outbound logistics involve multiple stakeholders. A break in communication could mean a weak link in the chain. Only an efficient communication system can ensure that goods move as per the schedule and as per plan. Both delivery personnel and warehouse managers need a way to be constantly in touch with the business headquarters. This enables quick decision-making and the easy resolution of errors. Modern logistics tools allow for optimized routes, location tracking, and hence, high transparency. Cross-Docking Warehouse Operations Cross-docking is an important concept in modern inbound and outbound logistics. In this practice, incoming goods are quickly sorted out by workers, which are then loaded on an outbound truck. The time spent by the products in the warehouse is reduced and this means reduction/optimization of warehouse space. Finished products can be quickly inspected. This ensures the delivery of high-quality products and a lower return rate. Conclusion Inbound and outbound logistics are some of the most important processes in order fulfillment. Businesses have to make sure they have a proper supply chain in place if they want their orders to be successfully delivered on time and intact. It can take a lot of time and resources for smaller businesses in trying to optimize these processes to be as efficient as possible. This is where 3PL fulfillment companies such as WareIQ can help. WareIQ provides services for all inbound and outbound logistics processes in logistics, freeing up the time and effort needed by businesses for other tasks such as optimizing their business strategy and refining their products. We take care of the entire process of order fulfillment, from receiving orders through our custom WMS to offering ultra-fast same-day and next-day delivery to customers. [signup]  Inbound and Outbound Logistics Process FAQs What are some advantages of inbound logistics optimization?There are several advantages of inbound logistics optimization, including raw material cost estimation, high product quality, on-time deliveries, increased customer satisfaction and higher profits. What are some advantages of outbound logistics optimization?Some advantages of outbound logistics optimization are fast deliveries, lower-order cancellations, fewer damages, lowered product costs and a better company reputation. What are some key metrics/calculations in inbound logistics?Some key metrics to keep in mind in inbound logistics are freight cost per pound, the share of freight cost in production cost, incoming shipment time and expense and goods handling by staff data. What is the difference between inbound and outbound logistics?The main difference is that in Inbound Logistics there is an intake of goods and products to the warehouse whereas in Outbound Logistics the processes are carried out to deliver the finished products to the end customer. How can WareIQ help you optimize inbound and outbound logistics?WareIQ reduces the time needed to optimize and implement inbound and outbound logistics because we take of each individual process and automate tasks wherever we can through our WMS. We also give customers a choice between multiple shipping aggregators to be able to provide the fastest delivery at the most competitive rates.

August 25, 2022
10 Impactful Logistics Innovations & Logistics Industry Trends in 2022 That are Changing the eCommerce Landscape

10 Impactful Logistics Innovations & Logistics Industry Trends in 2022 That are Changing the eCommerce Landscape

eCommerce as a whole refers to online retailers that sell products via their own websites or marketplaces through a variety of processes that entail all the activities involved in driving customers to their page to buy their products by enhancing their brand visibility through ad campaigns, setting up attractive product listing pages and offering value-for-money deals. Once a customer takes the bait and decides to eventually purchase an item, one of the most essential procedures in eCommerce commences - logistics. This includes all the processes involved in selecting, packaging and shipping orders to the destinations of their relevant customers. Because competition in the fulfillment space is getting rife, companies are increasingly required to offer shorter delivery times for reduced shipping and operational costs. This is where logistics innovations can make life tremendously easier for both sellers and their customers. In this blog, we will take a look at what logistics innovations are, their importance and 10 logistics industry trends that are taking the eCommerce industry by storm in 2022.  What are Logistics Innovations? As mentioned above, eCommerce logistics consists of all the operations involved in successfully delivering an order to the end customer, which is made possible by the large number of logistics innovations that have taken place in the past decade or so. Logistics innovations include any factor, including technological advancements, streamlining of logistical procedures, adopting of innovative strategies and more, that can enhance the capabilities of a company’s logistical processes to help them fulfill a larger number of orders in shorter periods of time with lower overall logistics costs incurred and fewer errors that can cause disruptions. [contactus_uth] Importance of Logistics in eCommerce Decreases Delivery Times When firms have a sound logistics strategy in place and employ the use of logistics innovations and technology, delivery times get drastically reduced and this creates an advantage for retailers because there is more breathing space to fulfill a larger number of orders in the same timeframe, and for customers because they will receive their orders in the shortest possible time frame. Results in Innovative Strategies Because retailers constantly strive to fulfill orders in the quickest time and at the lowest possible price to out-compete their rivals, they constantly rely on logistics innovations to streamline various procedures to make them more efficient and cost-effective. This results in companies experimenting with different technologies and tactics, and if something works that haven’t been tried previously, it can gain popularity and be adopted on an industry-wide scale, which will benefit every retailer and their customers. Increases Sales Velocity Efficient use of logistics innovations and having a sound logistics strategy will enable firms fulfill a larger number of orders during a particular time period which will encourage firms to spend more resources on marketing and advertising their products to make use of all the extra logistics abilities on tap. Hence increasing sales velocity. This will generate more income and result in higher profit margins for eCommerce sellers. Improves the Customer Experience When placing online orders, the main thing customers desire is for their purchase and delivery process to be as seamless and quick as possible. Happy customers are key to the success of any business and especially ones that operate in a vastly competitive industry such as eCommerce. By making use of logistics innovations and taking part in logistics industry trends, companies can deliver the highest quality service to their customers, which will result in positive customer feedback and reviews and in turn, more customers.  Segments Expenditures Because logistics encompasses a variety of operations and provides a means to track expenses across different departments, retailers can use it to get insights into the expenses of those procedures and can figure out how to reduce costs wherever possible. Sellers can use this information to budget themselves more methodically and eventually become more profitable. 10 Latest Logistics Innovations and Industry Trends in eCommerce in 2022 Customizable Warehousing Not all eCommerce retailers have the same or similar eCommerce warehousing requirements or the same amount of resources to spend on storage facilities. For firms that require temporary storage facilities, especially those that routinely deal in seasonal products, on-demand warehousing is increasingly being used to fulfill these specific requirements. The premise is that sellers are connected with warehouses that fit their needs and offer storage on a temporary basis for a much lower amount than conventional warehouses. Speedier Last-Mile Delivery As customers grow more accustomed to recovering their orders as soon as possible, the importance of a competent and professional last-mile delivery procedure is imperative to the success of a retailer. Last-mile delivery refers to the final journey of an order from the dispatch point to the customer's destination and firms are constantly trying to find ways to speed it up. With an average of 28% of a firm's total costs being spent on last-mile delivery, they can benefit from streamlining it. You can also know more about how last mile delivery companies can help in the same. Advanced WMSs Warehouse management systems are of the utmost importance for eCommerce firms to manage their warehouse processes, especially those that deal in large amounts of inventory spanning across multiple fulfillment centers. WMSs take care of tasks such as inventory management, order consolidation, tracking data across platforms and more. Investing in a WMS can have a major positive impact on how firms manage their inventory and the speed and accuracy at which they can dispatch orders. know more about how WMS software can help with logistics processes. Enhanced Implementation of Automation There are various components of the fulfillment cycle that are increasingly using automation as a way to reduce the need for manual labour. Automation is one of the most important logistics industry trends as it not only speeds up processes and reduces the amount of effort required from the on-the-ground team but it also reduces the frequency of errors. Automation can be used in various ways starting from the automation of warehouse tasks such as storage and product selection to assigning the relevant last-mile delivery service and more. Cloud-Based Solutions eCommerce as an industry relies on the raw power of the internet for the majority of its services whether it is a customer browsing a website or online listing and paying for it online or a firm tracking its inventory across multiple fulfillment centers and consolidating orders from different online selling platforms in one dashboard so they can be monitored more easily. This is all made possible through cloud computing and internet-based services which are made available to retailers through their marketplaces on the selling front and 3PL companies on the operational front. Geolocation Services Geolocation services are one of the most prominent eCommerce trends that are visible to sellers in the form of tracking inventory and receiving real-time updates across multiple warehouses, and customers in the form of order tracking facilities that keep them posted on every development and update about their order until it reaches them. Geolocation is not only important for retailers to manage their inventory but also to mitigate customer apprehension and increase their confidence by providing more visibility and transparency regarding their purchases. Drones for Delivery Purposes The latest developments in logistics innovations have led to the mainstream adoption of drones to deliver orders, especially to locations with limited accessibility by conventional vehicles. While drones are already being used in developed countries for delivery purposes, they are progressively being adopted in developing markets due to the benefits they offer such as lowering costs, providing faster delivery, not being restrained by geography and much more. Crowdsourced Delivery Methods Crowdsourced delivery is one of the logistics industry trends that is becoming more prominently used. It refers to the leveraging of local courier services by retailers to deliver parcels to customers on a large scale. By consolidating multiple orders together and delivering them one by one, crowdsourced delivery can increase the speed and efficiency of last-mile delivery. This method is already widely used in the food delivery industry and is increasingly being used for eCommerce deliveries as well. Reliance on Data and Metrics eCommerce as an industry relies heavily on numbers and logistics as a process necessitates the use of analytics and data to gauge the efficiency of various operations by analysing costs, performance, customer receptiveness and more. By using data to come to conclusions, firms can make the necessary changes and improvements to whichever processes require it so that the entire logistics process can be streamlined as much as possible. Self-Shipping Vehicles While still in various stages of testing in different parts of the world, self-shipping services through automated vehicles are one of the logistics innovations that should become widely used in the next couple of years. While it would be more difficult to implement in developing countries due to road conditions, hazards, overcrowding and other factors, the technology has gone through multiple successful trial runs in countries like the US and should be ready to deliver products in the not-so-distant future. You May Like: 10 Prominent and Latest eCommerce Shipping Trends for eCommerce Sellers to Watch Out For in 2023 Conclusion: Take Advantage of Logistics Innovations With WareIQ Logistics is a very important part of eCommerce services as it enables products to be successfully delivered to their required destinations. There are many new logistics innovations and trends that are taking hold of the eCommerce space which are bound to improve the experience of retailers and customers alike by enabling faster, cost-effective and more efficient deliveries to a wider range of locations. If you are an eCommerce retailer that needs assistance with your logistics services, you can take advantage of WareIQ’s offerings. WareIQ has emerged as one of the fastest-growing eCommerce fulfillment companies in the nation. Through our wide utilization of technology to provide various solutions, WareIQ’s services are often more efficient, innovative and cost-effective than the rest. When it comes to eCommerce logistics, WareIQ as an eCommerce logistics company offers multiple services, some of which are listed below: We offer a pan-India network of fulfillment centers, logistics centers and dark storesWe provide intelligent inventory storage based on proximity to areas of high demand and transport facilitiesWe offer ultra-fast same-day and next-day shippingWe provide a choice of more than 20 major shipping carriers and always assign the fastest and cheapest option for every orderOur branded tracking pages can be customized to your liking to provide a highly personalized experience to your customersOur custom WMS can integrate with more than 12 eCommerce platforms and can track and update inventory in real-time across multiple fulfillment centersWe provide reverse logistics services and an RTO Shield to mitigate the damage caused by returns Logistics Innovations: FAQs What is the role of logistics in eCommerce?Logistics is responsible for transporting goods from warehouses or fulfillment centers to their dispatch points and ultimately, to the end consumer. What is the importance of logistics innovations?Logistics innovations help improve logistics operations by making them faster, more efficient and more cost-effective. This not only helps retailers but also their customers. What role will data play in the logistics industry in the future?Logistics will place even higher importance on data and artificial intelligence as it moves further towards automation. A study by Gartner has estimated that AI will be utilised across more than 50% of supply chain technology services by 2023. How can logistics operations be improved?5 ways to improve logistics operations are mentioned below:- Reduce delivery timelines- Streamline operational tasks- Optimise transport facilities to be more cost-effective- Enhance warehouse management capabilities- Use logistics innovations What are some popular areas of focus in logistics innovation?Automation, sustainability, real-time tracking, cost reduction, efficiency improvement, last-mile delivery. How does logistics innovation impact businesses?Improved customer satisfaction, increased competitiveness, reduced costs, streamlined processes, greater efficiency. What are some emerging technologies in logistics innovation?Artificial intelligence, Internet of Things, blockchain, robotics, drone technology, 5G connectivity. Does WareIQ offer any other services?Yes, WareIQ offers a variety of eCommerce solutions for different requirements such as storage, inventory management, order fulfillment, last-mile delivery, order tracking and much more.

August 25, 2022
What is 3PL Distribution? How Distributed Warehouses & Fulfillment Network Operated by 3PLs Accelerates eCommerce & D2C Growth in 2022?

What is 3PL Distribution? How Distributed Warehouses & Fulfillment Network Operated by 3PLs Accelerates eCommerce & D2C Growth in 2022?

It's not always practical for eCommerce organisations to handle everything internally because there are many operational duties to keep track of. In these situations, brands frequently contract with a 3PL or third party logistics service provider. But choosing the best 3PL for your company can be challenging because there are many factors to consider. For example, eCommerce businesses should constantly assess a 3PL candidate's distribution network or the quantity and locations of the 3PL's warehouses and fulfilment centres. A 3PL's distribution network's scale and breadth are more crucial for an eCommerce company than you realise because they directly impact your company's shipping prices, 2-day delivery options, and future scalability. To position, your business for success, look for a 3PL partner with a distribution network that matches your vision and aids your brand in achieving its goals. In this article, you will learn what 3PL distribution services are, why working with a third party distribution partner with a distributed network of warehouses is essential, and how WareIQ's fulfilment network supports business growth. What is 3PL Distribution Service? Delivery or sales of goods and services to clients from a producer or manufacturer is known as distribution. Expanding distribution network is essential as firms grow into new markets to ensure that goods reach customers promptly and safely. For a seamless operation, adequate coordination between all partners participating in the distribution channel is necessary. Third party distribution or 3PL distribution are the services in eCommerce businesses, such as outsourcing distribution and fulfilment services to a third-party organisation.  3PL provider specialises in logistics and distribution services to assist your business operations.  When examining 3PLs explicitly in the context of distribution, they encompass a wide range of services, including pick and pack, eCommerce fulfillment, shipping centres, processing, labelling and ticketing, warehousing, customised bundling, quality control, and inventory management. As a result, businesses can improve performance and supply chain management and get insight into a complicated industry using a 3PL distribution solution. By partnering with organisations like WareIQ for all your fulfillment and distribution needs, you can anticipate superior distribution services that meet your consumer needs. Alternatively you can choose the contract logistics service option too. Read here now. The Importance of 3PL Distribution Services Any business activity needs a distribution network to be successful. Any industry that wants to provide the most satisfactory service to its consumers must ensure a good relationship with the manufacturers. This cannot be done without effective distribution services. If the system has flaws, deliveries will not be made as planned, which would anger consumers, suppliers, and vendors and cause them to lose faith in the business. Utilizing a 3PL distribution provider can significantly benefit a retail organization. Working with a reliable 3PL and managing your supply chain effectively will give you a competitive edge because your shipping procedure will be faster and more precise. Using a 3PL distribution service allows shippers to avoid overhead costs like leasing or to buy property, investing in equipment, and paying employees. Cost savings are widespread because numerous accounts share infrastructure, resources, and personnel. For merchants, a reliable 3PL distribution service is essential since it enables skilled people to handle the challenging process. Working with a 3PL provider for distribution will help you streamline the entire process and will help you keep ahead of the competition in your sector. In addition, a 3PL can take over the process and make informed decisions at each step because most people in the retail industry are not experts in supply chain logistics. As a result, retail organisations can save money, gain flexibility, and improve their overall operations when they have professional assistance to streamline their supply chain processes. Distribution service firms must maintain a continuous feedback procedure to ensure that all their workers are happy and those necessary adjustments can be made. For some online delivery services, clients won't see the product until after they buy it, relying instead on the offered photographs and descriptions. As a result, distribution services must link them and create trustworthy relationships to be sincere and compelling. To ensure a successful distribution system, consider the following: An effective network of transportation to get the items to all the destinations.A trustworthy tracking system guarantees that the intended recipient receives the right products on time.A suitable packaging method that ensures the integrity of the goods throughout transportation.A readily available storage area where the goods can be kept for simple distribution.A reverse logistics service to guarantee the highest level of client satisfaction. Operational Process Of A Third Party Distribution Service Centre Providing third party distribution services requires carrying out a number of criteria, including: Order Processing The services must have a strategy for adequately delivering orders as soon as they are received from manufacturers or customers. It entails gathering the supplies, packing and loading them, and delivering them on schedule. Packaging and Shipping It's crucial to provide the best packaging possible for any good to ensure that the final consumer receives it in perfect condition. Building consumer trust requires them to deliver flexible pick-up, package, and top-notch transportation services. Care must be taken with each order to foster strong, long-lasting bonds with both customers and producers. Each intended delivery package must have accurate invoices and shipping labels attached. These procedures will assist a business in producing quality results. Customs and Import Services As the company expands internationally, global distribution becomes increasingly essential. A professional and trustworthy distribution involves the efficient management of customs and the associated import/export process, which helps you satisfy all trade regulations and guidelines effectively. This guarantees that your items cross borders without any difficulties. Inventory Management Distribution of goods strongly depends on keeping a good amount of inventory under control. To meet the necessary needs for assuring prompt stock renewal and ideal delivery, this necessitates a perfect site. They will make sure that things are strategically positioned to efficiently disseminate to all the portions of planned locations if they have good, easily accessible storage space. Tracking To ensure that both manufacturers and customers are informed of the delivery schedules for their products, a reliable tracking system must be in place to monitor the status of the delivery and distribution process. Logistics Planning For all orders, selecting the mode of transportation is crucial. Loading and unloading for larger orders should be carefully managed, so they do not cause issues later. They should have all the agreements prepared to secure all the approvals if the delivery is abroad. They must plan an efficient route and the necessary types of transportation for local delivery. Businesses can stay competitive by being flexible in their delivery options and satisfying customer demands. Appropriate Communication Clear communication must be on both ends to guarantee that the right things are dispatched and that customers are informed of the delivery timetables. In addition, distribution service management must notify all parties involved if a shipment is delayed for any unavoidable cause. Reverse Logistics Returns are a crucial component of the distribution cycle for any goods to guarantee customer satisfaction. The distribution process entails getting the commodities to their final destination and returning them to where they came from. It is a critical component for businesses since it directly impacts their operational costs, returns on investment, and customer satisfaction levels. How Distribution Warehouses Network Operated by 3PLs Benefit DTC and eCommerce Growth? Some third-party distribution companies run their operations out of a single fulfillment facility. Still, more seasoned 3PLs will have a distributed network of fulfillment centres nationwide or abroad. Partnering with a 3PL distribution operator with a vast distribution and fulfillment network can give eCommerce businesses a significant competitive advantage and accelerate D2C growth.  Here are a few advantages that eCommerce companies can gain from collaborating with a 3PL with a significant distribution network. Reduce Overall Cost In contrast to a 3PL distribution centre, you will be charged more significant prices if you approach a distribution centre or warehouse on your terms. Due to their focus on logistics, 3PLs will have a more extensive network than the supply chain department of your business. They will probably be able to provide you with more significant discounts because they probably have more powerful negotiation positions and exclusive connections inside the sector. All of this works to keep your company's overhead expenditures minimum. You can also save money by partnering with a 3PL distribution centre and forgoing infrastructure investments. It will provide you access to transportation, storage, and order monitoring technologies, among other things that would otherwise cost a lot of money. Reach Audiences Worldwide Global shipping may be tricky and time-consuming for DTC firms who want to grow worldwide because you have to consider import rules and customs processes. Due to import duties, taxes, and fees that can drive up shipping costs, turn away customers, and harm your earnings or bottom line, it can also be quite expensive. By enabling you to store merchandise in the nation you're delivering to, 3PLs with international warehouses lessen these obligations. Orders travel a far shorter distance as a result, which expedites delivery and lowers shipping costs. Furthermore, your brand can avoid paying various import charges and customs costs that you would otherwise be required to absorb or pass along to the buyer because your inventory is kept locally and never leaves the nation. Rapid Business Growth  To support business expansion, organisations frequently choose 3PL distribution facilities. A company can quickly expand its fulfilment and distribution reach thanks to the logistical infrastructure a 3PL distribution centre provides. Hiring a 3PL that already has these things in place is easier than devoting your company's time and resources to setting up your distribution centre or warehouse, finding and securing new warehouses and storage facilities, and hiring and training new employees to handle the influx of late shipments. Hopefully, your business will continue to develop, and your 3PL distribution partner will use its network to handle all of your new shipments. The management of all of these services on your own will become difficult if your organisation is currently expanding. A new small business might have been content handling these services themselves. Provide Quick Shipping to Satisfy Consumer Demands Customers now expect lightning-fast shipping for their goods, with more than half of consumers anticipating 2-day delivery, thanks to retail behemoths like Amazon. Smaller DTC businesses can satisfy this expectation thanks to 3PLs with extensive networks of distribution facilities because they optimise physical product distribution. The correct 3PL can keep different amounts of your inventory because they have access to multiple fulfilment centres. This enables the fulfilment centre closest to the final delivery location to process, fill, and ship an order from the moment it is received. This drastically reduces the typical transit distance, which leads to noticeably quicker deliveries that boost customer satisfaction. Improving Customer Satisfaction All the above advantages will undoubtedly enhance your overall order fulfilment process, resulting in the timely delivery of goods to your clients. As we all know, prompt delivery is one of the main factors in customers returning to a business. Consequently, outsourcing your delivery to a 3PL will enhance your customers' experiences, ultimately resulting in higher sales. There may be perceived drawbacks to 3PL, with the main one being the potential loss of some corporate control if your logistics and distribution needs are outsourced. However, you can alleviate these worries by selecting a reliable 3PL distribution and ensuring a proper inventory management system and timely delivery to clients so that you never again have to be concerned about order fulfilment requirements. 6 Factors to Consider When Choosing a 3PL for eCommerce Fulfillment and Distribution Is internal eCommerce fulfilment and distribution preventing your company from expanding? If so, you might consider outsourcing these tasks to a 3PL company. However, choosing which 3PL supplier to work with can be challenging. Therefore, we have created a list of 8 things to consider when selecting a 3PL distribution partner to assist with this task. 3PL Partner Capabilities Because a 3PL supplier is a business partner, their abilities must align with their clients. The 3PL partner must be able to provide the needed services, whether creating bespoke labels or delivering goods within 24 hours. Their technological capabilities are also a part of who they are. Can they integrate with Shopify, WooCommerce, and other clients' eCommerce platforms? Organize drop-shipping with well-known online merchants. This information is crucial to understand, coupled with whether they manage their warehouse and inventory using cutting-edge technologies. Organization Structure and Safety Inefficient warehouse operations cause delays and errors. Can they pick, pack, and ship orders with accuracy and efficiency? The arrangement of their facility will have a direct impact on how dependable they are. A 3PL distribution partner should also adhere to safety regulations to safeguard client goods and warehouse staff. Delays will eventually result from any harm done to merchandise or workers. Before committing, request a physical or virtual tour of the 3PL warehouse to observe how well-kept and organised it is. Consumer Assistance Every business partner will receive the proper attention from a reliable 3PL. For example, someone should be present to answer any inquiries potential new clients may have. In addition, clients rely on their 3PL distribution partner to swiftly identify and address any issues that may arise and establish a procedure to ensure they don't recur. Scalability Current sales volumes and whether the 3PL can handle them are frequently discussed when organisations think about outsourcing e-commerce fulfillment services and distribution. When selecting a service, future sales volume is equally important. If the customer starts to grow or experiences peak seasons, the 3PL distribution partner needs to be ready to handle a heavier workload. Customization The 3PL must be able to accommodate any unique labels or packaging requirements that a company may have. A 3PL serves as an extension of a firm and helps it retain its reputation among clients. The ideal 3PL distribution partner will offer their clients the same level of dependability and service that their clients would. Location Costs, efficiency, and delivery time are significantly influenced by a 3PL distribution partner's location concerning a potential client's consumer base. By strategically working with a 3PL in a relevant area, final mile expenses can be reduced. If the 3PL is close to essential highways and shipping hubs, that can also be beneficial. Conclusion Any business can succeed or fail to depend on using 3PL distribution services. An effective distribution system suggests that the firm has a better chance to boost sales and beat out the competition. In today's fiercely competitive market, the business that can strategically penetrate the market with its goods sooner and farther than its rivals will be able to weather market fluctuations and maintain a competitive advantage. It is crucial for any business or service because no amount of clever pricing or product promotions will help if they are not distributed effectively and on time. The 3PL distribution partner offers a complete collection of distribution services, making it the ideal alternative for freight delivery services. These features include dock drop and pick-up facilities, freight redirection service, separating service, and sort service. In addition, experts collaborate carefully with clients to update their whole supply network through customised distribution strategies, trustworthy storage, and the best product transportation from any place in a secured, monitored, and timely manner that will always put you one step ahead of competition. WareIQ As Your Fulfilment and 3PL Distribution Partner WareIQ makes it easier to efficiently distribute your goods across different locations, save shipping costs, and achieve 2-day delivery thanks to the network of fulfilment centres. With the help of WareIQ's nationwide fulfilment network, both B2B and B2C firms can quickly and affordably expand their operations across the country. With our analytics, retailers can determine the best inventory mix for meeting customer demand while preventing stockouts, backorders, and deadstock. WareIQ, driven by top-tier fulfilment technology, also offers complete visibility into business activities across the distribution network. The skilled experts at WareIQ will handle order processing, fulfilment, and shipping for you. Merchants may monitor real-time inventory levels, trace orders through the supply chain, manage warehouse operations, and more from a single dashboard. WareIQ also helps you to monitor crucial parameters at each site you use, such as inventory turnover, order accuracy, time in transit, and on-time percentage, to improve your 3PL experience further. Using this information, you may pinpoint areas for enhancement and enhance supply chain management for achievement at any place you employ. [signup] Frequently Asked Questions What is 3PL distribution and warehousing?Third Party Logistics, or 3PL, is a service the business outsources for its warehousing and distribution requirements. Your supply chain will be more responsive and cost-effective with 3PL, allowing your company to concentrate on its core operations. All of these services are provided under one roof by 3PL as a single package. What services does a 3PL distribution partner typically provide?3PLs provide receiving, storage, packaging, and shipping services among their logistics solutions. As value-added services, several 3PL providers also offer additional logistical services. These encompass sourcing, kitting and assembly, postponed packing, and inventory management. Does WareIQ provide a third party distribution or a fulfilment centre?In addition to serving as product storage facilities, WareIQ's distribution or fulfillment warehouses act as efficient order picking, packing, and shipping hubs. Advanced tech, scanning equipments, and computer systems in fulfilment centres can track & dispatch millions of products daily.

August 25, 2022
eCommerce Pricing Strategy 101: Top 10 eCommerce Pricing Models to Increase Sales and Boost Profitability in 2024

eCommerce Pricing Strategy 101: Top 10 eCommerce Pricing Models to Increase Sales and Boost Profitability in 2024

Setting the proper price for your products is a balancing act and it can be a challenging one at that. Deciding on an eCommerce pricing strategy is a crucial component of your overall business strategy. You will lose business if you charge too much, but the reverse is also true. So how do we decide which tactic to employ?  There are numerous approaches to shortlisting an eCommerce pricing model and which method is ideal for your company relies on many variables. No matter how much experience you have, finding the perfect prices for specific products and offerings will require time and experimentation. Understanding the various eCommerce pricing models that the majority of businesses employ as well as the ramifications of some tried-and-true pricing schemes is therefore helpful. In this article, we'll examine 10 of the best price strategies for online stores as well as the importance and factors that can impact your eCommerce pricing strategy in 2024. What is an eCommerce Pricing Strategy? An online retailer's or merchant's method for choosing an eCommerce pricing strategy that takes into account manufacturing costs and revenue targets, such as average order value (AOV) and lifetime customer value, is known as a pricing strategy. A pricing strategy is not a discounting strategy, though you can absolutely use discounting strategies as part of your overall price strategy. Calculating the value of your finished goods, however, is more difficult than you may imagine. If the price is either too high or too low, you risk permanently losing a potential consumer. For this reason, businesses employ eCommerce pricing models. These techniques are used to set prices after thorough consideration and research. Setting prices that will increase eCommerce sales while fending off competition is the main goal. Numerous considerations will determine the eCommerce pricing strategy you should choose. [contactus_gynoveda] Importance of Choosing an eCommerce Pricing Model Consumers Can be Lost to Competitors Consumers may now examine and compare the pricing of the same goods across several retailers using specialized apps. So certainly, it's more difficult than ever to choose the correct pricing for your goods. Helps in Identifying the Right Product Pricing You won't be able to sustain your business over the long term if the price is too low. However, you'll also lose a lot of people who can't afford your brand if the pricing is too expensive. Choosing the right eCommerce pricing strategy is extremely important to achieve the sales objectives you desire. Assists in Business Growth and Expansion Establish long-term goals for your company and utilize them as the basis for all decision-making before deciding on a price plan. You may scale your firm and boost revenue in the future by adhering to those goals. Helps Businesses Adapt to Various Circumstances Even if you have the ideal price strategy for your online store, be prepared to change it occasionally. In a world that is constantly evolving, you should never limit yourself as a business owner to a single plan. Factors to Consider When Creating an eCommerce Pricing Strategy Some people believe that the most crucial factor to consider when determining prices for a product is how much the competition is charging. This is not completely accurate. There are additional aspects to take into account, even though competitors' prices can be instructive. Some of them are listed below: Define Your Objectives As was previously said, a key component of a pricing strategy is researching prices from rival businesses. You may be guided by this so you can set objectives and boundaries for your own business. It is important to understand how much you want to sell, which products are more profitable than others, and how you can maintain profit margins while also ensuring customer satisfaction. Know Your Customers Customers are the most important consideration when setting a product's price. A research-based buyer persona, which is a profile of your ideal consumer and the price range they will accept, is what you should aim to create. Speaking with your current customers is one technique to create a buyer persona. For instance, if you have a call center or team that interacts with customers, encourage them to bring up pricing in conversation. You can also utilize the Van Westendorp price sensitivity meter, a quick questionnaire that can assist you in determining the eCommerce pricing model for a product in order to optimize potential sales. Consider Hiring a Pricing Analyst Identifying the appropriate eCommerce pricing strategy for your company is very important and if you can’t get the results you want, consider consulting with a pricing analyst. The amount spent can be offset by the increased profits involved in getting your pricing model right. For instance, you shouldn't settle for becoming merely another company that sells goods that are commonly sold in the market.  Identify the Unique Selling Point of Your Brand Find out what you have to offer that no one else does and consider it as a further element that affects your pricing. Contrary to popular belief, having a distinctive value proposition is beneficial for more than just branding and can justify you charging more than your competitors for similar products if the customers are able to perceive the additional benefits. 10 Best eCommerce Pricing Models and Examples to Increase Profits for Your Online Store in 2024 Depending on your objectives, an eCommerce pricing strategy can assist you in determining what pricing would yield the maximum rates of client acquisition, customer retention, sales, profits, or conversions. There are many different pricing methods, but these 10 are the ones that rising eCommerce businesses employ the most: Competitive Pricing 74% of consumers, according to Forrester data from 2016, use search engines to look up products and compare offerings from other retailers and businesses. Consumers viewed many websites before entering their credit card information as early as 2012 when internet shopping was still a tiny portion of what it is today. Even though these numbers are ten years old, they are still relevant. Consumers today have access to even more resources for comparison shopping, such as applications and comparison websites. The tactic of competitive pricing involves establishing a price depending on what your rivals charge in order to account for this pattern in consumer behaviour. Although it's straightforward and low-risk, it doesn't consider how much your buyers think your products are worth. Put simply, by setting your prices for your goods too low in a "race to the bottom," you can be losing out on sales and lowering your profit margins. Examples of Competitive Pricing One factor in Fashion Nova's rapid ascent within the eCommerce fashion sector was its use of influencer marketing. The additional cause was its aggressive pricing policy. With an estimated 95% of its products retailing for less than $50, customers are encouraged to purchase items at full price. Even the more expensive goods are affordable; a formal outfit costs only $75. In fact, the similarity to rival stores like Forever 21 is the whole objective. Because affordability is a built-in feature, more buyers are able to buy the products. Value-Based Pricing Value-based pricing, the favoured eCommerce pricing strategy employed by many pricing analysts, enables you to determine a price based on how much consumers think your products are worth. It often yields bigger mark-ups and is more profitable than competitive pricing and cost-plus pricing, making it the best choice for scaling organizations that are considering long-term growth. Value-based pricing is effective for businesses that have a differentiating trait, like sustainability, ingrained in their very being. According to the 2021 Global Sustainability Study, more than one-third of people (34%) are willing to pay more for sustainable goods or services and would tolerate an average price increase of 25%. Additionally, firms that enjoy a devoted following, such as those who sell art, collectables, luxury items, or status symbols, benefit greatly from this pricing strategy. However, because it necessitates thorough market research and analysis, it is more challenging to determine a price using this approach. Additionally, even if your brand is well-known, you cannot rely solely on your success when it comes to value-based pricing. You May Like: Sell Through Rate in eCommerce Examples of Value-Based Pricing Chanel's 2021 Advent Calendar serves as an illustration. After it was discovered that the US$825 “holiday swag” hamper was actually filled with cheap stickers and gifts with purchase products, the luxury fashion firm was attacked on social media. All of the products' combined estimated regular retail value came to roughly US$350. Value-based pricing enabled Chanel to have a high-profit margin, but the company was obliged to issue an apology, which hurt its brand. Price Skimming Price skimming might be the best eCommerce pricing strategy if you're marketing a truly unique or revolutionary product. It entails setting a high price and decreasing it as more rivals appear and start selling comparable products. This enables businesses to generate revenue while there is little competition and then decrease prices to stay competitive later. Tech giants most typically utilize price skimming when they launch a new product and assume that early users will be loyal. This is key, as price skimming isn’t successful unless you’re confident your customers will see the forthcoming product as high-quality, exclusive, and worth shelling out for. Examples of Price Skimming  Apple is likely the most well-known user of the price skimming tactic, which is frequently adopted by tech businesses. It focuses on providing a select few high-end products while producing a halo effect that makes clients hanker after other goods. Then, once the early adopters have the products and rivals start to appear, prices start to decline. For instance, a 64GB edition of the original iPad, which was a unique device at the time, cost $699 when it debuted in 2010. That amounts to around $850 after inflation. But ten years later, a wide variety of manufacturers are flooding the market with tablets. And now, you can get a brand new 64GB iPad for just $329. Penetration Pricing Penetration pricing, which is essentially the opposite of price skimming, performs best when a brand enters a market that is already highly competitive which involves initially setting its prices modestly and increasing them from there. In order to attract new clients and raise brand awareness, this is another situation where discount codes and marketing techniques can be really useful. The risk of penetration pricing is that it might harm your brand's reputation or make customers think less highly of your goods or that they are of inferior quality. Suggested Read: How to Re-Engage Online Customers Through a Branded Tracking Page in 10 Ways? Examples of Penetration Pricing Blockbuster still had a monopoly on the market when Netflix first came out in the late 1990s. Although it was the go-to location for Friday date-night movie selection, it had significant downsides, including expensive rental costs. A three-day rental costs $4.99 and the price increases if it is returned after its due date. Enter Netflix. They did away with late penalties and provided affordable prices, such as four movies for less than $16 per month, to gain market share. The company was able to boost its prices to increase profit margins once consumers were comfortable with the Netflix brand and the competition had been completely eliminated. Bundle Pricing Product bundle pricing refers to the practice of retailers selling many products at a single price. This typically occurs in a variety of ways with upsells, cross-sells and BOGO deals being some of the more prevalent forms of bundling. Bundle pricing can boost sales volumes but if done incorrectly, it also runs the danger of hurting profitability. Examples of Bundle Pricing 2019 saw the implementation of bundle pricing by Roma Designer Jewelry with the intention of raising its AOV. A pop-up window offered customers the option to "Bundle and Save" when they placed an item in their shopping basket, along with a suggested item to pair it with. With the help of cross-selling widgets, the business observed a boost in AOV of over 21%, with one out of every five customers purchasing a recommended item. Psychological Pricing  Psychological pricing techniques, also known as charm pricing, are the reason why retailers are more inclined to sell an item at $19.99 than $20. Numerous studies have demonstrated that pricing ending with odd numbers - and particularly those that end with the number "9" - tend to have noticeably greater conversion rates. This strategy dates back to the 1880s. William Poundstone, the author of Priceless: The Myth of Fair Value (and How to Take Advantage of It), claims that charm prices, when contrasted to rounded values, increase sales on average by 24%. The most common psychological pricing tactic is to lower prices by one cent, although other strategies are also included in this category, such as providing installment payments or employing anchor pricing (where the old price is removed and posted next to the new price) to boost sales. There are some tried-and-true psychological pricing techniques in use, but most retailers use A/B testing to identify which are the most successful. Examples of Psychological Pricing Charm pricing is prevalent on almost all eCommerce websites, so you won't have to look very far to find examples of it. Death Wish Coffee uses the number nine to describe the price of its bean bags: $19.99 for one pound. They also use anchor pricing, which places the price for one pound ($19.99) next to the prices for two pounds ($37.99) and five pounds ($79.99), as another psychological pricing strategy. It doesn't take a math genius to understand that purchasing in bulk results in significant savings, raising AOV. Cost-Plus Pricing Cost-plus pricing also referred to as markup pricing, generates income by adding a fixed margin of percentage to the product cost. You just need to gather the overhead costs such as labour, supplies, and infrastructure and add a profit margin anywhere between 50% to 100%. It is one of the most-used eCommerce pricing models, especially among startups and smaller companies as it is easy to calculate and transparent. However, some companies consider this strategy to be so simple that they don’t require an accountant which is a wrong assumption that leaves room for errors and can lead to huge economic losses for the company. Examples of Cost-Plus Pricing Retail-oriented companies such as supermarkets, clothing, and departmental stores generally use cost-plus pricing due to the fact that there is variation in the items being sold and different markup percentages can be applied to each product. Suggested Read: What is Retail Distribution Anchor Pricing Anchor pricing enables customers to check how much money they would save if they bought a discounted product. The original price is showcased along with the discounted one. You can also keep your products with a similar one that has a higher asking price to show customers that they are able to save money and get a good deal by choosing the less-expensive option. You need to establish a balance between offering a good deal and preventing customers from being skeptical about being offered a lower-quality product. Examples of Anchor Pricing If you are browsing Target and want to buy laundry detergent, you can observe that Target’s own making is around 30% cheaper than other major companies such as Tide. Because they are stored next to each other and customers can see how much they save if they opt for the Target option, they end up purchasing it. Premium Pricing This eCommerce pricing strategy is primarily utilized for high-end luxury and expensive goods. Its objective is to reflect the quality and image that is attached to the brand so that customers will instantly recognize that they cannot expect a discount or to find a better-value alternative elsewhere. If your commodities are in the range of extravagance, premium pricing can be very favourable because it tends to provide higher profit margins. It also sets your brand apart from potential customers. The largest drawback of premium pricing is that both your target customer base and your product options are quite limited. According to Statista, most people are only willing to pay high-end prices for clothing, technology, and accessories. Examples of Premium Pricing A well-known example of premium pricing is Apple, which often prices its products well above its competitors but is aware that customers will still buy them because they want to be associated with the brand name that isn’t found elsewhere. Loss-Leader Pricing This eCommerce pricing model comprises bundling or promoting a discounted item with additional commodities. This advances the average order value which makes it a very profitable eCommerce pricing strategy. Loss-leader pricing is a good way of encouraging customers to buy more products. Providing bundles or offering accessories can also help you recapture profits from a period of earlier loss or sell inventory that has been in storage for long periods of time. However, it will only work in the long term if you are able to grab your customers’ attention with other items that are not part of any bundle. Examples of Loss-Leader Pricing Large companies like Amazon and Walmart have used loss-leader pricing to expand their operations. Amazon is the most dominant eCommerce company in the world and they also happen to use loss-leader pricing to sell additional products.  Suggested Read: How to Choose the Best Amazon Pricing Strategy to Get Ahead of the Competition in 2024 Conclusion The nature of your business and your objectives will always play a significant role in determining the ideal eCommerce pricing strategy for your business. You must keep in mind that prices might change at any time so therefore, you must regularly review your eCommerce pricing model. It's fairly uncommon for you to be required to use many pricing methods at once. Analyze the market and make sure your customers are getting value from you. Since they are intelligent, your pricing plan must match their requirements. If you need assistance with fulfilling eCommerce orders once you have chosen a pricing strategy, WareIQ can help. WareIQ is one of India’s fastest-growing eCommerce fulfillment companies. We have facilities such as a nationwide network of fulfillment centers, a custom WMS that can track and update inventory in real-time, integration with more than 12 eCommerce selling platforms to consolidate all your order data in one place, ultra-fast shipping through a choice of more than 20 shipping aggregators and much more. eCommerce Pricing Strategy: FAQS How do you price an eCommerce product?To set your first price, add up all of the costs involved in bringing your product to market, set your profit margin on top of those expenses, and there you have it. If it seems too simple to be effective, you're half right—but here's how it works. Pricing isn't a decision you only get to make once. Which pricing method is most advantageous and successful?Perhaps the most significant pricing tactic of all is value pricing. This considers how valuable, important and beneficial your customers consider your goods or services to be. What makes eCommerce pricing crucial?If you price your goods too expensive, you run the danger of losing sales and cart abandonment. However, if you underprice your goods, you risk lowering your profit margin. Finding the right balance will help you generate more sales and keep your customers happy. What are some popular ecommerce pricing strategies?Dynamic pricing, value-based pricing, penetration pricing, psychological pricing, bundle pricing. How does an eCommerce business determine its pricing strategy?eCommerce Businesses determine their pricing strategy by considering their target market, competition, cost structure, and profit margins. How can an ecommerce business ensure its pricing strategy is successful?Regularly monitoring and adjusting prices based on market trends and customer feedback, regularly conducting market research, and testing different pricing strategies. How can a pricing strategy influence a company's success?Your pricing strategy has an impact on your profit margin per unit sold; if you don't lose sales, higher prices will result in a bigger profit per item. On the other hand, higher pricing that results in lower sales volumes might reduce or even eliminate your profits because your overhead costs per unit rise as you sell fewer units.

August 25, 2022
12 Most Common eCommerce Customer Pain Points and How to Solve Them in 2024

12 Most Common eCommerce Customer Pain Points and How to Solve Them in 2024

Online sales are soaring to unprecedented heights. It will be challenging for offline stores to compete as sales are predicted to only rise over the next five years. The numbers are encouraging, but many questions still need to be answered. Although most consumers are still apprehensive about online purchasing since their problems aren't addressed, customers have overwhelmingly welcomed it with open arms. There can be nine good reasons to place an order on your eCommerce platform, but a single bad reason is enough to drive the customer away. Even something that might seem trivial can greatly impact deciding if the customer wants to place orders on your platform. Only about 30% of the potential customers complete the same. Why is it so? Here we will talk about ecommerce customer pain points.The answer is simple- you fail to deliver what you promise, or your competitor offers a better service and don’t meet the customer's expectations. There are two broad ways to tackle this- Enhance the user experience on your website. Ideally, it should be as seamless and optimized as possible.Enhance the overall customer service delivered beyond your website. With changing consumer trends, fast-tracked digital adoption, and eCommerce growth due to the COVID-19 pandemic, customer expectations have rapidly increased. It becomes quintessential to improvise subtle aspects of your website and service to beat the competition. We have identified several frequent eCommerce pain points that easily slide through the cracks and become red flags for organizations worldwide. Read further as we discuss customer pain points in eCommerce in more detail. What are Customer Pain Points in eCommerce? Any difficulty a potential customer has that prevents them from making a purchase is referred to as customer pain points in eCommerce. For instance, if a client wants to make a purchase but their experience has not lived up to expectations of what their shopping trip should look like, they may have a negative impression of the company from which they purchased their order form. Pain points are various but they all come down to the same idea. In essence, the friction created by the user experience outweighs the benefits of making the transaction. It could be a payment pain point, a support pain point, or a design pain point. Since the underlying causes of this suffering might vary greatly depending on the individual client, you must try your best to address potential eCommerce pain points. Most Silicon Valley entrepreneurs and eCommerce experts prioritize product pricing and innovation above everything else. The CEO of Alibaba.com, Jack Ma, has a very different viewpoint. I'm not a tech guy, he says. I view technology through the eyes of my clients, regular people. Businesses like Alibaba, which have sought to address eCommerce customer pain points, have prospered, while the others continue to rely solely on luck. [contactus_gynoveda] How can eCommerce Pain Points be Identified? Simply putting oneself in the customer's shoes is the best method to identify potential eCommerce pain points. As a starting point, consider whether your online business offers enough information, whether the purchase procedure is simple and quick, and how accessible your customer care is. The points you have encountered can then be compared to your clients' priorities via polls and surveys. 12 Frequent and Most Common Customer Pain Points in eCommerce and How to Solve Them in 2024 Although there are undoubtedly a vast number of eCommerce customer pain points that your consumers may be experiencing, these typical problems mentioned below do have a tendency to recur frequently. Resolving these issues can help you distinguish yourself as a dependable, trustworthy brand that goes above and beyond the competition and ensures that your clients have a positive image of your company. Let us take a look: User Interface of an Online Store One of the most significant eCommerce pain points is choosing the correct online store design. Every prospective customer continually evaluates your website's overall aesthetic and usability, and there is very little room for error. Online customers form an initial assessment of your website in roughly 0.05 seconds. They decide in these few milliseconds whether they wish to stay or go. By ensuring that your online store is presentable, matches your company’s image, and is fully featured, you can provide your clients with the most incredible level of convenience. Online consumers can navigate your website easily and without confusion if your online store's user interface is designed properly. The Solution Make sure your online store has all the features you need for easy navigation and a seamless buying experienceProvide clients with sensible search criteria to assist them in locating what they're looking forAs forcing customers to register before making a purchase on your online store can be discouraging, offer a guest login option for checkoutCreate a seamless, speedy, and secure checkout procedure without any obstacles or diversionsGive your consumers a variety of payment options, such as debit cards, credit cards, UPI, digital wallets, and others, to make it convenient for them to use their preferred payment method. Hidden Shipping Costs & Delivery Charges Online shoppers dislike hidden or costly delivery rates because they are unpleasant surprises. The customer's buying experience may be ruined and their cart may be abandoned if they discover there is a delivery fee or a large shipping fee on the checkout page. You must make sure that your shipping charges are visible to customers before they reach the checkout page so that they know the costs associated with their order at this early stage of the buying process. Customers prefer to know the total cost of the product right away. Any additional costs popping up during checkout can be an unpleasant experience. It can suddenly feel like too much or out of their budget. Conversion becomes difficult and the customer would be prompted to explore other options to try to get a cheaper deal. Additionally, you must provide all forms of free shipping to your clients. Customers typically anticipate free shipping or free shipping with a minimum purchase value. In order to do that, you must come up with a plan to both pay for and lower shipping costs The Solution To give the impression of free shipment, including the cost of shipping in the product priceIncrease the average order value (AOV) by providing product bundles or setting minimum spend criteriaImplement loyalty programs and subscriptions, increase customer lifetime value (CLTV) and encourage more purchasesDivide your inventory among various fulfillment centers across the nation so that you can lower fulfillment expenses by keeping your products nearer to your clients Insufficient Product Information Customers find it annoying when product information is of poor quality or inadequate, it should be noted among the most common eCommerce customer pain points. Customers may leave your product page due to being confused or not knowing what they will buy. Make sure your product page has everything you need to draw in online shoppers and encourage purchases. Additionally, knowledge about your goods can foster credibility and develop trust. The Solution You must include information on why and how your product will benefit your clients if they are on your product pageIn order for your customers to understand exactly what they are purchasing, you must first give them access to high-resolution photos of all of your product profilesYou should write detailed descriptions of your items to explain them to customers so they are aware of their main characteristics and advantagesYou cannot let your customers be uncertain about whether your products would fit them if you sell clothing or shoes. To avoid any confusion throughout their buying experience, you must include a size chartThe most significant part is that you should add a section for customer reviews to the product listing so that your clients can read the endorsements as social proof Frequent Stockouts of Major Items Both online retailers and potential customers are quite concerned about product stockouts. Going out of stock frequently for high-demand products is a huge red flag for the business and is among the common ecommerce customer pain point. If customers don’t get the products they want and when they want them, they will simply lose their trust and loyalty in your services. Poor inventory management can also lead to misplaced orders, delayed deliveries, and poor tracking- all of which can directly affect your sales and have a long-term impact on your business. By maintaining regular inventory replenishment, you can ensure you never run out of supplies. Common out-of-stock occurrences might damage your brand's reputation and cause clients to turn to your rivals. With effective inventory management, you can ensure that you never run out of goods and always have a minimum amount of stock available for shipping, preventing you from missing out on possible sales. For that, you must keep your inventory levels at their ideal levels and replenish them when needed. Additionally, it is crucial to anticipate order volume or surges ahead of time and maintain the necessary inventory levels throughout holiday seasons or flash sales. The Solution Keep a minimal amount of inventory on hand at all times using the reorder point method and replenish it when it runs lowYou can replenish your stock at predetermined intervals using the periodic approach You can regularly replenish your stock in more diminutive amounts using the top-off methodForecast demand based on a study of your sales dataAll these issues can be tackled with the smart inventory management that WareIQ provides, called InventoryLogIQ. Once you plug in WareIQ into your supply chain, you can generate insight on inventory placements by locations to offer fast shipping. WareIQ will then take care of optimally shipping the inventory to the customers. It can also recommend inventory placement across its decentralised network based on supply and demand trends ensuring that the stock is available where it should be. Delivery of Damaged Products Due to Untrained On-Ground Personnel Handling Product Shipping Your customer has placed the order, and you have taken care of all the logistics required smoothly and shipped it successfully. What can go wrong now? A lot of things in the last-mile delivery puts the product in your customer’s hands- the ultimate end goal.We have seen in a previous article how WareIQ can help you deal with these challenges. One of the significant issues you can face is the on-ground personnel who don’t handle the packages well and make mistakes with the delivery. A lot of the last-mile challenges due to poor handling can be overcome with intelligent, customized solutions that WareIQ provides. The Solution Customers expect to get their package delivered without hitches and experience smooth unboxing. Branded packaging helps. It also makes it easy for delivery personnel to handle it. Amazon is an excellent example in this context, and WareIQ can provide the same level of experience with its predefined packing guidelines. Sellers can also avail of discounted rates from the supplier network with branded packaging options. With a robust tracking system in place, things get easy to monitor. Unprofessional Customer Support The level of customer service provided is directly reflected in the online reviews and word-of-mouth recommendations. In many cases, mistakes by a 3PL provider or some external agent in the supply chain can affect the consumer-facing brand value. For example, a delayed delivery by your logistics provider brings a negative review to your brand. The reputation you hold among your customers is influenced by how you deal with customer complaints or assist them online and the offline ecosystem you work with. What’s worse than a delayed delivery is not addressing it on time and being accountable by giving personalized feedback to the customer. This is amongst the important customer pain points. It is unacceptable to lose a consumer if they have a problem with your brand, customer feedback is essential. Such circumstances might be used to demonstrate that you are willing to help your clients in their time of need. Customers are thrilled when a firm makes sure things are fixed when there are problems with their product or service. To avoid confusion, you can offer your customers real-time assistance and ensure they are well-informed about every step of the purchasing process. The Solution Offer devoted client supportUtilize chatbots for live customer service. Possibly the most successful customer service option is live chat assistance. Customers can obtain the same one-on-one assistance through live chat that they do through phone conversations.By providing an expected order delivery date, you can manage customer expectations accordinglyKeep clients informed by sending them messages and emails with order updatesIf you outsource eCommerce fulfillment to WareIQ, many things become easy to manage. Firstly, you need not worry about the delivery and how the offline staff handles shipments. You will also receive a branded tracking page to take timely action. RTOs/NDRs report are also efficiently handled by WareIQ without any delays. It enables faster returns processing with quicker and more efficient returns approval, pickup and cash recovery cycle. Low Order Accuracy Rates Customers have little to no tolerance for faults while placing online orders. For instance, if a customer who ordered a white t-shirt received a red one in place of it, it disrupts the entire purchasing experience, damages the reputation of your business, prompts returns, and you run the risk of losing the consumer. Orders must be fulfilled accurately and within the mentioned time frame to create customer satisfaction. The Solution You can increase client retention and create consumer trust by ensuring orders are accurate.Because human beings are more prone to mistakes, typical warehouse processes can be automated using barcode scanners, conveyor belts, intelligent robots, and other devices. This can aid in improving the effectiveness of order processingBy using barcode readers, creating detailed picking lists, and utilizing warehouse slotting, you can decrease picking errors by storing inventory by type, size, weight, location, etc.You can carry out quality checks while processing orders and apply the appropriate shipping labels to products to prevent the shipment of incorrect items or damaged goods to consumersYou can provide rewards for accuracy to your workers in order to increase motivation and decrease errors Expensive Return Policies Customers want both a free return policy and a simple return process; otherwise, you risk losing them. In order to give your consumers a hassle-free experience, you should optimize the entire returns procedure so that all of your customers' concerns are addressed. To do that, you must draft a perfect returns policy that includes all the provisions that make your and the customer’s life easier. The Solution Pre-determine the return period, such as 30 daysOutline the intended state of returned goods, including product tagsMention the documentation needed for refunds, such as an invoiceOffer specific payment methods, such as UPI and debit cardsSpecify extra costs, if any Lack of Personalization 36% of customers feel that eCommerce brands should provide a more personalized shopping experience. A personalized shopping experience entails a store tailoring its products and services to each customer. This shows consumers that the brand cares about them and their opinions. It also enables a speedy, smooth, and hassle-free experience. Because of this, it can also increase sales. The Solution Create dynamic and visually appealing content Run promotional campaigns targeting specific customer audiencesPersonalize product recommendations based on past customer behavior and user preferences Absence of Product Filtering One of eCommerce's most prominent customer pain points is the absence of product filtering and sorting. It refers to when your customers are able to browse through your listings and find the items they’re looking for without any difficulty. They can use dropdown menus that allow them to filter basic fields such as style, size, and price.  The Solution Consider giving customers multiple viewing and sorting optionsMake sure to add category-specific optionsIf you don’t yet have a search bar, it’s time to add one that lets customers enter product numbers, keywords, and brand names. Poor Checkout Process Checkout is usually the last step during eCommerce's customer conversion journey. It is the page where customers have added products to the cart and are only required to click the button to make the payment. However, a slow-moving and a bad checkout experience on your website can drive customers away from making that final payment to purchase the product. This can be due to the availability of lesser payment options, the slow loading speed of the page, no visibility of delivery timelines or insecure or untrustworthy payment gateway. The Solution Create a checkout page that's user-friendly, secure, and has all the relevant information that a customer might seek while making the final paymentEnsure that you have multiple modes of payment options listed on your checkout pageDisplay delivery timelines that can influence customer decisions. WareIQ provides prime-like shipping badges to display transparent delivery timelines on the product and the checkout page per pin codes entered by customers.Don't ask for too many details on the checkout page Security and Privacy Cybersecurity threats aren’t going away in a hurry, and customers are constantly aware that privacy breaches constantly happen. If you can prove to prospective customers that your website is secure to use and that their data and privacy is safe, their trust in your company will grow. Because eCommerce requires so much sensitive and essential information to be disclosed between companies and their customers, extra care needs to be taken to protect this sensitive data. The Solution Use trust seals and security certificates to increase the security of your website. A trust seal shows customers that your store is legitimate, while security certificates highlight that you’re using a secure connectionUse encryption for messaging apps and emails Draft up a privacy policy and display it on your website.  Conclusion: How Can WareIQ Help Tackle eCommerce Customer Pain Points in 2024? Establishing what customer pain points exist for your online store and how to remedy them should be the first step if you're willing to scale up your online business venture. Having said that, it is critical to remember that eCommerce customer pain points require ongoing attention. To make sure every component of the client experience is as simple and user-friendly as possible, you should routinely monitor your website and brand. You'll have more content customers and fewer cart abandonments in this manner. Addressing the eCommerce pain points where a third party is the cause of them can be difficult. If there is some issue with your online website, you can probably seek some optimization with your in house developer team or your software vendor. In case of offline issues in the supply chain like we have seen, things get tricky with many variables involved. Partnering with someone trusted and efficient like WareIQ, which has the technology and infrastructure to deal with such issues at scale can immensely help mitigate the same. WareIQ is an eCommerce fulfillment company that provides a wide range of services that will enable you to remove almost all customer pain points in eCommerce by giving you access to a vast amount of resources and technology. Some ways that we can do this are by: Providing ultra-fast delivery through a choice of more than 20 shipping aggregators that always assigns the quickest and cheapest option for every order. Sellers can go by default “Intelligent Mode” or easily configure their preferences.Offering a custom WMS that can integrate with multiple eCommerce selling platforms and update inventory across multiple fulfillment centers in real-timeGiving you access to a nationwide network of fulfillment centers and dark stores to enable you to store inventory closer to your customersOffering branded tracking pages that give your customers all the information they need in a highly customizable way eCommerce Customer Pain Points: FAQS What is a method that can help consumers feel more satisfied?Eliminate the number of stages in the checkout process and use intelligent agent routing for customer care to reduce redundancy and friction in your purchasing process. Why is it important to take care of eCommerce pain points?Pain points are areas that can impact a customer’s perception of your business so it is best to tackle them to prevent any negative impacts from occurring. What are some prominent eCommerce pain points?A few eCommerce pain points are:- Basic UI/UX of online store- Hidden and expensive shipping costs- Insufficient product information- Frequent 'out of stock- Poor customer support How can these pain points impact customer experience?These pain points can negatively impact the customer experience by causing frustration, confusion, and dissatisfaction, leading to a higher likelihood of cart abandonment and decreased customer loyalty. How can ecommerce businesses address customer pain points?Ecommerce businesses can address customer pain points by improving website speed, simplifying checkout processes, providing detailed product information, improving site navigation, offering multiple payment options, reducing shipping costs, increasing product availability, and streamlining product return policies. Why is it important for businesses to address customer pain points?Addressing customer pain points is important because it can improve customer experience, increase customer satisfaction and loyalty, reduce cart abandonment rates, and ultimately drive more sales and revenue for the business.

August 24, 2022