What is Fulfillment by Amazon (FBA)? How Does FBA Work in 2024?

Fonts must be clear. Labels must not be faded. A direct thermal or laser printer must be used. Only certain types of packaging material are allowed …. And the checklist on how to prepare inventory for FBA or Fulfillment By Amazon goes on and on. Amazon ships 35 items a second and that’s because FBA runs like a well-oiled machine. But it can be a mind-boggling overload of instructions and information for vendors. Failing to comply with FBA preparation requirements may result in being charged for non-compliance, and products being returned, disposed of, or blocked from future shipments. And that’s not a situation any vendor wants to be in. A fulfillment center for FBA prep services can lift the weight off your shoulders. Using the right service, like the one offered by WareIQ for instance, will ensure your inventory is prepared according to Amazon’s regulations and standards and delivered to Amazon. WareIQ is a software-only platform that connects and centralizes a nationwide network of fulfillment centers and last-mile couriers partners. Once products are sent into a fba prep service, you can focus on other aspects of your business, like sales, marketing, and scaling up for instance! Let's first understand what is FBA & how it works in 2024. What is Fulfillment by Amazon (FBA)? The Fulfillment by Amazon (FBA) program offers sellers the ability to ship products directly from Amazon to their customers worldwide, saving them time and money and providing more flexibility in their selling practices. It helps sellers with storage and packaging, too. How to Register Your Business on Amazon FBA? To register as an Amazon seller, go to the Seller Registration page and click the ' Register Now ' button. During the Amazon seller registration process, you will need to provide basic information such as the business entity's name, the company's address, and the company's phone number. Business entity name You should register as a Limited Liability Partnership (LLP), One Person Company (OPC), or Private Limited Company (PLC) when becoming an Amazon seller partner, as these entities offer limited liability protection and are simple to start. Business promoters who sell products through online eCommerce platforms like Amazon could theoretically be sued or held liable by vendors/customers. Hence, it is important to have limited liability protection. Either the entity’s name or the proprietor’s name should be entered. Contact details: Office address and phone number Registration requires you to provide the entity's registered office address or business address and a phone number, which can be a mobile phone number, for voice calls or SMS verification. GST registration information GST registration is not required for sellers selling certain products not covered by GST. However, all other sellers selling products for which GST is applicable must provide a GSTN number to begin selling their products on Amazon India. Bank account information Amazon India requires potential sellers to provide the following information regarding their bank account to complete the seller registration process: Bank Account Holder’s Name Bank Account Number Bank IFSC Code Account Type Once Amazon receives the above information and the compulsory Amazon Partner Quiz is taken, you can start selling on Amazon India. A seller's dashboard on Amazon India offers complete information about listing products and managing listings. [contactus_gynoveda] How Does Amazon’s FBA Work? Source FBA on Amazon’s platform is easy and direct. First, list all the products you want to sell on Amazon’s marketplace. You will get a notification after a customer makes a purchase, requesting you to ship them the product. You may initiate the delivery of the chosen product to the customer and confirm shipment or allow Amazon to fulfill the order for you. After this, Amazon will credit the funds to your bank account after necessary deductions, such as its fees. How Does FBA Work on Amazon? In short, after you have been accepted to Amazon's FBA program, you will need to register Amazon's fulfillment center as an additional place of business with the tax authorities. Then, you will need to list your products and unit quantities in advance to be fulfilled. Prepare and label products or product lists and packages for shipping. Ship the products to Amazon. Amazon receives and stores product units in Amazon's fulfillment center. Orders are shipped directly from one of Amazon's many fulfillment centers to the end customers. Source What are the Benefits of Using Fulfillment by Amazon or FBA Services? FBA allows your products to be listed on Amazon and makes them eligible for several eCommerce-related benefits. Grow your business by putting Amazon's world-class fulfillment technology to work and delight your customers with excellent customer service. Buyer and End-user Confidence Having Amazon associated with the seller's products makes the buyer feel more confident and makes the seller more attractive to them. One benefit is having Amazon's name associated with the product. Most customers will appreciate Amazon’s quality stamp, making them more comfortable buying from the seller. Unmatched Customer Service FBA provides excellent customer service and efficient delivery without charging the end customer. It also has a 24/7 support team that handles every aspect of selling – from recorders to providing customer service on the sellers’ behalf. Amazon’s customer service team also handles FBA sellers' product return management. Lower Shipping Fees Because of Amazon's relationship with shipping aggregators, sellers can offer shipping at a lower cost than if they delivered their items from their individual accounts. They can also offer free shipping. Multichannel Fulfillment Amazon's fulfillment centers allow FBA sellers to store inventory, ship it quickly, and manage stock outside their own marketplace across multiple channels. These warehouses allow FBA sellers to safely store their inventory in Amazon fulfillment centers, which efficiently ship products quickly from multiple channels. Standardized Shipping Process When a buyer orders an item from Amazon, the product is picked up from its inventory, suitably packed, and dispatched. The shipping process is standardized – customers' orders are dealt with in the same way for all products, whether they are Amazon products or third-party FBA products. Wide Product Range Sellers can scale operations more flexibly without investing in an additional warehouse when selling with Amazon, as it can handle a wide selection of products and large volumes without a lot of growing pains. Amazon fulfills the following categories of products: Books Beauty Consumer electronics Cameras Video games Digital accessories, such as mobile and PC accessories Jewellery Luggage Mobile phones Movies Personal care items Appliances Toys, etc. No Minimum Cut Off Required FBA does not require a minimum number of items to use it. Side Hustle In today's world, one of the key reasons people are setting up eCommerce businesses is to earn passive income by outsourcing major business tasks to Amazon. You can automate the rest of the processes by using Amazon software. Income can be generated from anywhere in the world. Huge Storage Space and End-to-end Order Fulfillment Amazon outsources space for storage. This means you can store your inventory in Amazon's fulfillment centers, and they will fulfill your orders on your behalf – you won't have to worry about order fulfillment. In contrast, if you choose the Fulfillment by Merchant option, you'll have to bear the cost of storage and shipping. These costs can be cumbersome, especially if your business has a small budget or no space for storage. Massive Customer Base and Great Brand Image There are over 300 million active buyers on Amazon. Selling on the platform gives you access to all these people. FBA will also boost your chances of increasing sales through branded shipping. You will be selling products with the Amazon logo and packaging material, making customers instinctively trust you and they will be more inclined to buy from you. Ease of Use Amazon FBA is the best option in terms of convenience – you don’t have to handle a shipment, dispatch an order, or deal with packing materials, returns, or customer service issues. What are the Expenses Associated with Fulfillment by Amazon (FBA Fees)? FBA (Fulfillment by Amazon) fees charged by Amazon are: Standard Seller Fees: About 15–18% of a product's price becomes the seller's fee. Amazon charges 15% on certain products. However, hidden costs – for example, refunds – increase the overall charge to the seller. Fulfillment Fees: Fees are determined by unit size, shipping, service, handling, and purchase returns. Referral Fees: This is paid for each item sold and can range from 8–15% based on the product category, such as consumer electronics, home/garden, and personal computers. Storage or Inventory Fees: These are charged depending on the product size tier, the average volume per day, and the calendar month. Besides monthly inventory fees, Amazon fulfillment centers charge for inventory units kept for more than one year, called storage fees. The FBA dashboard's reporting section allows you to see what fees you're paying to Amazon as part of the FBA program, which covers settlement fee reports and stranded inventory reports. Amazon keeps it transparent, which helps calculate costs associated with FBA and make important inventory decisions. International Shipping: Using FBA, with Amazon's 150 million square foot storage space and over 29 million units shipped worldwide, sellers can now export their inventory globally. Amazon offers domestic and international shipping options by air and ocean shipping modes. Fees are charged for these services provided by Amazon for individual accounts. Your products are stored in Amazon fulfillment centers, with increased visibility on Amazon. It picks and packs your products when a customer orders them, ships your products to them, and offers support for Amazon-sold products. Read our article on logistics costs to understand what they are and how to mitigate them. Suggested Read: How to Choose the Best Amazon Pricing Strategy? Why Should You Choose Fulfillment by Amazon? International Shipping: FBA allows the seller to receive inventory that originated in another country, and sellers will have to arrange the customs clearance and other paperwork and arrange for the delivery shipment to the Amazon facility. This changes the game for international product shipping and eCommerce fulfillment. Your products are sent to a district Amazon warehouse, which will be decided by Amazon. Amazon reserves your stock in its warehouse following all safety protocols. Once a customer makes a buying decision, Amazon handles the entire process, from payment to inventory updates and customer support, including dealing with returns and refunds. Amazon credits the profits you receive from your sales every two weeks into your registered bank account. Essentially, Amazon FBA mimics having your own storage space, packaging unit, and logistics partners, providing the same benefits. Amazon takes care of dispatching orders and handling all email correspondence from your customers, including informing them when their order has been shipped and when it will reach the end customer. It takes credit card payments and handles shipping for you as well – all you must do is provide the products. Amazon's Brand Advantage and Reputation: Amazon is a world-renowned and trusted brand. Orders from Amazon are guaranteed to be delivered. Also, customers love the return policy. This is a huge factor in making a purchase decision. Super-fast Delivery: Sellers can ship products to their customers more quickly because Amazon offers a superior, technology-driven online ordering system that provides faster processing and delivery of products and also provides fulfillment status information and tracking facilities for both the buyer and the seller. This provides a better ranking on the Amazon website and better visibility of products. When a seller isn't using FBA, products show the total price (the price and shipping costs together). However, FBA sellers show only price, which is lesser than other sellers, enabling them to rank higher in the search results. Read our blog on micro fulfillment centers to understand how they can contribute to super-fast delivery. Reduction of Overheads: FBA makes it possible for you to focus on increasing your sales and profits without worrying about staff, storage, or administration. Increased Productivity: The biggest benefit of this program is a surge in productivity. In this way, you can spend time improving your business rather than chasing after returns, inventory management, packing, and transportation of products. Flexibility to Run Your Business Anywhere: Regardless of where you live, you can earn consistent income as a seller with FBA. Your orders will be handled by Amazon 24 hours a day. Fewer Customer Queries and Customer Service: With FBA, Amazon handles your customer service. A buyer can contact Amazon's customer service department if they have a problem with their order rather than you. You’ll avoid unnecessary stress and frustration by not needing to speak directly with customers. Amazon Prime: Another feature is that products sold via FBA are automatically eligible for Amazon Prime. When a business becomes a Prime-eligible seller, it can also sell to Prime subscribers, which can double their sales. Vast network: Amazon currently operates in India through several technologically advanced fulfillment centers across Maharashtra, Karnataka, New Delhi, Haryana, Tamil Nadu, Gujarat, Rajasthan, Punjab, Telangana, and West Bengal. Amazon has end-to-end, advanced fulfillment solutions along with a massive network. Great Partner for Business Expansion: As an example of how Amazon FBA can be beneficial to you, consider the following situation: you have conducted your research, sourced your products, and have two or three hot items all selling well on Amazon. Your business is definitely doing well. As a seller, you are probably thinking about buying more stock at this point, but you lack the storage space to store it. You are also concerned about how long it will take you to dispatch more orders. Amazon FBA can do wonders for you to expand the business and ship products to almost any geographic location. Seamless, End-to-end Fulfillment Service: As Amazon's Fulfillment Service is designed to be so seamless, customers usually aren't aware that they are buying from a third-party seller using Amazon FBA. It is so streamlined that when customers purchase from Amazon, they will usually be completely unaware that they are buying from a third party. Purchasing directly from Amazon and through Amazon FBA will be almost identical to each other, with the same delivery options, return and refund policies, and excellent service. Therefore, as you might expect, this solution can be very beneficial to Amazon sellers and can certainly eliminate a lot of time-consuming tasks, but it will require effort to implement, just like any other business strategy. By using the Amazon fulfillment network, Amazon has solved one of the biggest problems in the eCommerce industry: how to make the eCommerce shipping process easy, quick, and simple? Wow Factor: Amazon FBA is a great service, especially for those who want to avoid the hassle of managing their own distribution and fulfillment networks. Customers trust products labeled "Fulfilled by Amazon" products. The "Prime" checkbox or the "FREE Shipping on eligible orders" note in the search results is what people look for when they're trying to meet Amazon's free shipping requirement. Free Shipping: In the past few years, Amazon has built a great reputation for free shipping, and FBA allows you to use that to your advantage. Currently, free shipping is such an important part of Amazon's businesses that if you do not offer it (either through FBA or on your own), many people will look for a competitor that does. Using FBA makes it easy to offer free shipping. Its shipping rates for products sold on Amazon will be much lower than your own rates, so you can offer free shipping to your customers. "Free" shipping is a way of life for many buyers now across all geographic locations. Reverse Logistics: Reverse logistics is no more a hassle with FBA doing all the work, not to mention offering customer service and answering queries. Amazon's "free returns" are not free to the business but only to the customer. If an item is returned through this service, the business must still pay a return processing fee. It's a lot cheaper than hiring a customer service team, but it definitely isn't free. Ease of Use: Anyone can make FBA work for their business. It takes the hassle of dealing with shipping logistics or processing returns from customers away from the business so that one can concentrate on their main business. It does come with a few issues, but they can be calculated and worked out to be a plus for the business. Therefore, looking at the huge customer base and great reputation that Amazon as a brand has built, the answer to whether selling products on Amazon is worth it is for you, as a business, to decide. Related Article: What should you choose FBA or FBM? Who are the Chief Competitors of Fulfillment by Amazon in 2024? Online retailers are vying for customers in India, which is expected to become a $1 trillion digital economy by 2025. Foreign-funded companies cannot hold eCommerce inventory in India at the moment. While Amazon had hoped that those rules would be relaxed, the proposed policy calls for harsher controls – even on the phantom sellers that Amazon and Flipkart use to circumvent the rules. That means the eCommerce giant and its preferred resellers will not be able to offer great discounts on its items. These are Amazon’s main competitors in India. WareIQ Source WareIQ is a startup founded recently in 2019 but has quickly grown to be a great alternative to Amazon’s FBA. It combines the latest software technologies and platforms to give the customer a great fulfillment experience. The low cost and transparency of same-day and next-day delivery make it accessible to everyone. WareIQ provides its customers with a nationwide network of fulfillment centers and ecommerce warehouses close to their location. Moreover, it has tie-ups with numerous couriers, making same-day and next-day delivery cheap and possible for all customers, whether large-volume or small-volume. With the latest cutting-edge technologies and platforms, WareIQ’s WMS offers: Shipping management services Printing of labels and packing services in a technologically advanced manner to make it easy to use for any seller Latest technology to handle failed deliveries and redeliver them Order management services Services to point out where exactly the order is, which phase it is in, and its estimated time of arrival Inventory management services WareIQ can disperse inventory boosting for speed, location, and low cost Warehouse management services It takes full ownership of the inventory and provides safety to the stock – a chief reason behind WareIQ’s success The WareIQ platform consolidates both national and local couriers, thereby cutting costs and increasing delivery time. This cut in cost is passed on to sellers, even those selling minimum quantities. This is a big benefit to small-scale and new sellers. WareIQ RUSH is a same-day delivery program that has taken the fulfillment industry to another level. Even small eCommerce sellers can reap economies of scale, low costs, and high-speed delivery, however small the quantities shipped. Many brands, such as Future Group to Kama Ayurveda, have trusted WareIQ as their fulfillment partner. Flipkart Source Amazon's biggest competitor in the Indian eCommerce market is Flipkart, which continues to grow. It was founded in 2007 and is one of India's leading online eCommerce sites. Amazon and Flipkart have similar business models. Flipkart's revenue is increasing steadily, with a reported 12% increase every year. Plus points Low prices Flipkart Fulfillment lets you utilize its latest state-of-the-art fulfillment centers at extremely low prices. Safety protocol Inventory is stored with all safety procedures followed so that the business does not incur any loss. Huge warehouses all across the country Flipkart stores all inventory in warehouses, so sellers don’t have to worry about their stock once it reaches Flipkart’s fulfillment centers. Quality testing All stock and inventory are checked for quality. Packaging and bubble-wrap Flipkart makes sure that the products are packaged and sent to customers in proper condition. ShipBob Source ShipBob is a 3PL logistics and eCommerce fulfillment company that delivers orders with next-day delivery to brands that serve direct-to-consumer customers. It was founded in Chicago in 2014. Plus points With 2-day shipping at affordable prices, this company is transparent and affordable. It manages eCommerce fulfillment from start to finish, which is a huge relief for sellers. The reason for its success is an easy API that integrates with the seller’s platform, providing leverage in terms of speed as well as cost. The seller's platform can easily integrate with ShipBob’s platform and use its highly advanced software to provide the best services to the end consumer. The user interface is simple and provides ease of use A large network of warehouses located in different locations Providing order management services when a product is out of stock Minus points Its pricing is not easy to understand or calculate, which has been reported by a few sellers. Customer support is not top of the line. Cooling and refrigeration are not possible in ShipBob warehouses. Deliverr Source Deliverr, a San Francisco-based company founded in 2017, provides comprehensive solutions for small business order fulfillment. It provides a 2-day delivery service which has been a major hit with eCommerce logistics companies with a relatively smaller scale of operations. Its goal is to provide customers with an enjoyable and hassle-free experience, including transparent pricing, seamless ordering, and a good customer experience. It provides live data tracking feature which offers an accurate date of fulfillment. It also services direct-to-customer businesses with next-day delivery options. Plus points Pricing is transparent. It provides adequate customer support to its clients. Deliverr provides integration of its platform to the seller’s eCommerce platform, providing the best services to the end customer. Minus points It does not provide international fulfillment services, only local services. No telephone support is offered to customers. Shopify Source A multinational eCommerce company based in Ottawa, Canada, Shopify Inc. was founded in 1998. Retail point-of-sale systems and eCommerce platforms for online stores are an added feature of Shopify. Plus points Shopify allows for creating a business and enabling its online operations from scratch. It helps you build a website from scratch, backed by powerful tools to find customers, create sales, and manage the business. With Shopify’s latest technologies used in its Point of Sale technology, selling products to anyone and shipping to any location is easier than ever. Shopify is spread across 175 countries worldwide and has garnered a business of $200 billion, making it very profitable for small-scale and independent business owners to make profits using its platform. Business owners and companies can easily manage orders, shipping, and other services from any location by using just one dashboard. Pricing is also managed from the same dashboard, making it a one-stop-shop solution. Great customer support is provided by Shopify 24 hours a day, all seven days of a week. Its powerful platform provides much-needed insights into the business, which is fully managed by Shopify Fulfillment. JD Source JD's B2C operation and logistics infrastructure are renowned. Approximately 1,300 warehouses spanning roughly 23 million square meters comprised the company's network as of September 30, 2021. The company is not only a competitor to Amazon but also Alibaba.com, as both of them offer bulk purchase options. It is the largest online retailer in China by revenue. What are the Various Challenges of Using Fulfillment by Amazon? Fees Charged by Amazon FBA The cost of Amazon storage fees can add up if your inventory doesn't sell as quickly as you would like. To minimize storage fees, you should ensure your stock moves quickly, and you are generating sales, so you don't need to worry about additional fees. This is one of the major challenges of using FBA. Amazon has revised their prices, effective from 10th May 2024, which has resulted in a marginal increase in their prices and has put undue pressure on sellers who rely on FBA for their fulfillment services. There is now an 18% increase in Pick Pack Fees, a 25% increase in Closing Fees, and a 25% increase in weight handling fees. Read more about the updated fee structure. Labeling Amazon will give you access to their guidelines on preparing and shipping your items once you register for Amazon FBA. The guidelines are very strict, and if the inventory is not properly labeled, it will be rejected by the warehouse. This can cause delays and frustration, besides extra work. Instructions are to be followed carefully. Product Packaging Has the Amazon Logo and Not Your Brand’s Amazon FBA dispatches all orders using their own packaging. So, when your customers receive their order, the packaging will sport Amazon's branding, making it harder for you to build your unique reputation through brand awareness since your brand is not visible on the packaging. Therefore, if brand awareness is a crucial factor for you, you may not benefit greatly from FBA. An Increase in Returns after Using FBA Since Amazon's returns policy is so easy, there is the possibility of receiving a higher number of returns from customers once you use Amazon FBA. However, you can minimize this risk by always supplying quality products. Sales Tax Issues Using a fulfillment service like FBA makes calculating sales tax even more difficult. When items are sold and shipped directly, calculating sales tax becomes interesting enough. But with FBA, product items are manufactured, shipped, and sold in different regions, resulting in further complications in tax issues. Inventory Management You, as the seller, are responsible for keeping track of your FBA inventory and ensuring that it is restocked as needed. If you don't do this properly, you risk accepting orders that can't be fulfilled because the items aren't in stock. Amazon Fee Structure Amazon will deduct all fees owed to them before paying you, so you cannot use the next sale to pay for the last one. That means a seller will require a credit card to pay off all fees owed to Amazon, and these fees cannot be carried forward. Product Handling Issues You may lose or damage inventory in the fulfillment process, and most often, Amazon is the one who made the error, not you, the seller. In these cases, Amazon will reimburse you. Nevertheless, some cases might go unnoticed, and sellers' money is lost due to damaged inventory. Thus, sellers should keep shipping records in case Amazon short-delivers inventory. Complicated Calculations Involved In addition to the FBA calculator, Amazon offers a chart for its fulfillment fees for FBA sellers. A chart for fulfillment fees can be found on Amazon's website along with its FBA calculator, which allows you to decide if an item is profitable enough to sell on FBA or if you should use another method. This requires foresight and a lot of calculations. Not every seller is well-versed in these complicated calculations. Strict Guidelines The Amazon fulfillment centers have specific requirements for certain products (i.e., poly-bagging and bubble-wrapping) to ensure that inventory is in good shape. A per-item fee can also be charged for Amazon to handle the preparation for sellers. Stickerless Merging of Similar Products Amazon's default inventory setting collects the same products from a manufacturer at the same time, so if a seller sells the same product as another seller or retailer, the inventories will be mixed. This leads to low-quality products from different sellers mixing with superior-quality products, leading to fraud and account suspensions. You must be aware of this as a seller. You can also read different alternatives to Amazon FBA. Boost Your Fulfillment Strategy with WareIQ's Seller Flex Services While Fulfillment by Amazon (FBA) offers a robust solution for sellers looking to streamline their logistics, integrating WareIQ's Seller Flex services can further enhance your fulfilment strategy. This innovative approach allows sellers to maintain control over their inventory while benefiting from the advantages of Amazon's extensive marketplace. The Benefits of Combining Seller Flex with FBA 1. Greater Control Over Inventory Management With WareIQ's Seller Flex, sellers can manage their inventory from their own warehouses or utilise WareIQ’s network of fulfilment centres. This flexibility allows for: Responsive Stock Management: Quickly adapt to changes in demand without the constraints of Amazon's storage limits. Optimised Inventory Placement: Strategically position stock in locations that minimise shipping times and costs. 2. Enhanced Delivery Speed In today's fast-paced e-commerce environment, timely deliveries are essential. WareIQ's Seller Flex services complement FBA by: Reducing Shipping Times: By leveraging a nationwide network of fulfilment centres, products can be dispatched from locations closer to the customer, ensuring quicker delivery. Maintaining Prime Eligibility: Products fulfilled through Seller Flex can still carry the Prime badge, providing the same level of customer trust and satisfaction associated with FBA. 3. Streamlined Returns Management Returns can be a significant challenge for sellers. WareIQ simplifies this process by: Efficient Returns Handling: WareIQ manages returns on behalf of sellers, reducing the administrative burden and allowing sellers to focus on growth. Quality Control: Utilising an in-house QC app, WareIQ ensures that returned items are documented accurately, streamlining the claims process and minimising disputes. Addressing Common Challenges of FBA with WareIQ’s Seller Flex While FBA offers many advantages, it also presents challenges that can impact seller performance. WareIQ's Seller Flex services help mitigate these issues: Avoiding Compliance Pitfalls The intricate requirements of FBA can be overwhelming. WareIQ ensures that inventory is prepared according to Amazon's standards, reducing the risk of non-compliance penalties. Cost Management FBA fees can accumulate quickly, especially with storage and fulfilment costs. By using WareIQ’s Seller Flex, sellers can lower their overall fulfilment expenses through optimised logistics and reduced reliance on Amazon's pricing structure. Integrating WareIQ's Seller Flex services with your Amazon FBA strategy offers a powerful combination that enhances operational efficiency and customer satisfaction. By providing greater control over inventory, faster delivery options, and streamlined returns management, Seller Flex empowers sellers to navigate the complexities of e-commerce confidently. As you elevate your fulfilment strategy, consider the advantages of incorporating WareIQ's innovative solutions alongside Amazon FBA to achieve sustained growth and success in the competitive marketplace. Conclusion: Why is WareIQ a Better Option than Fulfillment by Amazon in 2024? There are many ways in which Amazon FBA can benefit your online business without having to invest in expensive storage facilities and staff. However, these services can end up being quite expensive and may not offer the exact services that you are looking for. A company like WareIQ offers the same services as FBA, and much more, while also being flexible by giving customers a choice as to which services they need and allowing them to opt for those specific services only. In addition, we offer integrations with a multitude of the biggest eCommerce platforms such as Shopify. WareIQ's prices for similar services are cheaper and more transparent than Fulfillment-by-Amazon with a negligible amount of hidden expenses. We utilise local resources which help to keep costs down. WareIQ offers flexible solutions to labeling. You can either opt for your own custom packaging and labeling to increase awareness of your own brand or you can opt for our standardised packaging, which is well-designed and will make your product stand out from the crowd. All in all, it is a win-win. You can opt for our entire suite of fulfillment services which includes inventory management. If you do, you will not need to bother about the hassle to maintain your inventory levels and keep track of what needs to be restocked as our custom management software will take care of everything. WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. We also offer multiple services relating to the preparation of inventory to meet Fulfillment by Amazon requirements such as: Pick & Pack by WareIQ: WareIQ's fully automated order fulfillment system guarantees efficient and accurate picking & packing and also has the capacity to fulfill 1 to 10,000+ orders each day. In addition to this, you are only chargeable for the services that you use. So if you ship only 1 order a day, you will only pay a pick & pack charge for that 1 order. Amazon Product Compliance with WareIQ: Amazon has very strict guidelines that retailers need to comply with in order to avoid refusal, disposal, or return of inventory, and charges for noncompliance at the fulfillment center. WareIQ offers services such as repacking and labeling, to make sure that your products abide by all these regulations before it is sent to an Amazon fulfillment center. Smart Tech by WareIQ: WareIQ’s smart technology ensures maximum efficiency by offering API integrations, automated mapping of SKUs across multiple sales platforms, and the ability to bundle products without the requirement of tracking, regulating inventory levels, or handling fulfillment. Hub & Spoke Transport by WareIQ: This important process involves the streamlining of the entire supply chain and results in the reduction of costs, across the entire process. Our most utilized service is the transport of inventory to our warehouse, relabelling of the product, and reorganizing it for delivery to multiple locations. We also take advantage of shipping discounts through consolidations and deconsolidations to ensure a seamless shipping experience. Fulfillment by Amazon FAQs (Frequently Asked Questions)

April 27, 2022

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10 Best Reverse Logistics Companies for Efficient Returns Management in eCommerce in India in 2024

The chain of supply moves both forward and backward. Logistics companies strive to get the shipment to the customer at the earliest time and in the safest way possible. However, the order is said to be unfulfilled until the customer happily accepts it. If the customer doesn’t like the product and wishes to return it or submit another product for recycling, the company needs to pull it back. Reverse logistics companies are needed to handle this process. Let’s take a look. What is Reverse Logistics? Ecommerce Reverse logistics is the process of getting an already delivered product back from the customer. It follows the same supply chain process, but in reverse. Being the polar opposite of the conventional supply chain, reverse logistics originates with the customer and ends with the product manufacturer or retailer. The process is sometimes triggered at the warehouse or storage facility, and the product needs to be shipped back to the seller. Even unsuccessful B2C deliveries, especially in the case of eCommerce purchases or B2B returns to the distribution centre, require reverse logistics. And, then, let’s not forget those instances wherein the delivery person spots damaged goods and marks these for return immediately. So reverse logistics has many use cases, especially in the case of small businesses who need to offload their reverse logistics requirements to a competent 3PL company. Either way, the Reverse Logistics Companies assist in moving the product from the origin to the destination. Here are the stages of this backward supply chain: Initiation of return: The customer or delivery partner initiates the process of return. Reverse Logistics Companies then accept the request. Shipping of the returned product: The shipment is then picked from the customer and brings it back to their warehouse or place of processing. Processing of the return: Then thorough checks are run to assess any damage to the product. Receipt by the seller: Once the seller receives the product, it can either be resold or recycled, depending on its condition. Instances of resale: If the product quality has not deteriorated, the company resells it via the same process. Instances of recyclement: If the product cannot be used again, it is sent for recycling. Commencement of conventional supply chain: Once it is ready, the product is put up for sale again. It undergoes the forward supply chain process from scratch, to reach a new end customer. [contactus_gynoveda] What are the 5 Rs of Reverse Logistics? The entire process of reverse logistics runs on these 5 Rs: ReturnsResellingRecalls or RepairsRecycleReplace Let’s understand what each process entails. Returns The eCommerce marketplace leads the amount of returns, although the rate of returns has slowed down from an average of 22% in 2020 to 18-20% in 2021. This trend was ushered in by customers’ growing confidence in shopping online. The lockdown situation then further pushed customers to become accustomed to online purchases. Companies strive for the lowest return rates, as it enhances their brand image, but such exchanges happen for several reasons. Sometimes, customers trigger the return when they are not happy with the product or if they received a wrong product and wish to exchange it. There are instances when they order more than they need or change their minds when unpacking the product. There are also returns due to delayed deliveries. Read this blog on branded shipping to understand how it helps deliver a superior shipping experience and limits the need for returns. Product Return is the first step in the process that reverse logistics companies handle and also the most critical because it deals directly with the end customer. Handling it poorly can harm the company’s image and service feedback. Whether the business is B2C or B2B, the steps taken by reverse logistics companies to process the return are similar. Here’s the list: Accepting customer requests through the company’s portal or manually through customer careAnalyzing and defining the actual reason for return.Processing the exchange request, if anyIssuing return labelsReadying the labels and other documentation for pick up from the customer’s locationNotifying the customer at every step, to gain their confidence Reselling Once returned to the manufacturer or the seller by reverse logistics companies, the product undergoes stringent checks to assess any damage or quality depletion. If the returned product is reusable, the company aims to resell it as a new or returned product. This trend is escalating in many industries, especially the fashion and textile industry. Fashion waste amounts to 92 million tonnes per year and is forecasted to increase to 134 million tonnes by 2030. Burgeoning customer awareness about sustainable living is driving the expansion in reselling and reusing products as much as possible. As a result, there is a growing interest and demand for returned items, especially in the fashion industry worldwide. It is evident that the second-hand and resale market is multiplying and is expected to be valuated at $53 billion by 2023. Recalls or Repairs Some products that are delivered to customers may have manufacturing defects. Some of these recalls are triggered by statutory policies or potential health hazards. eCommerce companies recall these faulty products back to their storage or production facilities for repair before sending them back to the customers. Recalls are trickier than returns as the brand image, and substantial monetary liabilities are involved. Product recalls are followed by repairs and then re-delivered to the customer or exchanged if the products cannot be salvaged. However, some companies undertake to return the customers’ money to retain and enhance brand loyalty. Recycle Globally, humans produce 2.12 billion tons of waste every year, out of which only 13% is recycled. However, sustainable practices are on the rise, and companies are adopting eco-friendly business methods. Recycling paper and waste material is the norm, and so is recycling returns that cannot be reused or resold as it is. All industries are under pressure to employ the reduce, reuse and recycle strategy for efficient waste management. However, many enterprises, especially in the electronic and tech industries use a 3PL recycling partner to develop recycling strategies. Reverse logistics companies consider the life cycle assessment of the returned order an essential step in the process to smoothly deliver the product back to the retailer. It evaluates the product’s condition and helps ascertain its impact on the environment. Smart recycling is critical for companies. If done right, companies can save reusable components of the product and avoid government penalties for poor waste management. Replacement Many customers find shipping a faulty product back to the manufacturer or seller to be a tedious process. Some sellers even prefer replacing the product instead of repairing it. The delivery personnel carries the replacement when they pick up the faulty product from the customer’s location. The defective unit can then be packed in the same wrapping material as the replacement. These practices help to save on transportation costs and prevent expenses incurred for packing the old unit. Moreover, this method also saves time for the customer and reverse logistics companies. What Services do Reverse Logistics Companies Offer? They offer most of the services covered in the five Rs of Reverse Logistics. They are listed below: They offer picking up the returned product from the customer and delivering it back to the manufacturer or retailer. They also inspect the product for any damage.Repacking and labeling the product for resale are offered by some reverse logistics companies, as per the requirements of the seller.Taking the replacement during the pick-up process of the returned order, as per the requirements of the seller, and results in saved time and monetary resources. Keeping customers informed about the status of pick-up or replacement.Assisting in generating refunds are provided by them..Providing omnichannel services to sellers and their customers to ensure coverage via all channels What are the Benefits of Partnering with Reverse Logistics Companies? Delegating the humungous task of reverse logistics to dedicated companies brings in many rewards. The most crucial ones are: Increasing customer satisfaction: The presence of reverse logistics companies in the scheme of operations brings in better customer feedback. Such associates provide timely pick-ups and transportation of the returned product to the origin, thus saving time for the company.Curbing of losses: Reverse Logistics causes many expenses for the service provider and they help prevent that. Some countries, like the US and Canada, allow companies to employ a no-returns policy.Facilitating reuse of returned products: They help to manage the returns process, a business does not need to be wary of product returns or recalls. These companies can take away all the headaches that are generally associated with the backward supply chain. The products and parts brought in by the reverse logistics partner are either reused or recycled by the company. Timely and safe returns further encourage businesses to salvage their products, thus enhancing their supply chain’s overall value and eco-friendliness.Improving the sustainability quotient: When a customer returns a product beyond redemption, the seller can ensure it is disposed of in an eco-friendly way. Reverse logistics companies help businesses ensure the sustainability of operations.Offering valuable business insights: A business can gain valuable insights from reverse logistics companies in the various processes involved in reverse logistics, thus streamlining its operations.Planning the delivery process: Their dispatch software and route planning apps allow them to foresee and schedule the pick-up and delivery of returned goods during their existing trips. This saves time and the requirement for multiple runs for delivery of products and pick-up of returns. Read this article about micro fulfillment to understand how it can help reduce delivery times and increase customer satisfaction. What are the Challenges of Partnering with Reverse Logistics Companies? Not everything would always go according to plan when a business partners with reverse logistics companies. There are bound to be challenged in collaboration. Let’s see what they are: Poor integration of systems: Most 3PL reverse logistics companies have their in-built systems that integrate with the seller/manufacturer’s system for an unhindered flow of information. They assist the sellers and even themselves, in coordinating their operations. Most of these systems use cloud-based technology that helps both parties automate the returns process, pick-up and delivery for drivers, and sync order details and other information seamlessly. But it would be meaningless if they don’t integrate well with the seller’s system. For instance, when the seller triggers a Return Merchandise Authorisation (RMA), These companies must receive it as an acceptance of the return request. Therefore, any tech loophole can cause an issue in the completion of the order-return process. They are also liable to provide information about the shipment’s whereabouts to the seller. The inability to update this data in real-time can disrupt the critical stream of updates between the intermediaries and sellers. Communication gaps: Multiple layers of processes exist between the manufacturer/seller and the end consumer in a supply chain. Adding 3PL reverse logistics companies to the equation can further distance the communication gap between the two ends, thus disrupting the information flow from the customer to the seller/manufacturer via the reverse logistics partner. Most customers form an opinion of a brand based on its return policy and performance. Therefore, a deficiency in this domain can cost the business its clientele. Collaboration issues: One of the critical layers in the chain of supply is the transportation or delivery personnel. Problems sometimes arise with the delivery and distribution of the end product and its return. Such chaos in collaboration with the delivery personnel of 3PL reverse logistics companies can cause more hindrances to smooth transportation. Inadequate connectivity: To reach the customer to pick up the return is the first requirement for reverse logistics companies. The inability to cover a customer’s pin code can halt the backward supply chain before it even begins. In addition, poor roads and inadequate signage can slow down the pick-up partner in reaching the customer’s location and delay the order fulfillment process. More so, if the customer resides in another country, where different laws and regulations come into play, it can cause a big delay. How to Choose the Right Reverse Logistics Companies for Your Business in 2023? Businesses must do some research before partnering with reverse logistics companies. Some important information that you should know in 2023 has been listed below: Previous experience: The businesses need to ensure that they tie up with those who have relevant experience or knowledge of the required operations. The retailer should know the reverse logistics companies' expertise in working with similar industries, how long they have been operating, their success rate, geographical coverage, among other factors before signing up. Restrictions on product type: A seller must check if reverse logistics companies can handle their product type if and when there is a return by a customer. The product's condition varies when it is picked up from the customer, as compared to being dispatched by the manufacturer. The partner picking up the return must be able to handle it well without causing additional damage. For instance, if it is a fragile or time and temperature-sensitive product, the logistics partner must have the required resources and know-how to bring it back safely to the warehouse. Systems and integration: The in-built systems of reverse logistics companies must be efficient and integrate seamlessly with the sellers platform. As discussed above, the dispatch and route analysis software are critical in the smooth execution of reverse logistics. Therefore, businesses must ensure the logistics partner’s systems fit in well with their software to ensure a smooth flow of real-time information. Timelines for processing returns: Timing is vital in supply chain management, and customers don’t like to wait beyond the promised period. Businesses need to ensure that reverse logistics companies can match their service timelines. These durations must be in sync with the customer's expectations. Rate plans: The reverse logistics cost is almost 75% higher than 4 years ago, and companies spend around 9-15% of their revenues on backward logistics. Hence, companies must check the rates of each service at every step of the process to identify any hidden costs and clarify them. Warehouse network: The companies responsible for reverse logistics that operate in multiple locations closer to primary customer hubs can serve retailers at a quicker pace. A business must check the geographical proximities of reverse logistics companies to their customer hotspots or their own warehouses. Current capacity: A business needs to know the current capacity of reverse logistics companies, in order to hand over their requests for returns to them. A partner can only be selected if they can handle the business’ workload of the return requests. Plans for expansion: This question must be focused on the plans and range of services of reverse logistics logistics companies to expand their reach across the country. The seller can also seek to know their performance appraisal measures. Omnichannel returns: Most players in the supply chain can diversify their modes of distribution by adopting multi channel selling like online marketplaces and offline retail stores. Therefore, the business must know in advance how reverse logistics companies will be able to cover return requests from all channels. A few modes of omnichannel returns include in-store returns, different drop-off spots, customer doorstep pick-up, or return via courier. Giving them more return options ensures higher customer satisfaction. Insurance Coverage: Accidents and mishaps can occur, sometimes out of anyone’s control. In case of delays, damage to the goods, or any other unforeseen contingency, reverse logistics companies should be able to raise the claim. The seller must be aware of their insurance policy to stay protected. Top 10 Reverse Logistics Companies in India in 2023 WareIQBluedartEcom ExpressXpressbeesShadowfaxDelhiveryAramexTCI ExpressBizlogFirst Flight Couriers WareIQ Source By providing a full-stack eCommerce fulfillment solutions and giving its users an experience similar to Amazon Prime with same-day and next-day delivery, WareIQ has evolved to be one of the most excellent fulfillment firms in India. Established in 2019, this Y-combinator backed Shipping Aggregator is accessible to anyone. Besides its stronghold and expertise in the eCommerce fulfillment sector, WareIQ as a Shipping Aggregator stands apart from the rest because of the following aspects: Discounted rates and access to all major national couriers, as well as last-mile delivery services and couriers, guaranteeing next-day delivery and same day delivery service. This is extremely crucial for sellers as they can ensure that they live up to their service level and enjoy a higher customer satisfaction rate, thus leading to further business.A powerful pan-India network of fulfillment centers, urban dark stores, and logistics network of national & hyperlocal shipping partners—all located near their clients, allowing them to provide timely and cost-effective logistical solutions.A centralised logistical centre and tech platform for all eCommerce fulfillment based requirementsA centralised platform for core operationsPost-shipping apps provide tracking capabilities and a smart communication platform to offer the greatest client experience. Multiple products and features are provided, such as the “WareIQ RUSH” that ensures same-day delivery and is amongst the rare fulfillment tech companies in the world, let alone India, to provide such a service, and is thus amongst the best fulfillment companies in India. WareIQ customers benefit from considerable cost reductions as a consequence of WareIQ negotiating the best terms with shipping partners, strategic warehouse presence, and data-driven decision making. WareIQ’s central platform possesses a multifunctional NDR dashboard that helps reduce the processing time of NDR by 12 hours and reduces the RTO by 10%. Related Search: Top 10 Logistics Companies in Mumbai Bluedart Source Blue Dart Express Ltd. is a South Asian express air and integrated transportation & distribution company, headquartered in Mumbai. It offers reliable and secure delivery of consignments to over 35,000 locations in India. It was founded in 1983 and in its early years, Blue Dart had an agreement with Gelco Express International (UK), for the operations of international air package express services from India. Has delivered consignments over 35,000 locations in IndiaHas delivery services covering over 220 countriesHas distribution services including air express, supply chain solutions, customs clearance, and freight forwardingHas warehouses at 85 locations across the nation as well as warehouses at the 7 major metro cities (Delhi, Mumbai, Ahmedabad, Bangalore, Hyderabad, Kolkata and Chennai)Has state-of-the-art Technology, indigenously developed, MIS, for Track and Trace, ERP, Customer Service, Space Control and ReservationsHas a subsidiary service called Blue Dart Aviation that is dedicated to support time-definite morning deliveries through night freighter flight operationsHas a countrywide surface network to complement air servicesHas eCommerce B2C and B2B initiatives including partnering with a few of the prime portals in the country Ecom Express Source Ecom Express Ltd. is an end-to-end technology enabled logistics solutions provider in the Indian e-commerce industry, headquartered in Gurugram, Haryana. It was incorporated in 2012 by a team with several years of experience in the Indian logistics and distribution industry. The company has established its presence in the industry due to a differentiated business model which is built on delivery service capability, customization, scalability, and sustainability. It uses cutting-edge technology and automated solutions to enable first-mile pickup, processing, network optimization and last-mile delivery. The company’s products include Ecom Express Services (EXS), Ecom Digital Services (EDS), and Ecom Fulfilment Services (EFS). Has a presence all over the country including 29 states and union territories. It operates in across 27,000+ PIN-codes over 2650+ townsHas also invested in Paperfly, Bangladesh’s largest third-party e-commerce logistics (3PL) firm. Xpressbees Source Xpressbees is a logistic solutions company founded in 2015 and is headquartered in Pune, Maharashtra. It specialises with Last-Mile Delivery, Reverse Logistics, Channel Management, Dropshipping, Software Solutions, Payment Collection, Fulfillment Status, Fulfillment Services, Cross Border Services and Transportation. It has logistics solutions across B2B Xpress, B2C Xpress, Cross-border and 3PL (Third Party Logistics) that come with an edge of accuracy, speed & scalability. It consists of a distribution network that penetrates 2000+ cities and towns across the country. With time, it has emerged as trusted logistics partners for the biggest names in eCommerce, health care, grocery, heavy machinery, finance, and automotive. Has 3000+ offices & service centersHas 52+ cargo airportsHas 500+ customer care executives Has 100+ fulfillment hubsHas 10 Lakhs sq ft of warehouse capacity Has 35,000+ staff and executives Shadowfax Source Shadowfax is a logistics company founded in 2015. It uses machine learning and artificial intelligence to ensure that supply keeps up with demand in the hyperlocal distribution environment, which is rapidly developing and extremely fragmented, and to provide a fantastic end-user experience. Shadowfax launched India's first delivery SuperApp in October 2021 to help delivery partners expand faster by giving them access to different opportunities through a single platform. Has expanded to a staff of close to 5000 peopleHas 100K+ daily active users Is active in more than 600 cities throughout IndiaPromises to be able to fulfil 1 million orders each day in more than 7000 different pin codes Delhivery Source Delhivery, since its inception, has successfully fulfilled over 1 billion orders across India. Their aim is to build an efficient operations model for business, through a combination of world-class infrastructure, cutting-edge engineering and technology capabilities and logistics operations of the highest quality. It is one of India’s largest and most popular courier companies that is also homegrown. It offers end-to-end fulfillment solutions and serves over 17,000 pin codes and 175 cities.It offers features such as sending tracking details to customers through SMS and provides same-day/next-day delivery options.It provides multiple payment options at the time of delivery. Aramex Source Aramex is based in the UAE and was established in 1982 with offices in Amman and New York. Their legacy, robust IT infrastructure and nationwide consolidation centers provide customised reverse logistics solutions to the customers. Offers customized return resultsHas the ability to integrate its return portal according to guidelines offered by customersHas a custom payment platform called Aramex Payment Services Has automatic language selection grounded on IPHas 24/7 return requests Has multi-language support TCI Express Source Transport Corporation of India started TCIExpress as a major division in 1996 and has grown over the years to become a household name in express delivery services. The company offers to pick up from 3000 locations across India and keeps a tab on the returns via their centralised system. Speed is an essential part of their services. Has transparent and cost-effective pricing Offers a vast number of reverse logistics servicesOffers services such as supply chain consultancy, inbound logistics, warehousing/distribution center management, and outbound logistics, and in-plant stores & yard management Bizlog Source A tech start-up specialising in reverse logistics, Bizlog serves 53 locations across the nation and is aiming to serve more than 100 in the near future. They offer reverse logistics services from pick-ups, inspections, packaging, repairs and exchanges, insurance and warranty. Pays attention to services such as reuse, refurbish, resale and residual valueServes B2B, B2C, and C2C & C2B with its modular technological platform along with a technically trained team First Flight Couriers Source Based in Mumbai, First Flight Couriers offer expert reverse logistics services. They pick up the return from the customer or the retailer and provide thorough inspection and exchange for unredeemable products. They also offer tracking services every step of the way. Offers a vast array of reverse logistics servicesOffers exchange of merchandiseHas a comprehensive track & trace facility for ordersHas a global reachOffers cost-effective and transparent pricing Conclusion: How is WareIQ the Best Reverse Logistics Company for an eCommerce Business? WareIQ offers a couple of advantages that make it the ideal choice for reverse logistical solutions. Smart Platform: WareIQ’s advanced supply chain tech studies the market trends, order density and conducts an in-depth slotting analysis to suggest the best way to move their returns. Decentralised Warehousing: WareIQ believes that the closer you are to the customer, the faster you can serve them. The company promises to reach 90% of Indian cities within 48 hours. Efficient Integration: The company’s superior-tech ensures extensive integration with all prominent national and regional courier service providers. This enables same-day deliveries in metros. Preventive Checks: As a preemptive measure, WareIQ’s track record of delivery TATs ensures the businesses never face a loss due to delayed delivery or a lack of information. They also run thorough address checks to ensure the package doesn’t return to its origin due to incorrect details of the customer’s whereabouts. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfilment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing and data-driven decision-making. Related Article: How to Reduce Logistics Cost? [signup] Reverse logistics companies FAQs (Frequently Asked Questions) What role does reverse logistics play?Reverse logistics services are designed to transport products from their point of consumption to an end point to capture value or properly dispose goods and materials. It is responsible for collecting goods, their transportation to a central location, and sorting them according to their final destination. What are five R’s of reverse logistics?• Returns• Recalls• Repairs• Repackaging• Recycling What are the best reverse logistics company in India?• WareIQ• Bluedart• Ecom Express• Xpressbees• Delhivery Does WareIQ provide reverse logistics?Yes, WareIQ has solutions across every touchpoint of the value chain.• Disposal• Value Recovery• Re-inventorization• Smart RVP or Reverse Pickup What are the common problems faced by reverse logistics companies?• Reverse logistics costs are high• Inability to comprehend the reasoning for returns• Lack of visibility into the products that have been received• Insufficient labor resources to "handle" returns• Chances of product damage during transit What do you mean by green logistics?Green logistics entails reducing the environmental impact of logistics by employing more environmentally friendly and sustainable processes. This method considers the complete product life cycle, including manufacturing, storage, transportation, marketing, consumption, and disposal. Related Article: List of Top 10 Warehousing and Logistics Companies In Delhi NCR and Ghaziabad

April 26, 2022

What are eCommerce Logistics Costs? 10 Types of Main Logistics Costs in 2024

E-Commerce Logistics is the operations involved in storing and shipping inventory for an online marketplace, including inventory management and the collecting, packing, and shipping of online orders. With countless bundles shipped across different countries on any given day, systems must be in place to keep them on track and ensure that they are safely delivered to the right place, within the estimated time. Efficient management of eCommerce logistics comes along with the costs associated with it. Read along to understand various types of logistics costs & various ways in which eCommerce logistics companies can reduce costs for eCommerce & online D2C businesses. What is eCommerce Logistics? eCommerce logistics begins with moving inventory from the place of the manufacturer and keeps going until it reaches the customer’s accurate location. eCommerce fulfillment is one of the riskiest methods of eCommerce logistics, and various components involved in eCommerce logistics are listed below: Inventory managementWarehousing and storageOrder fulfillment All components are very complex compared to one another so handling these processes smoothly is no easy task. Businesses should guarantee their stock levels as sufficient in a distribution center, close to that customer’s location. If they outsource fulfillment, their 3PL must be good and satisfy the fulfillment of orders in a fast manner, even during holidays or any peak season periods. If any mistakes take place in conveying the confirmation to the customer or implementing the process within your retail supply chain, it reflects negatively on the business. [contactus_uth] What is the Importance of Understanding Logistics Cost? Logistics cost is the expenses that are incurred through the logistical aspect of a company. That refers to things such as the number of packages, transportation, and storage facilities. However, planning and decision-making frequently result in excessive costs. Therefore, examining industry operations and making processes more efficient are significant policies to reduce a company’s costs. Paying attention to the control of logistics costs helps the business keep these costs as low as possible. What are the 10 Main Types of eCommerce Logistics Costs in 2024? The logistics area encompasses all the processes that occur within the supply chain. During these processes, the flow of materials involves many storages and movement techniques, planning, resources, strategies, and workers in an organization. However, the logistical cost may vary from one company to another, as there are many variables involved. There are also fixed costs in every company. Some logistics costs are listed below: Storage and inventory Logistics and inventory costs depend on the number of goods that the company works with and the duration of storage of inventory in the warehouse. Thus, we can conclude that the longer goods spend in the fulfillment warehouse, the larger the logistics expenses are. (Read how you can reduce inventory-carrying costs.) It is also essential to note that inventory expenses are separated into product cost, product shortage cost, and maintenance cost. Product cost is related to the investments that are made in every commodity that is picked up by the suppliers. Product shortage cost has to do with the absence of items and the influence that this can cause. Maintenance costs are connected to taxes, labour, physical space rental, inventory, etc. This contributes to the effective working of the entire organisation. Packaging A principal factor for receiving a good review from customers who purchase your goods is the packaging process and it should be done adequately. Thus, it is viable to insert some safety precautions to avoid damage and destruction of goods and hence expect good customer feedback. With this issue, it's additionally possible to avoid wasting and optimize the use of space. This is a result of correct packaging and is crucial to generating savings in prices and storage space. Transportation and freight Transportation costs in eCommerce logistics costs is one of the main expenditures of companies that specialize in distribution facilities. This is often a result of this sector involving the acquisition of vehicles, fuel, maintenance, depreciation, and idleness, among others. With challenges such as theft of goods, accidents, and the long distances that goods have to travel, the risk of working in this field increases. As a result, it is critical to invest in this sector. Technology Nowadays, competitiveness is increasing in the eCommerce space. Most companies are facing some challenges in delivering goods at a fast pace. People also expect their order within one or two days. The good news is that technology is able to automate many of the processes involved in eCommerce. The use of digital platforms, for example, is important for the logistics sector to work with high turnout. Another important factor is that it helps to reduce errors and inconsistencies. Finally, it gives agility and effectively reduces logistics costs. Financial designing As mentioned previously, knowing about logistics valuation is a necessary step in knowing what steps to require. With well-established expenses, successive steps are required to form an action plan within every logistics sector and improve the techniques. Structuring processes If there is no structure in the logistics process, every employee will do their work in their own way. But this will cause failures and a waste of time. So with this in mind, process mapping will be the best solution. Understanding the flow of business activities permits managers to strategize and confirm the order of the process to be followed. This has to be reviewed regularly. It is possible to create a higher level of monitoring of each sector and its productivity. Task automation The work involved in processing the task manually frequently drives the cost up since it takes more time and errors take place at higher rates. So automating important processes will benefit the company. Programmed machines and software are gaining importance because work is done in as short a time as possible and more efficiently. Fuel Surcharges Fuel Surcharges are the fees that add to the logistics cost due to the operation of vehicles. These fees are added by the trucking companies and consumers end up paying the fluctuating fuel costs. Fuel surcharges are calculated based on your freight volumes so facing unexpected heavy fuel surcharges is a common occurrence. Handling Fees Handling fees are also a fee that takes place in eCommerce logistics. This sudden charge is given to the customer at different rates based on the retailer’s logistics partner. These fees include the costs of preparing and moving the products at the time of transportation. This does not include the shipping rate. Restocking Fees A customer may not be satisfied with their ordered products. They decide to return an item to the warehouse. Then the item can be restocked in the inventory for resale purposes. Any eCommerce business that depends on a logistics partner for inventory and storage needs to bear the prices of this activity. Some e-commerce businesses combat this by giving customers a partial refund for returning things while withholding a standard amount to hide the restocking fee. Suggested Article: Managing eCommerce Returns How to Manage and Reduce eCommerce Logistics Costs in 2024? Logistics plays a very important role in company management. Through management and execution planning, you can optimize processes, cut back on its prices and increase your profit. Given below are a few tips on how you can reduce eCommerce logistics costs. Use Different Methods of Transportation You can reduce the cost by being more adaptable to the modes of transportation your business uses. Shipping goods by air is usually costlier compared to shipping goods by road. However, the time it takes to ship by road may cost you sales. So stay informed on the price of the amount of all modes of transportation and you can change your preferences if you need to. There is also intermodal transportation if you are dependent on single modes. So rail transport is very low in cost compared to the cost of transportation on by trucks. Embrace Automation in Your Logistics Process Another process to reduce the eCommerce logistics cost is by including automation in your logistics process. If your business can track shipments from start to end, they can know if there are any problems faced in transportation logistics. This will show you live information on unexpected delays as well as allow processes to get faster and more cost-effective. Improve Supply Chain Visibility Checking and maintaining the control and clarity of your supply chain may nullify any sudden increase in logistics costs. Tracing and maintaining control over your components and products can quickly decrease shipment delays or service disruptions. Other routes of supply can be implemented faster, and this helps us to control the cost. You can find disruptions in your company’s logistics process if you use real-time dashboards and it can give you good insights into mitigating possible issues later. One of the best ways to reduce eCommerce logistics costs is by working as a group with one of your suppliers to reduce the costs. In other cases, logistics suppliers will cover direct logistics costs. Look for Opportunities to Consolidate Shipments and Space If you are waiting for a chance to consolidate your shipments, you may need to know about less-than-truckload (LTL) shipments. This is a good option for shipments of lower weight. If you can consolidate shipments for a variety of customers or products into a single shipment, you have a chance to save money by using full-truckload shipping. You have to identify any wasted space and try to mitigate it. Your business can improve storage density by increasing the vertical space with bins. This can minimize the faults that shipping containers sustain by decreasing movement at the time of transportation. Outsource to a 3PL Provider By outsourcing to a third-party logistics (3PL) provider, you can remove the need for investing in transportation, technology, space, and staff members to initiate the logistics process. Many companies offer logistic solutions for optimizing the logistic process and decreasing costs. A company such as WareIQ can work with you one-on-one from beginning to end, providing your business with custom, targeted delivery solutions. From on-demand and same-day with routed delivery choices, our team can work with you to resolve problems and realize the solutions that exceed your expectations. With our transparent pricing, you will know how much your logistics, warehousing, or delivery services will cost. How can Outsourcing Logistics Requirements to a 3PL eCommerce Logistics & Fulfillment Company Reduce Logistics Costs? 3PLs are simply logistical fulfillment companies that are involved in the process of inventory storage, packaging, and shipping. Of course, 3PLs charge varying prices for each service, but it's usually overall less expensive to leverage their scale and resources rather than attempt to do it yourself. Affordable warehousing costs Warehouses are getting costlier, and are also demanded more. If you partner with a 3PL, you can save your inventory in components of their fulfillment centers together with other eCommerce businesses. In this way, the warehousing costs are shared across the various businesses. Bulk carrier discounts With thousands of shoppers, 3PLs can arrange bulk discounts from shipping carriers like UPS, USPS, FedEx, and DHL to supply higher rates for expedited shipping, 2-day shipping, international shipping, and more. Of course, the more packages you ship, the higher rates you can get to further decrease logistics costs. Technology and forecasting Most 3PLs have best-in-class technology and tools. These tools include inventory forecasting, so you know when to replenish the products that are in demand. Expect to continually search for ways in which to cut back logistics costs while still operating your business in a good manner. One of the best ways to keep eCommerce logistics costs in check is to manage orders and deliveries effectively. Avoid outrageous delivery prices by keeping an in-depth eye on supply and demand (a method known as forecasting) to confirm that your order arrives before it's urgently required and to avoid overwhelming the warehouse with too many deliveries right away. Conclusion: Why Do You Need to Keep Track of Logistics Costs in 2024? Businesses should continually search for ways in which to cut back logistics costs while still performing operations in the best possible way. One of the best ways to keep logistics costs in check is to manage orders and deliveries effectively. Avoiding outrageous delivery prices can also be done by keeping an in-depth eye on supply and demand (a method known as forecasting) to confirm your order arrives before it's urgently required and to avoid overwhelming the warehouse with too many deliveries right away. One way to do this is to partner with a technologically advanced company like WareIQ, which supplies businesses with tools to forecast and plan their distribution and fulfillment strategy in the most efficient ways possible. WareIQ is a Y-combinator backed startup, that is the leading provider of full-stack eCommerce fulfillment services for 300+ reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next-day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing, and data-driven decision-making. WareIQ’s WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. [signup] Logistics Cost FAQs (Frequently Asked Questions) Does 3PL help in managing eCommerce logistics costs?3PL companies do charge fulfillment fees but 3PLs provide the most cost-effective way to leverage resources and manage logistics costs and scale business as these 3PL service providers specialize in inventory storage, packaging, and shipping. What are the different types of logistics costs?• Storage and inventory • Packaging • Transportation and freight • Technology • Financial designing • Structuring processes • Task automation • Fuel Surcharges • Handling Fees • Restocking Fees What are the different types of transportation costs?• Linehaul• Pickup and delivery• Terminal handling• Billing and collecting What is the difference between logistics and transportation?Transportation is basically the movement of goods from one place to another whereas logistics is a broader term that includes freight management which includes storage, handling, sorting, packing and transportation of goods.

April 23, 2022

What is Fulfillment Status? A Comprehensive Guide in 2024

Each process has a result that matters the most. While an end-user may only think about the final outcome, the result can vary if all the steps in a process are not executed well. Fulfillment status is the fulfillment of a promise made to the end consumer that matters. Similarly, every order that a customer confirms has a lifecycle: order placement processingfulfillment When the number of orders per day increases from a few hundred to thousands and then lakhs, it tends to become cumbersome for the business to manage all these orders by themselves. The completion of the fulfillment lifecycle determines the success of every order. When a customer places an order on a website, both the customer and the service provider keep an eye on the status of the consignment to know if it has been fulfilled yet. But what does order fulfillment status mean? Let's take a look. What is Fulfillment Status? Order fulfillment status refers to an order's completion level in relation to the processes of the order lifecycle with the final goal being delivery to the end customer. The fulfillment status of a shipment highlights the stage of the order after the payment gets processed until delivery to the end customer. It depends on the activities of the service provider. It reveals whether the order gets processed correctly and when it can be shipped to the customer. What are the different stages of Fulfillment Status? An order's Fulfillment Status is categorized into six stages as per its readiness to be shipped: Fulfilled: Delivering a complete shipment deserves the status of a fulfilled order. This status does not wait for or depend on the customer accepting or returning the final product. Unfulfilled: A freshly placed order is described as unfulfilled until it is delivered to the customer, or the order query has been closed due to another reason like a return, refund, or decline by the seller. The order stays unfulfilled until the ordered inventory has been picked. Partially Fulfilled: When only some parts of a shipment get transported, it ranks as a partially fulfilled shipment. For example, this can happen when the customer orders multiple items in one shipment and not all are readily available at the time of processing. For the items pending delivery, either a refund gets processed, or they are queued for delivery later. In each case, the customer receives a notification via their preferred mode of communication; text, call or email. Queued Shipment: This is the penultimate stage before the order reaches the customer. This is the stage after the inventory has been picked, processed, and packaged, and the final product is ready for delivery. Then, it just needs a pick up by the delivery personnel and transportation. The customer gets a notification via written communication and a tracking number is assigned the moment the order leaves the service provider's premises. On Hold: The shipment status goes on hold when the customer has added goods to the cart but has not confirmed the order or made the payment yet. The service provider can locate the inventory but cannot begin processing until they receive a confirmed order from the customer. The status changes to unfulfilled when the order is confirmed, which the service provider can then undertake. Scheduled: This status primarily applies to prepaid shipments before their fulfillment date is reached. Their fulfillment date as per the subscription then changes to unfulfilled. The service provider can then begin the process of completing the order. [contactus_lilgoodness] What is the Difference Between Order Status and Fulfillment Status? [table id=12 /] Depending on the stage the customer is at, the status of an order can range from Open, Archived to Cancelled. Open Order: When the customer is surfing and has not placed the order yet, the status stays open until order confirmation or payment. Archived Order: An order goes into the archive when it gets canceled, needs a refund, or faces any other issue. Orders can be manually or automatically archived for viewing after being attended to. Both the customer and the service provider can archive it. It does not mean it gets deleted; instead stored in records away from the sight of the order page. Cancelled Order: As the name suggests, the order status appears as 'Cancelled' when the customer withdraws it. Yet, an order is not fulfilled if a refund is pending for the customer. 6 Step Processes Involved in Order Fulfillment Status in 2024 Source Receipt of Inventory Fulfillment status begins with locating the inventory in the warehouse or a storage unit and retrieving it for assembly as per the customer's order details. Before processing the final product, the service provider needs to ensure that each piece of the inventory is of desired quality and is not damaged. Then SKU labels and barcodes are put on each piece before reading them for pick up. Order Picking The inventory identified needs to be picked from the warehouse or any off-site location. It helps if the inventory is organised as per their urgency. For instance, the items in frequent demand can be placed upfront, followed by less-required products. The company's staff or a 3PL fulfillment company can pick up the shipment. At times, the dropshipping method is also used. This is where the manufacturer directly processes and ships the finished product to the customer. As a result, the service provider does not need to host the inventory or finished product; instead, it is sent directly from the seller to the buyer. In case of an unfulfilled order, the inventory can be picked through single-order, batch, cluster or zone picking. in Batch Order Picking, workers pick up inventory individually according to a batch or group of multiple orders. In Single-Order Picking, they pick up the stock as per the individual order received. In Zone Picking, they retrieve the inventory as per the geographical zone or area. And in Cluster Picking, the pickers gather the inventory from various SKUs and multiple orders rather than concentrating on just one. In another mode called Pick and Pass, the warehouse is categorised into different areas as per the inventory stored. Pickers get positioned in every designated area and then manually pick the required inventory and pass it over. Processing The next stage is making the finished goods ready for the customer. It requires excellent integration between the service provider and customer interfaces for a seamless flow of information from the order to the fulfillment stage. This system needs to prompt the warehouse staff about the inventory required when a customer places an order. Processing includes identifying the inventory required for putting together the final product and locating them in a warehouse or storage unit. Packaging The order must be packed well to prevent damage during transit before being sent for weighing and labeling. Efficiency and transparency are essential in this stage. That is why many companies offer customisations such as automated fulfillment services as per the needs of the service provider and their customers. Because of these features, orders will be packaged with efficiency regardless of the volume. The packers must observe and try to get the lowest possible dimensional surface area while packing a shipment to be able to place more orders inside the truck. This helps in reducing transportation costs and saves time. Shipping and Delivery This is the last stage where the product is in the hands of the service provider. The package gets weighed, labelled, documented, and is ready to get shipped to the customer. The service provider needs to select the fastest and most secure way to deliver the order. The nitty-gritty of the eCommerce shipping method depends on the type of product getting transported. For instance, a perishable product must be despatched with a coolant. In contrast, a fragile product will need proper bubble wrapping. An order is said to be fulfilled when the end customer receives it along with a written confirmation via a preferred mode like email or text. After the delivery, the service provider must seek the customer's written feedback about the whole experience, from browsing to ordering, receiving and using the product. Statistics say that 73.6% of customers believe that delivery is the key to a seamless shopping experience. Returns Suppose a customer doesn't like the product and intends to return it. In that case, the order remains incomplete until returned to the service provider. As mentioned above, including return labels in the shipment saves time for both the user and the service provider and gets brownie points for the latter. Once returned, the item needs a thorough check for damage before returning to the inventory and processing the refund. The service providers still need to stay in touch with the customer for feedback and to encourage future purchases. What are the Benefits of Fulfillment Status? Given below are some of the benefits of order fulfillment Status that service providers cannot ignore: Being a source of Information Information, especially through eCommerce logistics companies, drives all decisions, and fulfillment status provides it in abundance. Customers invest their time and money in the overall delivery experience. 75% of them expect information on the processing of their order. In comparison, 51% of customers wish to receive real-time visibility into their shipment progress. Fulfillment Status does that on behalf of the service provider. Therefore, keeping the end customers informed of their order progress is critical to being successful and encouraging repeat purchases for service providers. Maintaining Order Accuracy This is crucial for both parties. Order fulfillment Status highlights the details of a shipment for scrutiny. Most customers lose faith in a service provider due to wrong orders being delivered. The top reasons for order returns are damaged goods (22%), different looks as compared to online pictures (22%), and receipt of a wrong item (23%). Whether for checking the availability of raw materials, tools for warehouse allocation, or checking processing timings, fulfillment status assists service providers in managing their inventory. Inventory Management Multi-channel selling has raised the need for comprehensive inventory management, which enhances the service provider's reach in a shorter time period. Its tech platform leverages real-time data to facilitate the service provider to predict the future demand for a product. The first and most significant step in successful order fulfillment is receiving and sorting the inventory as per the order. In other words, Order fulfillment status means supplying the service provider with good visibility of the inventory. Customer Satisfaction Leading to Customer Referrals Besides the 3 points above, companies have another primary reason for investing in fulfillment status; the higher the success rate of their order fulfillment, the better their reputation, which profoundly influences their sales figures. New customers rely on a company's ratings before selecting their service. Existing customers would not reinvest unless they had a good experience earlier. How is Order Fulfillment Status Tracked? One can track an order fulfillment status in two ways: before and after the order is fulfilled. Here's how tracking happens. Each status can be tracked by adding a tracking number to the order and displaying real-time fulfillment or shipping details for the customer's order. Customers receive this tracking number at the time of order confirmation so they can check the fulfillment status whenever they want. Before Fulfillment We have discussed the pre-fulfillment process that involves steps like receiving inventory to shipping or delivery and, approximately 30% of the time, returns. Tracking an order status will yield one of the below results if done before fulfillment: Pending: This indicates that the customer did not complete the order.Awaiting Payment: This indicates that the customer did not proceed to payment after adding items to the cart.Awaiting Fulfillment: Awaiting fulfillment indicates that the customer has confirmed the order from their end, and it is the service provider's turn.To be Shipped: This indicates that the order has been packaged and waiting to be shipped to the customer.To be Picked-up: This tracking status appears when the customer needs to pick up the order from a pick-up outlet.Partially Shipped: This indicates only a portion of the order has been shipped.Shipped: This indicates that the completed order has been sent.Partial Refund Generated: This indicates that the refund requested by the customer has been partially generated.Complaint Received/Disputed Order: This indicates that the customer has filed a complaint or raised an issue in relation to the order or delivery. After Fulfillment After fulfillment, tracking will yield one of the below results: Delivered: This indicates that the complete shipment has been successfully delivered to the customer.Canceled: This indicates that the customer has cancelled the order. Returned: This indicates that the order has been returned as per the customer's request.Refunded: This indicates that the amount paid towards the shipment by the customer has been fully repaid.Declined: This indicates that the seller has rejected the order. Conclusion The success of the supply chain, especially in retail, depends on order completion. While fulfillment strategies have always retained the power to disrupt a supply chain, they have managed to arrive at the heart of customer experience in the past decade. A good platform for integrating the fulfillment center's and user's experience can profoundly affect a company's Order Fulfilment success. Having a robust system in place that makes the task easier at every stage of the fulfillment cycle is critical. Many companies employ excellent ERP software that integrates well with suppliers, vendors, and customer interfaces. Such a system helps accurately predict customer demand and optimise inventory, human resources, and finances. This is where WareIQ can help. WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for 300+ reputed eCommerce & D2C brands in India. WareIQ allows you to reach a larger audience in a shorter period of time with storage facilities spread across India and closer to your demand centers. Our smart inventory placement ensures that your demand centers are well-stocked and enables efficient & prompt delivery. We help you evolve from a 5-15 day delivery system to the same day and next day Amazon-like delivery system and are already helping 100+ other brands in India to do so. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing, and data-driven decision-making. WareIQ's fulfillment platform enables eCommerce players to provide a superior post-purchase experience to their customers through an app store that has various apps like branded tracking, post-ship badges, RTO shield, etc. WareIQ’s WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. [signup] Fulfillment Status FAQs (Frequently Asked Questions) What are the different levels of fulfillment?• Fulfilled• Unfulfilled • Partially Fulfilled• Queued Shipment • Placed on hold • Scheduled Does fulfillment status mean the product is delivered?No, they are not the same. Fulfillment status is basically order status that states whether an order is processed or not or currently awaits shipment. What does "order is in fulfillment" mean?If your order is marked as "in fulfillment," it has most likely been processed and is being prepared for shipment. After fulfillment is complete, order is delivered to the customer. What is "unfulfilled status"?"Unfulfilled" indicates that it has not yet shipped. You'll receive a confirmation email with a tracking number once your order has been sent, and your order status will change to "Fulfilled." What does ‘’awaiting fulfillment’’ status mean?If the status of your order indicates "awaiting fulfillment," it simply implies that the logistics warehouse has not yet begun the order fulfillment process. Picking the products for your order and packaging them into a box for shipment is part of this process. Does WareIQ share complete fulfillment status updates?Yes, WareIQ has its own order tracking system that notifies the end customers of the fulfillment status updates real-time via mail, messages, whatsapp etc. Apart from this, WareIQ also has a branded tracking app exclusively for its eCommerce clients.

April 19, 2022

Detailed Guide on Micro Fulfillment Center: Meaning, Top Benefits & Challenges with Micro Fulfillment Centers and How Can They Enhance Retail Efficiency in 2024

In this day and age, where consumers are used to ordering most of their requirements online, a delay in them receiving that order could have dire consequences for the seller. With so much competition in every sector, businesses are pining for getting their products to their customers at a faster rate than their competitors. To accomplish this goal, businesses and online retailers have had to adopt new strategies to ensure that they don’t fall behind. This is why micro fulfillment centers are important as they can bridge the gap between where the order is being shipped from and the customer's doorstep. Read further to understand all the nuances of micro fulfillment, in more detail. What is Micro Fulfillment? Micro fulfillment is a strategy adopted by companies/eCommerce sellers where the fulfillment cycle is made more efficient by setting up small-scale ecommerce warehouses or storage facilities near densely populated areas, thus reducing the time taken from placing the order to delivering it. In this age of consumerism, where same-day delivery has become a norm in some locations, companies such as Amazon, Flipkart, Big Basket, and other eCommerce/retail companies are finding solutions on how to uphold customer expectations, while at the same time, figuring out how to maximize on their own profit margins. This is where micro fulfillment is the solution. Last-mile delivery incurs the most costs among the different stages of delivery, and is estimated to be between 40-50% of the entire supply chain cost. With the inclusion of micro fulfillment, this cost can be minimised as it reduces the shipping costs from regional/central distribution centers to the local distribution center. [contactus_uth] What is a Micro Fulfillment Center? Micro fulfillment centers are small, fully or semi-automated fulfillment centers situated in close proximity to the end customer and generally covers an area between 3,000 to 10,000 sq. ft. They center can be part of a larger warehouse or can exist as a standalone unit as well. They are also known as dark stores, where the order processing and packing is fully automated with minimal human interaction. A micro fulfillment center usually has limited inventory, lasting for 24-72 hours, and acts as a base for express delivery for products within a certain pin code or geographical location. To state an example, Flipkart may have a large warehouse in Binola, Haryana of 13 lakh sq. ft., but in order to fulfil express delivery for Saket, it can set up a micro fulfillment center in Saket of just 500 sq. ft., and thus cut down on the 1.5 hours of travel time. This will ensure that same-day delivery can be easily met for those end-users in South Delhi and offers an enhanced customer experience for the end-user. How can Micro Fulfillment Centers Boost Retail Efficiency in 2024? With the advent of hyperlocal delivery ecosystems, the aim is to increase efficiency to match the needs and expectations of the end customer. Still, despite automated warehouses and large fulfillment centers, with the latest implementations of picking and sorting technologies, the required efficiency is difficult to achieve. This is where micro fulfillment centers step in. eCommerce companies will find a boost in retail efficiency post the implementation of micro fulfilment centers due to the following reasons: Improved analytics Companies will gain deeper insights into the purchase patterns of customers within a pin code or a smaller geographical location. Thus, the inventory stored will be more precisely suited to the user's needs and will involve faster order pickups as well as cost-saving from unused inventory. Faster fulfillment Even in a semi-automated state, they help reduce the fulfillment cycle duration because the orders have to be picked from a smaller area and can be done with higher accuracy. The order pick up process reduces from 60 minutes in regional distribution centers to just 6 minutes in micro fulfillment centers. Faster delivery With last-mile delivery carving out a significant portion of an eCommerce company’s revenue, they reduce the delivery time and thus aid in cost-saving. Ease of integration They are much smaller in size, aid in the company’s expansion as they can help reach a larger area and are also much easier to integrate into the existing system of the company’s supply chain. 5 Benefits of Micro Fulfillment Centers vs. Traditional Fulfillment Centers As per the real estate firm CBRE, it was seen that for an eCommerce player to earn $1 billion in sales, it requires 1.25 million sq. ft. of storage space. This added to the fact that the majority of players are aiming for a faster fulfillment cycle, shows that micro fulfillment centers provide a solution to the needs of eCommerce players. Micro fulfillment centers prove how useful they are as compared to traditional fulfillment centers in the following ways: Highly responsive to changes in customer demands When the lockdown struck and customers’ demands changed from clothing to groceries, micro fulfillment centers could have adapted to the change in the demands much faster by making space for grocery items and replacing other products. This rapid deployment and shift in resources cannot be matched by a traditional fulfillment center. More customizable products With better insights into the customers’ demands in a certain area, micro fulfillment can stock up on the required inventory that the customers in that area need, and this leads to an optimised, faster and more efficient fulfillment cycle. Improved quality control With a lower order density, it is much easier to ensure that the products being shipped are of the quality demanded and to the correct addresses. Faster delivery time It is common to see commercial vehicles waiting to enter the city limits and ending up in long traffic jams at the city borders. This hassle is saved by micro fulfillment centers being set up close to the end-user, thus reducing the distance and ensuring extremely fast deliveries. Lower operational and set-up costs Micro fulfillment centers take much less time to be set up and the operational costs are lower than traditional fulfillment centers, thus increasing the company’s profits. What are the Best Practices in Micro Fulfillment? Micro fulfillment is a relatively new practice. Thus, eCommerce and other fulfillment companies are striving to ensure that they can fine-tune this to the best of their abilities. The following are some of the best practices that are being followed universally by most, if not all, eCommerce companies: Inventory: Establishing an inventory management system based on the business model, and thus ensuring that the micro fulfillment center is not under or overstocked is essential. Inventory issues can cause a bullwhip effect going back up to the main distribution center as well.Integration with existing systems: Ensuring the software system for handling the micro fulfillment center can be integrated with that of the distribution center’s Warehouse Management Software and/or the Order Management System and e-commerce platforms, to improve visibility and control over operations.Property Selection: Whether it is building a new store or renovating an existing property, the geographical location and ease of approach must be considered. A cheaper location but with an interrupted power supply will, in the long run, prove to be costlier than a location that might be more expensive but with better civic amenities available. 5 Main Challenges with Micro Fulfillment Centers Micro fulfillment is a solution that can revolutionise the eCommerce industry, but for all the promise and excitement, it must be taken with a pinch of salt. Players, new and old, when expanding using the micro fulfillment route, must keep in point the following challenges and be prepared with contingencies for them: Constant inventory replenishment Be it using the Milk-run route or the EOQ model, micro fulfillment centers, due to their smaller size, will require their inventory to be replenished often, and this means a proactive inventory replenishment system must be in place to handle this. Consumer unpredictability A limited storage capacity can sometimes make it difficult to quickly adapt to a certain trend. For example, an influencer posting about a certain product leads to an overnight trend, and this may lead to unfulfilled orders. Risk of stockouts With a limited inventory of certain SKUs, there is a risk of some products/SKUs facing stockouts during unpredictable high demand changes. Not suitable for all products/SKUs They are not suitable for some larger products which cover more area, and given the limited space available, it will be a choice between which SKU to sacrifice. Order consolidation Customers order multiple grocery items simultaneously and expect all the items to be delivered together. But at the micro fulfillment center, if even a single item is out of stock, it can lead to a delay in the delivery or cancellation of the product by the retailer’s end, both leading to depleted customer satisfaction and mistrust of this system. Source Top 8 Micro Fulfillment Companies in India [2024] Micro fulfillment in India is followed using a relatively hybrid marketplace concept. The FMCG sector in India is vastly unorganized, with close to 95% being unorganized. So, rather than only setting up dedicated micro fulfillment centers, many 3PL, eCommerce and fulfillment companies are using the already established infrastructure of these stores as micro fulfillment centers while also setting up their own micro fulfillment centers. While completely automated micro fulfillment centers have not been set up in India yet, many companies dealing in the hyperlocal delivery industry are using this hybrid model of using the existing Kirana stores as micro fulfillment centers. Below are some of the leading micro fulfillment companies: WareIQFlipkartDunzoSwiggyGrofers/BlinkitBig BasketOla DashShadowfax WareIQ Source WareIQ is a category defining, best- in class full-stack eCommerce fulfillment tech platform (with inbuilt inventory planning, order management & shipping system) for modern brands to accelerate online sales/ expedite revenue growth & profits with same/next day delivery. We not only help you reduce your logistic costs but also your delivery timelines – this could be the game-changer your business needs! WareIQ offers centralised tech platform for your entire eCommerce operations ML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfilment & shipping operationsPost-shipping apps for a delightful experience & zero to minimum supply chain leakages Today, over 300 brands have taken charge of their ecommerce logistics & fulfilment with WareIQ to unlock tremendous value in terms of revenue and customer satisfaction. WareIQ Rush is their same-day-delivery platform. Using this platform, WareIQ is aiming to help online sellers offer same day delivery in every major metropolis in India, with a plus 99% fulfillment rate. Sign Up Now with WareIQ RUSH to avail our superior fulfilment tech platform & enhance your online business growth. Flipkart Source One of the original players to bring about this hybrid concept of using Kirana stores as a micro fulfillment centers, this eCommerce giant has opened up micro fulfillment centers and launched the “Flipkart Quick” service to deliver close to 2000 products ranging from grocery to electronics such as smartphones. It now uses its vast network of micro fulfillment centers to provide grocery services across 1800 cities, 23 states, and 10,000 pin codes in India. Dunzo Source Established in 2014, this hyperlocal delivery system caters to 7 cities. Seeing the changing consumer demand due to the lockdown, Dunzo plans to open 300 micro fulfillment centers across 20 cities and keep the top 2,000 SKUs in each center. Their main goal is to provide delivery in under 19 minutes, in every corner of the country. Swiggy Source Swiggy’s Instamart is now available across 18 cities and has achieved the 15-minute delivery service level by opening up multiple micro fulfillment centers in partnership with local Kirana stores. The potential of this service can be realised by understanding Swiggy’s decision to invest $700 million into establishing a micro fulfillment center for hyperlocal deliveries. Grofers/Blinkit Source Grofers, now rebranded as Blinkit, one of the country’s earliest hyperlocal grocery delivery companies, is opening 1000 micro fulfillment centers across India and providing a 15-minute grocery delivery service. With the onset of services like Swiggy Insatmart and Dunzo, Grofers is trying to claim the mantel of India's leading online grocery platform. Big Basket Source Big Basket, with its BB Daily and BB Instant services, provides hyperlocal delivery services by being able to deliver around 90% of the items within two hours. Big Basket was amongst the earliest adopters of the micro fulfillment service. It presently has ten micro fulfillment centers in each metro city and one each in 50 smaller cities. Ola Dash Source Ola is known for its cab service but its up-and-coming same-day-delivery eCommerce service called Ola Dash, is seeking to up the ante by opening up to 500 micro fulfillment centers across 20 Indian cities. Ola Dash is presently providing a 10 minutes “Store to Door” delivery service across nine cities and across 2,500 SKUs and the micro fulfillment platform is set to expand upon that. Ola is hoping to make a name for itself in the eCommerce space. Shadowfax Source This logistics company provides same-day delivery and courier services and is now being used by retailers to fulfil their online orders. With Shadowfax’s micro fulfillment centers which are actually their delivery and sorting hubs, they provide hyperlocal delivery of products such as groceries and medicines, in a very short amount of time to their customers doorsteps. Conclusion: How You Can Utilize Micro Fulfillment Centers of WareIQ to Offer Same Day Delivery to Customers The Indian eCommerce industry is rapidly progressing towards the hyperlocal fulfillment sector. Zomato recently announced their decision to enter this sector as well, and with multiple other startups also aiming to provide the “10-minute” delivery service, the way forward is through micro fulfillment centers only. As the pandemic restrictions slacken and people are returning back to the offices, the hassles of coming home and buying groceries will return once again too. This will lead to an increase in the demand for hyperlocal delivery services, and subsequently, the need for micro fulfillment centers across metros and even smaller cities in the country. One such company seeking to provide same-day delivery services is WareIQ through their WareIQ RUSH platform. Established in 2019, WareIQ, a Y-combinator-backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next-day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfillment centers & urban dark stores near their customersAccess to all major national & hyperlocal last-mile couriers at discounted rates for making same/next day deliveries possibleEasy integration across multiple online platforms & marketplacesHorizontal marketplaces: Flipkart, Amazon etc.Vertical marketplaces: Nykaa, Myntra etc.D2C platforms: Shopify, Magento, WooCommerce etc.Social commerce platforms: BikayiAccess to a superior centralised tech platform for eCommerce operationsML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfilment & shipping operationsPost-shipping apps for delightful experience & zero to minimum supply chain leakages ( Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfilment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfilment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and marketplace fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing and data-driven decision making. [signup] Micro Fulfillment Center FAQs (Frequently Asked Questions) What is the process of micro-fulfillment?Micro-fulfillment is a strategy for improving delivery times by locating small-scale warehousing operations in highly populated urban areas. Does WareIQ provide micro fulfillment services or have micro fulfillment centers?Yes, WareIQ provides micro fulfillment and has dozens of micro fulfillment centers & dark stores across the country which helps in uniform distribution of inventory across India closer to the customers. How much does a micro fulfillment center cost?To fulfill orders through micro fulfillment centers, it costs around 5$ per order. What is the drawback of micro warehousing and micro fulfillment center?• Requires constant inventory replenishment• Depends on irregular consumer demands• Increased risk of stockouts• Depends on customer locations• Not feasible for all SKU types Is micro fulfillment part of last-mile delivery service?Micro fulfillment warehouse is an integral part of last-mile delivery service because it is generally the last node before the order gets delivered to the end customer. Is micro warehousing the future of eCommerce?Certainly yes, because same day and next day delivery at a minimal cost is the future of ecommerce and micro warehousing will play a vital role in the same. Is micro-fulfillment the next big thing for retailers in malls and restaurants?Micro-Fulfillment is absolutely the next big thing for Mall Retailers, and Restaurants. E-commerce companies and merchants can benefit from micro-fulfillment centers to strengthen their fulfillment strategies. Because they are closer to their clients, they can minimize lead times and turnaround times, allowing them to meet increasing Service Level Agreements.

April 13, 2022

New Product Launch: WareIQ Interact

Did you know about 70% of consumers say they now only engage with messages from brands that are personalized and tailored to their interests? It is quite apparent that personalization continues to dominate the modern customer experience. It helps you in building a brand that your customers can trust, leading to higher levels of: Customer SatisfactionAverage Order SizeFulfillment rate WareIQ Interact App enables you to provide a powerful, personalized & automated communication experience to your customers across the most widely used channels - WhatsApp, Email & SMS. Capabilities Share consistent personalized & interactive communications with your customers and drive brand loyalty & retention Engage Engage customers across channels like Whatsapp, SMS & Email and create opportunities to cross-sell & up-sell Automate Share a variety of automated updates regarding order status, NDR etc. & alleviate customers' shipping concerns Track Track communications you send out through a central notifications dashboard Benefits WareIQ Interact enables eCommerce brands to improve customer engagement and enhance the brand experience they get by unlocking the following key benefits: Send timely order updatesCommunicate with customers about the delivery scheduleUpdate customers about their orders regularlyCreate brand awareness and drive cross-sell opportunitiesSend order updates to your customers on the particular events that you wishGet your business and operations-related notifications

April 12, 2022

New Product Launch: WareIQ RTO Shield

More than 35% of online orders risk being returned back to origin (RTO). These RTO orders can lead to heavy losses and slow down business growth. With WareIQ's RTO shield, you can say goodbye to RTO losses. With our AI-powered RTO solution, you can intelligently identify potential RTO and adopt measures to minimize its impact. Capabilities Predictive technology to flag high-risk customers With WareIQ RTO Shield, online sellers can: Assess RTO risk for each order basis holistic customer profile developed using rich data on visitor’s activities across telecom, banks, hyperlocal, OTT etc. usageAutomatically disable COD for high-risk, untrustworthy, and/or blacklisted customersAdditionally, set rules using parameters like pincodes, order value etc. to determine when to provide the COD option and when to disable it Benefits With RTO Shield, online sellers can easily screen out high-risk orders and get the following benefits: Improve inventory turnover and thus generate higher salesSave on reverse logistics cost and drive down order processing costReduce time, and thus the opportunity cost, lost in quality checks & repackaging of returned orders

April 12, 2022

New Feature Launch: WareIQ Branded Tracking & Customer Feedback

For brands, engaging customers online after a purchase has been made has a host of benefits, such as: Higher repeat salesElevated customer satisfaction & loyaltyKnowing customers preferences in depth WareIQ's Branded Tracking app allows you to achieve these for your brand easily & build a premium post-ship experience in a seamless fashion. Capabilities Add Promotional Banners on the Order Tracking Page With WareIQ Branded Tracking, add promotional banners on the order tracking page to redirect customers to your store for re-engagement and increase repeat purchases. Customize Order Tracking Page to Include Brand Elements Boost brand awareness by adding brand elements such as your logo to the tracking page and customize its URL to reflect your brand name. Moreover, you can add links to various landing pages of your online store to the tracking page, enabling easy redirection of users to your store. Enable Customers to Easily Track Order Status Share full shipping journey and real-time order updates with customers through the tracking page. Seek Feedback Easily to Improve Customer Experience With the Customer Feedback feature, you can easily gather feedback from customers on their brand experience. Analyze customer feedback trends over time and geographically to inform your future strategies and build brand trust and loyalty further. Benefits Redirect customers to your online store and increase repeat purchasesBoost your brand awareness and build your brand presence furtherAlleviate customer concerns regarding shipping by allowing them to easily track the status of their ordersGather customer feedback easily and leverage insights to augment the brand experience in line with customer expectations Interested in exploring more about WareIQ Branded Tracking and Customer Feedback Feature? Read our in-depth blog or visit: WareIQ Branded Tracking Page

April 12, 2022

New Product Launch: WareIQ Shipping Badges

All customers while purchasing online focus on how soon the product can be delivered and how trustworthy is the seller. Optimising these parameters can boost your top-line performance significantly and help you to: Win customer’s trust and loyaltyImprove conversion rate during checkout But how do you improve this? One of the easiest ways to do this is by displaying fast shipping timelines on your online store. Introducing WareIQ Shipping Badges https://youtu.be/mqMEvqG-UVE WareIQ Shipping Badges allow you to display fast shipping timelines on your online store and win customer trust, leading to higher conversions and lower cart abandonment rates. Capabilities Display Delivery Time & Drive Sales Display same day/next day/standard delivery badges & lower cart abandonment & boost conversion rates. Enable Customers to Check Pin Code Serviceability Our Shipping Badges allow customers to check the pin codes that are serviceable and intelligently display the fastest available shipping timeline as per the delivery zone and the time of the day customers are checking pin codes at. Benefits WareIQ Shipping Badges allows online sellers to: Display transparent shipping timelines to reassure customers and enhance their trust in the brandBoost add-to-cart conversions and lower cart abandonment rateEnable real-time pin code serviceability and deliver an Amazon-like premium pre-purchase experience to delight customers Wish to know more? Visit: WareIQ Shipping Badges Now available on Shopify App Store: Install

April 12, 2022

Introducing the WareIQ App Store: Streamline your eCommerce Fulfillment and Shipping Operations

Businesses have myriad needs which vary from one organisation to another, as well as evolve rapidly over time. To enable our esteemed customers to augment the WareIQ platform further, aligned with their logistics workflows, our team of experts has designed a suite of powerful applications. Based on your valuable suggestions, we realised that it may become cumbersome for you, at times, to hunt for the applications unless we organise them into a single point of access. Hence, we are delighted to launch the WareIQ App Store, making it extremely easy for you to discover the apps that you need at your fingertips at the right time. How does the WareIQ App Store Help You? When you visit the WareIQ App Store, you get the flavour of a superior design and ease of experience, with convenient navigational tools, fed with live data of your business performance. Let's dive deeper to understand the massive range of capabilities of the WareIQ App Store and what it means for your business. Provides you with more tools in your arsenal to boost your eCommerce operations amd make supply chain your competitive advantage.Acts as centralised portal, empowering you to manage all the stages of your eCommerce fulfillment and shipping operations from WareIQ platform directly.Shed down the inefficiency, inconvenience and complexity of working on multiple non-integrable apps. Our suite of powerful applications can easily integrate with your eCommerce workflows and systems, thereby opening new avenues to scale up your business.Leverage AI-ML powered analytics, fed with live data, for smart demand planning, smart inventory placement and network optimisation to enable same/next-day delivery for our customers.Helps you reach out to your customers on the right channel at the right touchpoint, and build trust with your customers through transparent communication and seamless engagement.Build customer loyalty by ensuring a delightful post-shipment experience for your customers. Top Apps to Check Out on the WareIQ App Store It may look confusing to you at the first glance, which app to use for which purpose. To make your task easy, here's a detailed analysis of each of the apps on the WareIQ App Store. Branded Tracking Delight your customers with a premium post-ship experience through a Branded Tracking page built with capabilities such as re-targeting and cross selling to increase your revenue. Turn your order tracking page into a profitable marketing channelImprove your products and shipping operationsIncrease customer engagementIncrease customer satisfactionCustomized branded pages Sample Branded Tracking Page There are several benefits of using the Branded Tracking application on the WareIQ App Store: COD and NDR Verification - You can easily verify Cash on Delivery collections by the delivery person and get Non Delivery Reports at your fingertips, so that you are always ahead of your competition on the vital performance metrics.Showcase Product Banners to your customers - Product Banners create a long-lasting impression of your products on your target customers' minds, enabling greater brand-recall and mindshare than your competitors. Gather feedback from your customers - Collecting feedback from customers just after the delivery helps you understand the pain-points of your customers, so that you can work on the weaknesses immediately.Create Brand Awareness - Creating brand awareness will increase customer loyalty, drive up-selling and cross-selling opportunities and boost word-of-mouth for your brand. Link-backs to your store - Store links that redirect the customer to your online store help to drive repeat sales and reinforces customers' confidence on your brand and products.Live Tracking and Updates - Provide full shipping journey and real-time order updates on the tracking page, so that you maintain the highest levels of transparency and trust with your customers, avoid unwarranted misunderstandings. It is very easy to create and customise your own Branded Tracking Page. Click here to learn how you can do it. Notifications It is well-established fact that customer loyalty can be effectively boosted through frequent and transparent communication with the customer through the product fulfilment process. It also helps to reduce the number of grievances and support tickets raised by customers from time to time. With Notifications application on the WareIQ App Store, you can significantly enhance customer engagement through effortless communications, and deliver an impeccable post-purchase experience to your customers through AI-ML powered Notifications and WhatsApp automation. This helps to: Increase customer satisfactionBuild customer trustTransparency in the shipping processIncreases the delivery success ratePre-empt EscalationsReduce unnecessary customer support calls There are several benefits of using the Notifications application: Send timely order updatesCommunicating cutomers about the delivery scheduleUpdating customers about their orders regularlyCreate brand awareness and drive cross-sell opportunitiesSend order updates to your customers on the particular events that you wishGet your business and operations related notifications Customer Feedback Customer Feedback App can get detailed reports on the WareIQ dashboard for brand performance based on the feedback collected from your customers, which will help you to: Increase customer retention and loyaltyImprove customer satisfactionAnalyze customer sentimentMeasure and improve the brand perceptionIdentify unhappy customers proactively You reap some major benefits by using the Customer Reviews app on WareIQ App Store: Gather customer feedbackAct on customer escalations in real timeCollect customer feedback on brand and shipping experience Weight Lock Predicting the final dimensions and weight of the ordered consignment is a tedious and almost impossible task. However, courier partners maintain stringent pricing policies across different weight and size ranges, making it difficult to handle such issues. With the Weight Lock application on WareIQ App Store, you can freeze the weights of your products to eliminate the hassle of weight discrepancies and ship products without worrying about the weight discrepancies. This will definitely help to: Avoid repeated follow-ups with the courier partners over the weight discrepanciesGet accurate shipping cost so that you can do the cost planning before handSave your time and effort on negotiations for weight discrepanciesBring uniformity to streamline your business operationsMake your operations more efficient with Weight Freeze However, there are some product-level pre-requisites for setting up the Weight Lock app:- Dimensions of the productWeight of the productProduct Images Click here to learn how you can easily add Master Products, upload their dimensions, weights and other details. Shipping Badges Shipping Badges appear on your product pages that helps customer check pin code serviceability and the expected delivery date for any product. Why Shipping Badges App? Check pin code serviceability and the expected delivery dateGet upto 30% increase customer conversionsIncrease the trust of your brand Benefits of Shipping Badges App: Drive sales for your productsShow estimated delivery timeReassure customers with prime-like badges on your website You can use this app to: Check real-time inventory availability of the productIdentify the nearest warehouseCheck for the fastest available shipping timeline across our logistics network IVR Calling New-age eCommerce customers prefer to remain connected to the sellers through time-saving modes of communication such as direct calling, but at the same time, they are concerned with their privacy. Similarly, eCommerce business and customer success managers are often exhausted with telephonic intrusions on their personal mobile numbers. To alleviate these worries, now you can leverage the IVR Calling feature on WareIQ App Store as a command centre to connect with your customers and provide lightning-fast reconciliation, without revealing your telephone number. The feature helps you to: Record conversations and track them on order basisEmpower customer teams to seamlessly address customer grievancesEnable a privacy-first approach by keeping your contact details and customer conversation details private RTO Shield RTO Shield gives the eCommerce/D2C businesses a complete checkout strategy to save on RTO losses and boost your revenue Why WareIQ’s RTO Shield? Claim refund for the shipping cost of any RTO order that was predicted safe by usTechnology based smart COD checkout option to detect risky users and save on shipping costsAutomatically disable COD for untrustworthy and blacklisted customersDuplicate orders identification and eliminationShipping Address Verification and smart shipping decisions based on the completeness of the address Benefits of RTO Shield: Improve conversion rates and reduce cart abandonmentFastest checkout experience, checkout under 10 secondsIntelligently identify high RTO risk customers from data sets comprising of telecom, banks, hyperlocal, and OTTIdentify abusers with the help of historical behaviour data on past buying behaviour and win over fraudsters How does it work? Integrate the application with WareIQ3 months historical data would be needed to train the model & generate accurate predictions.Go live in 3-5 days WareIQ RUSH Online businesses can offer Same Day Delivery to their customers and accelerate their online sales with WareIQ Rush. WareIQ RUSH allows eCommerce & D2C businesses to reach a larger audience in a shorter period of time (within one day) by empowering them with a strong nationwide network of fulfillment centers and micro-fulfillment centers near their customers. Why do you need WareIQ RUSH? Capture impulse buying behaviour of your customers by giving them shorter delivery timelinesReduce cart abandonment rate by giving express delivery to your customersAvoid cancellations due to delayed delivery and deliver the orders within hoursDeliver the COD orders quickly to get the remittance earlyGive a delightful and hassle-free experience to your customers that they can remember Benefits of WareIQ RUSH: Reducing delivery times - Ensuring your fulfilment centres are well-stocked so that you can reach a larger audience in a shorter period of time & offer same day delivery serviceReducing costs - Save resources spent on establishing infrastructure and store your inventory in fulfilment centres as per your business needsImproved customer satisfaction - With WareIQ’s prompt response times, you can ensure timely deliveries and greater brand reliability translating to satisfied customers Conclusion WareIQ offers a full-stack fulfillment platform for eCommerce companies to offer same day and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. With a strong nationwide network of fulfilment centres & urban dark stores near to end-customers and access to all major national & hyperlocal last mile couriers at discounted rates, WareIQ has established itself as a reliable partner for many reputed eCommerce players across the country. The easily integrable centralised tech platform has been extremely helpful for our customers. With the arsenal of business tailored apps on the WareIQ App Store, you can now choose which app to use to supercharge your supply chain operations. The 1-CLICK App-Integration experience is opening new avenues to scale up business over an inefficient & complex ecosystem of integrating multiple standalone business applications.While you can choose & drop apps as per your business usage in a completely hassle-free experience, you can get working previews of the apps through free trials, and subscribe as per your usage. These smarter apps powering same/next-day delivery help leverage AI/ML intelligence for areas, such as on-demand planning, smart inventory placement and network optimisation. Sign Up Now with WareIQ to avail our superior fulfilment tech platform & enhance your online business growth.

March 25, 2022

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