25 Warehouse Management KPIs and Metrics to Monitor for Assessing and Enhancing Warehouse Performance in 2024 and Various Ways to Track Warehouse KPIs

Proper warehouse management is the first step in quick fulfillment since it affects how quickly you can acquire, track, and store goods to fulfill client orders. However, how can you tell if a warehouse is operating efficiently? Warehouse management KPIs and metrics should be closely monitored by tracking warehouse and supply chain KPIs for receipt, inventory control, and fulfillment. Optimizing your warehouse and making changes will be challenging due to failing to monitor critical KPIs. This post will let you learn what and how to monitor warehouse KPIs. What Exactly do Warehouse Key Performance Indicators (KPIs) Signify? Warehouse KPIs are performance metrics that aid managers and executives in determining how well a team, project, or even an entire business performs. It is not the aim; instead, it is a means of measuring objectives as part of a larger plan or as a tool to bring everyone together behind an exact target. KPIs may concentrate on more general operations or be more targeted at specific measures or procedures. By analyzing the effectiveness of an eCommerce warehouse, warehouse KPIs simplify monitoring. They also help to identify possible issues, manage risks, and find ways to improve operations. Since many factors are involved in warehouse management, including inventory management and fulfillment, warehouse KPIs are frequently divided into many categories. Examples of Warehouse KPIs include- Inventory KPIs - Inventory needs to be maintained in a delicate balance; too much or too little might result in too much money being linked to unsold inventory or a stockout risk. KPIs for inventory tracking might aid in maintaining the balance. Receiving KPIs is the first stage in the warehousing process since it ensures that companies get what they paid for and that it comes when required. However, if precautions are not taken, a lot can go wrong. Put-Away KPIs- These metrics measure how quickly and where items can be stored in a warehouse capacity when they are received. This is crucial for perishable goods with shorter shelf life in particular. Order Management & Processing KPIs- When an order is placed, it is up to the picking and processing teams to choose the appropriate product quickly. Picking and processing KPIs may be monitored to identify possible obstacles in this process. Workforce and Safety KPIs- Measuring employee satisfaction, injury rates, types, overtime hours, the proportion of part-time workers in the workforce, yearly turnover rates, or labour expenses. Also, by keeping an eye on safety, firms may lessen the number of workplace accidents before they occur. [contactus_gynoveda] What Makes Monitoring Warehouse KPIs Important? Managing an effective supply chain requires careful attention to measuring warehouse KPIs. Additionally, it offers tips on what to look for while performing a warehouse audit. The significance of tracking warehouse KPIs are discussed down below- Warehouse KPIs Increase Its Productivity Monitoring warehouse KPIs enhances warehouse productivity. You can pinpoint areas to concentrate on, improve, and invest in by monitoring performance. Various elements influence a warehouse's efficiency; therefore, it's crucial to identify any weak points so you can enhance and optimize them. For instance, several developments in digital warehousing have made it possible to automate repetitive processes, which removes the need for time-consuming manual labour and saves thousands of man-hours. However, it's possible that your existing warehouse arrangement, rather than inefficiencies in how your team works, is the real culprit. The technology could assist you in improving your storage and simplifying orders if you're monitoring the correct warehouse KPIs. Overall, monitoring warehouse KPIs may help you figure out how to become more efficient by using technology or improving internal procedures. Retailers May Save Money by Monitoring Warehouse KPIs Along with increasing efficiency, addressing the parts of your warehouse operations that require improvement can reduce logistics expenses. Most e-commerce enterprises prioritize cost-cutting, but it's never been more crucial. Due to the increased demand for warehouse development and construction, logistics warehouse tenants have already seen a 10% rate increase in 2021 alone. As a result, the price of renting a warehouse alone might significantly reduce business margins. You can benefit from taking the time to figure out how to improve processes and efficiency; even better, determine how much warehouse space you require. This can also entail investigating ways to optimize inventory levels to satisfy demand while reducing holding expenses. Increases Client Satisfaction How your e-commerce warehouse runs influences customer happiness, enhancing workflows for accurate delivery or identifying methods to speed up the returns management process. Because of this, it's crucial to monitor specific e-commerce KPIs, including order accuracy and shipment timeframes, that show how your warehouse operation affects the consumer experience. To set up your warehouse or warehouses to satisfy client expectations, warehouse location is crucial. You could discover, for instance, that shifting your warehouse to a more central and accessible place to a more significant number of your clients will permit quicker and cheaper shipment. Improve Workplace Safety and Happiness. Your warehouse will run more efficiently if your crew feels engaged and protected. The US Bureau of Labor Statistics reports that in 2019, there were 4.4 injuries for every 100 full-time employees working in transportation and warehousing. Unfortunately, the incidence of fatalities and injuries in warehouses is going up. While efficiency is crucial, a dangerous workplace will make your team move more slowly. By looking at the safety KPIs, you can tell whether your internal procedures provide a safe atmosphere for your employees, increasing productivity. For instance, it's safe and simpler to manoeuvre a forklift if garbage or other items aren't left in the middle of the floor. Additionally, setting up warehouse workstations with a one-way workflow can be effective since it promotes safety and reduces congestion. 25 Warehouse KPIs and Management Metrics To Monitor For Assessing and Enhancing Performance You must understand how important it is to gauge your warehouse's success as a manager. Measurement is the step that connects all of your other processes and enables you to monitor performance trends, assess how effectively you are working, identify possible issues, control risks, and do a lot more. You may assess your company's financial accounts, conduct performance evaluations, and utilize business metrics to analyze warehouse KPIs, among other methods. Nevertheless, one of the most often used approaches is to create warehouse KPIs (Key Performance Indicators), which assess how successfully your procedures are achieving their aims and objectives—sort of like a report card for your warehouse. Warehouse KPIs examine a particular operation or process and provide a result that illustrates how well that process performs by contrasting it with previous figures and standards. Even though every warehouse operates differently, most warehouse management KPIs may be used in most warehouses to achieve your company objectives. However, you might not need to employ every KPI. Instead, you might narrow your selection to those that you believe are most pertinent to your present objectives. How then can you locate the warehouse KPIs that you genuinely require? The following frequently used warehouse KPIs will be covered in this post, along with their benefits to you- INVENTORY KPIs The stock of goods you have on hand and kept in your warehouse is the focus of inventory KPIs. They are ideal if you want to track how your inventory is moving. Inventory accuracy, shrinkage, carrying cost of inventory, inventory turnover, and inventory to sales ratio are standard inventory KPIs. 1. Inventory Precision Goods accuracy is the agreement between the monitored quantity of inventory and the quantity present in a warehouse. The warehouse stock amount may not always match the amount usually tracked automatically by a warehouse or inventory management system. This may result from theft, damage, errors in judgement, shortages on the provider's part, etc. By dividing the stock monitored by the system by the stock present in the warehouse, the inventory accuracy KPI will demonstrate whether there is a discrepancy between the two figures. Formula For Inventory Accuracy- Physically present inventory / System-tracked inventory Related Article: Stock Discrepancy 2. Shrinkage One type of inaccuracy in your inventory is shrinkage. This KPI will show you the value of inventory missing from your warehouse due to those circumstances. It is defined as excess inventory documented in accounting but no longer physically available owing to variables like theft, damage, or errors in computation. Use the formula for calculating shrinkage value- (Cost of recorded inventory - Cost of physically present inventory) / Cost of recorded inventory. 3. Inventory Carrying Cost The overall cost incurred by a company to own, store, and maintain inventory is known as the carrying cost of the stock. It shows the time your company can keep its goods in storage before it starts to lose money, and you have to find another way to deal with slow-moving inventory and dead stock. You may compute your carrying costs by dividing your overall expenses by the typical cost of your merchandise. Formula- Overall inventory expenses / total carrying costs 4. Inventory Turnover Inventory turnover measures how frequently your stock is sold. More robust sales are indicated by higher values, whereas lower values characterize poorer sales. Two methods may be used to determine inventory turnover: dividing the sales volume by the average inventory or dividing the cost of products sold by the average inventory. To determine your inventory turnover ratio, use the formula- The number of sales / the typical inventory or Product cost / Average Inventory 5. Ratio of Inventory to Sales The inventory to sales KPI provides you with the proportion of sales to the remaining list at the end of the month. Anyone in charge of a warehouse will find this value to be very helpful because it: You may anticipate future cash flow problems before they arise by demonstrating when increasing inventory levels and declining sales occur together. This ratio informs you how many things you've sold and how many are still in your warehouse at the end of the month. In addition, this might assist you in figuring out how much stock you need to buy to maintain your sales without experiencing any backorders comfortably. By dividing your leftover inventory at the end of the month by the sales you generated during that same month, you can establish your inventory to sales ratio. Formula- End of Month Inventory Balance / Sales for the month RECEIVING KPIs Receiving is the process through which a warehouse takes delivery of inventory, which it must subsequently process, sort, and ultimately store. The efficiency of the operations at this step is gauged using receiving KPIs such as receiving efficiency, cost of receiving per line and receiving cycle time. 6. Effective Receiving Receiving efficiency measures how productively your staff are working in your warehouse's receiving section. This will assist you in determining whether to introduce new training sessions or improved procedures. Formula- Volume of merchandise received / Hours worked by personnel. 7. Receiving Charges Per Line The overall cost for receiving a line of merchandise your suppliers have sent to your warehouse is the cost of receiving per line. This also covers the operations that occur upon receipts, such as handling and item accounting. With time, this cost should decrease due to more productive work. The total receiving expense is divided by the whole number of items in each receiving line. 8. Time For a Receiving Cycle Receiving cycle time is a measurement of the typical amount of time needed to handle incoming stock, which includes accounting for it, categorizing it, and storing it. Formula- Total amount of time spent sorting received inventory / Total quantity of things received Put-Away KPIs- Putaway is the process of storing a delivery of goods in your warehouse, typically in the most practical and acceptable area. You may gauge how well these procedures are working by using putaway KPIs like accuracy rate, cost per line, and cycle time. 9. Precision Rate Your accuracy rating determines the percentage of things appropriately arranged the first time. A rating of 1 denotes the absence of any faults or blunders. This rate is determined by dividing the amount of inventory that has been properly stored by the entire amount of inventory that has been stored. Formula- Total inventory put away / Correctly put away inventory. 10. Putaway Price For Each Line This KPI relates to the price associated with storing a whole line of goods. This indication can assist you in cutting costs related to your overall putaway procedures. You may figure it out by dividing the total putaway expense by the number of line items. Formula- Total line items / Total putaway costs 11. Putaway Cycle Time The average time needed to store one item from your inventory is the putaway cycle time. Better warehouse efficiency comes from shorter putaway cycle times. Rearranging things in your warehouse and raising worker productivity can reduce this time. Order Management & Processing KPIs- The operations between when your company receives a client order and when your customer receives their order are collectively referred to as order management. These include receiving the order, choosing the right items, selecting the proper packaging, sending the products to the appropriate delivery address, and managing post-sales procedures like returns and reimbursements. As a result, order management KPIs evaluate how well each process performs. 12. Accurate Product Selection To increase the overall warehouse efficiency of your order management procedures, this KPI shows you how correctly things are being chosen from your warehouse for client orders. Your picking accuracy should be as near to 1, which indicates no errors, as feasible. The formula for picking accuracy- (Total Number of orders - returned incorrect items) / Total Number of orders 13. Total Time for The Order Cycle Total order cycle time is the time it typically takes from when a client makes an order until it is dispatched. This comprises all intermediate steps, such as receiving the order, choosing the required products, packaging them, and preparing them for shipping. Therefore, increase your chances of keeping your consumers by shortening this period. 14. Order Lead Time Order lead time is the typical time it takes for a client to receive their order after they have placed it. Your order cycle time plus shipment time is essentially the order lead time. Similar to total order cycle time, shorter order lead times are preferable for your company. 15. Rate of Backorders Backorder rates relate how many backorders you've placed to how many orders you've placed overall. Therefore, if your backorder rate is significant, you should improve your forecasting, planning, and inventory tracking. Formula- Overall backorders / Overall orders 16. Accuracy of the fulfilment Rate Out of the total number of client orders received, this KPI determines the number of orders that have been entirely completed. This includes accurately filled orders, shipped on schedule, and containing the appropriate goods. You should review and update your order management procedure if this rate is low. Formula- Total orders received / Orders fulfilled without problems 17. Rate of Timely Shipping You may use this indicator to determine how effective your shipping procedures are. To keep customers happy, a high on-time shipment rate must be maintained. Formula- Total Number of orders shipped / number of orders dispatched on time or early. 18. Order Cost This KPI reveals the expenses associated with completing a client order from when it is placed until it reaches the consumer. By dividing the amount spent on order fulfilment by the total number of client orders you've received, you may calculate the cost per order. Formula- Total cost of orders filled / Total cost of fulfilment 19. Returns Percentage The rate of returns lets you know what proportion of consumers have returned their purchases due to things you could have prevented (such as broken goods, the wrong item being provided, or late delivery) or things you had no control over (such as fraud or problems with the product after delivery). Divide the number of products returned by the total number of items sold to obtain this rate, which you can then convert to a percentage. Formula- (Items Sold / Items Returned)*100 Workforce and Safety KPIs- Massive equipment is typically utilized in the operations of large warehouses. Even while equipments are helpful, there are hazards involved. To aid in their future prevention, monitoring warehouse KPIs connected to warehouse accidents is essential. 20. Annual Accidents This KPI measures the number of significant mishaps that cost people time and money in a given year. Ideally, the number should be zero, but even if it is not, it can still help determine the scope of the issue. 21. Time Since Last Accident- Despite the desire to avoid accidents, they occasionally occur for no apparent reason. But ideally, accidents happen seldom and after long gaps. 22. Accident Rate Despite the physical demands of warehouse work, skilled management may lower injury rates and improve warehouse safety. Examples of what not to do include Amazon fulfilment centres, notorious for imposing strict quotas and pressuring workers to work harder. It should be no surprise that Amazon has an injury rate 80% higher than the industry standard. 23. Employee Retention One important KPI for warehouses is turnover. Employees with more experience will be better able to handle issues as they develop and offer better fulfilling services. One of the critical reasons for providing such high-quality satisfaction is the knowledgeable team. One of the primary factors in employee retention is making warehouses enjoyable places to work. 24. Time Lost as a Result of Injuries- Time lost due to injuries: A company's first concern should always be employee safety. Even though it's not common knowledge that accidents are quantified in terms of time, keeping track of time missed due to injuries sheds more light on the influence of injuries on workplace productivity, employee happiness, and total expenses. 25. Total Recordable Incident Rate- TRIR is the ratio of work-related accidents per 100 full-time employees over a year. This warehouse management statistic is used to evaluate a company's performance in terms of safety and to keep an eye on high-risk sectors. How Do You Track Warehouse Key Performance Indicators? It might be difficult to handle other aspects of your organization, such as product development, marketing, and customer support while keeping track of all these warehouse KPIs. But, again, automation and technology have a role in this. Due to the reduction in time, effort, and mistakes brought on by manual, variable operations, warehouse automation technology is a crucial component of supply chain optimization. Additionally, data is automatically collected and aggregated using warehouse technology, which makes it simple to monitor performance and make adjustments as necessary. However, automation and technology for warehouses may be expensive expenditures (on top of the high cost of leasing a warehouse or purchasing land). Tech-enabled Without having to manage your warehouse or spend money on expensive fulfilment systems, 3PLs provide the fulfilment infrastructure, technology, knowledge, and customer service required to build a successful online business. Warehouse Management System to Track Warehouse KPIs You need the appropriate technology in place to monitor and enhance warehouse KPIs. Brands with their warehouses who want assistance managing inventory in real-time, lowering picking, packaging, and shipping mistakes, and growing quickly have the finest possible warehouse management system (WMS). While retailers and brands may also use fulfillment services to enhance international shipping, save costs, and expedite delivery. 7 Best Practices While Monitoring Warehouse Management KPIs and Metrics in 2024 1- Concentrate On a Small Number of KPIs Choosing those that are vital to you or your company is more significant than selecting a list that could be useful to someone else. You may base your KPIs, for instance, on a certain section of your production or warehousing. Instead, monitor more high-level KPIs to assist you in identifying any flaws or areas of your operations that might use some improvement. Concentrating on a small number of critical warehouse KPIs in 2024 will give you more value and be better able to take action to increase warehouse efficiency. 2- Set Goals for Each KPI and Be Specific About the Expected Result Find out why you are measuring them and what your goals are. KPIs are tactical. You should concentrate on what is necessary and quantifiable. For instance, are you carrying out this exercise to save costs, make the environment safer, or shorten the lead time for production? Getting in touch with coworkers or employees might assist you in choosing what to focus on. Do you need to confirm that your intuition is correct because you are worried about something? Or perhaps you want to calculate the ROI of new equipment you just bought? Whatever the motivation, keep track of what is pertinent to you. 3. Specify What Success Entails Define success for each KPI by setting your own goals or benchmarking your warehouse against industry best practices. Ask your peers or other attendees at an industry event what they measure in their warehouse the next time you are chatting with them. Be clear when describing your expected results and understand that a warehouse KPIs is an indicator rather than a goal. 4- List Your Warehouse KPIs and Choose Your Measurement Method Prepare your KPI dashboard for your warehouse and decide how you will monitor the intended result. For each, a single, brief statement will do. Due to the range of tools being utilized, the data extraction process may differ from company to firm, and what you have available will always impact how you measure. For instance, if you use a warehouse management system (WMS), specific data can already be available or built into your programme. You will have more control over the precise metrics you want to measure if you employ a manual system, but data entry will take more time on the warehouse floor. Automated technologies ought to make tracking your KPIs and gathering data simpler. For instance, automating inventory management will allow you to have a more accurate supply on hand. 5. Set a Time Limit You'll have a sharper perspective of your business if your objectives and warehouse KPIs are time-bound and have deadlines. Tracking your progress along the way, though, can help you determine how successful you were in creating the KPIs in the first place. So keep a close eye on your warehouse KPIs dashboard data in relation to your goals and make any required adjustments. 6. Choose How You Will Monitor Your KPIs You might require assistance or struggle to get the data you need to create your indicators. For appropriate tracking in a warehouse operation, data acquisition is crucial. Utilizing technology in a warehouse will provide the essential information you require. A warehouse management system (WMS) delivers accurate information. It gives limitless reporting options for data collection and automation, including barcodes and scanning, voice technologies, mobile devices and computers, and radio frequency identification (RFID). An ERP is also regarded as serving as a hub for data. 7. Reporting and Analysis Create stunning visualizations with spreadsheets. Once your measurements are complete, a visualization tool, like the one offered in this racking assets management software, may help you understand and convey the information you've gathered to your team or senior management. Data visualization may alter how we view the data and how quickly and efficiently we draw conclusions. Suggested Article: Distribution Metrics and KPIs for Online Businesses to Monitor in 2024 Conclusion Which of the 25 warehouses KPIs listed above are the most crucial? That relies entirely on where you think your warehouse may perform better and what you must demonstrate to management. Tracking pick accuracy and the number of things picked per hour can be more crucial if you need to support acquiring a new warehouse inventory management system. Get a grip on your rate of return and overall order cycle time if you are just starting. Whatever depends. Which metrics are the simplest to measure also matter? For example, measuring the backorder rate and inventory turnover will be simple if you have warehouse management (WMS) software that keeps track of inventory levels automatically. Likewise, integrating your sales and ordering software and calculating your sales-to-inventory ratio can be as simple. Nevertheless, obtaining these warehouse KPIs will be more difficult if your program doesn't have these measures or if you don't utilize any software. Utilize WareIQ to Outsource Your Warehouse and Fulfillment Operations Online merchants have a lot, from product development to attracting new clients. Fast-growing direct-to-consumer (DTC) brands do this by using WareIQ fulfillment services. You may maintain operational control by outsourcing fulfillment services to WareIQ, so you don't have to run your warehouse. In addition, WareIQ provides complete insight into your logistics operations, from receiving inventory to orders leaving the warehouse. The best-in-class technology is used throughout all of WareIQ's distribution networks and distribution services making it simple to monitor warehouse KPIs, real-time inventory levels, and fulfillment and shipping activities all in one location. Our data and analytics reports provide all the information you want to track warehouse KPIs more effectively and other supply chain analytics. [signup] Warehouse KPIs Frequently Asked Questions (FAQs) What are warehouse KPIs?You may establish a standard for month-over-month improvements using warehouse KPIs. And assist in identifying areas that will directly impact overall business expenses as well as customer satisfaction when used in conjunction with a sound process and warehouse management system. What makes reliable warehouse KPIs?Orders that are flawless and error-free. The ultimate aim for warehouses is to flawlessly assemble items every single time, every single day. A reliable indicator of overall warehouse performance is the percentage of flawless orders. How do you assess the effectiveness of a warehouse?By monitoring key warehouse KPIs related to receiving, inventory management, warehouse safety, and fulfilment and shipping performance, you may assess warehouse performance. You can optimise workflows and procedures by keeping an eye on the various components of your warehouse. How are warehouse KPIs measured?Warehouse KPIs are calculated and measured using various formulae. To assist you in automatically tracking activity and compiling data in one place, it's always ideal to invest in a warehouse management system and inventory management tools because there is a lot of activity that takes place in a warehouse. What warehouse KPIs should be monitored?There are several different warehouse KPIs to track when managing your own warehouse. Carrying expenses, order accuracy, and inventory turnover rate are some of the most crucial indicators, but you should also consider receiving KPIs, put-away KPIs, picking KPIs, safety KPIs, and other data.

August 05, 2022

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10 Simple Ways to Utilize Eco Friendly Shipping for eCommerce Companies in 2024 to Go Green & Be Sustainable

Biodegradable materials are frequently used to make eco friendly shipping supplies. According to studies, shipping emissions may account for 17% of all global carbon emissions by 2050. Having a well-thought-out shipping process is one of the most crucial components of running a successful online business. However, eCommerce businesses now need to take into account a new aspect of eCommerce shipping. Customers are starting to notice how their products are packaged and transported in light of how quickly the environment is being damaged and they are paying attention to companies who are making their deliveries green. This is where environmentally friendly shipping comes into play. Our environment can be severely impacted by how you package and ship your goods; if you can find ways to reduce this impact, you might even find that your customers become more devoted to you. This post will outline the value of eco-friendly shipping options in 2024 and how to go about implementing them. What is Eco Friendly Shipping? Eco friendly shipping refers to packaging that must be made of biodegradable materials that can be easily recycled, put to other uses, and break down quickly. It can also apply to tactics such as combining orders into a single shipment, adopting low-emission modes of transportation, and other strategies to reduce the environmental impact of shipping items. [contactus_gynoveda] Benefits of Using Eco Friendly Shipping Some online store owners are reluctant to make the following adjustments because they worry that raising costs to make up for more environmentally friendly operations will drive away their current clientele. However, it's crucial to highlight the statistics supporting it: More than two-thirds of consumers with a strong sense of purpose are willing to pay an additional premium of at least 35% when making sustainable purchases for recycled or eco friendly products.In addition, 73% of consumers said they would alter their buying patterns to lessen their environmental impact. Here are a few advantages of using environmentally friendly shipping supplies: Customers Have a Positive Response to Eco Delivery Brands that own and actively improve their operations to benefit the earth will succeed as retail patterns become increasingly digital. The trend toward internet buying is being driven by Millennials and Gen Z and the facts supporting it are fascinating: 67.1% of millennials said they occasionally or always research a company's ethics and sustainability policies before making a purchase.People take pride in their ability to balance potential environmental implications while purchasing, according to Business Insider.People have access to a wealth of information thanks to social media so therefore, it stands to reason that there is a movement to save the environment by choosing to purchase sustainable and environmentally friendly goods as well as goods that will have a positive social impact. Now more than ever, setting an example for a greener future is crucial. Cost Savings Can Result From Eco Friendly Shipping Once the changes have been made, eco delivery can help you save money, even though the initial expenditure may force you to reorganize your spending. The philosophy of eco friendly shipping is to only utilize what is necessary and to prevent waste at all costs. As a result, you will avoid paying for extra shipping supplies that you would otherwise need to buy for superfluous packaging. You Can Get Positive Brand Recognition You join the ranks of other businesses striving for a greener eCommerce landscape when your online store introduces greener solutions like biodegradable delivery options. You can flaunt your new, environmentally friendly packaging and highlight the ways in which you are reducing your carbon footprint. Even better, you can highlight your environmental awareness on social media. Due to your efforts to save the environment, you might become the next successful eCommerce brand. However, keep in mind that customers will not hesitate to criticize companies that use sustainability as a marketing gimmick. 8 Ways to Utilize Eco-Friendly Shipping in eCommerce and Be Sustainable Source Optimize and Reduce Your Packaging Making use of sustainable packaging is one technique to improve eco-friendly shipping. Additionally, compare the measurements of the product and the package to get more accurate delivery estimates. Be careful not to overpack items with extra packaging. It is not only economical but also environmentally friendly. Reusable shipping containers are provided by some businesses and they can be returned once the delivery has been completed. Reduce the size of the box and the materials used for packaging to ensure that your shipments are packed as tightly as possible, as long as this won't cause damage to your products). This helps you reduce waste while also lowering the dimensions, weight, and overall costs of a shipment. You can also check ways for custom packaging for ecommerce. Use Sustainable Materials You can make use of eco-friendly packaging from multiple different suppliers. Using materials such as recyclable air pillows rather than bubble wrap and packaging peanuts, which are more damaging to the environment, can help you provide eco delivery. FedEx is another carrier that makes use of green delivery trends. FedEx takes pleasure in using envelopes that include 93% or more recycled material on average. Additionally, the materials for their packages, white boxes, and brown boxes are recycled. Ship Orders in Bulk Group and ship tiny items together. Don't, for instance, sell makeup or little items like toothbrushes in individual pieces. Bulk shipping is less expensive than shipping little items individually. If online retailers need users to buy more things, their sales will increase. Additionally, it increases value for the customer. Customers must plan their purchases or split an order. The result for you is less shipping frequency, lower shipping costs, and potentially higher sales. Insulate Your Warehouses One of the greatest energy wasters in the storage process is the fact that warehouse walls are often built of thin metal components with low insulation. Thermal energy is lost during the winter due to ineffective warehouse heating. It is essential to spend money on the thinnest layer of insulation to prevent the need for too many air conditioning units to be installed in the warehouse. Additionally, a good ventilation system with large ceiling fans that evenly distribute warm and fresh air throughout the warehouse reduces the need for heating. Use Electronic Vehicles for Last-Mile Delivery It is well known that electronic vehicles have much lower pollution levels than conventional vehicles. Electronic scooters are becoming widely available so if you are really committed to eco friendly delivery, you can switch your last-mile delivery fleet completely to electric vehicles to reduce your carbon footprint. Use Thermal Printers Since no ink is used, choosing direct thermal labels is a more environmentally friendly label option and results in one less non-recyclable waste product. If earlier labels lacked an adhesive backing, thermal labels can replace them, saving both time and resources. A popular thermal label printer choice is the Zebra LP2844. Provide In-Store Pickup One benefit of in-store pickup is that the consumer has complete control over the time and place of the pickup. Customers can reroute and reschedule their packages to an access point location in conjunction with the delivery personnel. This enables the business to reduce their travel miles and thus, be more environmentally friendly. Partner With an Eco-Friendly 3PL Company There are many 3PL fulfillment companies that provide eco-friendly shipping services, which keep online consumer behavior in mind and provide the best sustainable shipping services. Partnering with them will help your company achieve its goals of reducing its environmental impact. While they may charge more than conventional 3PL companies due to the added costs associated with providing eco delivery, it will be worth it. 10 Environment-Friendly Packaging Materials to Help Your Business Go Green in 2024 Compostable Packaging The term compostable describes a substance's capacity to break down organically and return to the ground, ideally without leaving any harmful byproducts behind. Bio-poly mailers and plant-based materials (such as corn, sugar cane or bamboo) are typically used to make compostable packaging materials. It is crucial to remember that material must be able to decompose in a home compost within 180 days and in a commercial compost within 90 days in order to be regarded really biodegradable. Recycled Packaging Recycled packaging is another option for environmentally friendly packaging materials. These are products that give already-used plastics a second chance at being used. By reducing the need to gather raw materials, employing recycled materials helps you protect the environment and provide eco friendly shipping by reducing the quantity of waste that ends up in landfills. Corrugated Packaging Box fibers created primarily from trees and used in corrugated containers are referred to as corrugated packaging. They can be recycled seven to ten times to create new packaging materials. More corrugated packaging than any other type of packaging is also recovered for recycling. Numerous online retailers package and transport their products using corrugated packaging, which is commonly used in the business. Seaweed Packaging The gelatinous material agar, which is present in a range of seaweeds and algae, can be utilized as green packaging in a variety of industries, from corn to mushrooms to seaweed. Seaweed can be used as a thickener or as a vegetarian alternative to gelatin in the food business. Seaweed packaging might be the next big thing in eco friendly shipping because it is derived from a plentiful and renewable raw material. Cellulose Packaging Hemp, wood, and cotton are examples of natural materials used to make cellulose packaging. The substance is a sustainable replacement for plastic because it decomposes and can be composted. Because cellulose packaging resists moisture, food brands in particular favor it. Cornstarch Packaging As you might have guessed, items comprised of cornstarch are referred to as cornstarch packing. It is sustainable and biodegradable due to the fact that it is made from renewable resources and doesn't include toxic substances. Another wonderful substitute for bubble wrap and styrofoam is biodegradable packing peanuts, which are made from cornstarch. Recyclable Air Pillows Another excellent budget and eco friendly shipping package substitute for bubble wrap or styrofoam is inflatable air cushions. They come in a range of sizes and are perfect for padding packaged objects or filling gaps in boxes. Small bags that can be inflated, or "air pillows," are mostly made of air. Compared to alternative cushioning materials, this reduces the amount of plastic consumed in their manufacture and transportation. They are recyclable, reusable, and even biodegradable. Ensure you get air pillows that highlight biodegradability and are created entirely from recycled materials. Kraft Paper Wood pulp is used to make kraft paper. All varieties of wood, including resinous pine, are used to make kraft materials, unlike normal paper, which typically excludes this type of wood. Since almost all of the chemicals needed to create kraft paper can be utilized again, the production process is more environmentally friendly. Green Cell Foam A bio-based foam product created from cultivated corn cultivated is called green cell foam. You can get rid of it by putting it in water or by composting the substance at home or in commercial settings. As its name clearly says, green cell foam behaves very similarly to foam, making it the perfect choice for companies that need to transport their products with padding. Organic Fabrics You'll discover that there are many different types of organic fabrics available on the market, such as hemp, organic or recycled cotton, tapioca, palm leaves and many others. All of these materials are biodegradable and require only about 100 days to break down as opposed to a plastic bag's 10,000 years. These materials can be used for a wide range of other things besides bags, such as apparel. Conclusion To provide eco friendly shipping, every effort counts. Investing in the sustainability of your company now will benefit both the health of the environment and the future of your brand. To continue running a successful business while also taking care of the environment, keep in mind the advice provided above. If you assistance with eCommerce fulfillment, you can consider partnering with WareIQ. WareIQ is a leading eCommerce fulfillment company that provides multiple eco-friendly shipping facilities such as ultra-fast delivery, a nationwide network of fulfillment centers so that you can store products closer to customers, your choice of packaging materials and much more. Suggested Read: eCommerce Shipping Trends for Year 2024 Eco Friendly Shipping: FAQs How can delivery be done sustainably?Utilize more environmentally friendly solutions that minimize packaging waste to fit more things in each box, handle more deliveries with each vehicle, save money on packing and lower carbon emissions. Air pillows, compostable mailers and recyclable cardboard boxes are all examples of eco friendly packaging. What are the drawbacks of environmentally friendly packaging?Cost: Switching from conventional to eco friendly packaging can be rather expensive for many organizations, especially small ones.Contamination: The components of eco-friendly packaging are easily degradable but only when properly disposed of. What is eco friendly shipping?Eco friendly shipping is sometimes referred to as sustainable or green packaging. It employs manufacturing processes to cut down on energy use and lessen its negative impact on the environment. It is made of recycled materials, is safe for use around people and the environment and is simple to recycle. What substance is eco-friendly for eCommerce packaging?Generally speaking, natural materials like Tencel (produced from sustainable wood pulp) and organic cotton and linen (derived from plants) are more environmentally friendly than synthetic fabrics like Polyester and Nylon.

August 04, 2022

First Mile Delivery: A Detailed Guide Including Definition, Importance, Challenges and Tips for Optimising First Mile Logistics in 2024

Many rapidly expanding online merchants struggle with the ongoing balancing act of providing clients with a great delivery experience. In the process of offering smooth and hassle-free deliveries, if a business is paying too much in shipping costs, it can majorly reduce profit margins. What if it was possible to enhance the delivery experience at a more early stage of the eCommerce supply chain? It turns out that your shipping experience is directly impacted by the first mile delivery stage and optimizing it will result in significant downstream gains. In the article, we will learn the advantages and challenges of first mile delivery, its importance and tactics to improve it. What is First Mile Delivery? First mile delivery refers to the transportation of goods from a merchant’s premises or warehouse in the supply chain to the next location where the goods are stored and distributed from there. But for various supply chains and businesses, the first mile delivery could signify different things. For a retailer, this can entail shipping goods from a local distribution center or storefronts to a regional warehouse. For logistics companies, this could be a service of picking up goods. First mile delivery is used by eCommerce businesses where products are picked up from a merchant and then passed to third-party logistics or courier service to be delivered to the end-user (Buyer). [contactus_gynoveda] Importance of First Mile Logistics in eCommerce First mile delivery, which is the first step in the supply chain, has a significant influence on how a company handles retail fulfillment. Ineffective first mile delivery can slow down last-mile delivery by affecting the supply chain throughout the fulfillment stage. Some of these inefficiencies frequently have their origins in incorrect purchase order decisions. If production is delayed or an incorrect amount of inventory is delivered, it is enough to throw off the remainder of your supply chain, especially if you are receiving orders that depend on the arrival of the upcoming shipment of stock. By identifying ways to increase visibility, diversify your supplier network and implement a robust warehouse receiving process, many problems that arise during first mile logistics can be resolved. Tactics to Optimise First Mile Delivery Processes source Choose a Tech-Enabled Fulfillment Company There is always the option of handling first mile logistics on your own but if you're ordering a lot of products and handling a lot of orders, you're going to need the room and the assistance of a professional. You can choose which parts of a 3PL's warehouse network to keep products in when you first begin working with them. You can request direct delivery of merchandise from your supplier to the fulfillment center, where logistics professionals will carry out a careful inventory check to make sure the purchased items match the paperwork. WMS software is built to make sure you have the information you need so everything is accounted for and correctly stored, in order to guarantee the completion of flawless first mile delivery. After receiving inventory, you can monitor the flow of it in real-time on the dashboard. You can access inventory records, calculate the best time to replenish inventory and create automation reorder notifications when inventory is running low because all inventory and order data is consolidated in one location. Analyze the Supply Chain Process Making a map of your supply chain starting with first mile delivery is a good method to improve it. You may find the inefficiencies in your current supply chain and the measures required to optimize and improve processes by carefully looking over each step of it. The manual process is labour-intensive and subject to human mistakes. If you are at this stage, you should think about automation and other supply chain technologies to lessen the human factor involved in reordering goods and also to reduce errors. Make a Warehousing Strategy Creating a thorough warehouse receiving process is another first mile delivery must. This process specifies how you or your warehouse team will receive inventory shipments delivered by your supplier and is crucial for proper inventory tracking. Before that, you should establish the quantity of each item that will be transported in each container as well as the packaging specifications for every product. Then meet with the shipper, unload the required cargo, and double-check the received inventory against your inventory records. Organise the Data You must have a system in place to gather data and present critical distribution metrics in order to properly enhance your first mile delivery process. Data and information on the supply chain can be recorded in a variety of ways. You can assess the effectiveness of the first mile logistics process using different metrics like shipping timing, purchase accuracy, manufacturing cost, number of days your supplier needs to supply stock after receiving an order, the time period needed to disassemble pallet loads and stock ready-to-ship merchandise inventory and the proportion of your supplier's items that are harmed while being transported. By using inventory management software or a warehouse management system, much of this can be monitored or you can also just outsource fulfillment to increase your visibility of these metrics. Create a Packaging Process with a Scanning and Labeling System The majority of your products will be damaged regardless of how quickly it gets to your warehouse if it is not wrapped properly for transportation. The quality of the packaging used for your inventory is one factor to consider when choosing a supplier for your company, some even provide custom packaging services. There needs to be a proper scanning and labeling process in place to ensure that the right products are packaged and in the appropriate manner. You can read more about shipping labels. Challenges of First Mile Delivery in 2024 First mile delivery is a complex supply-chain process. There are several difficulties, but we will concentrate on the top four first mile delivery challenges likely to be faced in 2024: Lack of Visibility Poor visibility is a major challenge of first mile logistics that ultimately impacts not just mid-mile operations but also last-mile processes along with the experience of the end-buyer. Poor handling, en-route delays and ineffective tracking of freight movement from a warehouse to a hub, among other things are important impact areas of poor visibility. Lack of Focus on First Mile Experience For the past several years, businesses have come to understand the value of last-mile delivery in terms of offering a better customer experience. Due to the fact that this process has fewer stakeholders and is not customer-facing, first mile delivery has been conveniently overlooked as a result. First mile operations should be given the same attention as other aspects of the supply chain, such as the requirement to give customers complete transparency of the delivery process and to reduce logistics costs. Due to this, businesses must use reliable first mile tracking systems that reduce expenses and guarantee complete visibility of delivery operations. Improper Packaging Packaging frequently suffers as a result of the rush to supply quickly. Regardless of the type of item, businesses frequently employ standard packaging materials. This delays the entire freight transportation procedure and frequently results in material damage during first mile delivery. Branded packaging is the most sophisticated packaging method. It not only saves money and better safeguards products but also helps in marketing your brand. Ineffective Labeling Methods Labeling is a small but crucial component of first-mile delivery. Many companies still manually label packages to this day. As a result, not all the required fields are mentioned in packages, which causes dispatching to be ineffective and prone to delays. This problem is rapidly solved by automating dispatching, a crucial component of last-mile tracking technology. Top 4 Differences Between First Mile Delivery and Last Mile Delivery [table id=43 /] Suggested Read: List of Delivery Partners for Ecommerce & Last Mile Delivery Companies Conclusion: Integrating First Mile Delivery with WareIQ Now it is clear that good last-mile delivery has a direct impact on customer satisfaction and profitability. Customer satisfaction can be drastically decreased if a shipment is delayed or a customer receives an incorrect item. The first mile delivery procedure is largely manual for many logistics service providers, if not entirely. Moving all operations and supply chain data online is the first step to cutting costs and improving efficiency. Remember that you need applications that provide visibility and control to all parties involved including dispatchers, drivers, operations managers and shippers. Using WareIQ’s smart technology, businesses can customize logistics management systems to better suit their requirements and make smarter automation decisions. WareIQ, a complete logistics management system, guarantees a decrease in delivery costs and time. The end-to-end visibility and tracking capabilities that results from moving the entire delivery process to a digital platform are increased. Companies can use the best transport management system with optimal route management by partnering with WareIQ. Features like real-time intercity tracking, dynamic detention and delay alerts, delivery route planning and route optimization can improve linehaul tracking. Together, these capabilities greatly simplify the processes involved in first mile delivery. Customer satisfaction can be considerably raised by an effective tracking system and a prompt delivery system. WareIQ takes care of the following guidelines while sending freight: To appropriately spread the weight of your shipments when they are piled one on top of the other, we use top and bottom load protectors.Stretch wrapping is used to support the shipment during transit and avoid load movement.Enough bubble wrap is included in each box in the shipment to guard against breakage.As you develop connections with suppliers, we make sure to hold them accountable for their output and delivery quality.We increase vertical stacking strength, avoid damage to corner edges and balance the load by using corner/edge boards. First Mile Delivery: FAQs What is mid-mile delivery?Middle-mile delivery refers to the delivery of goods from a warehouse or distribution center to fulfillment facilities, where consumers buy their items. It is also known as second-mile delivery. The movement of finished goods from the fulfillment center to the customer is known as last-mile delivery. What is the main difference between first-mile delivery and traditional delivery methods?First mile delivery refers to the transportation of goods from the point of origin to the first transportation hub or distribution center, while traditional delivery methods refer to the transportation of goods from the distribution center to the final destination. What is last mile in the supply chain?Last mile delivery, used in supply chain management, refers to the challenging final leg of moving people and packages from storage hubs to their ultimate destinations. Why is last-mile delivery so expensive?Last mile delivery necessitates more frequent stops, fast-accumulating delays, and inefficiencies lead to increased driving and idle times, higher fuel and labour costs and unmanageable complexity. Minimizing costs, maintaining transparency, raising efficiency and enhancing infrastructure are a few issues with last mile delivery. Can I schedule specific pickup and delivery times for my first-mile delivery?This will depend on the specific first mile delivery provider and their schedule. Some providers may be able to accommodate specific pickup and delivery times, while others may have more limited options. It's a good idea to discuss your specific scheduling needs with the provider to see what customization options are available. Are there any additional fees for customizing first-mile delivery options?There may be additional fees for customizing first mile delivery options, depending on the specific provider and the options that you request. It's a good idea to discuss the costs of any customization options with the provider to determine if they are within your budget.

August 04, 2022

What is Demand Forecasting? Definition, Types, Benefits of Forecasting Customer Demands for Ecommerce in 2024

Running an eCommerce logistics business is filled with challenges. These challenges are aggravated when businesses operate in a cutthroat environment where new competitions emerge daily. Organizations, therefore, try to forecast the upcoming market conditions, trends and requirement patterns to achieve sustainable growth. As a business owner, you might have pondered on some or all of the questions below: What are the products you should produce to mitigate market demand?How many products do you need to store in distribution centres?What should be the exact closing inventory level to run the business successfully?What strategies do you need to adapt to deliver products in the shortest time? The best way to get the answers to these questions is to understand demand forecasting. This is the technique to understand future requirements and utilize them to improve your customer deliveries without compromising profit margins. Demand forecasting uses different factors to analyze customer behaviours, current and future trends, product acceptance, etc., to provide the best possible visibility for the future. This article will walk you through the in-depth definition of demand planning & forecasting, the different types of demand forecasting and the reasons you should use it. What is Demand Forecasting? Demand forecasting is the process of making close-to-perfect predictions of the future requirements of all customers. This could be related to existing products you have been selling for years or any new item you plan to launch. Businesses usually deal with stock-keeping units (SKUs), which may vary from hundreds to lakhs, depending on the type of business. The number of customers can also vary at a similar level. Combining all the SKUs and customer demand for any short or long-term period creates a massive combination. Moreover, many more variables like the geographic location, specific time period and even specific projects make it more complicated. Demand forecasting combines all these variables and projects the best possible understanding of the demand pattern in the supply chain. Demand forecasting, also known as sales forecasting, has different factors such as quarterly forecasts, monthly demand planning, weekly sales forecasts and even daily demand plans. In the case of highly perishable goods like food items, you can even see hourly supply and demand planning. The more accurate your demand planning & analysis is, the more it helps to boost your supply chain efficiency. This is because your overall supply-chain planning depends on the accuracy of your demand analysis. Based on the demand pattern, the supply team plans the inventory strategy and estimates the in-house capacity, materials, ordering pattern, stocking policy, etc. These are the critical factors of an efficient supply chain. [contactus_uth] 6 Types of Demand Forecasting Based on different business models, experts have created different demand forecasting techniques: Passive Demand Forecasting The passive demand forecast model is one of the simplest forms of demand analysis in the supply chain. Here, the historical data is analyzed and used to predict the future requirements of customers. In the case of seasonal demand, this forecasting method is useful. For instance, an umbrella manufacturing company can assume whether the same quantity of products will be required in the next year as the previous year. In this scenario, some thumb rules are used along with the past sales data. For example, simply assuming a 10% increase from last year's sales will be the forecast for the following year. It is that simple. But in this planning methodology, you need to have in-depth historical data for a more extended period to reach a higher level of forecast accuracy. Active Demand Forecasting The active model is more scientific and data-driven. It not only relies on historical data but also considers external factors to conduct demand forecasting. For example, deep market research, marketing campaigns, economic growth, government notifications, budget plans and local and global political conditions all are considered during the demand analysis. In most cases, startups and organizations entering a new market perform this type of demand analysis. However, there is very little historical data available in these cases and demand planners rely on market surveys and research to generate sales forecasting in the supply chain. Therefore, this type of demand planning needs more analysis to avoid any assumptions. Nowadays, organizations use advanced software to perform qualitative and quantitative analyses to get accurate information about every product. Short-Term Demand Forecasting Demand forecasting is also done based on the time horizon. Short-term demand analysis usually considers a time frame of the next three to twelve months. This enables a more accurate percentage. Usually, the demand analysis is made based on short-term predictions of future demand. This benefits the organization by reducing the required inventory, improving turn-around time, lessening lead time and enhancing flexibility in response to any fluctuations. Even during the in-house capacity planning, considering the short-term requirement forecast is the smartest method. It helps avoid unnecessary change over time and provides better visibility on your short-term decision making. Long-Term Demand Forecasting Long-term demand forecasting is more like a strategic plan for business growth and development. Usually, organizations consider a five-year horizon for this type of planning. When the marketing team considers penetrating new geographical areas to expand the business, they need to try to capture new customers, frame plans to launch new products, etc., the long-term demand analysis captures all the reports and data to populate the forecast. Using this technique, you can plan your future roadmap and budget for different verticals. For example, based on the five-year plan, you can consider a significant capital investment, increase your marketing budget, create a robust plan to enhance your supply chain performance, etc. This long-term demand forecasting allows you to prepare your business for the future. External Macro Level Forecasting In this type of forecasting, the broader economic aspects are considered. For example, future economic trends may affect your business growth or give you a new opportunity. Your organization may think of leveraging low commodity prices and rethink developing with a new supplier. In any case, you need a forecast on which you can rely and make decisions. This is the importance of external macro-level forecasting. Internal Business Level Forecasting Your internal demand forecast is used to identify the operation's bottleneck and for you to take necessary action to remove it. Do you have enough in-house capacity to mitigate the high demand? Or do you need to enhance your production capacity? Do you have a robust upstream (supplier side) that can meet timely requirements? You will get the answers to all these questions once you perform the internal business level forecasting. Suggested Read: How to handle stock-outs? Suggested Read: What is Inventory replenishment? What are the Benefits of Sales/Demand Forecasting for eCommerce? Sales forecasting has much broader advantages than just managing optimum inventory or how much to order. Though the advantages are diverse, we have mentioned the most significant ones below: Reduces Financial Risks If robust data backs up financial decision-making, there is little chance of slippage. Demand forecasting provides evidence to craft an accurate budget. When you get a better idea of the demand of your customer base, it helps you improve your financial budgeting decisions. For instance, when demand analysis tells you that the demand curve of any specific product is in a declining trend, you can decide to reduce the inventory levels of that SKU and its components. This helps to reduce the risk of high amounts of obsolete and ending inventory. Similarly, if the forecast of a new product shows that its sales figures will take some time to shoot up, you can better manage your resource allocation. Improves On-Time Delivery Modern customers are highly demanding. They know their choices, and there are a wide array of options available. Oftentimes, buyers want the product right away. And if you fail to deliver, there are dozens of competitors who will do the same. With the increase in customers' expectations, businesses face a massive challenge in delivering products on time. Sales forecasting offers you the opportunity to reduce the lead time. If you know the market demand of the specific product well ahead of time, you get the time to prepare your supply chain and thus, increase the shipping speed. Increasing inventory levels, allocating in-house production capacity and keeping your distribution centres (DCs) ready with products, are key strategic actions to improve on-time delivery. This is not possible without smart demand planning & demand analysis. Reduces Inventory Expenses Inventory is the function of variation and is often called a necessary evil. An optimum inventory level helps the business capture competitive advantages by offering quick deliveries. On the other hand, excess and obsolete inventory can drastically consume your profit. Accurate demand forecasting supports your inventory reduction approach. Your warehouse only has the required materials, which means less money is blocked. Moreover, do not forget the inventory carrying cost. It comprises almost 25-30% of your total inventory. In-depth demand analysis helps the warehouse and fulfillment centers run efficiently by optimizing the space, resources, and utility charges. Helps to Create a Pricing Strategy Demand planning greatly supports you in strategically framing the pricing of your products. For instance, customers are ready to pay a reasonable price for products that are in high demand. Then, following the trends, you can tweak the pricing strategy of in-demand products. Enables Better Negotiation A demand pattern allows you to save a lot of money by helping in negotiation with suppliers and service providers. For example, you can manage to get a good discount on bulk purchases if you know that the demand will rise. Moreover, for commodities that have fluctuating price trends and high forecasts, you can negotiate with the vendor to keep safety stock with them. This will help you get a better price and avoid inventory carrying costs. Examples of Demand Forecasting Projecting Trends Imagine that there is a business operated by 2 partners that sell toys, clothes and other items for kids and they have been operating for around 10 years. They have reached their goals in terms of revenue and profitability and are comfortable with operating at this pace instead of expanding. To project trends for next year, they take the average of the last 3 years of historical sales data. This data shows them that they are the most successful in July and October and that they perform at their lowest levels in January and February. They can utilize these analytics to project future trends so that they can accurately place orders, hire temporary staff in seasons of high demand and create plans for promotions during slower months to generate more hype. Conducting Market Research Suppose that a new company has researched and developed advanced wireless headphones and the brand was launched through the crowdfunding platform Kickstarter. While they were able to get decent exposure, they have the objective of expanding their target audience in order to meet their targets. They encourage customers to take part in a survey and using the responses and details such as age, income, location, etc. they identify the current customer base of the company and realise that their product is most popular amongst people who commute via public transport. Based on this information, they create a marketing plan that focuses on ad campaigns targeting at people who ride on buses and trains. They highlight how their product would be helpful in these situations and are able to forecast the upcoming future demand. Using Sales Force Composite Imagine that a brand sells high-quality office chairs targeted at both B2B and B2C customers. In the past, they have primarily had high demand from the B2B sector and have received huge orders from other organizations but for the past quarter, business has been slow. The members of the sales team share the feedback that they have received from customers which helps them identify a market trend. Because more people are working from home and businesses no longer require large office spaces, they have no requirement for office furnishings. The company then forecasted demand for the next quarter with reduced sales and also decreased its production capacity. This gave them time to restructure its marketing strategies to meet the change in demand. How Does Demand Forecasting Affect Your Supply Chain and Fulfillment? In this modern era, eCommerce fulfillment businesses can only sustain themselves if they have an agile and resilient supply chain. If they don't have visibility on customer requirements, all the business processes will run on assumptions. You may have products that are not required, a pile of stationery inventory that will become obsolete soon, a production line with frequent changes and much more. All these activities trigger inefficiency in fulfillment centers. Poor demand forecasting will affect the internal business operations and your upstream (vendors and service providers) will also face colossal disruption. Due to the bullwhip effect, suppliers will face high volatility in ordering patterns, inventory planning, stocking policy and other SLA items in the supply chain. These unwanted disruptions will hamper your long-term business relationship. There will be overstocking at every stage, even at the supplier's end. The most impacted area will be your downstream (the customers' side). The disruption in the supply chain will increase the lead time. As a result, customers will need to wait longer for deliveries which will make them move to competitors and never recommend your products to others. This is definitely not good for your brand reputation. Suggested Read: Why is Supply Chain Agility Crucial to eCommerce in 2023? Latest Trends of Demand Planning & Forecasting in 2022 Seasonality of Demand Seasonality is a factor where the demand and supply increase or decrease due to a particular event or time of the year. For instance, during holidays like Christmas or New Year, the sale of household products and gift items increases. Similarly, you can observe increased sales of umbrellas or raincoats during the rainy season. Dependency on Global Phenomenons The global economy is more interconnected than ever before. This has been made more apparent by the onset of the global pandemic and the ongoing war in Ukraine, which have had a severe impact on manufacturing, transportation of products and materials and the supply chain as a whole. You may think that events that happen in distant countries have no effect on you receiving your orders on time, if at all, but alas, they definitely do because most manufacturers import at least some of their materials from countries like China. This is why demand planning is important because it can preemptively determine whether these global events will have any impact on your business or not and can easily ascertain what those impacts could be. Requirements to Increase Sustainability Companies the world over are succumbing to growing awareness about the environmental impact that certain manufacturing and supply chain processes have on the planet. Companies are under increased pressure to use sustainable materials in their packaging and to reduce their carbon footprint as much as possible. However, these factors can have a drastic increase in logistics costs so companies need to find the right balance between being environmentally friendly and maintaining their bottom line and this is where demand forecasting can help them get to that balance. Multi-Functioning of Demand Forecasting In the past, demand forecasting, while still an important business process, was usually contained within certain departments. However, this is becoming the exception because most companies now understand the value of sales forecasting and how it can have a positive effect on the entire business. Teams are now striving to find ways to integrate the process of demand analysis with every sector of the business to achieve the best results. Diminishing Importance of Spreadsheets While spreadsheets will always have their importance for maintaining data and an easy-to-understand way, many companies are adopting more advanced methods to demand planning by relying on automation, software solutions and AI to be able to predict varying demand levels for different products in various markets for a specified time period in the future. This helps in mitigating any manual errors or confusion that could occur due to maintaining hundreds of different spreadsheets Conclusion Businesses need to understand their customers and the best way is to use demand forecasting. It helps make smart decisions based on future visibility. Many organizations have realized its benefits and have already implemented this process. Demand analysis cannot always be 100% accurate but a proper demand analysis and market research can come close. It considers historical data, sales data, market research and economic factors to perform permutation combinations to keep your business strong, agile and prepared for the future. WareIQ is an eCommerce fulfillment company that effectively predicts demand beforehand for its eCommerce partners using its superior WMS (Warehouse Management Software) platform & enables efficient inventory planning & placement. How WareIQ Helps in Forecasting Demand For Its Partners Supply Chain Management Systems (SCMS) is used by WareIQ to forecast supply chains. Our supply chain managers are also educated to predict demand using various approaches. A variety of things can have an impact on a firm and no two sectors are alike. While some of these demand forecasting methods do not require SCMS, the majority of them work well with it to provide an effective supply chain from top to bottom. You can also Read : Inventory Forecasting in Supply Chain Buyer Trend Analysis Everything goes out of style and it frequently happens without warning. Buyer trends are tough to follow but doing so may be quite profitable. To fulfill consumers' fluctuating wants, your supply chain must be adaptable enough to add large quantities of an item in a short period of time. At the same time, being aware of buyer trends may save you from having static inventory and keep your supply chain's operating expenses low. Fortunately, logistics allows for achieving the required amount of inventory. Demand Forecasting Management Demand forecasting wouldn't be necessary if trends were similar year after year. All demand fluctuations, like any other metric, include exceptions. When a projected shift in demand does not occur, having an effective demand exception management strategy could help you manage inventory more effectively. WareIQ identifies and tracks any deviations in projected demand in this sales forecasting model. If it seems that an exception may arise, the supply chain will be prepared to respond immediately, avoiding hidden costs or missed opportunities. Intuitive Planning When you suspect that anything is threatening your supply chain, the best solution is to rely on your D2C fulfillment partner's statistics and instincts. Trust WareIQ as your retail fulfillment partner since we forecast based on our own experiences. By sensing prospective fluctuations in customer demand, our seasoned supply chain specialists can identify them. This is known as intuitive planning. Intuitive planning considers everything you cannot comprehend manually. For example, an eCommerce business may intend to acquire a competitor in the future. Of course, you were unaware of this news at the beginning. However, our popular wisdom suggests that this will result in more consumers, implying increased buyer demand. Intuitive planning is not as sophisticated as the other demand forecasting approaches, yet it is still effective. [signup] Demand Forecasting & Planning FAQs What are the goals of demand forecasting in supply chain?In a nutshell, the goal of demand forecasting is to create better projections. However, in a larger sense, the goal is to improve organisational performance - more revenue, profit, and customer pleasure. What are the three demand forecasting methods?Qualitative approaches, time series analysis and projection and causal models are the three fundamental categories. What are the forecasted levels of demand?Demand forecasting may be done at three different levels: macro, industry, and company. Forecasts for broad economic circumstances, such as industrial production and national income allocation, are made at the macro level. Can partnering with a 3PL company like WareIQ help with demand forecasting?Yes. 3PL companies like WareIQ have advanced software solutions and techniques that can effectively forecast demand and help you plan ahead to mitigate any discrepancies in storage and inventory.

August 04, 2022

Top 5 Different Trust Badges to Increase eCommerce Sales, Enhance Customer Experience and Boost eCommerce Conversions Rates in 2024

According to studies, more than 60% of customers do not end-up-purchasing items because no trust badges are visible on the website. Trust badges are a simple symbol that reassures customers that they are on the right track and instills trust in them & lowers cart abandonment. The lower the average shopping cart abandonment rate, the greater the increase in sales. Let's get started with how you can use trust badges to increase eCommerce sales, the various types, how to place them on your website, and much more. What are Trust Badges in eCommerce? A trust badge is a symbol that is displayed on a website to inform visitors that the brand is genuine and trustworthy. They are also known as site seals, shipping tags, or fast delivery tags. They're essential for sites that collect personal or financial information, such as eCommerce or membership websites. Retailers also use trust badges to increase eCommerce sales. Customers are easily put off by shady websites that do not indicate that their data is secure. Third parties-providers create many trust badges. Once you've met their requirements, you can use their services which could include anything from purchasing an SSL certificate to having your business practices reviewed. [contactus_gynoveda] Why Does Your Website Need Trust Badges to Increase eCommerce Sales? Trust badges persuade customers that they can entrust their personal and financial information to your website. Shopping cart abandonment can have a detrimental impact on eCommerce sites. 17% of people abandon their shopping carts because they do not trust the website with their credit card information. A few factors of trust badges are listed below: A bar graph titled "Reasons for Checkout Abandonment" specifies that 49% of people surveyed said that they abandoned their cart due to extra costs being too high.A trust badge or shipping tag displayed at the appropriate point in the checkout process indicates that customers' information is secure.The same payment-related trust issues will also apply to membership websites. Even if you have a free version or a free trial, you may still need to ensure that users can enter their personal information safely during registration. You can have strategically placed trust badges to increase eCommerce sales. We've learned a few things about trust in our years of experience — what customers want, how to best earn their trust, and so on. It all comes down to three key points: Consumers Prefer to Buy From Brands They Trust Almost anyone can now start an eCommerce business. As a result, modern customers are inundated with offers, emails, and websites with which they are unfamiliar. At the same time, the world's largest corporations are frequently involved in widely publicized data breaches involving their customers' personal information. It's no surprise that 40% of shoppers say they no longer buy from brands they like because of trust issues. However, trust today is about more than just the brand and a potential customer's familiarity with it. It is also about the visitor's experience and viewpoint. Take, for example, Burt's Bees, a large, well-known brand that saw a significant increase in conversions when trust badges were displayed. This is because brands typically speak to the level of product trust rather than the online purchasing experience on their eCommerce store. Thus, it is not only useful to provide trust badges to increase eCommerce sales but they are also essential for customers who want to ensure that a website and online transactions on it are safe and secure. Trust is About More Than Online Security and Personal Information The risks of modern shopping have shifted. Concerns that used to revolve solely around website security have now expanded to include eCommerce performance, scam avoidance, business practices, shipping fulfillment, and customer data protection, to name a few. Based on this (and the test results), there is still a significant need for trust badges to increase eCommerce sales, particularly those that address multiple aspects of business trust in addition to security. The Trusted Site system, for example, addresses both security (scans for malware, viruses, and valid SSL certificates) and trust concerns (verified business information, shopper identity protection, and issue-free orders). A comprehensive trust mark like this one puts customers at ease throughout the entire online shopping process. Trust Badges Regularly Increase Conversion Rates Even if security isn't at the top of customers' minds as they prepare to enter their credit card information on the checkout page, it's not at the very bottom. Hence, security badges enhance conversions to a great extent when the customer is in the last leg of the sales funnel, i.e., making payments on the eCommerce site. Guarantee Badges like free shipping guarantee, same-day delivery, or next-day delivery badges also drive more sales & cart conversions by showcasing fast Shipping Tags – dynamic 1, and 2-day delivery promises based on the location of the customer. A few points to note in this regard are: Conversion rates were lower in control tests conducted on eCommerce sites that did not display a trust badge.Conversion rates can be reduced by trust badges from lesser-known online security brands.Conversions are most likely to increase when trust badges from well-known brands are used. 8 Benefits of Fast Delivery Tags Such as Amazon Prime Badges to eCommerce Brands in 2024 Provides Enhanced Visibility The products that have fast delivery tags such as Amazon Prime badges are automatically favoured by search engines and are constantly promoted by eCommerce marketplaces like Amazon due to the goods that are eligible for Prime shipping being provenly more successful and profitable to the selling platform and the retailer, alike. This increases their visibility to a wider range of customers. Enables a Competitive Advantage Over Rivals Companies and platforms that make use of fast delivery tags can gain a significant competitive advantage over their rivals due to the indication that orders will be shipped more rapidly. Due to the prominence of Prime badges and their instant association of them with fast shipping, customers perceive that they will get their orders faster and will tend to gravitate toward brands that can meet their delivery requirements. Expands Your Customer Base Customers these days are often in a hurry to receive their orders in the shortest amount of time possible due to them diverting their time to so many different activities. Thus, consumers often prioritize fast delivery over everything else and will look for brands that have an easy indication that they provide this service. Fast delivery tags do just that and can attract new customers, specifically for the promise of fast delivery. Leads to an Increase in Conversions When customers see that the product they want to buy has fast shipping tags, they instantly lose any apprehension they might have had because they are now aware that their product will reach them, either within the same day or the next day, depending on the delivery speed promised by the badge. This will instantly lead to an increase in the number of customers that make purchases as opposed to abandoning their carts midway. Provides More Trust to Consumers Fast shipping tags often act as a verification that a brand and its products a legitimate. In a similar manner to a blue checkmark on Twitter or a verification logo on Instagram, customers will automatically gain the perception that they are dealing with a professional service and are more likely to purchase a product that has this stamp of approval than one that doesn't. Reduces Returns Since fast shipping tags help make customers aware that they will receive their orders in the foreseeable future, they tend to be less aggravated and perplexed about when their orders will arrive. This reduces the chances of them losing faith in the delivery process or the company itself, and initiating a return and asking for a refund. Lowers Costs and Increases Profit As mentioned above, fast shipping tags provide more encouragement to customers to go through with their purchases, which leads to more sales and less shopping cart abandonment and also reduces the rates of return initiations, which reduces the logistics costs that retailers have to incur in order to transport goods back to their warehouses. Helps to Consolidate Inventory When a bunch of products qualify for fast delivery and have shipping tags that convey the message to both customers and retailers, they can be stored in a designated area that is only for products that have this delivery advantage. This makes it easier to instantly locate, package, and ship products so that they can be delivered faster and meet the required ETA. Products on Amazon.in that are represented by Prime Badges Where Do Trust Badges Go on Websites? An intriguing aspect of research conducted by Baymard is the discovery that, depending on the design of the website, users perceived certain parts of a page to be more secure than others. It is important where you place your trust badge to increase eCommerce sales. A trust badge can be placed anywhere on your website. Still, it will most likely have the greatest impact in places where the buyer questions the site's security, such as a checkout or registration page, in order to reassure them that it is secure. Let's take a look at some popular placement options: Homepage A trust badge or fast delivery tag on your homepage immediately begins to build user trust. Many businesses have a trust badge above the fold on their homepage but it could also detract from the design. Trust badges or shipping tags on the homepage should be visible but not overpowering. If you don't think your site seal fits with the design of your page, there are plenty of other places you can put one. Site Footer One of the simplest ways to spread trust is to place a trust badge in your site's footer. When you add it to your website's footer, it will appear on all pages, including the homepage. However, that should not be the only location you consider. Many customers never look at the footer, especially when deciding whether to enter their credit card information into a checkout form. You also don't want the footer to become overly cluttered with site seals, social media icons, and other information. Just add trust badges to increase eCommerce sales. Product Pages A common location for trust seals on a product page is right next to the "Add to cart" option. It helps customers to achieve more trust in the business while checking out. Checkout Page For most businesses, the checkout page or form is the most important place to include a trust badge or a fast delivery tag. You want users to see that trust seal right when they're wondering if it's safe to enter sensitive payment information. Types of Trust Badges A trust badge is any website icon that provides visitors with a sense of security. Some of the most common ones are listed below: SSL Certificate Badge SSL is an abbreviation for Secure Sockets Layer. It is a protocol for encrypting and authenticating data sent between two applications, a browser, and a web server. TLS, or Transport Layer Security, is a newer, more up-to-date version of SSL, but SSL remains the more commonly used term. While some service providers use SSL/TLS certificates, others use SSL to refer to both protocols. You've probably seen the little padlock next to a URL in your browser that indicates a secure connection (or a warning message that your connection isn't secure). Those are predicated on the presence of a valid SSL certificate. Many SSL certificate providers also provide a trust badge that you can place on your website. Security Badge SSL site seals are not the only trust badges that you can obtain to demonstrate the trustworthiness of your website. Some providers specify the security features required to obtain a badge. TRUSTe, for example, awards businesses a trust badge based on their adherence to international privacy standards such as GDPR. Accepted Payment Badge You'll notice that 7% of respondents in the Baymard Institute study abandoned their shopping carts due to a lack of payment options. Consumers prefer payment options with well-known brands such as Visa, MasterCard, or PayPal. When a shopper can use their preferred payment method, the site feels more secure and legitimate. An accepted payment trust badge informs your site visitors that you accept those payment methods and adhere to the stringent security requirements of those payment providers. These badges are typically free and simple to obtain from payment cards or online payment companies. You can learn more about them by visiting their websites. This is one method that delivery companies use trust badges to increase eCommerce sales. Third-Party Endorsement Badge There are a few trust badges available that endorse your company as a whole. The Better Business Bureau offers an impressive but difficult-to-obtain badge (BBB). After receiving BBB accreditation, you can display this badge on your website. It will cost you $75 to apply for accreditation. Assume the BBB investigates your business practices and determines you meet its standards. In that case, depending on the size of your company, you'll have to pay at least a few hundred dollars per year to maintain accreditation. You can also get a free endorsement badge from Google Reviews. This badge displays your seller rating if you have received at least 100 reviews in the last year. All you have to do is follow the Google Reviews guidelines. Your older customers will be impressed by the BBB badge. Google, on the other hand, will have more brand recognition if your site's audience consists primarily of Millenial and Gen Z shoppers. If you are a SaaS company, you can also include badges from crowd-sourced review sites such as G2 Crowd. This use of trust badges to increase eCommerce sales will also increase your credibility with potential customers. Guarantee Badge Guarantee badges differ from the other types of trust seals that we have discussed. They are typically not provided by a third party and are not subject to a certification process. They are simply an image that represents a promise made by your company to its customers. Among the most common guarantee badges are: Shipping is always freeReturns are freeGuaranteed money back These badges are necessary because customer concerns about eCommerce are not limited to data security. They also want evidence that you will provide a pleasant online shopping experience. Ensure that the badges work. Simple 30-day money-back guarantee trust badges to increase eCommerce sales did so by 32.57% on a website that used it. How to Add Trust Badges to Your Website? Adding trust badges to increase eCommerce sales on your website does not require much technical knowledge. Many of them are easily added using the basic WordPress editor or other simple methods. A few of them are listed below: WooCommerce Checkout Templates The default WooCommerce checkout form already includes accepted payment icons, which serve the same function as trust badges to increase eCommerce sales. However, it may be beneficial to include additional trust seals on your checkout page. If you know how to code, you can add elements to the page yourself by using action hooks. You'll need the following: woocommerce_before_checkout_formwoocommerce_checkout_before_customer_detailswoocommerce_checkout_billingwoocommerce_checkout_shippingwoocommerce_checkout_after_customer_detailswoocommerce_checkout_before_order_reviewwoocommerce_checkout_order_reviewwoocommerce_checkout_after_order_reviewWoocommerce_after_checkout_form Browse the many available WooCommerce themes for one that allows you to add images to your trust badge location of choice for a more basic customization method. It does not provide as much flexibility as custom coding, but it is straightforward. WordPress plugins are also available that allow you to display badges on your checkout page and elsewhere. WordPress Plugins Using WordPress plugins, you have a plethora of options for adding trust badges to increase eCommerce sales. We've already mentioned Google Reviews and Customer Reviews for WooCommerce as badges for customer reviews. Review plugins are an excellent way to increase trust in your website. Some even provide additional badges based on reviews, such as a Widget for Yelp Reviews. Other plugins, such as YITH WooCommerce Badge Management, allow you to create badges in a variety of styles for your product catalogue. This type of badge plugin is ideal for shipping tags or fast delivery tags that say "free shipping" or "free returns." Finally, if you use the SiteLock plugin, some WordPress security programs, such as SiteLock, provide site seals. TrustedSite is a plugin that allows you to earn certifications and trust badges. Images Your trust badge could be as simple as an image placed on a WordPress page. Simply upload the image file and strategically place it on the page of your choice. HTML or JavaScript Some trust badges to increase eCommerce sales include a source code for embedding the badge on your website. It's common for badges to include links or pop-ups with certificate information. You can place these badges in your WordPress theme's header or footer. Conclusion: Using WareIQ’s Shipping Tags (Now Live on Shopify) to Increase Sales Conversions in 2024 As we have discussed all of the benefits and requirements of using trust badges to increase eCommerce sales on your website, it can help you build trust among your visitors while also increasing your sales conversion. And if you have an online store, you should opt for using trust badges to increase eCommerce sales. It is beneficial to use trust badges because if your visitors find your website safe and secure, they will undoubtedly convert into potential customers, assisting you in increasing your sales. Using a Trust Badge on your website can significantly increase your conversion rates and ROI, allowing you to generate more revenue from your website. An easy way to implement trust badges is by partnering with a 3PL fulfillment company like WareIQ, which will implement trust badges on your website, on your behalf. WareIQ's trust badges that are displayed on your website and product pages assist customers in finding out serviceable pin codes and estimated delivery dates for products listed on the site. You can make quick and transparent delivery timelines your competitive advantage with our custom engine which identifies if products are available in inventory, smartly chooses the closest warehouses, and identifies the fastest possible route to enable the fastest and smoothest delivery experience to customers. Speed Up the Sales Conversion Rates of Your Business Through WareIQ's Well-Communicated Shipping Timelines Provides reassurance to customers by adding Prime-like badges to your websiteHelps you utilize our fast delivery tags on your product pagesEnhances your add-to-cart conversion rate by displaying estimated timeframes for every product Why Should You Use WareIQ’s Post Shipping Badges? Assists in gaining knowledge about serviceable pin codes and estimated delivery dates for productsHelps to enhance the trustability of your company in the eyes of customers Benefits of Using WareIQ’s Fast Delivery Badges Assists in using trust badges to increase eCommerce sales of your productsSpecifies the tentative delivery time for each orderGains the trust of customers by providing amazon prime-like shipping tags on your web page How do WareIQ Shipping Tags Work? Checks the availability of products in the inventory in real-timeShortlists the closest warehouseIdentifies the quickest delivery timeline throughout our entire logistics network Shipping Badges on Shopify Shopify store owners that use WareIQ can make use of shipping badges on their productsThere are currently 3 badges - Same Day Delivery, Next Day Delivery, and Standard DeliveryIt provides an instant look at the product's delivery speed to customersWith this Fast Badge program, WareIQ + Shopify sellers would be able to improve sales by 20-40% on average and increase conversion rates by 40%With this release, sellers would also be able to charge a premium for expedited deliveryMake it live on your Shopify store with a few clicks Trust Badges to Increase eCommerce Sales: FAQs How do I add trust badges to a WooCommerce product page?1. Create a seal in TrustLock or find an image to place beneath your purchase button on Woocommerce Product Pages.2. Copy the iFrame code or the HTML code for the Free Trust Badge.3. The Hooks plugin make it simple to insert the code.4. Insert your code into WordPress without using Hooks. Where can I get trust badges?If you are looking for a trust badges and shipping tags provider in India, WareIQ can be of assistance. We help users to avail of trust badges and shipping tags through our Shipping Badges App. Why are trust seals important?Numerous studies have demonstrated that trust seals have a significant impact on consumer behavior. According to a study conducted by Actual Insights, trust logos increased the perceived trustworthiness of a brand in 75% of respondents. How can WareIQ shipping tags benefit your business?Our shipping tags help in instantly checking if a product is available in stores, ascertain the closest warehouse, and identify the quickest possible routes to assist in providing the fastest and most efficient delivery experience.

August 04, 2022

Top 20 Shopify Websites to Help eCommerce Retailers Set Up Their Own Shopify Store in 2024

In the current day and age and with the dawn of the immense growth of the eCommerce industry, retailers are constantly looking for the best option to sell their products online. In the past decade, there has been an onset of large international conglomerates and homegrown selling platforms that have entered the Indian market and trying to out-compete each other in terms of attracting the largest number of sellers and customers to their platforms. One company that is a household name in the online selling space is Shopify Inc. and with a whopping 1.7 million businesses choosing to sell on the company’s marketplace, it isn’t surprising that most retailers aspire to sell their products on Shopify. Not only does it differentiate itself from its competitors by also providing services for offline businesses despite conventional eCommerce marketplaces only catering to online stores/businesses but it also enables users to build their own websites that can be customized to their requirements using inbuilt tools provided by Shopify. This greatly aids in the personalization that retailers are able to provide to their customers. Read further to get an in-depth overview of what Shopify websites are, their benefits, best practices to implement, and the top 20 Shopify stores to get inspiration from in 2024. What are Shopify Websites? Shopify websites, also called Shopify stores, are digital pages that are owned by retailers who sell their products on Shopify and are similar to listing pages on other eCommerce marketplaces that allow customers to browse through various product catalogs and consist of details such as photos, product descriptions, pricing and much more. The primary difference between Shopify websites and typical product listing pages is that these websites have their own domain name and operate independently from the Shopify app itself. Customers are able to interact with these websites like any other self-sufficient online site. Shopify provides its own website builder that provides a seamless experience even for people that lack technical know-how, due to the lack of coding requirements and the provision of most features in an easily-accessible format. Additionally, retailers who have existing websites that use WordPress, Squarespace, Wix, or any other website-building platform can easily integrate them with Shopify without having to create a whole new store from scratch and that's how easily you can sell on Shopify. [contactus_lilgoodness] You can also check other alternatives to Shopify here. Benefits of Using Shopify Websites Has a Relatively Easy Setup Procedure Shopify websites are extremely easy to setup and integrate, regardless of whether a retailer is using an existing website and simply wants to synchronize it with Shopify or if they need to build a website from scratch using Shopify’s inbuilt tools and need to import all their previous data such as product variations, photos, item/product descriptions and order history. Even though Shopify stores offer a large number of facilities, they are presented in a decluttered and easily navigable way to make it easy for users to access and make the most out of the ones that they need. Does Not Require Technological Competence The website builder that is used to create Shopify websites was fabricated on the basis of enabling normal store owners who may not have vast amounts of technical expertise but just want a reliable platform to sell their products on, to easily be able to set up and operate their websites seamlessly, with Shopify taking care of the more complex procedures such as website maintenance and hosting. Updates are also sent out by Shopify so users simply need to click on a button, similar to updating the software on a phone or laptop. Provides Advanced Security Facilities Retailers that operate their own Shopify stores can have peace of mind knowing that their prized online assets are protected by astounding, industry-leading levels of digital security. With the sheer amount of sensitive information that eCommerce companies deal with such as credit card information, online payments and contact details of their customers, having a safeguard to prevent any malpractices from occurring can be encouraging for both retailers and their customers. Offers 24/7 Customer Support When retailers choose to utilize Shopify websites to sell their products, their customers get access to round-the-clock customer care facilities so that any query or issue regarding their order can be instantly resolved to prevent a negative purchase experience. This helps retailers be shielded from bad reviews and poor feedback because all the customer support is provided by Shopify. Provides Access to a Vast Amount of Applications Retailers that use Shopify stores to sell their products can enhance their website’s visual appeal and productivity by making use of a whole range of applications and themes that can be easily downloaded with a single click. In addition to a choice of 160 plus themes to personalize their Shopify websites, retailers can also install applications to add additional features such as social media integrations, wishlists, marketing apps, analytics, reviews, and much more. Suggested Article: List of best Shopify shipping apps for 2024 Best Practices While Running Multiple Shopify Stores Implement a Standard Theme For retailers that run multiple Shopify websites to sell similar products, they need to stick to a standardized theme for all, even if minor design cues may differ on each website. This is to create a cohesive brand image that can be easily recognised by customers as opposed to having multiple different themes that do not look like they are a part of the same company. While aspects of Shopify stores such as language and customised marketing can be implemented for stores in different countries or markets, the general theme of the website should be similar across the board. Use a PIM for Inventory and Order Management If a retailer needs to operate multiple Shopify stores, they may have to use different accounts and shell out an additional $2,000 every month. However, there is a method to bypass the need for retailers to do this and that is by using a product inventory management (PIM) system. It provides insights and summarizes data, across multiple Shopify websites and can be accessed from one central dashboard. Changes to inventory levels, product listings and orders that are made will be synced across all the websites. Offer a Help Desk to Customers Even though Shopify manages customer support on the behalf of retailers, sellers that run multiple Shopify websites would be better suited to set up a help desk that can integrate across all stores so that customer queries, complaints and order-related information can be accessed in one location so that tyey can be managed and addressed easily. This will increase customer satisfaction and reduce the number of unsolved requests. Top 20 Shopify Websites for Online Retailers to Get Inspired From in 2024 Raymondnext.com Raymond Next is the Shopify website of a long-time success story in the clothing industry in India - Raymond. With the onset of Raymondnext, customers can effortlessly get the clothes of their choice delivered by Shopify right to their doorstep. The website design is centred around minimalism and putting out a laid-back vibe that coincides with their messaging of being a clothing store for men. Source Femella.in In keeping with the trend of successful clothing stores in India, Femella.in is the Shopify website for Femella, an apparel brand that is primarily targeted toward women. Operating since 2008, it aims to offer the newest trends and items at affordable prices to women all over the country and with the customers being able to order their products online and have them delivered to their location, Femella has succeeded. The website itself has a white background with a bright red cover photo to add a hint of colour. Source Goodstuffofficial.com The online store of Goodstuffofficial is one of many Shopify websites that takes a more bold route with its colour choices while also focusing on detailed, high-resolution photography to keep their customers engaged and enticed to buy their products, which makes sense as they mainly target young and enthusiastic shoppers. They also set their navigation buttons at the top to enable users to quickie get to the section they are looking for. Source Luxyhair.com Luxyhair is one of many Shopify websites that sells exclusive hair products. However, the design of their website is what sets it apart from its competitors. With a simple white background, emphasis on product benefits and easy-to-view CTA buttons, its website offers a simple interface to customers. Source Yellowfashion.in Yellowfashion.in is one of the many Shopify stores that supplies Indian ethnic wear that caters to many different occasions and festivals. Their website contains a ton of information including their contact information and hours of operation. Additionally, they use a diverse colour palette consisting of pink, yellow and brown on their logo to emphasize their brand objective of providing traditional clothing for a vast range of purposes. Navigation on their website is also pretty straightforward. Source Namustore.com Namustore primarily caters to women that are looking to diversify their wardrobe collection for the holidays. For their Shopify website design, they have focused on creating an elegant theme and have also abstained from the traditional square photo grid that is used on most other Shopify websites. Source Nonasties.in Nonasties is a fabric company whose unique selling point is providing 100% fiar trade cotton apparel for both men and women. Like many other Shopify stores, their website design is focused on a simple navigable interface that provides plenty of room for large, high-resolution images that show off their items to potential customers. Source Royalenfield.com Royal Enfield is synonymous with providing modern, retro-styled motorcycles in India and has also expanded into many foreign markets such as the UK and US. Their store is one of the only Shopify websites where customers can purchase authentic Royal Enfield-branded merchandise such as jackets, helmets, riding boots, gloves and much more. The website makes use of the brand's dark colours and also implements a camouflage pattern to provide an impression of ruggedness and quality. Source Hugedomains.com Huge domains is one of the few Shopify websites that allows its customers to purchase unique domain names at significantly reduced prices compared to the competition. The theme of the website has a monochrome bluish background with black and white text. A lot of effort has been made to add a plethora of information on the home page while reducing the sense of clutter. Source Fabmart.com Fabmart is a homegrown retail company that was founded in 2012 and is one of the few Shopify stores that focuses on selling its products exclusively through Shopify. The website uses a white background that is contrasted with dark colours and a unique font that provides the perfect insights into the brand and its objectives. Source Hauslondon.com Haus London is a company that sells multiple home decor products such as modern furniture, lighting and home accessories. In keeping with its contemporary appeal, the website uses a light and minimalistic theme to offer customers an insight into their philosophy. Source Studioproper.com Studio Proper is one of the many Shopify websites that sells technology-based products. Its tagline of “Simplifying everyday experiences with technology” has also clearly inspired their website design by using a modern theme and a simple layout for customers to easily navigate for what they are looking for. Source Thecriticalslidesociety.com Even though the Critical Slide Society is one of the many Shopify stores that sell clothing, it distinguishes itself by selling casual and surfer-themed apparel. The website is also minimal, fresh and allows the owners to constantly put out messages that they want their customer base, consisting of artists, designers, photographers and surfers, to see. Source Quadlockcase.com Quadlock is a phone case and mount manufacturing company that sells custom cases and phone mounts to allow customers to attach their phones to their cycles and motorbikes. Their website contains gifs of their products in action, curated product bundles and much more. Source Tluxe.com Tluxe is an Australian clothing and apparel brand that won the 2018 Good Design Award. In addition to the navigation controls on the home page, the website only has a main banner and its Instagram feed, making it one of the most simple but intuitive Shopify websites. Source Brilliant.co Brilliant is one of the most popular Shopify websites to purchase bicycles. Their website is centred around high-resolution photography of their products, with splashes of colour to add contrast. Their navigation is also user-friendly. Source Themodernshop.com The Modern Shop is a Canadian home decor company that sells accessories, lighting and unique furniture. Like many other Shopify stores, it uses a minimal white background with blue contrasts and navigation is also seamless and easy to use. Source Thecandifactory.com The Candi Factory is a clothing and apparel brand for both men and women. Their brand image is centred around personalization and their Shopify website helps them achieve this messaging to their customers with a white background and quaint photography that emerges as a natural highlight. Source 18karatwholesale.com 18 Karat Wholesale is a jewellery wholesale company that caters to retailers and other businesses which exposes them to a different audience than if they were a B2C company. This is also reflected in their website design, which offers a professional and easy-to-browse interface. Source 49thcoffee.com 49th Parallel Roasters is one of the top Shopify websites for coffee products. Their website design includes realistic photographs of their high-quality coffee products which blend in with their minimal theme and background design. Source Conclusion: Integrate With Shopify Through WareIQ Shopify websites offer an easy-to-use and intuitive means for eCommerce retailers to sell their products to a large audience while maintaining and conserving their own brand image by being able to customize their Shopify stores with themes and features that appeal to them and their customer base. With all the benefits on tap, setting up Shopify stores makes sense for retailers who have an eye for personalization and prefer selling products on a dedicated website while simultaneously using other platforms to attract as wide a range of customers as possible. If you are a retailer that uses Shopify websites to sell your products and needs an eCommerce fulfillment company for Shopify fulfillment that can seamlessly integrate with Shopify and fulfill orders on your behalf, you can consider teaming up with WareIQ. You can alternatively check out their page for all details on Shopify Order Fulfillment. WareIQ is one of the fastest-growing eCommerce fulfillment companies that is based in India. We provide a wide swathe of eCommerce solutions to tackle every requirement that retailers may have. In regards to Shopify websites, we offer the following services that can help make your life easier: Custom WMS We offer a custom WMS that can integrate with more than 12 of the largest eCommerce marketplaces including Shopify to be able to manage your inventory and order data, across platforms and fulfillment centers, in one centralised location. Choice of Shipping Aggregators We have partnered with more than 20 of the biggest shipping service providers in the country and automatically assign the quickest and most cost-effective option for every order to increase speed and save money. Pan-India Network of Fulfillment Centers and Dark Stores We offer a network of fulfillment centers and dark stores that are scattered across every corner of the country so that you can store your inventory closer to high-demand locations. We also offer smart inventory placement by helping you determine suitable locations for each product based on its demand. Pay Only for What You Use We do not enforce any minimum order requirements. You only pay for what you use whether it is storage space, services you take advantage of or orders that are shipped. This will help you manage your finances more efficiently. [signup] Suggested Read: Learn About Shopify Plus Stores Shopify Websites: FAQs How successful are Shopify stores in India?There are many successful Shopify stores in India that sell a wide variety of products. However, it is important to consider that creating a well-designed online store is just a piece of the puzzle in eCommerce retail. What features does the Shopify website builder have?The Shopify website builder has features such as:- No need for coding requirements- Secure checkout- Point of sale system- Collection of 6000 apps- Free and paid themes How can you identify which website builder was used to create a website?Online tools, Chrome extensions and search engine apps can be used to identify which website builder was used to create a website. There are currently more than 1.7 million websites that were built with the Shopify website builder. How much does it cost to create a website on Shopify?If you outsource your website building to an external agency, it can cost anywhere between $500 to $20,000 although the price will reflect the design, reliability and responsiveness. Can you fulfill Shopify orders with a 3PL company?Yes, Shopify can be integrated with 3PL companies like WareIQ so you can keep track of incoming order and inventory levels from one central dashboard.

August 03, 2022

What is Wholesale eCommerce? Definition, Features, Benefits and Top 10 B2B Wholesale eCommerce Platforms in 2024

Selling direct to customers is frequently the first thing that comes to mind when we discuss the current eCommerce sector, e.g., place an online order, and it will be delivered to your place. But mass online sales are increasingly popular in eCommerce. For example, B2B eCommerce site internet sales rose 17.8% over the previous year to $1.63 trillion. Online wholesale eCommerce has seen substantial growth in popularity over the past 20 years as more established B2B companies relocate their operations online. A Statista analysis found that US business-to-Business (B2B) online sales increased from $2.7 trillion in 2006 to around $7 trillion in 2019. Wholesale eCommerce is a business-to-business (B2B) eCommerce strategy where you provide your items in quantity and at a discount to other businesses instead of selling them individually to consumers. You operate as the intermediary between the manufacturer and the distributor or retailer. We'll go into great detail on wholesale eCommerce, including what it is, how it works, a comparison of some of the best platforms in 2024 for utilizing it, advantages for wholesalers of using it, and features to look for in a wholesale eCommerce platform. What is Wholesale eCommerce? The practice of selling goods in bulk to another company rather than to a customer's particular needs is known as wholesale eCommerce. A firm puts an order with you, the wholesaler, and you offer them the items at a reduced price through online platforms for wholesale eCommerce. In other words, you serve as a go-between for the producer and the store. You would purchase large quantities of products from the wholesaler for retail eCommerce businesses. As a result, it is much simpler for eCommerce companies to access a broad range of suppliers, compare costs, and even diversify their product offers. Additionally, producers gain by relieving the burden of seeking distributors for their products to reach final customers. Working in Wholesale eCommerce Selling wholesale entails a wholesale company providing large quantities to other wholesalers or retailers. Typically, wholesale brands and product producers engage in online commerce. A shop can receive bulk deliveries from a wholesaler and then send them to customers. In addition, wholesalers occasionally ship in bulk straight to customers. Because they need to accept large orders and make the delivery all at once, thanks to wholesale eCommerce, wholesalers can save shipping costs. In addition, the development of technology and changes in consumer behaviour have also fueled the wholesale eCommerce sector's rapid expansion in recent years. [contactus_uth] Why Should You Utilize Wholesale eCommerce? eCommerce wholesale refers to the online bulk discount sale of goods to another company. Wholesalers generate income by offering their goods for sale to clients at a greater price through their eCommerce website or physical shop. There are several reasons why a company could think about going wholesale, but not everyone should. Nevertheless, if any of the following apply to you, it could be good to give it a shot: Boost Your Sales Without Spending More on Marketing Using unique marketing techniques can help you reach a larger audience and increase sales. Some low-cost choices are available, but you'll almost always need to improve your marketing expenditure to boost your bottom line, lowering revenues. You may reach more people by selling wholesale goods without even investing much effort. Sending your product to other stores that handle the marketing allows you to save money. Many of them could also serve a completely different geographic or demographic group than you do. All of this contributes to raising sales without raising budgets. Expand Your Company Into New Markets Expand Your Company Into New Markets and Jurisdictions. Organizing eCommerce logistics (such as shipping, tax regulations, etc.) might be challenging. When you conduct eCommerce wholesale, the danger is much less. Additionally, your partners should already have client bases in your target market and be able to take care of all the little things. Getting Rid of the Storage Needs Since many businesses offer actual goods, they must keep them somewhere (assuming they don't sell on demand). Ecommerce shops give customers access to warehouses where they may keep their interests in huge quantities, but others may be forced to store their goods in small offices or even their homes. To free up your office space or lower your leasing expenses, you can send your items to wholesalers for storage if they buy your goods. Create a Supplier Network Whether your items are produced on-site or by hand, you still need a supplier. This person or business manufactures (or provides the raw materials for manufacturing) the items you sell. Small stores often only need one supplier, particularly if they have a single place of operation. However, if you want to expand through wholesale, you may locate various suppliers close to the stores you'll be working with. This enables you to network with potential business partners and assess shipping rates. Through these relationships, you might be able to find deals and specials as well as other options if a particular provider goes out of business. Enhancing Your Industry Knowledge Base Enhancing your industry knowledge and making more competent judgments will be possible if you have excellent wholesale eCommerce knowledge. 6 Benefits of B2B Wholesale eCommerce Selling in bulk has various advantages, from higher unit sales to cheaper logistical costs due to fewer individual shipments. In addition, DTC brands provide a B2B service by collaborating with other companies to market their products to gain greater exposure. Here is a summary of the top advantages of the wholesale eCommerce business model: Decreased Overall Expenditure You can access wholesale prices in wholesale eCommerce. This means you can buy goods for much less money than a retail e-commerce company. It's not unusual for wholesalers to purchase goods at prices that are more than 100% less expensive than retail. Because your overall cost is reduced, you can offer things in bulk to retailers at a lower price because you're spending less per unit. Additionally, since you're selling items in bulk rather than individually, you may dramatically save your shipping and eCommerce fulfillment expenses. This enables you to maintain minimal expenditure so that you may charge your consumers a competitive price for the things you sell. Enhanced Scalability The various advantages of buying in bulk mean that your company will develop more quickly. Because the business model guarantees more revenues and less spending, wholesale e-commerce has more space for growth. Additionally, you may reorder more merchandise quickly, enabling your firm to expand quicker than if you use DTC orders. Streamlined Purchasing Processes Because your B2B customers can easily compare pricing and make orders online, wholesale eCommerce may greatly simplify the purchasing process for these clients (as opposed to more traditional, manual channels like in-person, phone, and mail-in orders). The difficulty of haggling with wholesalers and placing their orders over the phone or via email, which might take longer, is reduced by this automation. In addition, the streamlined purchasing procedure improves the B2B buyer experience, which creates the foundation for increased client loyalty. Ease Automation Selling in bulk sometimes entails a complex procedure with several moving parts, time-consuming processes, and extensive documentation. As a result, first impressions may often be deceiving, especially for people unfamiliar with the entire sector. Wholesale eCommerce streamlines it for you through the automation of many laborious procedures and the automatic placement of reorders. B2B buyers may effortlessly place their purchases through wholesale eCommerce without involving you directly. Additionally, automated order recording and processing reduces the requirement for physical paperwork and handwritten records. As a result, you'll spend less time monitoring your orders directly and have more time for your business's more strategic operations. Predictable Profit Margin You often sell for long-term, semi-regular clients (sometimes with contracts) for wholesale eCommerce operations. As a result, it is considerably simpler to forecast your profit margin for each month, quarter, or year (as opposed to e-commerce customers, whose conversion to repeat business is hoped for but not guaranteed). This makes it easier to predict your earnings precisely in advance, which may be helpful for budgeting and financial planning initiatives. Convenient in Entering New Markets Any organization that wants to grow may find it incredibly difficult to do so since doing so involves several logistical and marketing issues. You can more easily enter new markets (even locally) by selling wholesale to a well-established shop since you may be able to make use of their influence, distribution network, and clientele. Of course, other nations may have different laws, but strengthening these ties might ease the burden. How to Become a B2B Wholesale Supplier You must take a few measures if you believe that being a B2B wholesale supplier is the best course of action for you. The regular route to becoming a wholesale distributor for eCommerce enterprises is summarised below. Conduct Market Research While wholesale eCommerce has many advantages, the business can be cutthroat. Remember that you'll be up against many other companies with solid clientele. It's crucial to start by thoroughly investigating the market. You may use this to find any openings or vulnerabilities that you can take advantage of. Are there any categories, for instance, that are not well supplied? Or are the current wholesalers unable to satisfy a specific demand from B2B clients? Utilize your study to find the best audience to reach so you can start strong. Choose Your Niche Concentrating your efforts and resources on profitable and low-investment product categories while you're just getting started is crucial. So instead of attempting to sell everything to everyone, concentrate on building your company in a specific niche. This reduces the chance you'll blow your whole budget on products with poor profit margins or ones that won't sell well. Additionally, choosing a speciality makes it simpler to locate trustworthy producers and develop a connection with them. Similarly, developing your credibility and establishing a long-term relationship with B2B buyers in your selected industry is simpler. Make a Plan for Distribution and Fulfilment Deciding how to deliver the products and complete orders for your B2B clients is an essential next step. Wholesale marketplaces like Alibaba are used by a lot of e-commerce wholesalers to distribute their goods. They could also have a website where B2C e-commerce companies and retailers can buy the goods. You will probably need to do some outreach to attract customers before any show up out of the blue. This may mean directly contacting retailers and e-commerce platforms and presenting your offer to them (explaining why your product is different or the value it brings). Make sure everything is planned out before you start selling wholesale. It would be excellent if you also considered your wholesale fulfillment strategy. Will you keep the items in your warehouse or warehouses?How will the products be delivered to your B2B clients?Would working with a partner managing your entire wholesale fulfillment operation be preferable? Get The Required Licences As soon as possible, be sure you obtain the necessary wholesale licences and permissions you'll need to buy and sell items at wholesale prices. Regulatory requirements often require a reseller's approval to prove to manufacturers and customers that you are a legitimate wholesale company. Check the specifics on your municipality's tax or revenue website and consult a lawyer and accountant as the permission requirements may differ by state and nation. You must have an employer identification number (EIN) if you intend to employ people for your wholesale company. In addition, a sales licence is required to obtain a legitimate licence to resale the purchased items. Also, don't forget to bring your sales tax ID to collect the proper taxes, pay them, and keep accurate records of your tax payments. You would also need a licencing agreement for goods subject to fierce competition or including intellectual property. This aids suppliers in maintaining control over the volume, kind, and market of the commodities offered. Choose Your Supply Chain Partners Carefully Finding trustworthy businesses to collaborate with for your wholesale eCommerce business is one of the most critical phases. This phase decides how profitable and long-lasting your company will be. To begin with, you should work with suppliers who offer the goods you're looking for and have a good standing in the market. They ought to be able to provide reasonable wholesale prices so you can still turn a profit even if you sell the products at a loss. Consider partners that can also aid in many facets of your e-commerce supply chain. For instance, if you intend to outsource fulfilment, you'll need to choose a trustworthy partner with the resources and ability to manage wholesale fulfilment. Create a Pricing Strategy Another crucial element affecting your wholesale business's total profitability is your pricing strategy. Again, this might be the most challenging phase since you need to sell the products at a price that would appeal to wholesale purchasers while ensuring a healthy profit margin. In addition, if you sell retail and wholesale, you should watch out for too-low wholesale prices that allow retailers to undercut your retail prices. It's not unusual for wholesale enterprises to charge twice as much for products as they paid. Therefore, an excellent strategy to guarantee a better average order value is to set a minimum order quantity. Create Your Wholesale Online Store In a wholesale marketplace, it is considerably simpler to capitalize on the current client base, but there is less possibility for expansion. When you exclusively sell through marketplaces, developing a solid brand and establishing yourself as a reliable wholesale company is challenging. A separate website is thus a need if you ever hope to grow your wholesale eCommerce firm and establish a reputation for yourself. Your website establishes you as a reliable wholesaler and makes everything easier for everyone. You may utilize your website to present all the pertinent details about your wholesale products, including wholesale prices, the minimum order amount, and anticipated delivery times. Your B2B customers won't need to pick up the phone or email to place an order because all the necessary information is readily available. As a result, you may save time by using this method instead of taking orders or fielding consumer inquiries over the phone or email. Additionally, it will be unnecessary for you to physically write down the orders on paper and fax purchase orders to the necessary parties. Orders are automatically registered and processed, which minimizes your manual labour requirements and optimizes your wholesale eCommerce operation overall. What Are the Best Features of Wholesale eCommerce Platform? E-commerce systems must have specific characteristics to be the most crucial choice for wholesale enterprises. Platforms are fortunately becoming easier to use as eCommerce develops and becomes more popular. However, retailers and wholesalers anticipate the same usability and accessibility that consumer-facing companies offer. Finding a reliable wholesale platform involves looking for a few factors, including the following: Simple to Use The website admin should have no trouble using it while accommodating any potential B2B transactional complexity. The critical operations, such as altering the status quo and updating client data, should be rapid. B2B-based features B2B-based features: Any B2B-based wholesale eCommerce platform should be needed to have all necessary B2B features, such as multiple shipping, multiple payment options, account administration, inventory availability, past order duplication, bulk orders, price, etc. Integrations Any B2B wholesale platform may benefit from third-party integrations when managing various client touchpoints. The B2B wholesale eCommerce platform may quickly adapt the add-on features, pre-sales elements, post-sales experience, etc. Brand Recognition Because contemporary B2B customers prefer digital channels, the B2B wholesale eCommerce platform is perfect for introducing yourself to them. SEO strategies and a B2B wholesale platform make it simple to raise brand awareness and enhance sales. In addition, this platform may be used by B2B wholesale companies to sell their products using materials such as instruction manuals, white papers, industry articles, case studies, etc. Mobile Compatibility Any B2B wholesale platform must be mobile-friendly since more internet searches are only done through mobile devices. Therefore, any platform created for B2B buyers should be responsive and effective, even on mobile. 10 Best Wholesale eCommerce Platforms in 2024 From 2021 to 2028, the B2B e-commerce industry is anticipated to develop at a compound yearly growth rate of 18.7%. This is because all B2B wholesale organizations seek digital technologies to close the current income and sales gaps. So let's look at the top five and greatest e-commerce sites dedicated to meeting the strict business requirements of B2B wholesale. Alibaba.com Source This China-based wholesale marketplace supports various enterprises and has a sizable user base. You may sign up for free, get numerous quotations, and choose from a vast selection of items that are available for shipping to discover precisely what you need. Usability is crucial in this case, and the platform enables simple setup, various payment options, and many languages. Additionally, it provides trade guarantees and logistical services; a fee is levied for each. IndiaMart Source Both B2B and B2C services are offered on this platform. With more than 3 million suppliers and a focus on the Indian market, it is regarded as the top wholesale eCommerce site in the area. Growmax Source It is a top platform that provides B2B, B2B2B, and B2B2C features. It offers a wide range of functions for B2B wholesale firms. Growmax also ranks well on our list of e-commerce platforms for B2B wholesale enterprises because of how simple it is to use. The main characteristics are specialized customer service, order management, quotation management, product management, SEO management, customer-specific price management, etc. Opencart Source It is a free online storefront for wholesale B2B companies. It has been employed by several merchants throughout the years and has a lengthy history in the industry. It is the initial option for companies beginning their e-commerce venture. Its continued viability as the best B2B wholesale eCommerce platform is ensured by the extensive number of responsive features and plugins. Shopify Plus Source A wholesale website will eventually be necessary if you want to build a successful brand online. Shopify Plus is a well-known e-commerce platform that provides options for wholesale firms. You can instantly create unique pages suited to your business and audience with Shopify Plus. Additionally, you may define volume-based pricing and discounts, a crucial feature for wholesale eCommerce companies who buy completed items in large quantities. One of the top eCommerce systems is Shopify, utilized by significant direct-to-consumer (DTC) and wholesale firms. WooCommerce Source An open-source e-commerce platform with a lot of customization options is WooCommerce. By adding the plugin to your WordPress website, you can rapidly finish setting up your wholesale eCommerce store. With WooCommerce, you may install the necessary extensions to change the features and operation of your online store. But because there is far less built-in functionality, developing a wholesale eCommerce site may be time-consuming. BigCommerce Source BigCommerce, a top e-commerce platform, has robust capabilities to help your wholesale operation. It has integrated wholesale capabilities and front and back-end management that are both made simple. By placing your wholesale consumers into specific customer groups, BigCommerce makes it simple to tailor the website experience for them. They can benefit from special pricing and reordering procedures as a result. X Cart Source X Cart is yet another excellent wholesale eCommerce system that makes it simple for several suppliers to offer. Additionally, X Cart asserts that it is 66 per cent more affordable than competing products. Since you can link your ERP, CRM, and POS without writing any code, it also has tremendous usability. Additionally, it provides support for numerous languages and omnichannel content management. 3D Cart Source The best eCommerce platform for B2B wholesale businesses with a variety of product kinds is 3DCart. It features templates made to perfectly match your business's various items with little hassle. 3Dcart offers adequate room for more intricate customisation. You can modify HTML and CSS in all of your files, save changes, and make as many changes as you like. A lot of features for one-click ordering, target market segmentation, and numerous payment gateways with plenty of features of a mobile-friendly online store are among 3DCart's strengths. You pay for what you use, and you may customise pricing. However, some wholesalers may find 3DCart to be less beneficial because it is challenging to add items with various versions. Presta Shop Source Nice customization possibilities make this open-source platform popular. Even from start, an internet store is possible. Themes that have been expertly built and include the most widely used payment methods, unique service tools, and rapid setup features are included with Presta Shop. B2B companies may use a variety of modules to build their own e-commerce website and tailor the platform to their own needs. Customers, therefore, get a fully functional B2B website for their wholesale business. How WareIQ Helps Streamline Operations for Wholesale eCommerce Businesses A wholesale e-commerce firm has unique hurdles when it comes to setting up. The typical logistical and cost issues of e-commerce are amplified, particularly for companies handling increasing order quantities. One of the difficulties you have as a wholesale eCommerce company is fulfilling orders. WareIQ makes B2B fulfilment simple for you, allowing you to optimize your wholesale eCommerce operations. In addition, you may use the B2B fulfilment service to hire professionals to handle your complete wholesale fulfilment process. By doing this, you may avoid building your fulfilment crew, which can be expensive and logistically challenging. Additionally, you won't have to stress about the logistics of receiving wholesale orders on Using the WareIQ dashboard, you can quickly build B2B wholesale orders and send them to your retail partners. From that point on, you may delegate fulfilment of wholesale and other B2B orders for your retail partners to WareIQ. To handle new orders and generate packing slips, the WareIQ dashboard will automatically import data from your purchase orders. This dramatically streamlines your wholesale eCommerce operations by reducing the amount of human labour and paperwork required. [signup] Whole Ecommerce Platform: Frequently Asked Questions (FAQs) What is wholesale online shopping?The online sale of items to anybody other than a final customer is known as wholesale eCommerce. These products are bought to be sold again. In other words, you are engaging in wholesale e-commerce if you are purchasing goods in bulk from a middleman who purchases them directly from the manufacturer. How can a wholesale eCommerce company be launched?By obtaining the required licences and permissions, creating a wholesale eCommerce website, and locating reputable supply chain partners including manufacturers, suppliers, retail outlets, and fulfilment firms, you may launch an eCommerce wholesale business. How do wholesale eCommerce platforms differ from regular eCommerce platforms?Wholesale eCommerce platforms are typically geared towards B2B (business-to-business) sales, whereas regular eCommerce platforms are designed for B2C (business-to-consumer) sales. This means that wholesale eCommerce platforms may have different features and pricing structures, and may be more focused on bulk orders and dealing with other businesses as customers. How do I choose the best wholesale eCommerce platform for my business?When choosing a wholesale ecommerce platform, it is important to consider the specific needs of your business. Some things to consider may include the types of products you sell, the volume of sales you expect to make, the types of customers you want to target, and the features and tools that are most important to you. It may also be helpful to compare different platforms and read reviews from other businesses that have used them. Are there any drawbacks to using a wholesale eCommerce platform?One potential drawback of using a wholesale Ecommerce platform is that they may require a membership fee or charge transaction fees, which can cut into your profits. It is important to carefully review the fees and terms of any platform you are considering using to ensure that it is a good fit for your business. Additionally, wholesale e-commerce platforms may have more stringent requirements for becoming a seller, such as having a valid resale license or meeting minimum purchase requirements. Is B2B and wholesale eCommerce similar?B2B business is a sort of wholesale e-commerce, while the names are sometimes used synonymously. After receiving goods from the producer, they sell them to other companies.The quantity that wholesalers buy and their particular business strategy serves as the main differentiators that characterise them.

August 03, 2022

What is Online Consumer Behaviour? Why is It Important to Track Consumer Behaviour Towards Online Shopping to Meet eCommerce Expectations in 2024?

It is doubtful that anything will ever return to how it was in the past. Physical contact and trade are quickly sliding into obscurity. Online purchasing will probably become the standard for everyone in the future, pandemic or not. The number of online companies and service providers has increased in tandem with the rise in demand for online services. Of course, the pandemic's impact on the standard of living for regular people accelerates this rise in eCommerce. With all the world-altering changes that have occurred in the past couple of years, it's critical to examine how online consumer behaviour has changed, including where they shop, how they shop and what they seek. The fact that internet purchasing is accessible 24 hours a day, seven days a week via smartphones and tablets contributes to rising changes in online buying behaviour. In order to constantly deliver a great customer experience, businesses must take into account the psychological components of online retail while creating websites, as well as the attraction and retention of online customers. What is Online Consumer Behaviour? Consumer decision-making in online commerce is referred to as online consumer behaviour. The behaviours themselves, such as recognizing a problem or choosing to buy something, are based on constantly changing wants and expectations. Additionally, while every buyer has different demands, the new expectations that shape consumer behaviour towards online shopping are firmly rooted in uniformity. Customers use the Internet to compare costs, product features and the availability of post-purchase services before making an online purchase from a particular online retailer. Customers' decisions to buy products online and whether or not they will remain, devoted customers, once they have made a purchase, are influenced by expectations such as product availability, delivery transparency, reasonable shipping, and more recently, a convenient buying journey. How Does Online Buyer Behaviour Differ From Offline Buyer Behaviour? Online buying is frequently thought of as being quicker, simpler, and more convenient than traditional offline purchasing. This may be an overly optimistic stance without any backing from the academic literature. While some shoppers might like or feel more at ease entering a physical store in a more traditional offline buying environment, others might choose to shop online. Numerous traits of both the shopping experience and customers could shed insight on why people might favour one over the other. Consider the scenario where you require a new bed. Where should you start your research on which bed to buy? Do you travel further afield to compare the same make of bed across a lot of physical stores or do you visit your local retail center and only the bed shops that they provide? Alternately, you may have already looked online to limit your options for a bed and mattress before visiting offline merchants to compare prices. Online reviews and consumer reports may have had an impact on online consumer behaviour. On the other hand, you might have looked at beds in brick-and-mortar stores before looking for the greatest offer online. The key point is that there are multiple ways in which our offline and online shopping habits might merge or diverge completely. Retailers must transform a minefield of individual traits, preferences, perceptions, and interpretations into monetary gain from both online and offline customer encounters. When all of these elements are taken into account, it is easy to understand why some major retail businesses have recently filed for bankruptcy. Physical premises that cost a lot of money are required by offline merchants to display and store goods. In comparison to internet retailers, they also need more workers. Online retailers must, of course, take distribution and delivery into account but because of the cheap costs associated with website hosting and storage, they can sell a large number of items for a relatively tiny unit profit. Although many merchants now provide a mix of online and offline sales, conventional stores still find it difficult to compete with businesses that just conduct business online, especially if they run on a high unit profit with low volume turnover. Understanding the specific variations in online buying behaviour can help them convert online footfall into profit. [contactus_gynoveda] Five Trends That Influence Consumer Behaviour Towards Online Shopping Five key eCommerce trends that influence online consumer behaviour towards shopping were recently highlighted in a research study. While these tendencies manifest at distinct stages of online consumer behaviour, they all share one element - convenience. Understanding these new trends and implementing business tactics to satisfy the demand for an easy purchasing process is essential for eCommerce success. Convenience is a Top Priority 76% of consumers rank convenience as one of their top objectives, according to a recent study while 78% of consumers now place higher importance on convenience than they did prior to COVID limitations. The option to browse an online store and check out as a guest is one of the main conveniences that customers value. Additionally, shoppers regard their overall shopping experience to be more convenient and superior if they are required to fill out fewer forms. Easy Access Across All Devices A seamless transition across devices is desired by 81% of online buyers during the purchasing process. In fact, it is now expected that customers would be able to start their shopping adventure on one platform like a desktop and finish it on another, like a mobile device, all without being interrupted. On whichever device customers conclude their shopping journey, checkouts with personal information already filled in are likewise anticipated as part of this cross-platform experience (even if they filled in these details on a different device). Access to Omnichannel Shopping Online consumer behaviour is centred around an "always-on" shopping experience thanks to access to many technological possibilities. 70% of shoppers now multitask while shopping (for example, while scrolling through social media platforms). Additionally, they have grown accustomed to expecting their preferred brands to be available on the channels where they spend the majority of their time. This maximizes convenience by preventing them from ever having to leave their preferred and reliable platforms during the purchasing process. Retailers may do this by adopting an omnichannel strategy and concentrating on the many online marketplaces where customers spend most of their time. More particularly, this means selling on social media platforms like Facebook and Instagram. Effortless Payment It is crucial to concentrate on all facets of the customer experience when merchants are thinking about how to keep up with the ever-changing online buying behaviour of customers. Consumers look for convenience at every step of the purchasing process. They search for eCommerce web stores that have simple-to-install payment gateways and also accept well-known payment options such as buy now and pay later as part of the end-to-end purchasing convenience. 89% of consumers make purchases more rapidly due to the ease of payment choices. Additionally, 84% of customers who are offered simple and flexible payment choices choose to purchase higher value orders. Fast and Reliable Delivery Fast delivery options are considered essential when shopping online by 95% of respondents. In order to save shipping costs, accelerate delivery times and satisfy customer expectations, most retailers need to offer quick same-day or 2-day shipping and have access to a scattered network of logistics facilities to distribute inventory. Online sellers must meet high expectations for shipping transparency. In reality, buyers have abandoned their purchases 72% of the time because eCommerce companies lack shipment clarity and the necessary delivery speed. 7 Ways to Meet Customer Expectations in 2024 Understanding the complicated and constantly changing consumer patterns is essential for retailers to succeed in eCommerce. Creating the ideal online consumer behaviour is dependent on businesses meeting and exceeding customer expectations as outlined by changing online buying patterns. A few ways to do this in 2024 are listed below: Sell Across Multiple Platforms If retailers don't go where the customers are, they won't succeed online. And in the current market, that entails selling on several eCommerce platforms. Online marketplaces made for the highest portion of global online purchases in 2020, according to Statista's figures on global eCommerce. And while it is vital, managing sales and inventory while selling on many sites may be challenging. Partnering with a 3PL company like WareIQ to be able to seamlessly integrate with multiple selling platforms will greatly help in this regard. Provide Faster Shipping Online consumer behaviour demands open and practical accelerated delivery choices from all of their online retail stores due to the growth of eCommerce conglomerates like Amazon that are able to ship goods swiftly. Consumers want their goods in a fast and inexpensive way and they are prepared to give priority to retailers who can meet these expectations. Offer a Simple Returns Process When a customer makes a purchase, the customer journey is not over. Post-purchase services and interactions must be as seamless as possible in order to keep clients returning after they have completed their purchases. This entails providing a straightforward and practical return process. Customers can create return shipping labels using WareIQ and track returns from a single dashboard. A comprehensive system like this also makes it feasible for return items to be processed and restocked as quickly and painlessly as possible. Create a Personalized Shopping Experience Customers desire easy access to suggested items that meet their unique needs or address a problem they are currently facing. To do this, marketers must design a focused and unique shopping experience based on information from past searches, online consumer behaviour, and purchases. Customer demands or issues that need fixing can also be determined using demographic information like location and email. This approach can be scaled and automated with the help of a cross-channel marketing platform. In order to provide the most personalized online consumer behaviour that satisfies the customer's needs or addresses their issues, the data gathered should be examined and put to use. Upgrade the Mobile Buying Experience Consumers spend 31% of their digital eCommerce money on mobile devices, according to Statista which is an estimated $47.8 billion. Such recent online consumer behaviour statistics cannot be disregarded. Retailers must make sure that the mobile experiences on their websites and applications are equal to those on desktops. The ease of use of the mobile shopping experience should provide convenience. Additionally, it should incorporate positive micro-interactions and seamless touchpoints along the buyer's journey. Include Easy-to-Locate Product Reviews Online consumer behaviour suggests that customers want to check the calibre of the products they buy and they don't want to go far for that information. Shoppers believe that online reviews are crucial when selecting whether or not to make a purchase, according to 38% of consumers. Younger age groups anticipate more reviews than older ones, which is another essential factor in expectations for reviews. Retailers should make as many products as possible available with online reviews displayed in prominent locations. Customers are more likely to switch to another retail website where they can easily read reviews before making a purchase if they are having problems finding reviews. Offer Flexible Payment Options Consumers are likely to forego making a purchase entirely if the last stages of the purchasing process are difficult and cumbersome. In fact, 9 out of 10 respondents to Linnworks' survey said they anticipate flexible payment choices when shopping online. To match this expectation, shops must provide guest checkouts and buy now, pay later options to make this step of the customer purchasing process as simple as possible. Conclusion: How Can WareIQ Help Enhance Customer Experience? Keeping track of online consumer behaviour is essential to providing a better experience for your customers which enables positive feedback and repeated purchases. For some companies that may not have the available resources and financial capabilities, this can be challenging. However, you can consider partnering with a 3PL company like WareIQ. WareIQ makes client feedback a major priority throughout the company to aid in improving the customer experience. You can utilize consumer feedback to gain a thorough grasp of your audience and create a mechanism to gather input, analyze it, and take regular action on it. We offer multiple services that can assist in providing an enhanced customer experience, such as ultra-fast same-day and next-day delivery through our partnership with more than 20 of the leading shipping companies in India and automatically assigns the quickest and cheapest option for every order, a nationwide network of fulfillment centers to store your goods closer to your customers, a custom WMS that can help you track historical data and online consumer behaviour towards your products and much more. Online Consumer Behaviour: FAQS What elements might affect how people shop online?The three key variables that influence online customer behaviour are trust, risk, and cost. These three characteristics influence trust and risk in online consumer behaviour, as do other aspects like privacy, security, self-efficacy, fraud, and social influence. What can be done to change one's purchasing habits?Here are 3 tactics to adapt to shifting consumer purchasing patterns:1. Find out what the customer expects. Interview customers to learn what they are anticipating and what's driving it from their perspective.2. Engage prospects, assess processes and metrics, and mobilize your leaders.3. Consider the future right now. What is consumer decision-making online?There are five fundamental steps in the decision-making process for consumers. Consumers use this technique to weigh their options before making a purchase. Problem identification, information search, alternative assessment, buy decision and post-purchase evaluation are the five steps. How do consumers feel about shopping online?While convenience, time savings, website design/features, and security are the independent variables that encourage customers to purchase online, consumer views toward online shopping are seen as the dependent variable. How does online consumer behavior differ from offline consumer behavior?Online consumer behavior may differ from offline consumer behavior in several ways. For example, online shoppers may be more likely to research products and compare prices before making a purchase and may be more influenced by user reviews and ratings. Additionally, the online shopping experience may be more convenient and faster for some consumers, which can affect their behavior. Why is research on online customer behavior important?Understanding online consumer behaviour is crucial for marketers because it enables them to better communicate with customers. They can close the market gap and determine the items that are required and the products that can be discarded by studying how consumers choose a product.

August 02, 2022

Multi-Channel Selling: How to Use Multi-Channel Retailing to Boost Sales Across Online Marketplaces in 2024?

In this day and age, making sure your product is visible and readily available to a wide audience is just as or even more important than ensuring you have a competitive product in the first place. With the sheer number of resellers, listing platforms, and media outlets to promote products on, it is easy for even an ultra-competitive product that is targeted at the right audience to fall through the cracks. That is where multi-channel selling comes into play. It is a means of ensuring that your product is available on every single type of platform that it could be listed on. This helps increase the visibility of your product and there are more chances that your potential customer will identify and eventually purchase your product through one of the many eCommerce multi channel selling platforms that it is listed on. Read more to find out how multi-channel selling can help your business. What is eCommerce Multi Channel Selling? Multi-Channel Selling is a way of selling products on multiple sales channels. A seller can sell products/services from its e-commerce website as well as any online marketplace, social handles, or/and from its physical brick-and-mortar stores. In the past, multichannel selling was limited to in-store experiences, catalogs, and sales over the phone or via email. Customers can shop and buy through whichever channel they like with multi-channel selling. A manufacturer selling to a few wholesalers, for example, might have sent them a catalog. Wholesalers would then need to contact the manufacturer and place an order over the phone or via email. This is a lengthy process that involves a lot of paperwork and is prone to errors and misunderstandings! Today in multichannel selling, sellers are able to attract visitors in bulk to their site and convert a substantial fraction of that traffic into paying clients with effective marketing efforts and a well-designed website. But why limit the business to a single website? There are numerous alternative sales channels (Amazon, Flipkart, Meesho, etc.) via which a seller can attract new consumers and increase revenue for their business. To build a brick-and-mortar business, sellers would have to spend a significant amount of time and money finding new locations, hiring new personnel, and so on. However, moving into new territory online is a lot easier and less expensive. [contactus_gynoveda] 5 Different Platforms Utilised for eCommerce Multi-Channel Selling There are various platforms utilised for eCommerce multi-channel Selling. Majorly, it has been bifurcated into five categories. These are as follows: Seller’s websiteOnline marketplacesSocial media platformsThird-party websitesBricks and mortar Seller’s website multi-channel selling_mCaffeine In the era of the internet, a website is an important asset of multi-channel retailing and acts as a virtual shop where a buyer can find a catalog of product categories with all the exclusive details having a buying option for it. There are few companies that start their business as D2C brands where they sell via their own website. A few examples of such companies in India are mCaffeine, BOAT lifestyle, open secret etc. Online marketplaces multi-channel selling_marketplaces_Amazon In recent years, online marketplaces have been dominating the market with the highest market share of sales. Amazon, India's biggest online retailer claims to have 85 million unique monthly visitors (according to big commerce) followed by Meesho and Jio mart. It is a very important outlet for multi-channel retailing Advantages of an online marketplace in multi-channel selling include: Huge customer baseEasily accessibleEasy checkoutNew consumers who may purchase againFulfillment process for retailers and customers Disadvantages of an online marketplace in multi-channel selling include: Marketplace fees (which can vary by category)Restrictions on branding one’s businessCut-throat competition, leading to minimum marginsInability to record customers’ information Marketplaces are further divided into three main categories when grouped by their target audience: Business-to-business (B2B)Business-to-customer (B2C), andPeer-to-peer (P2P), or customer-to-customer (C2C) Suggested Read: Sell on Flipkart, Sell on Myntra, Sell on Etsy Social media platforms multi-channel selling_social media_Instagram Websites and e-commerce platforms are not easily accessible for small businesses, so these businesses show up their online presence and sell their product using social media platforms. It helps all businesses to increase customer retention by posting and tagging directly to the clients. Third-party websites multi-channel selling_third party websites_GSMArena This is usually utilized for electronic and luxury products like mobiles, smart watches, washing machines, etc. Here, people come to see features and compare them with similar products of different brands in a certain price range. After comparison, there is a buying option for the customer. Bricks & Mortar It is the conventional method of buying and selling products. Customers go to stores and buy products. With the changing time, the working style of these stores has changed. Many big players have emerged in this business model. They keep almost everything under a roof at a very marginal rate. What are the Advantages of Multichannel Selling? All selling options have pros and cons. Adding all these channels to the multi-channel selling options adds a bunch of pros and scales down the cons. It increases availability with 24*7 options for a customer. To get more insight the benefits have been listed below. Increases Presence If a seller opts to be on multiple channels then the presence of his brand(products) will increase with the number of channels. E-tailor will get more customer presence for their listed product. More Focus on Target Customers/Markets You must have heard this marketing mantra; sell the right thing, at the right time, to the right person. The explanation of this mantra comes with the question, how is it done? Multi-channel options enable a seller to select an audience mainly through online selling. Here, the seller can filter the market based on their psychographic and demographic profile. Sellers have the ease of choosing their niche market and targeting them with the right strategy. Improves inventory transparency As a seller or manufacturer, here they get the exact count of products they have in their inventory. With the help of an AI and IoT seller, the manufacturer or any person in charge of it is informed regarding the inventory, orders, sales graph, shipment tracing, the life of products, etc., etc. Improved Customer Perception Generally, a person perceives what he sees. The transparency of reading customer reviews on products, delivery, packing, or any related pre and after-sales service helps the customers to choose the right product offered by a good seller. This has changed the perception of the online shopping experience for most of the general public. Gather Insightful Data In the coming years, data will rule the market. The primary difference between an old seller/shopkeeper and a new one is, that the old shops have more contacts, it's a name known by a bunch of people due to which they have much footfall in their shop. If a seller has data on the masses, what they are looking for, where they live and their ability to buy this will help a seller to target the group of needy. Improves Conversion Rate If we have the data of someone who is already looking for a similar product then of course it will be easy to sell him, instead of selling the product to those who may or may not want to buy it. Here we have options of easy conversion by targeting the right person which leads to a high conversion rate. What are the Disadvantages of Multi-Channel Selling? When we talk about the disadvantages of multi-channel selling. Many of the disadvantages of a single channel are covered by other selling channel options. Although being in a competitive market a seller will have disadvantages. A few of the major disadvantages are: Complex logistics In multi-channel selling options, most of the channels are online where the buyer looks for delivery at his/her doorstep before any transaction of money. Most of the time the seller is ready to dispatch the product but the problem is in logistics. A seller who is engaged in selling products can barely give enough time to packing, shipping, tracking, and all logistics-related steps. In multi-channel online selling, buyers are beyond the seller’s reach so logistics is the biggest disadvantage. A platform which has a good logistic facility is said to be a better platform for sellers as well as buyers. Competitive Pricing In a huge marketplace where there are millions of sellers and billions of buyers, the pricing of the product matters a lot. Here the buyer chooses and the seller loses, if there is a small difference in the price of the same product by different sellers. Return and refund After doing everything to sell the product through multiple channels like listing products, choosing a logistic partner, and dispatching articles before getting paid, if the customer returns the product without any reason then a seller feels it is the biggest disadvantage of online selling which also applies to multi-channel sales. 5 Main Challenges Associated with Multi-Channel Selling for eCommerce in 2024 Doing business is a tough task. Sellers have a lot of challenges to face which are part of their business practice. A few of them are: Product Information and Listings Management To sell a product, sellers need to make the buyer aware of what the seller is selling, what are the benefits of the product, and the advantages of buying from them. To sell they need to show. Inventory Management An eCommerce multi-channel seller who works with the idea of selling in quantity with fewer margins needs to maintain a good amount of inventory. They get orders from many platforms and to fulfill that demand they need a high volume of the listed product and/or keep the inventory maintained as per the demand ratio otherwise if they are short of product they will fail to deliver it on time or may not deliver after taking the order which will impact on seller reviews. Cross-Channel Messaging Only making a presence on the platform does not give a seller active buyers. They also need to be active and keep in touch with them through messaging, tagging, and replying to their queries. Order Fulfilment and Returns Order fulfilment and product returns can consume a lot of time and add complexity when sellers sell on several channels. Establishing a flexible, dependable, and scalable fulfillment plan that does not eat into profit margins is a more crucial and demanding task than most sellers realise. Gathering order fulfilment and return concerns in one place, together with a channel-specific view, will aid in identifying and addressing the bottlenecks that eCommerce sellers frequently face. Data Management and Analytics As the number of channels grows, the volume of data coming in and the number of data sources that e-seller must handle will become overwhelming. It's more likely to result in the seller losing out on the big picture. These data silos must be broken down, and business intelligence must be integrated into a single display. It helps them get a big picture of the business and derive actionable insights from the data. What are the Different Strategies for Multi-Channel Selling in 2024 that Online Businesses can Implement? Before making any strategy, a seller needs to know about multi-channel selling inside-out. The knowledge needed to be gained by each seller is different, according to their product and business model. So first we need to define channel as per offerings and availability There are three models of selling: Business-to-business (B2B)Business-to-customer (B2C), andPeer-to-peer (P2P), or customer-to-customer (C2C). So for each type of business, a seller will have to choose different channels according to their end-user. Like a product offered on Amazon business can not be sold on Amazon, a seller can not list a product on BigBasket and cannot list or sell on Shopify as well, and gain equal attention. They all are sales channels for use for different purposes so customers should choose wisely and customise the product features smartly. Build a Multi-Channel Marketing Plan Before a seller makes an account and lists the product on multiple platforms, they need to make a plan. Will they need a customer support team, a person taking care of the logistics, accounts, etc? These days sellers have options that are helpful in full-stack logistics but here also they need to get partners with them. Use a CRM Software to Target Prospects Multi-channel e-commerce marketing is only as good as the technology that powers it. A seller can send content on several channels every day for as long as they like. They may lose sales if they do not keep up with their targets as they bounce through various channels. Rather than saturating each channel with content at random, target people who come into contact with the offered product. Customer relationship management (CRM) software can help sellers to do this. CRMs allow sellers to keep track of all of a customer's interactions with their company. They can choose one that connects to all of their channels to ensure that no contact goes unnoticed. When a client reacts on a channel, the CRM creates a user profile for them right away. With each engagement, that profile is regularly modified. This allows a seller to see how a consumer moves across their channels and identifies trigger events that may indicate what that person is looking for. Conversion pathways that function better with that profile are also visible. The seller would be able to figure out when, where, and how each consumer wishes to be contacted if those channels are followed. Optimise the channels and implement target marketing based on this data to increase sales conversion. CRMs can also assist sellers in identifying loyal consumers who have been with them for a long time. They can give rewards to them. As a result of word-of-mouth, they will attract additional clients. What Types of Businesses is Multi-Channel Selling For? In this day and age, all businesses should have multiple channel selling options. It gives equal opportunity to businesses regardless of their size, reach, brand, non-brand, urban location, rural location, etc. The things that matter here are quality of product/service, availability, reviews by other customers, quick delivery and return policy. The only thing that a business should think about and plan before going on a certain selling channel is whether; is the platform right for their target market. A machine lubrication oil manufacturer should not list and sell its offerings on Amazon or eBay and a pair of shoes will rarely get any customers on IndiaMart. Choose the channel sensibly, list the product and describe it smartly and choose a delivery partner wisely. Why Should You Choose WareIQ as a 3PL Fulfillment Partner if You Are a Multi-Channel Online Seller? Different stages of the buyer's journey are targeted via social media, comparison shopping engines, marketplaces, and a seller’s website. The ultimate goal of a seller is to make more sales regardless of any platform or location. At the end of the day, any seller will want more transactions, rotation of products in inventory, and popularity which all are fulfilled here. A seller will be able to maximise their reach and broaden the breadth of the company's capabilities by having a presence on each of these retail channels. If they do it right, customers will keep coming back for more, no matter where they are in their journey. eCommerce Multi channel commerce is a crucial strategy for success in today's connected world, but it comes with its own set of problems and opportunities. Online selling on multiple online marketplaces in India is cumbersome & complex due to the following reasons: Marketplace Integration: Marketplace additions have long onboarding cycles and iteration loopsFulfillment Infrastructure Setup: Warehouse additions via PPOB/APOB model is a time-intensive (30-90 days) process with ongoing compliance costsERP System Integration: ERPs are typically integrated for B2B workflows and don't support B2C eCommerce operationsCompliance Stipulations: Being compliant with PN2 & FDI norms of the Government of India takes the brand's focus away from core online business You can streamline your entire shipping operations in one place with WareIQ. Established in 2019, WareIQ, a Y-combinator-backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next-day delivery to customers – an Amazon Prime-like experience but accessible to everyone. Integrate with multiple marketplaces & pan-India fulfillment network from Day 1 through WareIQ's Seller on Record model & go live on-demand on multiple marketplaces with premium-tier access, simplified operations & zero compliance risks to accelerate your revenues. Leverage our existing listings on multiple marketplaces & go-live on-demandKickstart your B2C operations with a simple B2B stock transfer to WareIQSimple & easy financial payments & reconciliations through our virtual inventory modelCreating cost & process efficiencies through centralized taxation & compliances WareIQ's analytics-enabled technology platform functions as the central command center for all your logistics operations. Order management, inventory management, warehouse management & shipping management – all are possible through WareIQ's fulfillment platform. [signup] eCommerce Multi Channel Selling FAQs (Frequently Asked Questions) What is a multi-channel business?Multi-channel retailing is a business approach in which you sell your products on multiple sales channels, both online & offline, via which they can purchase from you. It's frequently confused with omni-channel retailing. What is an example of multichannel retailing?The retailing of products through more than one channel is referred to as multi-channel retailing. Catalogs, physical stores, e-commerce platforms, and online marketplaces like Amazon and eBay are examples of these channels. What do you mean by Omnichannel selling?Omnichannel retail (or omnichannel commerce) is a multichannel sales strategy that focuses on offering a consistent customer experience whether the customer is purchasing online, on a laptop, or in a physical store. Why do retailers need multiple channels for selling?Multi-channel retailers allow you to reach your customers no matter where they are in the buying process or what device they choose. There's no limit to where shoppers can find and buy products now that they have mobile devices. Does WareIQ provide fulfillment services to retailers selling their products on multiple channels & marketplaces?Yes, WareIQ provides fulfillment services to online brands selling on multiple online platforms & marketplaces which can include their own D2C websites as well as marketplaces like Flipkart, Amazon, Myntra, Nykaa etc. WareIQ’s Fulfillment Tech Platform supports integrations with 20+ top marketplaces & D2C platforms, and prominent national, regional, and hyperlocal couriers, enhancing reach by covering deliveries for 27,000+ pin codes. What is a multi-channel selling marketplace?Multi channel marketplace is basically advertising and selling everywhere your customers shop. Beyond promoting, it introduces commerce to multiple channels where your target market already spends time, such as marketplaces, social media, messaging applications, and online communities.

August 02, 2022

Product Bundling in eCommerce: Definition, Types, Advantages & Strategies for Online Sellers to Capitalise on Selling Product Bundles in 2024

Even eCommerce retailers are the customers of other brands in other industries. Customers often browse through multiple product listings and end up purchasing the option that gives them the best deal such as buy one get one extra, free delivery if the purchase value is of a certain amount and buy 3 products for a 10% discount on each, among others. This business trick is called product bundling and it is mainly used to increase the average order value of a business. In this article, we will learn all about how product bundling works, how it is implemented, strategies for online sellers, and ways to get better output while implementing a win-win situation for yourself as well as your customer. What is Product Bundling? Product bundling in eCommerce refers to several products or services sold together as a combined package to offer customers a better offer than if they were sold individually by a seller. Groom kits, sets of soap, value meals at restaurants and other products are a few examples of product bundles. Some companies only offer specific best-selling products in bundles rather than individually to entice customers to try other products along with their best-sellers. Product bundles are a well-liked strategy used by eCommerce retailers to sell more of their goods and raise their revenues over time. [contactus_lilgoodness] Types of Product Bundling Pure Bundling Pure product bundling prohibits the sale of individual products that make up the bundle separately. Instead, they can only be bought together at bundle pricing. The options available to the consumer are constrained by this strategy. For Example, many companies only offer trips or insurance for families instead of providing options for an individual. Mixed Bundling Customers can purchase particular products in mixed bundles or as standalone ones, at bundle pricing or standard pricing. A consumer at a fast-food restaurant, for instance, has the option of purchasing a single burger or a bundle value meal. Mix and Match Bundling The mix-and-match product bundling method enables customers to choose from a variety of related products. Brick and mortar retailers typically do this for quickly moving consumer goods like perishables or bulk items. Here, you list a few things for your consumers to select from and they can put the selections together to create a unique bundle. This technique raises the item's perceived worth by making the customer feel like they have direct control over what they purchase. It is the ideal strategy for pushing your clients to buy products in quantity and at bundle pricing without pressuring them to purchase things they don't want. Similar Item Bundling Customers that wish to buy a lot of things at once will benefit from using this strategy, which is similar to bulk buying. This technique is typically used with items that get depleted quickly. Examples of such products are conditioner with shampoo, face wash with face cream, etc. New Product Bundling In this strategy, newly launched products are promoted alongside more established or well-liked products to get clients to purchase your most recent offering. eCommerce shops employ this strategy, combining new products with existing well-known stock to increase visibility for the new offering. The more well-liked the current product is, the closer the customer is brought to the new product. Examples include new series of watches sold with mobile phones at bundle pricing by respective brands. Gift Set Bundling Gift packages are designed for customers who wish to present a loved one with a collection of complementary products. Most of the time, holiday seasons are when this kind of bundle is sold. As the name implies, this kind of bundling aids consumers in selecting gifts for friends. This is based on the idea that a present is better if it includes more items. When consumers are shopping for useful items over the holidays, this form of bundling is extremely common. For example, a grooming kit consists of several products. Cross-Sell Bundling As an add-on to a primary product, retailers sell a complementary product using this product bundling strategy. With less expensive things or with parts or accessories that match a more expensive item, this form of product bundling is effective. For example, when you buy a laptop, you may also purchase a bag or a charger. Buy One, Get One Free or Half-Price Bundling Source This type of product bundling is when consumers purchase one major item, they can save money on or receive a free additional item by combining them. This method works best for one-time purchase products. In the case of electronics, for instance, a client who purchases a laptop would not return to the store to purchase the same item. Giving your consumers a free item, a discount, or a gift card can thus encourage them to add more things to their carts at bundle pricing. By including extra features or products in your current purchase, product bundling increases the value of your sale. To meet your clients' preferences and satisfy their desires, you can adjust your product offerings. Offering distinctive and expertly designed product bundles can make you stand out from your rivals. It raises the perceived worth of your products in the eyes of your customers, clears out your stale inventory and increases sales. Inventory Clear-Out Bundling If you want to get rid of outdated inventory or simply create room for seasonal goods, this strategy is quite effective. To quickly remove it from your inventory, combine well-liked products with the stock of non-moving or outdated goods. Even when older products sell for less, this strategy aids in cost recovery. Occasional Bundling This approach maximizes the festive season and unique events. For instance, when it comes to Valentine's Day, you frequently see a combination of flowers, cards, wine and chocolates packaged together for people who wish to celebrate with their special someone. Advantages of Product Bundling To Retailers Increases Your Average Order Value (AOV) Over time, product bundling may boost individual item sales and profitability. Your average order value will go up if you bundle your products together to encourage buyers to buy many items at once. For example, if you are a sports item seller, you may give customers a choice so that while buying a bat, they can choose to buy balls and wickets, making them purchase more than a single product which increases your average order value (AOV). Decreases Marketing and Distribution Costs You can sell more products and spend less on marketing and delivery by using product bundling. You can combine complementary products and offer them as one bundle rather than promoting each product separately. When you package various things together, you only need one warehouse to keep them, as opposed to multiple. Bundling also reduces the number of boxes of individual things you need to ship and reduces the cost of postage. Instead of creating print and online advertisements for each product, you can group them to save money on marketing expenses while simultaneously promoting all of your goods. Reduces Inventory Wastage Unsold goods remain in your inventory as dead stock, increasing your holding expenses before needing to discard them. Bundling can be used to get rid of this dead stock before it becomes an issue. Customers will view the bundle as a deal and be more likely to purchase it if you combine a slow-moving or stagnant item with a faster-selling product. This lowers your inventory holding costs, decreases waste and frees up warehouse space. Aids in Product-Line Expansion Online shopping for single inexpensive things typically has two unsatisfactory options - either the vendor pays for shipping but loses money on the sale or the customer pays more for shipping than the item itself. eCommerce businesses can grow their product lines by bundling products at an order-value threshold in a way that benefits both customers and sellers. To Consumers Product bundles frequently provide discounts. Bundles are the ideal option if buyers plan to buy the contents of the bundle anyway. Customers will often compare prices on the package to obtain the greatest deals. If you are looking to price your products for more profitability, you can experiment with product bundling. They Can Try Out Different Products Customers can sample new products or product ranges that they might not have otherwise had the opportunity to try thanks to product bundling. Customers can be given complimentary goods to try when buying certain products. They Don’t Need to Waste Time Researching Multiple Products Product bundles naturally combine complementary solutions. As a result, buyers don't need to conduct any research to see whether those items would integrate or be of use to them. As a result, the purchasing process is expedited and the user experience becomes frictionless. They Can Personalize Their Order Make bundles specific to the buyer's needs so that they are not restricted to buying products that they don’t want or need. In such a scenario, a person can opt to choose multiple products that will add value to their initial order so that they perceive they are getting a better deal. Usage of Product Bundling in Marketing Source Creates a Positive Impression of Your Brand Customers will view an offer as more of a deal if it contains a reduced or free item than if the two items were sold separately. You can provide your consumers with the most value for their money while simultaneously increasing your sales by providing additional product bundling. Saves Time and Marketing Costs Product bundling helps marketers save time. It is significantly simpler for staff to stock (especially for physical products) and the products can be sold as a package deal, which reduces the number of products you need to promote to just one instead of multiple. Provides Seasonal Opportunities You can entice clients to buy more products by bundling them during busy periods of the year, such as the holidays or summer sales, by instilling a sense of urgency or FOMO. Also, during festivals, you can spend extra on campaigning and marketing and you can save money by promoting the items as one unit instead of separately. Enables You to Sell More Products to Customers Customers have more options and greater value with product bundling, especially if the package includes things they need. Customers are typically more likely to select a well-made bundle over a product that is sold separately. Reduces Shipping Costs As you are sending things in bulk, bundling them together and offering a discount results in lower overall shipping costs as only one package is being shipped as opposed to multiple shipments. Tips to Capitalize on Selling Product Bundles in 2024 In this section, we will look at how to offer product bundles as well as the criteria you should use to measure your success for year 2024. Understand Your Customers Keep proper knowledge of your target customer base. Observe the factors that motivate people to buy particular products even if you may already have information on your consumers in your CRM system, including historical sales and purchasing behaviour. Look at the things they do not buy collectively as well as what they buy collectively and when. You can begin to develop specialized product bundles and strategies after you have a better understanding of consumer behaviour. Create Bundles Accordingly Find what customers regularly purchase and based on the data, create product bundling that fulfills their expectations. Choose solutions that will appeal to clients by considering the complementary products from your range that you can sell together. Create varied product packages as a final step to ensure that there is something for everyone. Products that your customers have purchased earlier and are likely to buy again should be included in your bundles as this will assure repeat business rather than one-time sales. Offer Better Deals Customers are constantly seeking the greatest deal. They are constantly on the lookout for the best deals and discounts. Consider giving your bundles a discount to increase your sales. Without affecting your profit margins, this will greatly improve the attraction of your products. Choose a Product Bundling Strategy To make your goods stand out, here are a few product bundling strategies that will bring value to your bundles: Price anchoringeCommerce Flash Sale (time-limited) bundlesPut bundles in the most visible areasBundle products according to themesShow the savings and the deal advantagesConsider personalization Manage Analytics and Optimize Decision-Making You can evaluate the effectiveness of your product bundling methods using the metrics listed below: Average Order Value (AOV) If your Average order value per customer increases then find out which bundles are doing well and the reason behind it. Product Growth Annually You can determine whether an item is doing well as a standalone item by looking at its sales history over a year. If not, think about combining it with a high-performance product and keep an eye on the outcomes. Conclusion It is worth considering how you can use product bundling in your sales and marketing plans if you offer items or services because it's been a successful marketing technique in every industry and continues to be practised both online and offline. If you need assistance with storing and fulfilling your product bundles, consider partnering with WareIQ. WareIQ helps you analyse historical data to identify which strategies are effective, driven by the real-time purchases of buyers. While managing inventory, we can identify the sales rate of each product and show you the top and bottom-performing products to make it clear which items require product bundling. Our WMS software will calculate the cost of your bundling and can give you better bundle pricing after optimizing the storage cost of the product. You also only pay for the storage space and services you use. We also offer multiple other eCommerce fulfillment services such as a nationwide network of fulfillment centers and partnerships with more than 20 of the largest shipping aggregators in the country. Product Bundling: Frequently Asked Questions (FAQs) What are the advantages of product bundling?Over time, product bundling may boost individual item sales and profitability. Your average order value will go up if you bundle your products together to encourage buyers to buy many items at once. Which company uses a bundled pricing strategy?This is demonstrated by businesses like Amazon, which frequently put together dynamic product bundles based on related items that their customers frequently buy. This enables Amazon to provide lower pricing than its rivals while simultaneously generating higher profit margins for the company. What is product bundle pricing?Bundle pricing is a business approach where businesses combine multiple products into one package and offer it for one price rather than assigning separate prices to each product. Why do companies sell bundle products?The objective of product bundling is to increase sales by persuading clients to purchase additional things. Companies occasionally put together product bundles containing items they want to sell off or clear out of stock. What are some examples of successful product bundling campaigns?There are plenty of examples of the same. To state a few 1. The classic example of product bundling is the "meal deal" offered by fast food restaurants, which combines a main item (such as a sandwich or burger) with a side and a drink at a discounted price.2. Many retailers offer "bundle" deals on products such as electronics or home appliances, where customers can purchase a package of related items at a discounted price. How do I avoid common pitfalls when using product bundling?1. Make sure that the products in your bundle are complementary and add value for the customer. Bundling unrelated or low-quality products can turn off potential buyers.2. Determine the right price point for your bundle. The bundle should be perceived as a good value by the customer, but it should also be profitable for your business.3. Clearly communicate the value of the bundle to the customer. Make it easy for customers to see the savings they will get by purchasing the bundle rather than buying the products individually.4. Don't overuse product bundling as a pricing strategy. If you offer too many bundles, it can become confusing for customers and dilute the impact of the offer5. Monitor the success of your bundling campaigns and be willing to make adjustments if necessary. This could include changing the products in the bundle, the price of the bundle, or the way the bundle is marketed and promoted.

August 02, 2022

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