Magento 2 Order Fulfillment & Shipping: 8 Easy Step Integration of Magento 2 Marketplace with WareIQ
Magento is an eCommerce platform that is open source and is coded using PHP, which aids in it being highly customisable by programmers who want to create their own eCommerce marketplaces and fulfill Magento orders. It was released in 2008 and has since been utilised by multiple household names around the world such as Samsung and Nike. Magento was acquired by Adobe in 2018 for $1.68 billion, which helped the platform grow at an even faster pace. The site has garnered popularity due to its easy-to-use, open-source nature and currently has over 100,000 active users and over 2.5 million downloads of the performance code. Magento roughly has a 2.32% share of the eCommerce market. In 2015, Magento released version 2.0 of its platform that consisted of multiple changes and improvements such as security and performance gains using PHP version 7+, minimised data table locking errors, company-grade database scalability and much more. Read further to get a better understanding of Magento 2 order fulfillment, integrating WareIQ with the Magento 2 marketplace and how WareIQ can benefit your business. How Can eCommerce Sellers Enable Magneto 2 Order Fulfillment & Magento Shipping? While Magento 2 doesn’t offer solutions for all the processes that order fulfillment encompasses since it is essentially a software platform that enables customers to build websites, users can fulfill Magento 2 marketplace orders by performing tasks such as order processing and automating processes through API integrations. To have a more cohesive experience, we recommend partnering with a 3PL fulfillment company like WareIQ, which offers the entire suite of fulfilllment services such as inventory management, picking and packing, delivery to the customer and reverse logistics, in one centralised platform. In addition, users can also integrate WareIQ with the Magento 2 marketplace for a seamle ss experience. Users need to identify their requirements and financial abilities to partner with a fulfillment company that is best suited to them. [contactus_lilgoodness] Benefits for Retailers who Use 3PL Fulfillment Companies for Magento 2 Order Fulfillment Ultra-Fast Delivery In the current eCommerce landscape, ultra-fast delivery such as same-day and next-day services has become a right rather than a privilege. To stay on top of their competitors, most 3PL companies constantly try to identify ways to provide the fastest delivery at the most competitive rates and the party that can take the most advantage of this are retailers and their customers. Brand-Specific Packaging If you utilise the fulfillment services provided directly by an eCommerce selling platform such as Amazon, chances are that they would want to abide by certain standardised packaging processes that highlight their brand, as opposed to the retailer. However, with 3PL fulfillment companies, users can choose from a vast array of materials, themes, logos and other customization options that will make their brand stand out from the crowd. Order Management Order management is the bread and butter of 3PL fulfillment companies. Facilities ranging from high-tech order management systems where past, present and future orders from various eCommerce marketplaces can be tracked and updated to smartly pairing orders with the closest and fastest shipping aggregator to enable the most rapid delivery to the customer are offered by most 3PL companies. All these services make order management more seamless and efficient. Transparent Payment Plans Due to the monopolised nature of most 1st-party fulfillment services, retailers are often surprised with new costs and more expensive services that they have to incur. However, since there are a vast number of 3PL fulfillment providers, all pining for your rupee, they are forced to offer the best services at the cheapest possible rates and also expose the fine print of every expense, upfront. They understand that if a customer has a bad experience, it’ll reflect poorly on them. Involvement in Decision Making 1st-party fulfillment services offered directly by eCommerce marketplaces often lack flexibility and do not include retailers in important decision making tasks. Conversely, 3PLs treat retailers like exactly what they are - paying customers. This helps sellers become more involved and can tailor every aspect of every service according to their liking. Multi-Channel Selling Retailers need to make their products and services visible to the most amount of potential customers as possible, in order to get conversions. They cannot do this by just selling on one platform and it becomes a lot harder to manage different accounts and update inventory and track orders, individually. However, retailers need not fret because most 3PL companies offer integrations with most large eCommerce marketplaces and offer software solutions to be able to track and manage orders and inventory in one master dashboard. Inventory Management 3PL companies are usually equipped with state-of-the-art Warehouse Management Software (WMS) to be able to organise and manage the inventory of their users. These highly advanced systems are able to perform tasks such as forecasting demand and supply levels for future dates and recommending the smartest placement of inventory to reduce delays and damage to the products. Smartly Located Fulfillment Centers Most 3PL companies have fulfillment centers and warehouses scattered in different locations of the country, specifically near areas of high demand or in close proximity to transportation facilities. Retailers who partner with them can choose strategic locations to store their inventory to enable themselves to offer the fastest possible delivery to their customers and mitigate any delays or errors. Enable Magento 2 Order Fulfillment & Shipping: 8 Easy Steps to Integrate WareIQ with Magento 2 Marketplace eCommerce sellers who seek to provide Magento 2 order fulfillment with WareIQ can immediately utilise our advanced portfolio of facilities such as a pan-India network of fulfillment centers, country-wide courier service partners and the ability to integrate WareIQ with the Magento 2 marketplace so that you can have access to our WMS from where you can manage inventory and track orders across multiple other marketplaces. Sellers can integrate WareIQ with Magento 2 Marketplace in 10 simple steps: Step 1: Logging In Once you get onboarded as WareIQ’s customer, you can log in to the WareIQ’s OMS (Order Management System) “https://wareiq.com/login/” using the login credentials shared with you by WareIQ’s customer success team. Step 2: Access to OMS Portal Once you log in to WareIQ’s OMS portal, you can see the dashboard that reflects important business metrics of your business like orders, revenue, shipments delivered, returns etc. The time period can be chosen as per your choice. Step 3: Adding Channels Click on the “Settings” button in the left navigation bar. Click on “Channels” to add or edit channels. The channels already added to OMS will show in the list. Click on “Add Channels” to add Magento 2 from the list of channels available for integration to WareIQ’s OMS. Step 4: Integrating with Magento 2 Go to Magento 2 & click on the “Integrate” button to proceed to the next step of Magento 2 marketplace integration with WareIQ’s fulfillment platform. Step 5: Getting Details from Magento 2 Follow the step by step instructions given on the page to get the “Store Name”, “Store URL” & “Access Token” from Magento 2’s account. Step 6: Going to Magento 2 Admin Login Page Enter the store URL in the browser. The Store URL is the URL that would have been specified during the installation. The default Admin URLs resemble this - “https://www.yourdomain.com/admin” Enter Store Name & password. Step 7: Generating the Access Token from Magento 2 Steps to be followed to generate the access token from Magento 2’s account: Log in to Admin and click System > Extensions > Integrations to display the Integrations page.Click Add New Integration to display the New Integration page. Source Enter a unique name (WareIQ) for the integration in the Name field. Then enter your admin password in the Your Password field. Leave all other fields blank. Click the API tab. Select the Magento resources the integration can access. You can select all resources (recommended), or select a custom list. Source Click Save to save your changes and return to the Integrations page.Click the Activate link in the grid that corresponds to the newly-created integration.Click Allow. The access token needs to be filled in the Access token field on WareIQ. Source Step 8: Enabling Fulfillment with WareIQ Copy & paste the access token, enter the store name & store URL and click on the “Submit” button to enable Magento 2 shipping & order fulfillment with WareIQ. Why should Merchants choose WareIQ as a Fulfillment Partner to Fulfill Magento 2 Marketplace Orders? WareIQ has a large amount of experience in the fulfillment and eCommerce space and also offers the services and technology to back it up. Equipped with a custom WMS, fulfillment centers across the country, partnerships with the biggest shipping and courier services and integrations with multiple online platforms, we can make your job of outsourcing fulfillment and order management a whole lot easier and cheaper. Some services that we offer are listed below: Vertically Integrated Full Stack Fulfillment Platform Other fulfillment and logistics players in the market have separate OMS & WMS. This is an issue for eCommerce businesses because there is a delay in syncing of orders in both platforms that creates a lag of 12-14 hours on order/inventory status in the 2 separate platforms. WareIQ is one of those fulfillment companies that provide an integrated OMS (Order Management System) +WMS (Warehouse Management System). This removes the 12-14 hours lag in inventory/order status to sync & hence removes the ambiguity in order status that ultimately leads to faster shipping as soon as the order is placed. Forward Supply Chain Assurance of Quality Facilities such as inbound management, coupled with rigorous product checks while complying with Legalities and Metrology ensure that quality levels are maintained. Intelligent Placement of Inventory We analyze factors such as the velocity of SKUs, the density of orders, seasonal demand & trends in different regions for intelligent inventory placement to reduce any errors or delays. RTO Shield Our custom RTO Shield limits the damage caused by return order requests by identifying orders of high risk and insuring them against losses to sustain the profit levels of customers. Personalization of Services We offer special branding kits and unique packaging, specifically tailored to follow the requirements and brand image of each retailer’s company. Reverse Supply Chain Re-Stocking of Inventory We protect retailers by protecting them from liabilities through Seller Protection Fund claims and simple settlement procedures. Intelligent RVP We help last-mile delivery services to check product quality by leveraging reference to-do’s and images, removing misplaced or damaged products and thus, reducing reverse logistics expenditures. Smart Disposal We assist in sustainably disposing of items in various segments such as electronics, apparel, food, etc. Recovery of Value We help in recovering the value of goods that are returned through upcycling and recycling, liquidation to the secondary market, donations and converting waste to usable energy which helps customers save money, time and resources. [signup] Magento 2 Order Fulfillment FAQs How can you get started on the Magento 2 marketplace?You can follow the below settings to use the Magento 2 marketplace for your business:- Make a note of Magento 2's server necessities- Opt for an online host and domain name- Download and Install Magento 2 on your computer- Customize your administrator settings- Download a theme you like and install it. What kind of businesses can create a website using Magento 2?Magento 2 is specifically tailored to work well for small businesses who don't have large tech teams at their beck and call. Additionally, you can always make changes whenever you desire and there is a lot of flexibility and customization built into the system. Does Magento 2 offer its own fulfillment services?The magento 2 marketplace has plugins and APIs that offer various fulfillment capabilities. However, to get the best and most cohesive fulfillment services, it is best to opt for a 3PL company if you need Magento 2 order fulfillment. Can you still sell products on other platforms if you integrate WareIQ with the Magento 2 marketplace?Yes. WareIQ offers integrations with a host of eCommerce selling platforms and integrating with the Magento 2 marketplace doesn't inhibit that. What services can you expect when you use WareIQ for Magento 2 order fulfillment?WareIQ offers a whole slew of features ranging from inventory management and storage to order delivery and reverse logistics.
June 02, 2022
10 Short and Simple Tricks to Run a Flash Sale in eCommerce in 2022
These days, with everyone having a mobile phone and access to cheap, unlimited data, customers constantly browse various eCommerce marketplaces and try to keep their eyes peeled for the best possible deals and discounts. If they find something that catches their fancy at a reasonable rate, then they either buy it on the spot or keep it in their cart/wishlist to buy it later. There are also people who wait for festive offers and a flash sale in eCommerce to purchase items when the time is right. It will enable your store to get positive feedback from customers who leave reviews talking about how they purchased items for a highly discounted price. Such short-period discounts are also called flash sales in eCommerce, where a seller offers large discounts to either promote a product or get rid of inventory. Customers constantly scout for a beneficial flash sale in eCommerce. It motivates people to buy products in bulk because they know they are getting a good deal. It is a win-win situation for both buyers and sellers. As a seller, you need to capitalise on these sales in order to generate buzz around your product. What is a Flash Sale in eCommerce? A flash sale in eCommerce is a promotional short-term sale on various products offered by eCommerce stores. Mostly, it lasts for less than a day up to a maximum period of three days. The goal of a flash sale in eCommerce is to tempt online buyers to buy on impulse, increase brand presence, occupy space in the mind of buyers and increase customer loyalty. Also, it indirectly prompts buyers to check out other non-sale products listed on the same site by the same buyer. It is a new era of sales and marketing strategy that has become quite popular as it ignites interest among online buyers, has a greater impact on social networks to increase recall value and generates more CTR in mailing and ad campaigns. It has resulted in great opportunities for selling a large number of products in a few hours and clearing up an inventory but a flash sale in eCommerce also requires preparation if you are expecting it to be a long-term profitable move. This psychology hits buyers and sparks excitement in their FOMO which encourages impulse buying. [contactus_lilgoodness] What are the Benefits of Running a Flash Sale in eCommerce? When you run a flash sale, you not only get a higher volume of orders and more revenue but you also get a lot more benefits than you generally would on a normal day. These benefits are: Advertisement Opportunity When a seller provides a huge discount, they keep promoting it so it helps you to advertise your brand and brings more engagement to your products. Gets Rid of Old and Unpopular Stock It is an opportunity for a seller to get rid of the old stock by offering discounts. They can promote an unpopular product and also get rid of products that may not have selling potential and occupy the inventory space for long periods of time. Increases Cash Flow Cash flow in a business is a very essential thing. All start-ups, in spite of making millions and billions in profits, care about cash flow so that they can increase their profit margins and make their shareholders happy. Frees Up Space for Inventory Excess inventory,such as out-of-season items or deadstock, can be eliminated using flash sales. They aid in the reduction of inventory and operating costs. Furthermore, if products have been accumulating dust in a warehouse, they can be moved out to create space for new, in-demand items. Drives Sales Through FOMO Customers dislike the feeling of missing out on something, especially a flash sale in eCommerce. You can entice potential buyers who have been waiting for the ideal price point by opting to run a flash sale. Has a Large Impact on Social Media The concept of a short-time flash sale in eCommerce has a very huge impact on creating hype on social media and increasing traffic on your website or online marketplace. The buyer may come to buy discounted items but may start browsing for other products too, listed by the same seller. Helps in Generating Leads When you run a flash sale, people can get discounts, sign-in, share their contact details, enable cookies and visit websites so it generates a lot of potential leads that a seller can use in the future as a push strategy to sell their products. Improves the Reaction Rate When you run a flash sale, it directs existing and new buyers to your page if they can get a good, discounted deal. Not only will they buy from you again but they will also suggest your products to others. Providing a high volume of sales in a short period of time can result in more social feedback and reviews from buyers. Hindrance of a Flash Sale in eCommerce Order Fulfillment As an online seller, you would have 1st hand experience that order fulfillment can be a tedious task. During a flash sale in eCommerce, you could get hundreds or thousands of orders daily from all over India and then you need to deliver them as soon as possible, accurately. You can also take help from 3PL logistics companies but it can also be a testing time for them. They need to take care of picking, packing, branded shipping and delivering the order as soon as possible. It will ultimately ruin your brand image. If you are a multichannel seller and you run a flash sale on multiple channels, things get even more difficult. Profitability You should expect more traffic and sales volume if you provide larger discounts when you run a flash sale. However, if you discount too much, you risk selling at levels where you lose money. Because a retailer's average profit margin is roughly 50%, a flash sale in eCommerce where you give a buy-one-get-one-free deal or other lucrative discounts, will only allow you to break even at best if that margin applies to whatever you're offering. Groupon, which relied primarily on flash sales, saw its value plummet after becoming a publicly traded business, most likely as a result of undercutting profitability with flash discounts. Timing The results of a flash sale in eCommerce depend very much upon the timing of the sale. You should choose a time of day when demand would already be high. Research says the most active days of the week are Mondays to Thursdays. Graphs of purchases are higher in the first week of the month as people get salaries and they can finally order items in their kart or wishlist. If a seller runs a flash sale when buyers are less interested and there is less demand, purchases may not result in the product category you were aiming for. You should never run a flash sale during a dip in general demand. Rather, you can have an end-of-season sale. 10 Ways to Run a Flash Sale Successfully Define the Goal of the Flash Sale Planning is should be the very first step before starting with anything else. In this situation, since a seller is planning to run a flash sale, they need to make the checklist of the following: A seller must offer a good discount but not enough that they may have to suffer later.If a product is unavailable in the market, they shouldn’t decrease its price of it.They should scale the demand and limit the supply.They should plan for how long they are going to run a flash sale.They need to find delivery partners that are ready to fulfill across the nation.If the flash sale is being run across multiple channels, sellers should identify ways they can track the data.They should assess the expenses associated with it and figure out their cost-bearing capacity. Choose Your Target Market When we talk about quality over quantity, we are referring to how we should try and serve or cater to our target customers. A seller should identify which customers would be interested in their product and also if they’d be able to afford it. If the above criteria are not fulfilled, there is very less probability that they will end up purchasing your products. Suppose you sell computers and other electronics and you are willing to run a flash sale of graphic cards, you would not target children or people who are old. This is because children would not have the financial capabilities of purchasing the items and elderly people would not be interested in them. The ideal target audience would be in the age group of 18-35, college students and young working professionals. Now that you have identified your target market and the right product, invest your energy there to get a good result. Choose the Duration of the Sale Once you have chosen your target audience, you need to shortlist the perfect time to implement it. You may choose the weekend if you have a lot of inventory or vice-versa. You can either implement a flash sale in eCommerce during a festival if you have old stock or you can offer the sale post-festival when your stock accumulates. After you decide on the time, decide on the duration of the sale. It could range from minutes to days. The ideal duration of a flash sale in eCommerce is around 72 hours. Promote the Sale to Target Customers After you choose the target market and the perfect time and duration to launch the sale, it's time to tell the world about your offer. Design your promotional material so that it resonates with your audience. Try to start promoting a week before so that many people will be aware of it, save your products in a wishlist, set a reminder and collect money for the product. As the sale approaches, keep sending out reminders and messages. Plan the Sale Clearly An impactful message is able to communicate with the reader/customer. It should be descriptive about what you are offering when you are offering it and on top of all, what your company strives for. To design an eye-catching message, you can go through the following: The offer should be clearly visibleVibrant colors should be usedUse words like free, discount, sale, offer, etc.It should not consist of too many wordsContain the features in bullet pointsUse good pictures of the productDesign messages according to the mediumOn social media or email campaigns, do not forget to give a relevant CTA button Run a Flash Sale for a Short Duration Always try to offer a flash sale for a short period of time. When you run a flash sale for long periods of time, it has a negative impact on buyers. They may think that your products are not getting sold or there may be some manufacturing defects. Also, many customers don't take long period sales seriously. When a customer buys a product in a sale that only runs for a short period, they perceive it as a getting a good deal. Long sales take away some of that prestige. Keep Your Inventory Ready Keep a perfect count and track of your inventory. You need to identify how many products you have, how many types and units you can add to the sale, where are they are located and what is the count of products in each warehouse. Many times, the purpose of a flash sale is to clear old stock so sellers should take care of material rotation by applying First-In, First-Out (FIFO), Last-In, First-Out (LIFO) or First-Expired, First-Out (FEFO) procedures. Partner with Trusted Shipping Companies Until and unless your product reaches the customer, the purpose of the sale is not fulfilled. You have done the hard work of identifying your target group, designed the message for them, invested to increase items in your inventory, etc. And at the end of all this, if you do not have a delivery partner to deliver the product in a punctual manner, it will all be for nothing. You may never be able to attract those customers again. They will have a mindset that you are unable to deliver at their address. You as a seller should partner with numerous eCommerce logistics companies, selecting them based on their expertise in different situations and locations. Aim for Customer Retention The ultimate goal of the flash sale in eCommerce is to make the world aware of the brand, forge a new customer base and retain old customers. A seller should always sell a product that is in good condition, despite selling it during a sale because once a seller ships a defective product, customers will not only return it, they will never buy from you again and will also give poor feedback that will impact other customers. Measure the Results You are operating a business so you must keep track of many things for paying your employee's salary, operational costs, profit margins, etc. When you have a flash sale in eCommerce, you need to think apart from monetary terms and calculate the ton-tangible profits that you earn from the flash sale. Measure how many items you sold, the total amount you got from sales, subtract the expenses and measure the profit, numbers of people you reached, how many of them became repeat customers, whether you met their expectations and many more factors. Reasons why a Flash Sale in eCommerce Fail and How to Avoid Them Lack of Supply Chain Options To be a good seller, you will have to place the utmost importance on delivery. You can run a flash sale and get orders but until you streamline your delivery process, you will lose money and customers. If you opt for prepaid orders, customers can ask for a refund and incurring these extra expenditures will defeat the whole point of the sale. Lack of Knowledge of Inventory Levels If you are ready to have a flash sale in eCommerce, you need to assess your available inventory and which items would be a part of the sale. 2 situations can arise if you are not careful: Shortage of Items Sometimes, if proper forecasting of demand and supply is not done, you can end up in a situation where you do not have enough inventory to fulfill orders. Over Stocking Conversely, a lack of forecasting can also lead to a surplus of inventory that you had not bargained for. Both these situations will result in extra expenses for the business. To overcome such situations, use MOQ and EOQ techniques for maintaining inventory. Website Failures Your website is your virtual shop and is open 24/7, serving all the requirements of a buyer. It acts as a channel between you and your customers. If this communication channel breaks down, a buyer will not be able to browse or achieve what they wanted. After getting their attention and capturing their interest and desire, if they can't get what they wanted, they won’t opt to purchase from you again. Lack of Forecasting Operating a business is an uncertain task so it will always be considered risky. A seller should be predictive. If a seller does not do proper forecasting and is incompetent in measuring market demand, they will make a mess of things. An eCommerce seller should think of all the inefficiencies that could take place during a flash sale in eCommerce and have alternatives like retail fulfillment in case of inventory shortages or COD in case of a high chance of reverse logistics. Conclusion: How can WareIQ Help You to Run a Flash Sale in eCommerce? A flash sale in eCommerce has many implications, both positive and negative. If done right, a seller can increase awareness and demand for their products and can have multiple orders in a short period of time. Conversely, if it is not implemented properly, sellers have a significant chance of running into losses and increased expenses. WareIQ can help your business to run a flash sale, by being able to integrate multiple eCommerce marketplaces with our custom WMS, which assists in inventory management and order tracking facilities, in one place. WareIQ as a fulfillment partner will take care of the following aspects of running a flash sale in eCommerce: Receives and tracks orders across multi-channelsPicking & PackingUltra-fast deliveryOrder tracking facilitiesTakes care of COD ordersMeasures MOQ and EOQEnsures a good delivery experience for customers [signup] Flash Sale in eCommerce: FAQs What is a flash sale in eCommerce?A flash sale in eCommerce is a promotion, offering discounts on the prices of some products by an online seller for a short period of time only. The duration can be from a few minutes to a few days. What is a flash sale strategy?A flash sale occurs when an online retailer offers significant discounts or incentives for a limited time. The main goals of a flash sale strategy are to entice online buyers to buy at the spur of the moment, enhance short-term sales and move excess inventory. How long is a flash sale?A flash sale is a limited-time discount or promotion that typically lasts between 24 to 72 hours. They're also wonderful for bringing in some quick cash. With flash sales, heavy discounts are offered for hours or days. This is the reason for its popularity among buyers. Benefits of a flash saleA flash sale might help you reduce your inventory by generating new demand for your products. Customers who have never purchased previously may be enticed to do so by a factors such as a highly discounted price of an item. Selling old products and introducing new ones can also help you save money on operations and inventory. What is the difference between a regular sale and a flash sale?In three ways, flash sales are distinct from ordinary internet deals: Discounts and promos are far superior to what your company normally provides and they last for a far shorter duration than an online store's regular sale time-period.
June 01, 2022
Inventory Vs Stock: Top 4 Differences, Definitions and 9 Ways to Manage Them Efficiently in 2022
Both inventory and stock are key components of any eCommerce company. They are directly responsible for a business being able to sell products in the first place. If companies don’t maintain an optimum level of inventory and stock, their ability to receive orders and fulfil them often falls by the wayside. In this article, we will take a look at the differences between inventory vs stock, examples of inventory vs stock, definitions and a lot more. What is the Meaning of Stock? The number of finished goods available to be supplied to the end customer is referred to as stock. If the store sells items directly to customers to make a profit, it can also include raw ingredients. Examples of Stock: Packs of pens in storage for pen manufacturers. [contactus_uth] What is the Meaning of Inventory? Finished items, raw materials and work-in-progress products can be included in inventory. Inventory must be kept at an optimal level since it is linked to carrying expenses so that all sold and unsold products can be accounted for throughout the financial year. Examples of inventory: lids of pens, ink, refills etc. Inventory Vs Stock: Examples Examples of Stock Pen companies use the term "stock" to refer to finished versions that are kept and ready to be fulfilled since they sell a wide range of pens to the end customer. Every completed pen has an SKU number and a barcode that can be scanned to identify and locate finished products, allowing them to be fulfilled swiftly. If a pen company supplies other firms with pen casings/nibs, they will be classified as finished items and computed as stock. Examples of Inventory Plastic, ink, metal, paper, packing boxes and other raw materials that are utilised to make pens are examples of inventory. A few other examples are: Individual lids and containers before they are brought together in the pen.Products that have passed all quality inspections and have finished all stages of the manufacturing process.Materials such as casings, lid pipes, nib metals and screws are necessary for the maintenance, repair and operation of machinery used in manufacturing pens. Inventory vs Stock: 9 Efficient Ways to Manage Stock Inventory Prioritise The first and foremost way of efficiently managing your inventory is the organisation into categories, based on priority. This will help you in determining the frequency and quantity of the inventory, as well as knowing what you need regularly. It will also help you in identifying the commodities that are vital to your business though they may cost more and take longer to sell. An easy way is to divide the items of inventory into three basic categories, X, Y and Z. The more expensive items that are required in lesser quantities are put into category X and items that cost less but are required in larger quantities are put in category Z. The middle category Y consists of items that are reasonably priced and have a turnover rate higher than category X and lower than Y. Track The next step would be proper maintenance of the records that contain product specifications and other information about every item included in the inventory. These records should include essential data such as SKUs, barcode data, suppliers, country of origin and lot numbers. The price of these items should also be tracked from time to time so that you would know their availability and seasonal fluctuations which may lead to changes in the price. Examine Some firms conduct a comprehensive inventory count once a year. Other firms conduct random product checks on a monthly, weekly or even daily basis. Either way, it is a good practice to count your inventory frequently. Analyse At times, you may have to deal with an untrustworthy supplier who may jeopardize your inventory. It is important to analyze and take action if your supplier consistently fails to produce orders or has quality control issues. Address the issues with your provider to determine what is going on. Prepare to change business partners or deal with unexpected supply levels and the potential risk of running out of supplies. 80/20 rule In general, revenues from 20% of resources lead to benefits for 80% of the workforce. It is important to make inventory management for 20% of products a top priority. You should possess knowledge as to the time period for how long they last on the market as well as the number of items sold during that time. This is essential so that you don't throw away the goods that will make you the most money. Consistency The approach to inventory and stock management should be consistent. A hazy or shifting attitude will result in a mismatch between purchased orders and sales plus inventory. To maintain an efficient and successful system, a clear and straightforward inventory and stock management system should be implemented and followed by everyone in the organization. Sales In a discussion about inventory vs stock management, sales cannot be ignored. In the interest of being accurate, sales, inventory and stocks should all match up comprehensively. In addition to matching inventory and stock, sales numbers aid in assessing the items that are selling quickly and how certain events drive or lower sales. It is necessary to constantly analyze sales volumes to correctly manage inventory and supplies. Sales numbers also aid in estimating the inventory-to-stock ratio. Restocking Some suppliers offer inventory reordering services. At first glance, this appears to be a good thing: delegating the method for at least a few of your items saves you money and time. However, keep in mind that your providers may not share your objectives. They want to move their inventory, while you want to stock the best products for your business. Take the time to review your inventory and rearrange all of your items. Software In a smaller organization, you may maintain the first few items of the inventory list manually with spreadsheets and diaries. However, if your company expands, you will need to dedicate more time to managing stock than to your business or you will risk having too much or too little stock. These responsibilities are simplified by investing in good inventory management software. Before choosing a technical platform, consider what you're looking for, if it has the information you need and whether it is user-friendly or not. At the same time, you should select a solution that can be integrated into your existing systems. Key Difference Between Inventory and Stock When it comes to stock inventory, people do not find it easy to distinguish between the two. Inventory generally consists of three components: The finished product, work in progress and raw materials. For a Washing Machine manufacturer like IFB, the inventory will consist of: All the finished products, i.e., the washing machines ready to supply to the customer, whether at the retail site or warehouse.Inventory for IFB will also include all the washing machines that are under the process of manufacturing and are at different stages of completion. Finally, IFB inventory will also be inclusive of all the raw materials that the company has at its disposal for the purpose of manufacturing the same washing machines. This simply entails inventory consisting of all the items included in the manufacturing cycle of IFB, from the acquisition of raw material to the machines in the various stages of production and, finally, the end product. Now let us consider what the stock will be for the same manufacturer, IFB: IFB stock refers to the washing machines ready for delivery to the end-user.IF IFB supplies casing, motors or circuits to some other manufacturer, that will also be regarded as stock.We can simply say that any product that IFB sells to consumers or another manufacturer will be considered the stock of the company. Inventory Vs Stock: Comparative Table The differences between inventory and stock are listed below: [table id=25 /] Conclusion: How Does WareIQ Sets Itself Apart From Other Logistics Companies in Inventory vs Stock Management? Inventory management systems may seem like an unnecessary complication when you start your business, but as you expand and the list of products you deal in increases, it becomes highly complicated to keep tabs on stock inventory. To manage the stock inventory efficiently, there is a need for a technologically efficient system that works based on artificial intelligence and machine learning. This will ensure that the management can glance through the inventory management system and arrive at various decisions regarding any product and this is where WareIQ stands different from other Logistics Companies. WareIQ provides all these facilities that are aided with visuals and graphical representations. WareIQ clearly sets itself apart on the basis of: A single system that is capable of maintaining inventory, order and billing data.WareIQ also enables storage facilities in fulfilment centers of their own for an efficient supply cycle as required.Another amazing feature of WareIQ is the ease with which it gets set up and integrates with your system. The system is adaptable to various market fluctuations as well. [signup] Inventory vs Stock FAQS What are the different types of inventory?Inventory refers to all the items in the cycle of manufacturing; it typically includes:Finished ProductsRAW MaterialsWork-in-ProgressComponentsMaintenance and Repair Goods What is the difference in the applicability of Stocks vs Inventory?Inventory is generally used for the purpose of accounting and preparation of financial books. Stocks are typically used in day-to-day business operations. What is the use of an Inventory Management system?An inventory management system can help keep consumers satisfied by automating operations, improving stocking practices and ensuring that the things they desire are always in stock. Business owners and key personnel have a lot of options these days in choosing an efficient inventory management system. The one chosen should fit the metrics required by your business and should have a trusted consumer base. What is stock inventory control?Stock inventory control is a means of presenting and keeping track of how much stock you have on hand at a given time. It includes everything you need to manufacture a product or service, from raw ingredients to finished goods. It includes stock at all stages of the production process, from procurement to delivery to usage and replenishment.
June 01, 2022
How To Calculate Shipping Costs in 2022? 6 Top Factors Affecting the Calculation of Shipping Rates
The shipping industry is constantly evolving and changing. As a result, the methods used to calculate shipping costs also change from time to time. It is crucial to be aware of the most recent changes and trends in the shipping industry to budget your shipping needs and calculate shipping costs accordingly. It's no secret that the cost of shipping charges can be a significant factor in eCommerce sales. Nearly 60% of shoppers said they would abandon their cart if shipping charges were too high. With that in mind, it's essential to make sure that you accurately calculate shipping costs to offer competitive rates and avoid losing potential customers. Information Needed To Calculate Shipping Costs Know Your Shipping Zones One of the first things you need to do when it's time to calculate shipping costs is to determine which shipping zones your products will fall into. Shipping charges are based on these zones and distance from your fulfillment location and also range from local to international. Knowing which shipping zone your products fall into will help you to calculate shipping costs. For example, local shipping is typically less expensive than international shipping. Use Flat Rate Shipping If you're looking for a simple way to calculate shipping costs, consider flat rate shipping. With this method, shipping charges are incurred, regardless of the weight or size of the order. Flat rate shipping can be a great option to keep your shipping charges simple and easy to understand for customers. Plus, it can help you save money on shipping if you have heavier or larger products. Calculate Shipping Costs Based on Weight Another option to calculate shipping costs is to base them on the weight of the shipped products. This is a common method used by many eCommerce businesses. To calculate shipping costs based on weight, you'll need to determine the average weight of your orders and then find a shipping carrier that offers rates depending on the weight of the shipment. Once you have that information, you can start to calculate your shipping costs. Make Use of Shipping Software Shipping software can be a great way to calculate shipping costs. Shipping software typically includes features like real-time shipping charges and shipping label creation. Using shipping software to calculate shipping costs can help you save time and money on shipping. Plus, it can help you automate some of the more tedious aspects of calculating shipping charges. Get Shipping Quotes from Multiple Carriers When you calculate shipping costs, it's essential to get quotes from multiple carriers. This will help you compare rates and find the best option for your business. Getting shipping quotes from multiple carriers can be time-consuming, but it's worth it to make sure you're getting the best possible deal. You can use shipping software to get quotes from multiple carriers or contact each carrier directly. Keep these tips in mind to calculate shipping costs and you'll be on your way to offering competitive rates that won't break the bank. [contactus_gynoveda] Factors to Keep in Mind Before Calculating Shipping Costs Shipping prices may be tough to calculate since there are so many variables that influence the final cost. But, there are four key pieces of information that you'll need every time. You should be able to receive an accurate price if you have this information. Here are the four factors that may impact your shipping rates every time: Points of Origin and Destination for Shipping The distance traveled by a package from its point of origin to its shipping destination is an important element in determining the cost. In general, the greater the price, the more away you are. Shipping zones are used by couriers to properly calculate the distance a cargo travels from its origin to its final destination. There are now eight shipping zones in the United States, divided by zip code. Although it's a basic concept, but you must first decide the location you are shipping from and the destination to which goods will be delivered before you can begin calculating prices. Gross Weight of the Package The deadweight of a package refers to its weight. Put it on a scale and find out how much it weighs. The more expensive it is to send a package, the heavier it is. But there's also dimensional weight to consider. This becomes more intricate and is determined by the dimensions of the box in which you are shipping the products. Dimensions of the Package The length, breadth, and height of the packaging used to ship the products are the dimensions. Because packages arrive in a variety of sizes, it's critical for eCommerce retailers to understand how this affects the price. Particularly when couriers charge by dimensional (or volumetric) weight as well. In a nutshell, this is the amount of room a product takes up in the delivery truck. To calculate the dimensional weight, couriers multiply the length, width, and height of your box, then divide the result by a cubic divisor of their choosing. It's a good idea to understand more about dimensional weight and how to save shipping expenses by optimizing your packaging. These modest measures will help you save money on shipping and receive a more accurate quotation for eCommerce businesses Shipping Delivery Times The delivery time refers to the time it takes for a product or cargo to arrive at its destination. Depending on the distance the cargo is travelling, this can range from overnight to over a month, & prices might vary accordingly. It will cost substantially more to get a parcel sent overnight than if you go for a typical 3-7 days delivery period. Before you settle on a shipping cost estimate, you'll need to determine how quickly you want your products delivered. Value of Products If you're delivering high-value items, you should consider having your shipments insured. Senders who have their packages lost, stolen, or damaged in transit can get reimbursed with shipping insurance. This service, while handy, can dramatically increase your delivery costs. Top 6 Factors Influencing Your Shipping Costs Because of the many extra taxes dependent on the destination country, the size and weight of the shipment, and the duration of delivery, international shipping can get complicated. It's critical to do thorough research and properly calculate shipping prices so that your consumers aren't surprised by exorbitant charges, which is one of the leading causes of cart abandonment in eCommerce. Insurance for Shipments If you're shipping costly items, consider obtaining shipping insurance to safeguard against items being lost, stolen, or damaged during transit. The majority of shipments arrive safely, but mistakes can happen, and if you're delivering high-value items, replacing inventory will cut into your earnings, so it's important to be insured. Couriers normally charge a little fee for this service - around 3% of the reported value of your package on average. Another option is to get shipping insurance from a third-party provider, which is usually less expensive. Through the Insurance Settings section of their dashboard, Easyship users can quickly add insurance to their shipments. Cost of Fuel When fuel prices, particularly diesel, are greater in a certain location owing to taxes, market pressures, or other geographical variables, shipping charges rise. When fuel prices fall, shipping costs should fall as well. Carriers may raise their charges to protect themselves from abrupt fuel price spikes if fuel costs are variable at the time you're shipping. Keep in mind that shipping across states is typically more expensive owing to gasoline prices. Fuel prices in each state vary widely depending on local and state taxes. The cost of fuel in your location may differ from the cost of fuel in the shipment area. Fuel surcharge calculators are used by some truckers to estimate these fees, which are usually added to shipping rates. Minimum Costs for Carriers Minimum tariffs apply to all carriers. Regardless of how tiny your package is, if it falls below that level, you will be charged the minimum. Before hiring a shipper or looking into alternative shipping options like FedEx and UPS, you should make sure you have a package that is larger than the bare requirement. Extra Charges If your package necessitates lift gates, inside delivery, residential delivery, or other access difficulties for drivers, factor them into your freight shipping prices. Dock-to-dock transportation is a specialty of commercial shipping. If you deviate from that, you will be charged for the inconvenience. Accessorial fees might range from delivery to a strip mall to appointments scheduled in advance. Make sure you're aware of all of the alternatives ahead of time and that you consider them into the price of each task. Charges for Handling Dangerous Goods Due to the contents of the package, packing, weight, and dimensions, you may be charged extra costs. Chemicals, needles, weapons, and, most significantly, lithium-ion batteries for eCommerce businesses are examples of risky goods that a courier feels dangerous to handle. The International Air Transport Association (IATA) defines dangerous products worldwide, therefore that's the best place to look for an official list. If the parcel exceeds the standard dimension or weight, is constructed of a substance such as wood or metal, or is cylindrical, an extra cost may be charged. It's a good idea to double-check these costs before buying any boxes or containers. Taxes and Duties Before your cargo is delivered to another nation, you or the recipient of your product may be requested to pay extra customs and taxes. Duties and taxes may be charged depending on what you're shipping and how much it costs. These can be complicated and differ from nation to country. You should be aware of two sorts of responsibilities since they are frequently the source of hidden expenses. DDU Shipments (Delivery Duty Unpaid): The recipient is responsible for paying the duty in order for the package to be released from customs. If the recipient refuses to pay the taxes or refuses to accept the delivery, you, as the sender, are still accountable. This is why, as a trader, it's ideal to keep your overseas shipping charges as transparent as possible. It helps you save money.DDP Shipments (Delivery Duty Paid): The sender is responsible for paying the levy, however, the computation is more complicated. When the shipment reaches the destination country, couriers will charge a "DDP handling fee" for paying the taxes and customs on your behalf. The proportion of taxes and tariffs is used to compute a "disbursement charge." Yes, it's complicated, but at the very least, you'll know that the box won't be returned because the receiver doesn't pay or declines it.When the cargo reaches the target country, the couriers will charge you an extra cost for paying the Taxes & Duties on your behalf. Aside from the predetermined DDP handling charge for managing certain taxes and levies, one can expect a disbursement fee.Under-declaring items on a commercial invoice might result in extra charges and lengthy delivery delays. If the customs clearing agency feels the claimed value is less than the market value, a fresh invoice is frequently requested, which might result in additional costs. There may be additional warehousing fees for keeping the product if it is not received within the desired time range. In addition, if you under-declare the contents of the box, the courier may charge you. As a result, this is an area where you must exercise extreme caution and pay close attention to the smallest of details. Importance of Calculating Shipping Costs Accurately There are a lot of businesses out there that don't take the time to calculate shipping costs accurately. This can lead to many problems down the road, including lost customers and increased expenses. Here are just a few reasons why it's important to make sure you calculate your shipping costs accurately: You Could Lose Money on Each Shipment If you're not careful, you could easily lose money on each shipment you send out. You could either be charging your customers too much for shipping or not enough. In both cases, you're leaving money on the table that could be used to improve your business in other ways. Your Customers Could Get Frustrated If your customers are constantly overcharged with shipping prices, they could get frustrated. This could lead to them taking their business elsewhere, which is the last thing you would want. Make sure you're fair with your shipping charges, so your customers will stick around. You Could Run Into Cash Flow Problems If you're not charging enough for shipping, it could eventually lead to cash flow problems. You'll be spending more money on shipping than bringing in money from customer orders. Make sure you calculate shipping costs accurately so you don't run into any financial difficulties down the road. It Could Affect Your Bottom Line Your shipping charges will have a direct impact on your bottom line. If you're not careful, you could spend more money on shipping than you're making in profits. Make sure you're doing everything you can to keep your shipping charges under control, so your business can be successful. It Could Hurt Your Reputation If customers consistently have problems with your shipping charges, it could hurt your reputation. Hence, it's important to make sure you calculate shipping costs accurately. By providing fair and reasonable shipping charges, you'll be able to keep your customers happy and maintain a good reputation for your business. As you can see, there are many reasons why it's essential to calculate shipping costs accurately. If you're not careful, it could lead to many problems for your business. Make sure you take the time to calculate shipping costs to avoid these potential problems. How Do Major Shipping US Courier Models Calculate Shipping Costs? The three big shipping services have their own cost calculators. Many of the above elements are taken into account by each delivery provider in order to provide varied shipping price models and shipment methods. Here are the price models and calculators for three of the most popular shipping companies in the United States: USPS, FedEx, and UPS. United States Postal Service- Shipping Prices and Calculator Source The United States Postal Service is frequently the cheapest of the three carriers, particularly for ground shipment. USPS already delivers to your end client every day because they operate local routes every day and don't have to go out of their way to do so. USPS consolidated its two business pricing models (commercial plus and commercial base) into one commercial pricing model in January 2019. Shipping reductions of up to 15% off retail shipping and fees are available with commercial pricing. You must apply for this price model through the United States Postal Service. Check out the USPS's mailing and shipping pricing to figure out how much shipping will cost you. How to efficiently utilize the USPS Shipping calculator: To use the USPS Shipping calculator, go to the USPS Postage Price Calculator website. You may use this website to estimate shipping costs for both domestic and international shipments. If your company mails are pre-sorted, you can use the USPS Business Price Calculator to calculate your shipping rates.Fill up the details with the specifics of your letter or parcel. Choose your letter or package's destination from the drop-down menu, then input ZIP codes, the sending date, and the contents of your package.Choose a shipping type. After you've input your shipment's data, you'll need to determine how you want to get it to its final destination. You can use the USPS Shipping Calculator to select a Flat Rate or a shape, such as a postcard, letter, big envelope, package, or large package. When you select a flat rate option, such as Priority Mail Medium Flat Rate Box, you'll see the estimated arrival date as well as retail and online postage charges. You'll be prompted to input the weight of your letter if you pick a form resembling a letter. Select the shape that most closely resembles your letter by pressing "Continue." Following that, you'll be provided the estimated delivery date as well as the retail and wholesale prices.Examine your shipping choices. You'll see the cost details for your chosen shipment type at this moment. By clicking "Display All Alternatives" at the top of the page, you may compare pricing for various shipping options.Additional Services, you may add extra services here, such as a Certificate of Mailing, Insurance, Registered Mail, and so on.To see your outcome, click "Continue." See how much it would cost to mail your letter or item to its final destination.Pay for your shipment's shipping and postage. Go to the USPS website. To pay for shipping and print the appropriate stamps, go to the Click-n-Ship page. You'll need to utilize an online postage provider like Stamps.com to print postage for First-Class Package Service, Media Mail, Parcel Select Ground, and Letters. Federal Express- Shipping Prices and Calculator Source If you want to ship some items by Federal Express but don't want to be surprised by the price, use the FedEx rate tool to eliminate the guessing. You can go over the many price alternatives at your leisure to discover which one best suits your delivery schedule. On their website, go to the Federal Express Rate Tools page. In the dropdown menu available in the Shipping box on the left-hand side of the web page, select one of the services offered for the destination you want to ship the package (the United States or International). If your shipping item is freight rather than a package, an option freight, is also available.By clicking on the relevant option, you may select the FedEx service speed you want to employ for this package (same day, overnight, 2nd day, ground). These options may be seen right next to the shipping destination selection.Choose between the standard rate type (where the item is delivered to your house or office) and the retail pricing type (where the box is picked up by you or your designee at a FedEx outlet in your region).Calculate your shipping prices by selecting the proper file type (pdf or excel) for your computer, then get your rates on the web page.Weigh your box to get an estimate of how much it will cost to send your item depending on your previous destination and service delivery time schedule choices. UPS - Shipping Prices and Calculator Source If you are thinking of sending your package through UPS then follow these simple steps to send your package through UPS: You must know the following two things before mailing any shipment: When do you expect your shipment to arrive? How much will your shipping cost? These are the two most crucial things to understand before beginning the shipping procedure. UPS has a calculator that may be used to estimate shipping costs and timeframes for various places around the world where UPS services are available. Follow the steps below to calculate your shipping cost for UPS carriers- Get straight to the UPS Calculator for getting freight and package rates. This webpage will assist you in locating arrival dates and shipping rates for all UPS shipments and freight services in over 150 countries. It also assists in locating UPS shipping charges for various countries where UPS services are available, allowing you to determine your precise range.Put the mouse cursor on the shipping tab from the site UPS official site ups.com.Select the Calculate Time and Cost from the drop-down menu.Fill in all of the needed shipping information in the form, such as the destination, shipment date, origin, city, and country.It will display the result for the information entered on the right side of the page.There are some extra fields on the right side as well. Fill in these data accurately and click the update button to get the shipping cost.You will now get the cost of the shipment based on the information you have provided. The following are some of the benefits of utilizing this UPS shipping calculator: You will be given a UPS shipping estimate in the currency of your country.You will also receive shipping information for several items.This webpage may also be used to determine the additional cost that must be applied to the shipment.Get a summary of the review rate in the form of a graph.You may sort your results by cost and time. You will also receive information about the delivery date, time, and cost of international shipping. Conclusion: How Can Businesses Reduce Shipping Costs With WareIQ? As a business, it is crucial to be aware of different ways to reduce shipping charges when you have to calculate shipping costs to stay competitive and keep prices low for your customers. One way to do this is by using WareIQ. WareIQ offers businesses discounted rates on shipping, distributed inventory and 2-day shipping. This means that you can save money on your shipping charges while still offering your customers the convenience of fast shipping. Additionally, WareIQ offers free shipping on orders beyond a certain order volume, which can further help to reduce your overall shipping costs. WareIQ also offers a choice of more than 20 of the best shipping services in the country so you will always be assigned the fastest option, at the best price. By using WareIQ, you can take advantage of significant savings on your shipping charges, which will also be felt by your customers. This can help to improve your bottom line and keep your prices competitive. In addition, the convenience of 2-day shipping can help to increase customer satisfaction. If you are looking for ways to reduce your shipping costs, WareIQ is a great option. [signup] Calculate Shipping Costs FAQs How can you calculate shipping costs?There are many factors to consider when calculating shipping costs. The weight and distance of the shipment are the two main factors. Is there any app to calculate shipping costs?Yes, there are apps available to help businesses calculate their shipping costs. WareIQ is one option that offers businesses discounted rates on shipping, distributed inventory and 2-day shipping. Can I ship at a flat rate?Yes, USPS in addition to many other companies offer a flat rate for shipping regardless of weight or distance. How do I get shipping discounts?There are a few ways businesses can get shipping discounts:1. One way is to use a platform like WareIQ, which offers businesses discounted rates on shipping. 2. Additionally, businesses can look for coupons or promo codes from shipping companies like USPS or FedEx. 3. Finally, businesses can sign up for loyalty programs with shipping companies that often offer shipping cost discounts.
May 31, 2022
Buffer Inventory: Meaning, Importance, Differences With Safety Stock, Benefits & Disadvantages In 2022
There are many variables and uncertainties that make operating an eCommerce business extremely difficult. Retailers constantly have to maintain the right amount of inventory to be able to fulfill orders but also not store too much to risk the items becoming obsolete or expired. Buffer stock can help businesses get through this uncertainty and can also make sure that their customers are never left waiting to receive their orders. Let’s take a look at what buffer inventory is, how it can help your business, the pros and cons and much more. What is the Meaning of Buffer Inventory/Stock? An extra amount of commodities is held on hand to meet any unexpected future demand or supply variations; this stock is called buffer stock. It is a backup stock that keeps some buffer room for any uncertainties that may arise in the future. Buffer inventory is typically used as a security net in an emergency, supply chain delays or an unexpected rise in demand. The quantity of buffer inventory you keep will be determined mainly by the items you offer, average production or order lead times and historical inventory data. A business maintains this stock in transit or on hand to guarantee no production, supply or lead time interruption. This type of stock is also known as a strategic stock, safety stock or buffer inventory. A business can make use of buffer stock at any point along the supply chain. The primary purpose is to keep production or sales processes operating smoothly. [contactus_gynoveda] Buffer Stock vs Safety Stock: What are the Differences? The words 'buffer inventory' and ‘safety stock' are used synonymously to refer to the additional stock that a business entity keeps on hand to act as a shield against supply and demand fluctuations. In certain circumstances, 'buffer/safety inventory' refers to inventory stored specifically for unexpected increases in product demand (for example, a promotion that generates more sales than planned), whereas ‘safety stock' refers to inventory retained in the event of work-in-progress products or delays due to the supplier (e.g., manufacturing shutdown). Both buffer stock inventory and safety stock serve the same function, i.e., guaranteeing an adequate inventory level to satisfy demand and fulfill orders on schedule. Why is Keeping Buffer Stock Important? Having buffer inventory is critical for your business since it allows you to save money on additional order fulfilment expenses while also providing your customers with a flawless shopping experience free of shipping delays. In addition, like any other security net, buffer inventory may help you improve your operations. The importance of buffer stock is as follows: Buffer inventory may be located at any point along the supply chain and is meant to lessen the occurrence or severity of stock-out incidents, resulting in improved supply chain continuity and customer service.It can be used in manufacturing or other inventory-related scenarios to guarantee that unexpected shortages or requests may be fulfilled with some assurance.Safety stock is often retained during uncertainty about the product's demand or lead time.The quantity of buffer stock a company decides to keep on hand on a general basis can have a significant impact on its operations.Overstocking can lead to excessive inventory carrying costs. But, conversely, stock-outs can repeatedly occur if there is insufficient stock. As a result, firms must strike a careful balance. Buffer Inventory Formula: Top 4 Methods to Calculate Buffer Stock Several factors influence how much inventory you keep on hand to function as a buffer. There is no generic solution for establishing how much buffer stock to keep. It has to be calculated based on factors that decide your business's requirements. There are various methods for calculating ideal buffer inventory levels, but regardless of the approach you use, you'll need access to advanced analytics tools that help you control inventory by giving historical order data, SKU performance insights and demand forecasting statistics. Having the relevant data at your disposal will allow you to appropriately determine the amount of buffer inventory needed to optimise inventory storage and guarantee that orders are completed on time. Safety Stock Calculation A safety stock formula is an excellent approach to quickly estimate the ideal amount of buffer inventory in case of an unforeseen circumstance. To calculate safety stock, you first need to calculate the average daily consumption of your product and multiply it by the typical lead time, i.e. the number of days it takes between the time an order is first placed and delivered to your customer. Then deduct your maximum daily use and multiply it by your max lead time. The result is the product's safety stock number. You'll need to know the maximum daily consumption, maximum lead time, average daily usage and average lead time to calculate this value. The formula for safety stock calculation is as follows: (Maximum daily sales x Maximum lead time) – (Average daily usage x Average lead time) Hezier and Render’s Method The buffer inventory approach proposed by Hezier and Render employs the standard deviation of the lead time distribution and the required service factor (i.e., the probability that a stockout will not take place). Based on historical supply chain delays, this provides a more realistic picture of the amount of buffer inventory you should keep on hand. The Hezier and Render technique is computed by multiplying your desired service factor (Z) by the standard deviation in lead time (𝜎LT) and the extent and frequency with which the average lead time varies from the actual lead time. The formula for calculation using the Heizer and Render technique is as follows: Z x 𝜎LT Analysts utilise such a calculation when the supply is questionable. By utilising the standard deviation of the lead time distribution, it provides a more accurate picture. As a result, it delivers a more precise and accurate picture of late shipments' lead time and frequency. This model, however, does not account for fluctuations in demand. Greasley’s Method Greasley's inventory calculation approach considers the standard deviation of lead time, desired service factor and average demand. The standard deviation in lead times refers to the unpredictability or volatility in lead times. In contrast, average demand denotes the number of items required to fulfill consumer demand during a specific period. The formula is denoted as follows: 𝜎LTx average demand x Z This strategy is typically utilised when demand and lead time fluctuate greatly. However, it does not consider the number of products that are still in production and are not yet available for sale. Historical Demand-Based Buffer Inventory Another method for calculating buffer inventory is obtaining and analysing historical data by evaluating inventory and order data. When you know the inventory turnover rate, SKU performance and other details, you can sensibly assess your safety stock. It's usually a good idea to access previous order and inventory data, regardless of how you calculate the buffer inventory. Inventory forecasting necessitates substantial preparation to guarantee that your company is ready to satisfy demand constantly while remaining mindful of not purchasing too much (which may increase the costs of storing excess inventory and decrease the profit margin). With demand forecasting technologies, you can quickly combine all the supply chain data from numerous channels to present an overview of the actual product and sales insights and forecasts. Advantages and Disadvantages of Buffer Inventory Advantages The advantages of a business having buffer inventory are as follows: It assists in protecting the business against variations in demand and supplyIt aids in minimising production disturbanceIt contributes to the company's revenue stabilityBecause the firm has stock to take new orders, it decreases the odds of opportunity loss. Disadvantages Though having buffer inventory may prove to be beneficial to the business, it also comes with a few disadvantages that are stated below: Storing inventory in buffer may result in losses if the items are perishable or have limited shelf lifeBuilding and preserving might incur significant expenditures and add to the overhead costsMore space will be required to accommodate the extra inventory 5 Buffer Stock Parameters Accuracy in Forecasting Accurate forecasting is crucial to understand buffer inventory. Forecasting demand and supply can assist in determining the amount of buffer stock that is necessary. Adjustment of Lead Time The lead time is defined as the time it will take for a firm to create a particular quantity of goods. Planning buffer stock must be in tandem with the lead time or else stocking will either be delayed or arrive sooner than anticipated. Frequency of Refilling The patterns and previous frequency of refilling might assist in restocking the supply. For example, the frequency of refilling once a month can help a company prepare more effectively for unforeseen circumstances. Perishability of Products The shelf life or perishability of commodities is a critical factor in buffer inventory planning. A product with a higher rate of perishability must be handled differently than a product that does not perish quickly. Seasonal fluctuations Seasonal differences must also be taken into account while keeping buffer inventory. Since the same product may sell more in the summer than in the winter, or vice versa, buffer stock cannot remain identical for both seasons. Conclusion Inventory management is critical for any organisation that wants to stay competitive and profitable while expanding its operations. Inventory shortages can result in missed sales. But on the other hand, excessive inventory results in more storage and administration costs and therefore, lower profit margins. Working with a dependable distribution partner like WareIQ to manage your inventory helps increase manufacturing efficiency. It also liberates resources, concentration, and energy for growth and development. Taking care of essential resources is critical for manufacturing competitiveness. Businesses that decrease managerial distractions cut inventory carrying costs and can focus on core skills, thus gaining a competitive edge. Outsourcing inventory management can help you achieve these objectives. [signup] Buffer Inventory FAQs What is buffer stock?Buffer stock is extra inventory stored by retailers in their warehouses. It is a surplus of goods kept on hand to meet any unforeseen future demand or supply changes. How can you maintain buffer inventory?You would need to conduct analysis of prior demand and sales figures and also forecast for future demand and any global events that could affect your demand levels, either in a positive or negative way. This will help you maintain an ideal level of buffer inventory. What types of inventory are utilised as buffer stock?Buffer inventory can consist of products with a high demand level that are constantly at risk of getting depleted. Keeping these products as buffer inventory would ensure that there are no supply-chain shortages. How can WareIQ help you maintain buffer inventory?When you partner with WareIQ, you get access to our WMS to be able to forecast any spikes or dips in demand and supply so you can maintain the optimum inventory levels and adequate buffer stocks.
May 31, 2022
What is the Weighted Average Inventory Method? What are the 4 Top Methods to Calculate Weighted Average Cost (WAC)?
The weighted average inventory method is a costing method that assigns a cost to each inventory unit based on the average cost of all units available for sale during the period. This method is used when companies purchase inventory in large quantities at different prices throughout the year. The weighted average cost per unit is calculated by adding the total cost of all units available for sale and dividing by the number of units available. This weighted average inventory method is advantageous because it provides a more accurate representation of the actual inventory cost than other methods, such as first-in, first-out (FIFO) or last-in, first-out (LIFO). However, the weighted average inventory method can be challenging to implement if many units are available for sale or if the prices of units purchased vary widely. In these cases, it may be necessary to use a different costing method. What is Weighted Average Inventory? How to Calculate It? The weighted average inventory method is a calculation that assigns a weight to each type of inventory based on its value or importance. This allows businesses to assess their overall inventory levels more accurately and better manage their stock. To calculate the weighted average inventory, using the Weighted Average Inventory Method, you need to first determine the total value of all your company's inventory. Then, assign a weight to each type of inventory based on its value as a percentage of the total. Finally, multiply every kind of inventory by its weight to find the weighted average cost for that item. For example, let's say your company has three types of inventory: raw materials, finished goods and work in progress items. Assume that raw materials make up 20% of the total value of your inventory, finished goods make up 60% and work in progress makes up the remaining 20%. To calculate the weighted average inventory using the Weighted Average Inventory Method for raw materials, you would need to multiply the raw materials by their weight and divide it by 20%. You would then need to multiply the finished goods by their weight divided by 60% for finished goods. And for work in progress, you would need to multiply it by its weight and divide it by 20%. The weighted average inventory for your company using the Weighted Average Inventory Method would be the sum of the three weighted average inventory calculations. In this example, the weighted average inventory would be (20% x Raw Materials) + (60% x Finished Goods) + (20% x Work in Progress). You can use this same method (Weighted Average Inventory Method) to calculate the weighted average inventory for various types of inventory. Just be sure to assign a weight to each one based on its value or importance. The Weighted Average Inventory Method can be a useful tool for managing your company's stock. By considering the value of each type of inventory, you can more accurately assess your overall inventory levels and make better decisions about using your resources. [contactus_gynoveda] What is Weighted Average Cost (WAC)? The weighted average cost is a financial metric used to assess the overall cost of a company's products or services. This cost is arrived at by considering the different costs associated with each production stage, including raw materials, labour, shipping and overheads. The final number is then weighted according to the relative importance of each factor. In many cases, the weighted average cost can be a more accurate reflection of true cost than simply using an arithmetic average. This is because it considers the quantity of each input and the quality or importance of that input. For example, if a company's product requires expensive raw materials but very little labour, the weighted average cost will be higher than the average arithmetic cost. The WAC is often used to set prices, particularly when offered by a wide range of products or services. By considering the different costs associated with each item, a company can ensure that it charges a fair price for each one. In some cases, weighted average cost may also be used to assess the profitability of individual products or services. The weighted average cost can be a valuable tool for financial decision-making when calculated correctly. However, it is important to remember that this metric should only be one part of a much larger analysis. Other factors, such as customer demand and market conditions, will also play a role in setting prices and determining profitability. 4 Methods to Calculate Weighted Average Cost (WAC) There are various methods to calculate the weighted average cost. Some of the most common methods are: Average Cost Method The first weighted average cost method is the average cost method. This method takes the arithmetic mean of all the costs incurred in producing the good or service. This is the most basic and simplest method to calculate the WAC. Weighted Average Cost Method The second method of weighted average inventory valuation is the weighted average cost method. This method assigns different weights to different costs incurred in production according to their importance. The weight assigned to each cost is multiplied by the cost incurred. The sum of all these weighted values gives us the weighted average cost (WAC). Marginal Cost Method The third Weighted Average cost method is known as the marginal cost method. In this method, we consider only the costs incurred in producing one additional unit of the good or service. This method is useful when we are trying to decide whether to produce extra units or not. Opportunity Cost Method The fourth and final weighted average inventory valuation method is the opportunity cost method. In this method, we consider the opportunity cost of producing the good or service. The opportunity cost is the value of the next best alternative that we must forego to produce the good or service. This method is usually used when there are scarce resources and we have to choose between alternatives. Whether we use it to calculate WAC, it is important to remember that WAC is only an average cost and not the exact cost of producing a good or service. This is because different costs are incurred at different production levels and it is impossible to assign a specific cost to each output unit. WAC only provides us with a general idea about the overall cost of production. Top 3 Applications of Weighted Average Cost The weighted average cost is used when a company has inventory that has been purchased at different prices and they want to calculate the average cost of that inventory. This is important for companies because it helps them determine how much their inventory is worth and how much they should charge for their products. There are many different applications for weighted average cost, but some of the most common ones are listed below: Stock Valuation Weighted average cost is important for investors because it allows them to see what a company's inventory is worth. This information can be used to make decisions about buying or selling stock. Product Pricing It is also important for companies because it helps them determine how much to charge for their products. If a company knows the weighted average cost of its inventory, it can price its products accordingly. Marginal Costing This is another important application for weighted average cost. This technique is used by businesses to determine the costs associated with producing one additional product unit. This information is important for companies because it helps them decide how much to produce and how to price their products. Source What are the Benefits and Drawbacks of Applying the Weighted Average Cost (WAC) Method? Benefits Several benefits can be accrued by applying the WAC method and some of the most important ones are listed below: Accurate Depiction of Actual Costs Perhaps the most significant benefit is that it provides a more accurate representation of the true costs associated with production. The WAC method considers all costs incurred during the production process rather than direct costs. Less Susceptible to Fluctuations The WAC method is less subject to fluctuations in prices than other methods, such as last-in, first-out (LIFO), or first-in, first-out (FIFO). As a result, the WAC method can provide valuable information for long-term planning purposes. Adherence to Accounting Standards Finally, the WAC method is generally accepted by accounting standard-setters and is likely to be acceptable for financial reporting purposes. Drawbacks The weighted average cost (WAC) method has a few disadvantages, which include: Bias Against Older Inventory The WAC method can be biassed if the company has a high proportion of older inventory that is nearing its expiration date. Inaccurate Cost Depiction of Individual Items The WAC method does not consider the specific characteristics of each item in the inventory, so it may not accurately reflect the true costs of the individual items. Difficult to Calculate in Some Circumstances The WAC method can be difficult to calculate, especially for companies with large and complex inventory. It also may not accurately reflect a company's actual costs if it has significant changes in its inventory levels during the year. What are the Other Common Inventory Valuation Methods & How is it Different From the Weighted Average Inventory Method? Other common inventory valuation methods include the first-in, first-out (FIFO) method and the last-in, first-out (LIFO) method. These methods can produce different results from the weighted average inventory method, depending on the order in which inventory is sold. First In, First Out (FIFO) Under the FIFO method, inventory is valued at the price of the earliest units purchased first. So, if you have 100 widgets in stock and you purchased 50 at $5 each and 50 at $10 each, the value of your inventory would be $500 (50 x $5 + 50 x $10). The advantage of the FIFO method is that it more closely reflects the actual cost of goods sold (COGS). This is because the oldest units in stock are typically the ones that are sold first. As such, FIFO provides a more accurate picture of your profits. The disadvantage of FIFO is that it can lead to higher taxes. This is because, under this method, inventory is valued at the prices that were paid for the earliest units purchased - which may be higher than the current market value. As a result, businesses may pay more taxes than they would under another valuation method. Last In, First Out (LIFO) Under the LIFO method, inventory is valued at the price of the most recent units purchased first. So, using the same example as above, if you have 100 widgets in stock, and you purchased 50 at $5 each and 50 at $10 each, the value of your inventory would be $1000 (50 x $10 + 50 x $5). The advantage of LIFO is that it can lead to lower taxes. This is because inventory is valued at the prices that are paid for the most recent units purchased - which may be lower than the current market value. As a result, businesses may pay fewer taxes than they would under another valuation method. The disadvantage of LIFO is that it may not provide an accurate picture of your actual COGS. This is because the most recent units purchased are typically not the ones that are sold first. As a result, LIFO may overstate your profits. The choice of inventory valuation method can significantly impact a company's financial statements. For example, using the LIFO method would result in a higher cost of goods sold and a lower ending inventory balance than using the FIFO method. This would lead to a lower gross profit and a higher income tax liability. Companies should carefully consider which valuation method best suits their particular circumstances. Conclusion: Choosing The Right Inventory Valuation Method for Your Business There are a few different inventory valuation methods today, and the right one for your business depends on several factors. The first thing to consider is what type of business you have. Are you a manufacturer? A retailer? A wholesaler? Each type of business has different inventory needs and each will require a different method of valuing that inventory. Next, you need to consider your financial goals. What are you trying to achieve with your inventory management system? Are you looking to maximise profits? minimise costs? Or some combination of the two? Depending on your answer, different valuation methods may be more appropriate. Finally, you need to think about your accounting system. Does it allow for multiple valuation methods? If not, you may be limited in your choices. The choice of inventory valuation method can significantly impact a company's financial statements. The most appropriate method for a particular business will depend on that business's specific circumstances. Manufacturers, retailers and wholesalers will all have different needs, and each type of business will require a different valuation method. Additionally, businesses need to consider their financial goals in choosing an inventory valuation method. Some methods are better suited to maximizing profits, while others may be more appropriate for minimizing costs. Finally, businesses need to check with their accounting systems to see if they support multiple valuation methods. Otherwise, they may be limited in their choices. WareIQ can be of assistance if you need access to the best valuation methods or help with other fulfillment and operational services. We can help you analyse the type of inventory you have and the goals you would want to set for your business in the future and recommend a valuation method accordingly. [signup] FAQs What is inventory valuation?Inventory valuation is assigning a value to a company's inventory. This value is used for financial reporting purposes and can significantly impact a company's bottom line. What are the different methods of inventory valuation?Several different inventory valuation methods include FIFO, LIFO and Weighted Average Inventory Method. Which method is best for my business?The best method for your business depends on several factors, including your business type, financial goals and accounting system. What is the impact of inventory valuation on financial statements?Inventory valuation can have a significant impact on financial statements. For example, using the LIFO method would result in a higher cost of goods sold and a lower ending inventory balance than using the FIFO method. What are the tax implications of inventory valuation?The choice of inventory valuation method can significantly impact a company's income tax liability. For example, businesses that use the LIFO method may pay less in taxes than those that use the FIFO method.
May 31, 2022
FBA vs FBM: 6 Factors To Consider Before Choosing Between Fulfillment by Amazon(FBA) and Fulfillment by Merchant(FBM)?
Ecommerce is expanding at an alarming rate and has experienced a significant uptick in recent years. In 2022, there are more than 2.14 billion worldwide digital buyers, and the trend is expected to continue in 2022 with global eCommerce revenues expected to reach $7.4 trillion by 2025 providing eCommerce fulfillment services is a thriving business, and online marketplaces like Amazon, Flipkart, and many more are at the epicenter for selling. As a result of the mentioned stats above, small company owners, investors, and individuals working 9-5 jobs are all coming up with online selling businesses each year, many are now flourishing. Since its inception, Amazon has added various features to its ever-expanding platform. In 2021, Amazon had 3 million active sellers, based on Jungle Scout’s 2021 State of the Amazon Seller Report. In the eCommerce fulfillment industry, fast and safe order delivery is critical in e-commerce for both active sellers and purchasers. Individuals and businesses that use the Amazon marketplace to sell their items have alternatives for fulfilling their client orders, which are commonly referred to as Amazon order fulfillment models. Introduction to Fulfillment by Amazon and Fulfillment by Merchant (FBA & FBM) However, deciding to sell on Amazon is simply the first step. Online businesses will also have to choose one of Amazon's several fulfillment options to utilize. In addition to the well-known Fulfillment by Amazon technique, e-commerce companies can also choose Fulfillment by Merchant or Merchant Fulfilled Network (MFN). As perplexing as it may appear, in addition to these models, there are further alternatives to employing Multi-Channel Fulfillment (MCF) by Amazon and Seller Fulfilled Prime (SFP). So, to make things as clear and accessible as possible, this article focuses on the two most common solutions - FBA and FBM. If you are selling or wish to sell on Amazon, you have two basic options for storing, handling, and shipping your products: Fulfillment by Amazon and the Fulfillment by Merchant or Merchant Fulfillment Network. In this article, after discussing the fundamental concept of the two, we will emphasize the benefits and drawbacks of these two fulfillment models. Finally, we will make it simple for you as to which one is the greatest fit for you. [contactus_uth] Fulfillment by Amazon In this fulfillment model, the online sellers themselves advertise their products for sale on Amazon in this arrangement, but Amazon is responsible for keeping those products and completing shipping orders. Sellers do not need to rent or own a place to keep their items, nor do they have to ship orders to their clients. The Amazon Fulfillment approach does necessitate payment to Amazon for its services and also sending items to Amazon so that its employees can fulfill orders. However, from a risk management standpoint, it is a far easier decision. To work at a fulfillment center or run a fulfillment network, you do not need to recruit employees. You can simply depend on Amazon's existing connections to send your items to their destination However, there may be insurance needs and vendor agreements to deal with If all of this sounds pretty good, you may very well be wondering how fulfillment by amazon works. How Fulfillment by Amazon Works According to Jungle Scout, there are more than 3 million active sellers, out of which 57% are using FBA only, making it the most common fulfillment method for third-party Amazon merchants. It manages your items and handles customer service concerns like refunds and returns. But it doesn't mean Amazon FBA will do everything for you. As a FBA seller, you're in charge of listing, selling, and keeping your items supplied at Amazon fulfillment centers. If your inventory runs out, Amazon will be unable to fulfill orders because they cannot resupply your items. Sellers must do the following to keep FBA working smoothly: 1. List their items as Amazon fulfillment. 2. Prepare their items for shipment to Amazon fulfillment facilities while adhering to Amazon picking and packaging specifications as well as shipping and routing criteria. 3. Ship inventory to fulfillment centers to ensure that items are in stock and ready to sell. Fulfillment by Amazon can provide much-needed relief for large third-party sellers who lack logistics, have high-turnover items, or can outsource fulfillment to Amazon at a lower cost. However, as predicted, its benefits come at a cost. To utilize Amazon Fulfillment services, sellers must pay Amazon platform charges which include Amazon referral fee, closing fee, storage, and warehouse management fees, label service fee, and return and processing fee. Significant Advantages of Fulfillment by Amazon Customer Base Prime delivery is available on items fulfilled by FBA. This implies that buyers who have an Amazon Prime subscription will receive their goods with free 2-day delivery (even 1-day shipping in some areas). Because Prime users are anxious to take advantage of the fast delivery timeframes, this boosts the sales potential of your merchandise. To put the scale of the possibility in context, there are over 200 million Prime users worldwide. They are far more inclined to buy something with the Prime label than something with ordinary delivery. Concentrate on Selling Rather than Fulfilling When it comes to managing your fulfillment, the list of obligations is vast. Hiring, training, keeping track of inventory, negotiating carrier prices, procuring branded shipping materials, sending on time, shipping the proper things... It's difficult to run a well-oiled shipping and storage organization. Amazon has a cutting-edge fulfillment infrastructure in place to process and dispatches your items quickly. Furthermore, because sellers do not need to increase employees or warehouse capacity as order volume varies, the Fulfillment by Amazon program allows them to grow simply. Many Amazon sellers would rather concentrate on product development, marketing, and sales. They are content to let Amazon handle their fulfillment operations on a day-to-day basis. The Amazon Buy Box When competing with other Amazon sellers offering the same goods, getting your offer inside the Buy Box is critical. On a product page, the Buy Box is where the "Add to Cart" and "Buy Now" buttons are situated. A sale made using the Buy Box is only granted to one seller at a time. The Buy Box accounts for 85 percent of all sales. One of the most critical factors Amazon examines when selecting which vendor gets the Buy Box is fulfillment. Basically, the better your shipping and delivery are for the consumer, the faster, cheaper, more convenient, and more trustworthy it is. Amazon Warehouses Access to Amazon's warehouses is arguably the most compelling reason to use Fulfillment by Amazon. When a seller uses Fulfillment by Amazon, their goods are sent to an Amazon warehouse and stored there until the order is placed. When customers submit orders, Amazon handles all packing, shipping, customer care, and returns, not the vendor. While Amazon handles all delivery, the merchant can focus on offering high-quality items and processing sales. Because Amazon handles shipment, you'll find that your shipping costs are lower than previously (especially if you're selling tiny, light products). Service to Customers Amazon handles all customer support and returns processing for your item when you use Fulfillment by Amazon. While you may lose out on opportunities to communicate directly with your clients, it will reduce the support costs that online merchants must bear. Amazon Search Engine Optimization Amazon has been tight-lipped about its A9 search algorithm's inner workings. While Amazon won't say it publicly, it's widely assumed that Fulfillment by Amazon is a ranking element in the search algorithm. In terms of search, FBA offers are likely to outperform FBM offers if all other factors are equal. FBA, according to Amazon, has near-perfect scores in all of these areas. As a result, FBA may significantly boost your earnings. Significant Disadvantages of Fulfillment by Amazon Costs Associated with Fulfillment You should not underestimate the fulfillment costs as an FBA vendor. Amazon is a major e-commerce operator, and they will accept your payment. Every product you sell will be charged for picking, packing, packaging, shipping, returns management, etc. In most circumstances, the prices will be greater than working with a 3PL service provider. Storage Expenses The same may be said about storage expenses. Cubic meters or cubic feet are the units of measurement. Be aware that storage fees, particularly for lengthy periods, might be prohibitively expensive. Also, keep in mind that Amazon charges extra Q4 storage costs for the final quarter of the year. Even though Amazon straightforwardly communicates this, many sellers do not account for these additional fees and are astonished when they are charged. Additional Fees High fees are one of the biggest disadvantages of utilizing Fulfillment by Amazon. It must be factored into your profit margins and, as a result, will diminish your earnings. As a result, Fulfillment by Amazon is more suitable for tiny and lightweight objects. All of this is on top of the standard Amazon costs that every seller must pay to conduct business on the platform. On top of that, there are inventory storage expenses, amazon referral fees, closing fees, storage, and warehouse fees, label service fees, and return and processing fees to consider. These are the fees you must pay to Amazon to have your items stored in one of their fulfillment centers. It depends on the length of time you plan to keep your stuff as well as the size of the item. Absent Administration While it's great that your purchases are delivered quickly, you lose control of your inventory and other crucial aspects of running an internet business. If you offer things that are pricey or not self-explanatory, you should think twice about whether or not to utilize Fulfillment by Amazon. One of the reasons for this is that Amazon will repay consumers without first determining whether or not the claims are true. For online merchants, this can be quite costly; nevertheless, Amazon's objective is to get customers to return to Amazon, therefore they don't care whether returns are costly for the seller. Read our article on Fulfillment by Amazon to get detailed information Fulfillment by Merchant Fulfillment by Merchant, also known as Merchant Fulfilled Network (MFN), is a fulfillment method in which an Amazon seller is responsible for the order fulfillment of the items offered on Amazon. This procedure, which includes storage, picking, packaging, and labeling, can be handled in-house or by a third-party logistics (3PL) partner. In addition, 3PL firms frequently incorporate returns management and customer support services in their packages (to assist merchants with parcel clarifications, among other things). How Fulfillment by Merchant (FBM) Works? This route isn't as common as the FBA route, with only 43% of Amazon merchants preferring it to fulfill orders. Fulfilled by Merchant is exactly what it sounds like, the merchant fulfills orders when their items are offered on Amazon, either through self-fulfillment or through a third-party fulfillment center. Because Fulfillment by Amazon needs a few approvals, shows inventory turnover, and takes time to set up, FBM is generally the sole fulfillment method available to new merchants selling on Amazon. Small businesses are more likely to fulfill orders personally, but bigger merchants are more likely to use a logistical network. Here are a few steps to Fulfillment by Merchant setup and get it running : List Your Products on Amazon You may start listing your items once you've created an Amazon Seller Central account. Using the correct graphics, videos, language, and more, be sure you provide the information needed on your listings to assist enhance your chances of conversion. Make sure you have an Amazon marketing plan in place. Many Amazon sellers are cutting back on ad spending in these uncertain times, which might be a chance for your marketing money to go a lot further. Store items at your fulfillment center. You may be able to distribute your items to strategic places to save on shipping costs and minimize your average shipping zone, depending on the number of fulfillment centers you have at your disposal. If your company is still tiny, a storage facility or even your house might serve as a temporary warehousing option. Start getting orders and Deliver through your own eCommerce logistics network When you get an order notice, you must send the product within the customer's specified delivery window. On the offer and checkout pages, Amazon shows consumers an approximate delivery time so they know when to expect an item they purchased from you. This takes into account handling and transportation delays. To properly set client expectations, you can change your shipping and handling time and transit time. You may order shipping labels from Amazon or print them yourself. In any case, you must always give the consumer eCommerce order tracking. Finally, for all Fulfilled by Merchant orders, make sure you update your Amazon selling account with acceptable eCommerce return instructions. When you authorize a buyer's return request, Amazon sends them a return label with your default return address, which must be legitimate. Significant Advantages of Fulfillment by Merchant Multi-Channel Approach Online shops may better execute and coordinate a multi-channel approach by fulfilling orders directly or with the aid of a 3PL firm. E-commerce enterprises may use FBM to coordinate many channels other than Amazon while still keeping track of stock and inventory. As a result, inventory from both online and offline channels may be merged, allowing for better storage, selecting and packing, shipping, and returns management. Cost-cutting The cost reductions are, without a doubt, the most significant advantage of FBM. Merchants with competence in selecting, packing, and shipping may discover that they can handle all logistics for less than what Amazon charges. The cost savings per order might not be considerable, especially if the items are little and/or light. For huge and bulky products, on the other hand, the benefit may be readily apparent. Similarly, cost reductions may pile up quickly over time. Complete Control Over Marketing, Merchandising, and Branding Some retailers may place a high value on branding. They might utilize their packaging materials, which are branded with the company name, to promote the product more. This is not an option available through Amazon FBA. Branded packaging adds to the company's marketing efforts. Most buyers aren't aware of the added benefit of having packaging that is tailored specifically to the items being offered. They like the attention to detail and are more inclined to use a product with branded packaging in the future. The widespread practice of emphasizing purchases on the internet has given branded packaging a whole new meaning. Unboxing videos are still popular. On social media, photos emphasizing purchases are widespread. The marketing value of a basic brown box is incomparable to the marketing benefits obtained by dynamic packaging. Changes in Regulations Can Be Avoided Amazon has been known to update its rules and restrictions regularly. By utilizing Fulfillment by Merchant, the company may avoid regulatory changes that could cause service disruptions. If Amazon changed its labeling standards, for example, a retailer would have to rethink how it handles delivery. Every modification Amazon makes can cost the merchant extra time and money, whether they label their items themselves or outsource the process to a third-party logistics provider. Fulfillment by Merchant Prime Shipping It is a feature given by Amazon to Fulfillment by Amazon sellers. However, there is a program called Seller Fulfilled Prime that you may enroll in. A merchant must commit to and verify that they can supply two-day shipping at no additional cost to qualify for Seller Fulfilled Prime. A Seller Fulfilled Prime seller must complete a trial period to demonstrate that they can keep up with Amazon's fulfillment center alternatives. The conditions are stringent and severely enforced: Picking orders on the same dayThe order cancellation rate is less than 1%.At least 95% of orders are delivered on time. Easy To Launch Business and Generate Better Revenue Generation FBM users establish their Amazon enterprises faster than FBA sellers, according to the most recent assessment on the condition of the Amazon seller in 2020. The apparent answer is that Fulfillment by Merchant vendors have greater freedom to operate as they like and are subject to fewer constraints. In the end, it's all about the money (most of the time). As a result, many sellers choose Fulfillment by Merchant. FBM vendors reported better profit margins than their fulfillment by amazon rivals. They also mentioned higher lifetime profits. The key reason for this is that the fulfillment option has cheaper Amazon costs. Significant Disadvantages The Absence of a Buy Box It's uncommon for fulfillment by merchant order to appear in the Amazon Buy Box. Without a highlighted item, a merchant is nearly certain to lose a sale to a firm that uses Fulfillment by Amazon. Seller Fulfilled Prime is the only legitimate way for a seller that fulfills orders themselves to be included in the Buy Box. However, this is a tough procedure that may be almost as expensive and time-consuming as Amazon FBA. Lower Search Engine Rankings Customers can choose to disregard any goods that are not part of the Amazon Prime program, as previously mentioned. Merchant sellers who provide fulfillment may find themselves omitted from client searches. Even if the merchant has lower pricing and superior quality, potential shoppers may never notice it. A paucity of search results might also be due to poor search engine optimization. Amazon sellers benefit from the company's search engine optimization. Even if the site user hasn't ruled out non-prime products, they will nearly always appear before things supplied by an Amazon merchant. Returns and Customer Concerns Fulfillment by Amazon allows Amazon to handle all aspects of customer service, including returns. If you don't want to use Amazon FBA, you'll have to handle any customer complaints on your own. This may be a good thing. When an Amazon seller has control of CSR, they may establish a reputation based on customer service and happiness. If clients are dissatisfied with their service, the Amazon seller can make the required changes. With Fulfillment by Merchant, this is not feasible. Unfortunately, the merchant will almost certainly spend far more time and money training and employing employees than if they had paid for Amazon FBA from the start. A vendor may also opt to work with a third-party CSR business. Major Differences Between Amazon FBA and FBM. Definition Fulfillment by Amazon is an order processing mechanism in which Amazon accepts responsibility for all client orders for a merchant's product. Picking, packaging, shipping, and customer service are examples of typical Amazon actions in this regard. Under this approach, the merchant has no involvement in order processing. Fulfillment by Merchant, on the other hand, refers to the procedure in which the merchant keeps the merchandise himself (in their home or a leased warehouse) and handles the packaging and shipment. Under the Fulfillment by Merchant approach, Amazon is not involved in order processing. Controlling and storing inventory Inventory is held in Amazon fulfillment centers under FBA, whereas inventory is stored at the merchant's own or rented warehouse in Fulfillment by Merchant. As a result, the merchant has very little control over his product inventory, but an FBM merchant has more control. Customization of the packaging Fulfillment by Amazon entails Amazon taking care of the packing, which is normally standard for all of the items it distributes. However, under Fulfillment by Merchant, the seller is responsible for the packaging, which implies that the merchant can personalize a package to make it more appealing to the client. Product Shipping Under FBA, the merchant delivers his product inventory to Amazon's warehouse, and Amazon then ships the items to customers after receiving an order from him. The merchant, on the other side, sends things directly to clients under fulfillment by the merchant. Customer Service In the FBA model, Amazon handles customer support, exchanges, and returns, whereas, in fulfillment by the merchant model, the merchant is responsible for all of these operations. Fees and Other Related Expenses Amazon charges FBA sellers an order handling/fulfillment fee as well as inventory storage fees. FBM merchants are not required to pay these fees to Amazon; instead, they must cover their expenditures, such as employee salaries, warehouse rent, and shipping costs. Customers' Favourability Customers are more inclined to purchase items that carry the Amazon Prime logo and are delivered by Amazon because of the free two-day shipping. Because FBMs are fulfilled by the merchant, they are less popular and take longer to deliver. As a result, fulfillment by the merchant may miss out on several clients who normally choose items labeled as prime. Dimensions and Weight of the Product When selling on Amazon, product size and weight are two of the most important things to consider when choosing an order fulfillment plan. Because Amazon normally charges additional storage, handling, and shipping fees for items that are heavier and bigger in dimensions than Amazon's standard product weight and size, the Fulfillment by Merchant may be a preferable alternative if the product is heavy and large. For lightweight and small-dimension items that don't surpass Amazon's regular weight and size constraints, Fulfillment by Amazon may be a better option. Factors to Consider Before Choosing The Fulfillment Model Dimensions of Package The cost of shipping is higher for heavier items. This should be a big consideration when determining which route to take, depending on the size and weight of your things. You'll have to bear the costs in fulfillment by the merchant and have to pay for shipping, handling, or packing, while FBA sellers pay the charges as a whole which include shipping, handling, and packing. FBA users are charged based on the size and weight of their things, which makes it perfect for smaller items like books. However, if a seller is selling something heavier and bulkier, such as a couch, fulfillment by the merchant will almost certainly be more profitable. Controlling and managing the customer experience Although one approach is more hands-on than the other, both allow you to improve customer experience in distinct ways Fulfillment by the Merchant gives you greater control by allowing you to communicate directly with your customers. Fulfillment by Amazon, on the other hand, allows you to brag about customer-pleasing features like the Prime badge and the "fulfilled by Amazon" label. Feedback From the Seller Customers may browse reviews and comments from others who have purchased your goods using Amazon's "seller feedback" function More than 80% percent of customers examine reviews before making a purchase choice since the fulfillment done by the merchant is more actively involved in their consumers' experiences. As a result, they will have more control over their client's comments. Rate of Product Turnover Your choice of tactics will be influenced by how rapidly you sell things. If an FBA seller has a higher turnover rate, they may be charged long-term storage fees, which will reduce their profit margins. As a result, many vendors with higher product turnover rates opt for Fulfillment by Merchant to avoid the additional expenses. Expenses The costs for Amazon FBA cover the services Amazon provides for you, such as inventory warehousing and order fulfillment. Various fulfillment and storage costs become business expenditures for FBM sellers, who are responsible for managing them. Logistics Picking, preparing, and delivering products for an Amazon e-commerce firm can take a lot of resources, processes, and personnel. Some vendors prefer to manage it themselves, while others prefer to have Amazon handle it. Differences Between FBA and FBM- Tabular Comparison [table id=24 /] When should you Utilize Fulfillment by Amazon? Fulfillment by Amazon might be the ideal road for you if you don't mind investing a little money to get your Amazon business off the ground (or keep it running smoothly). In return for paying (possibly costly) Amazon fees, FBA is for individuals who wish to get rid of their company's process of preparing items for delivery and replying to consumers. To put it another way, It is ideal for sellers who want to outsource the majority of the complex process of online selling. Furthermore, this model is better suited for selling on Amazon, their website, or marketplaces that do not prohibit FBA use. FBA sellers are more likely to lack their warehouse, facilities, and employees to properly package, ship, and provide customer care. As a start-up, using Fulfillment by Amazon may be both dangerous and beneficial and on the one hand, it facilitates the start of your e-commerce profession (with eCommerce logistics already in place) However, if your items don't sell quickly or you decide that this fulfillment model isn't for you, you risk losing money. When should you Utilise Fulfillment by Merchant? Fulfillment by the Merchant is ideal for sellers that want complete control over every aspect of their business (from product packing to customer experience) and are willing to invest additional resources to compete with sellers who dominate the purchase box. Sellers that use Fulfillment by Merchant may find it simpler to diversify their e-commerce platforms because there isn't any constraint on the specific marketplace for selling. In the end, you're taking on more responsibility, which might lead to higher FBM rewards. FBM is likely the best option for you if you prefer better profit margins over Fulfillment by Amazon fees or monthly membership charges in return for more flexibility. FBA vs FBM- What is right for your e-commerce business? So, what's the verdict on the Fulfillment by Amazon vs Fulfillment by Merchant debate after all of this? The answer is that it is dependent on your company and plan. Fulfillment by Amazon is best suited to tiny, lightweight items that sell rapidly and in large numbers because of its price structure. It may also be appropriate for enterprises that lack the necessary storage, handling, shipping, and customer support capabilities. Amazon will handle everything while you focus on other aspects of your business, such as online marketing and sourcing. Remember that seller ratings are crucial to Amazon Marketplace's success, so if you can't supply these services efficiently on your own, choose Fulfillment by Amazon. For large, heavy products with tiny margins, fulfillment by the merchant is the best option. It's also a good idea for one-of-a-kind or limited-edition items. Fulfillment by the Merchant will also avoid Amazon's storage costs if inventory turnover is slow. Shipping and customer service are likely to be in place for well-established enterprises selling through several channels. They can simply invest in specialist support software to increase productivity. The fulfillment done by merchant option is also available to start-ups who wish to develop their independent brand. It might be difficult to decide whether or not to employ Amazon fulfillment services. Use a fulfillment cost calculator to assess your prospective Amazon Fulfillment fees if you're still undecided in this discussion. Alternatively, you can register for both and manage your online selling in parallel. Fulfillment by Merchant in collaboration with WareIQ As a Fulfillment, WareIQ has ready-to-use connectors that can be set up in minutes. Other benefits of employing WareIQ fulfillment services for Amazon merchants include: Possibility of using branded packaging as a highly effective branding and marketing strategyMore profit margins and fewer feesLow shipping prices, since 3PLs, have a lot of negotiating leverage with carriers because they bulk their clients' shipmentsFulfilling orders easily if the Amazon merchants are selling on other marketplaces tooEasy integrations of WareIQ fulfillment platform with 20+ other marketplaces to fulfill Amazon orders as well other marketplace ordersIncreased autonomy and flexibilityHaving access to a global logistical networkPrime options have the same delivery speed as Prime options The best thing is that Fulfillment by Merchant sellers who use WareIQ fulfillment services don't have to handle a single package, ensuring a hassle-free fulfillment solution while still having the opportunity to establish a strong brand. Staying flexible and being able to establish a strong e-commerce brand while not devoting too much time to fulfillment and shipping provider discussions will result in a bullet-proof business solution for merchants, ready to scale up your e-commerce firm. [signup] FBA vs FBM FAQs(Frequently Asked Questions) Is it possible to execute both fulfillment models at the same time?Absolutely. In reality, as per Jungle Scout's statistics, 34% of Amazon sellers offer both FBA and FBM. If you have a significant amount of products, you might want to use both to get the perfect combination of both fulfillment models. Is FBM superior to FBA?If all other circumstances are equal, FBA bids will win the Buy Box over conventional FBM offers. By offering Seller Fulfilled Prime, FBM merchants may increase their chances of winning the Buy Box. Just keep in mind that FBA will still have a little advantage over SFP in the Buy Box, but SFP is far superior to normal FBM. How Amazon SFP does operate?Seller Fulfilled Prime is a Prime program that allows you to deliver directly from your own warehouse to domestic Prime consumers. By displaying the Prime emblem, you agree to fulfill orders with Two-Day Delivery for Prime members at no additional cost. How do I switch from FBA to FBM?By accessing a listing page and tapping the "Offer" tab, you may manually modify the fulfillment type of a listing. The "Fulfilled By" box may be found under "Listing Details." To choose between FBA and FBM, use the dropdown menu. All you have to do now is click "Save & Publish," and you're done! Is drop shipping the same as Amazon FBA?In layman's terms, the main distinction is stock ownership. You don't own any product when you dropship, and you operate as a middleman between suppliers and purchasers. Using Amazon's FBA program, on the other hand, requires you to invest in product and keep it in Amazon's warehouse.
May 31, 2022
SKU vs UPC vs Barcodes: Top 5 Differences in 2022￼
Manufacturers face constant pressure to provide important information on their products to be as transparent as possible to customers who have purchased them. It can be cumbersome to fit information such as the manufacturers' name, manufacturing location and details about the product such as dimensions, category, weight etc onto a product or box that doesn't have much surface area. Retailers have multiple options to convey this messaging efficiently, without taking up much space. This helps their customers and also themselves because it enables them to identify each individual product or category amongst a sea of other products. This article will explain the differences between SKU vs UPC vs Barcodes and will help you to make a decision in terms of which one would be the best option for your business. What is a Stock-Keeping Unit (SKU)? SKU is a name and tracking system merchants use to identify and track their inventory or stock. An SKU - Stock Keeping Unit is a unique code of letters and digits identifying a product's manufacturer, model, design, colour and measurements. Companies develop their own SKU identities unique to their products and services. Internal SKUs from two companies selling the same product, such as T-shirts, are likely to differ. [contactus_gynoveda] What is a Universal Product Code (UPC)? UPC is a code imprinted on product packaging to help identify a specific item. It comprises two parts: the machine-readable barcode (a sequence of distinct black bars) and the distinct 12-digit code. When an item is scanned, UPC makes it easier to recognise the product details such as the trademark, product, dimension and category. In effect, it is logical to use UPCs to allow faster identification and processing of products. UPCs are also helpful for managing stocks within a shop or facility. What is a Barcode? A barcode is a relatively basic concept where distinct numerals are assigned to products (every single piece of each item). These digits are then printed on items and packages and scannable through a barcode reader. Barcodes require three individual components to function: Master System It is a database where items are listed, each with assigned codes and a provision for the addition of items due to restocking and reduction through sales is incorporated; this database also compiles the manufacturing, pricing and inventory details. Barcodes They are the codes that are printed on every single item. Barcode Reader It is a device to read and recognise the code imprinted on the system and translates the details into legible information. SKU vs UPC vs Barcodes: Top 5 Differences People generally do not know that there are differences in SKU vs UPC vs barcodes; they are typically used synonymously. But there are specific differences among the 3. Different businesses use these based on the applicability and suitability depending on their product offerings. The differences among SKU vs UPC vs barcodes have been listed below: [table id=23 /] SKU vs UPC vs Barcodes: Utilisation Based on Needs Using identifiers (SKUs or UPCs) greatly depends on business requirements and long-term goals. When the maximum utilisation of these codes is to be done internally and the business sells products directly to consumers only, there are no B2B selling SKUs that are more optimal compared to UPCs. Utilising SKUs for small businesses is more sensible, with the only risk being a competitor taking a UPC license before you. When the business is more of a global entity and many retailers sell your products or you have online stores on popular eCommerce websites, it is more sensible to obtain a UPC which is globally recognised and accepted. Depending upon the business and its reach of operations, a prudent decision for SKUs or UPCs can be easily taken. SKU vs UPC vs Barcodes: Best Practices Best Practices of SKU Keep the individual codes short if you want to depict 2-3 key features.Choose the most important one and place it at the beginning of the SKU number.Most SKUs today are scanned into systems and these machines frequently perceive a zero at the start of a number as empty space. To minimise the confusion created by this sort of issue, make sure that none of your SKU numbers begins with a zero.Avoid using letters that may be confused for numerals.Do not just repeat the manufacturer's numbers.Avoid letters that might be mistaken for digits. Best Practices of UPC You should only purchase your UPC identifiers from the GS1. GS1 is the only issuer of UPCs, so buying directly from them reduces the chances of fraud, mistakes and legal hassles.Do not apply UPCs for items that already have one.Proper research and analysis should be done before applying for a UPC.You can purchase a prefix capacity plan when a business application for a GS1 prefix has been granted.Every option gives you a certain number of UPCs (from ten to One lacs), beginning with the allocated prefix.When all the UPCs allotted above are utilised, you will have to purchase fresh UPCs; there is no option to change the plan.It is always better to estimate your requirement to avoid any hassles at a later stage of business. Best Practices of Barcodes Determine what you want to barcode and the barcode labels you wish to utilise.Determine where you want your barcodes to be placed on your equipment and what information you want your barcodes to include. Choose the kind of scanning gadget that your barcodes will be compatible with.In order for the barcode system to achieve long-term success, create inventory indicators such as cycle time, inventory carrying costs, fill rate and order status.Improve inventory forecasting by using reports from your barcode inventory system.Barcodes must be durable and the system must scan barcodes correctly every time.Train your staff on how to use barcodes appropriately. Conclusion A fitting inventory management system and an ideally suited product identifier system can take you a long way in properly managing your inventory. Proper management of inventory can help you free up working capital, which can be aptly utilised for more productive purposes. Choose your code system and inventory management system wisely, based on the requirements and financial capabilties of your business. If you want to take advantage of seamless inventory management and a prolific order management experience, WareIQ, with its vast array of fulfillment centers and advanced WMS, can definitely help and offers competitive pricing. [signup] SKU vs UPC vs Barcodes: FAQs Where can I find the SKU or UPC on products?UPCs or SKUs are typically located along with the product labels. SKUs are alphanumeric codes, whereas UPCs are 12-digit numerals. Both can be easily identified on the label. If I own a standalone store selling only custom products directly to consumers, which is more suitable for me, SKUs or UPCs?SKUs will be more suitable when the nature of business is directly selling to consumers without any global or online medium of selling. Is there any difference between Barcode and UPC?Barcodes are always a part of UPCs, representing UPCs that can be scanned via a barcode scanner. But barcodes are not restricted to UPCs; They can also be utilised along with SKUs. So yes, Barcodes and UPCs are different. Can I create a UPC on my own?No, UPC codes are allocated by GS1; depending on the plan of your choice, the number of UPCs are allocated to the business.
May 30, 2022
Sell With WooCommerce: 10 Easy Steps to Build an eCommerce Website With WooCommerce in 2022
You may all be aware of how the internet has changed business processes and consumer habits. The use of websites has become an integral part of everyone's life, whether they purchase or sell products online. Many different platforms enable users to tailor websites to their requirements. WooCommerce is one of the world's most widespread eCommerce platforms that offer these services. It is extremely adaptable, cost-effective, and simple to use, even for beginners. Over the last few years, eCommerce integration has been rapidly increasing in popularity. Whether or not their primary business is eCommerce, an increasing number of companies are utilizing online selling with WooCommerce. Being able to sell with WooCommerce allows big corporations, small businesses, and home-based entrepreneurs to develop eCommerce stores and sell with WooCommerce, effortlessly. Users should be aware of the numerous features of the platform so that they can make the most of online selling with Woocommerce. You will get a clear view of the step-by-step guide to online selling with WooCommerce by reading further. What is WooCommerce? WooCommerce is a WordPress eCommerce plugin that is both popular and well-reviewed. Unlike other eCommerce platforms, it is only available as a WordPress plugin and does not operate independently. WooCommerce can only be used on a WordPress site as a result. WooCommerce is open source and offers nearly limitless customization options and a solid and dedicated open-source community. Using a single platform, WooCommerce provides multiple online marketplace services. Even though you may want to sell with WooCommerce by turning your website into an online store for selling different types of products, many businesses also use it to offer services, rent rooms, and schedule appointments. For service-based companies, online selling with WooCommerce is the perfect option. [contactus_lilgoodness] Why Should You Sell with WooCommerce? WooCommerce is used by 99% of all WordPress marketplaces. WooCommerce is a simple plugin with a low difficulty level. It is simple to use for new site owners. Minimum order quantity, customer engagement, shipping status updates, inventory management, and more are available through online selling with WooCommerce. In addition to all these services, the best reason to sell with WooCommerce is that it has extensive reporting options, multiple payment gateway options, and other marketing and promotion options. How Do Traders Sell With WooCommerce? WooCommerce is a free plugin for WordPress. It allows you to convert a WordPress site into an eCommerce marketplace. WooCommerce is fully integrated with your WordPress site's features. This means you can create an eCommerce WordPress site with products, a shopping cart, and multiple payment options. 10 Easy Steps to Set Up Your Website and Start to Sell with WooCommerce 1. Install WordPress Once you have picked a host, it is time to set up WordPress as your website building platform. You must log in to your account, go to the sites tab and select WordPress. Then, to begin constructing, select Create Site. You may need to install WordPress manually if you use a different web host. Because each website server has a slightly different setup, you can contact your host's customer care for further information on installing WordPress. Remember that you can move your WordPress website from your current host to another one, anytime. 2. Install the WooCommerce Plugin for WordPress You will need to install the WooCommerce plugin after you have set up WordPress. This will allow you to list products and collect payments from customers. Here is an easy guide to installing WooCommerce: Step 1: Log in to your WordPress dashboard using your username and password. Step 2: Go to the Plugins section. Step 3: The WordPress Plugin Directory will appear. Select WooCommerce from the drop-down menu. Step 4: The WooCommerce plugin will be installed. Click Activate when it is finished. Step 5: WooCommerce will now appear in your active plugins list. Then you have to set up WooCommerce. You will have access to all of WooCommerce's features once you have installed and enabled the plugin. Now you can: Create pages for your websiteMake a product listCreate payment options 3. Customize Your WooCommerce Store You can customize the shop page using 2 different methods, and they are: ProgrammaticallyWith a page builder Customize the WooCommerce Shop Page Programmatically Step 1: You can create a theme Step 2: Create the folder structure in your theme Step 3: Form content for your shop page Step 4: Create a page template for the shop Step 5: Using shortcodes, you can customize the shop page Step 6: Put the most popular product front and center Customize the WooCommerce Shop Page Using Page Builder Step 1: Make a listing page with page builder and fill it with content Step 2: Create the newly formed page for your Shop Page 4. Add Product Listings to Sell With WooCommerce After installing WooCommerce, go to WooCommerce - Products in your WordPress dashboard. Then click the Create Product button to start creating your first product. This should bring up the WordPress editor you are used to, but with some additional features. 5. Add Product Titles and Descriptions In the title section, type the product's name. Next, complete your product's description. The purpose of the description is to explain the benefits of a product. To make this section easier to read, you can use bullet points. Optimize the title and description for organic keywords when crafting them. Add semantic keywords to the long explanation if you wish to use them on the product page. 6. Choose Product Type WooCommerce allows you to use numerous product types depending on the type of business you operate. There are four basic product types to pick from: Simple Product: The default setting is a simple product, which is a one-size-fits-all approach. This is a popular product among WooCommerce store operators. Grouped Product: A grouped product is typically used to group simple things, such as a pack of five t-shirts. External/Affiliated Product: You can use this option to link the add to cart button to an external page if you have a dropshipping or affiliate-based store. Variable Product: A variable product comes in various colors, sizes, and other features. Consider a t-shirt with sizes such as small, medium, large, and so on. Additionally, you have two more possibilities for customizing those four fundamental product types: Virtual Product: This option is for individuals selling a digital product through the internet that does not require shipping. Downloadable Product: You can enable this option if a downloadable file is related to the product such as an eBook or audio file. To make this decision, go to the Product data box directly below the WordPress editor where you added the product description and use the drop-down menu and checkboxes. 7. Fill Out the Product Data Meta Box After you have picked your product type, you will need to fill out the remainder of the details in the Product Databox. To browse between different sections, utilize the tabs on the left which are listed below: General tabInventory tabShipping tabLinked products tabAttributes tabAdvanced tab 8. Write an Engaging Short Description Scroll down to the Product Short Description box after you have completed the Product Databox. On your single product page, the short description is normally shown clearly. The longer description you entered will normally appear further down. 9. Add Some Finishing Touches If you follow the steps above, your product page is almost complete. Before publishing the product, add the following to the right-hand sidebar: Product tags and categories: Product organization is helped by categories and tags. On the front end of your store, your customers can search for products using categories and tags. Make it as sensible and valuable to your target clients as possible. Product image: Include the product's main featured image. This will be the largest image on the single product page and also appears on the catalog page. Product gallery: Additional photographs that display in the gallery on the single product page can be added to the product gallery. To publish, click the publish button. After double-checking that all the product data is accurate, click Publish to take your product live. 10. Next Steps for Launching Your Store You are almost ready to launch your store to sell with WooCommerce once you have added all your products. Next, you might want to check out some of the top WooCommerce plugins to help you expand your store's capabilities. Products to Sell With WooCommerce Simple Products The most basic type of products available in any store is simple products. They are the same as a store-bought item. Each thing has a cost and may or may not be physical. Simple products do not go beyond the product's basic functionality. This is probably the product category you will use if you sell single products or large numbers of a standard item with no variants. Variable Products Variable products go a step farther than simple products, allowing for comparable grouping of products with minor differences. If you owned a clothes store and your products were available in a variety of sizes and colors, each size and color would be considered a variation. If you have a lot of variations, you will need this product type or your shop will become difficult to explore. Individual SKUs, prices, sales, and stock amounts can be added to variations to support a wide range of use cases. When you visit a store selling variable products, each item has only one listing page. You can select your variant by going to that product's page and choosing particular parameters. Digital Products The main purpose of this product category is that you will only be given a link to download or visit the item once you have purchased it. This product type is ideal for selling digital goods that do not require complicated registration codes, such as software or eBooks. Custom Products You may discover that the way you wish to present your product to sell with WooCommerce or other plugins can be easily achieved. WooCommerce is a wonderful platform for developers to create custom product layouts and types because it is so flexible. Custom payment alternatives are always feasible and product pages can be updated to improve the shopping experience. Customer account areas can also be built to suit your store better. Make sure to speak with one of the experts who can interpret your needs and turn them into a workable concept. Services to Sell with WooCommerce Client services can be sold using any product included in the WooCommerce store. It could be services like consulting, hairstyling, workshops, or any other service you can offer on your website. Consider the following options: Professional Services Architecture, conveyancing, document preparation and review, legal services, real estate consulting, medical services and will writing are examples of professional services. Design Services Brand identity work, graphic design, picture editing, infographics, online interior design, and stationery are all examples of design services (business cards, brochures, flyers, leaflets, and print layouts). Expert Services Online business, copywriting, CV writing and resumes, career development, coaching, consulting, lifestyle services, life coaching, love and relationship counseling, marketing, photography, search engine optimization (SEO), social media, and web analytics are just a few of the expert services available. Technical Services Printing, programming, and software development such as WMS Softwares, sound mixing, and technical support are some examples Digital Products to Sell With WooCommerce Online Courses Selling online courses is one of the most popular and successful ways to generate money online. Digital products to sell with WooCommerce are the latest development in the technological world. You can construct a training or educational program for whatever skill or subject you want to teach. Templates Templates are another digital product you should try selling. This can be extremely useful if you have basic graphic design or digital art skills. eBooks eBooks have long been one of the most lucrative internet money-making opportunities. They were among the first digital products to appear on the e-commerce market and they remain popular today. Memberships and Subscriptions You can sell recurring access to information and events in your sector, such as instructional material, training programs, webinars, and more, using membership services. You can also charge a fee for VIP access to your website. Professional Services Another alternative is to use your website to market professional services for order fulfillment. This is not a digital product in the traditional sense. Professional services can be a profitable method to make money online. Audio Another big category of digital assets that you might want to look into is audio. Many people are prepared to pay for audio files, including podcasts and music, to reduce logistics costs. Photography Selling your photographs might be another great option to make money online if you are a photographer. With so many companies shifting their activities online, high-quality images are always needed to use in marketing campaigns and websites. Graphic Art Many companies and professionals cannot design their graphics or brand assets. As a result, if you are knowledgeable and experienced in graphic design, you can use your WordPress site to sell visual art and creative bundles. How to Up-Sell and Cross-Sell With WooCommerce to Increase Revenue Generation Since existing customers are significantly more likely to convert interest into a purchase than a new prospect, cross-selling and upselling are easy wins for growing revenue. What’s the Difference Between an Upsell and a Cross-Sell? Cross-selling and upselling are two extremely similar strategies. They both improve the profit of small businesses but in opposite ways. UpSell with WooCommerce increases income by promising a higher-level product, and cross-selling accomplishes the same by suggesting more items to purchase. The customer's goal is also a factor in the differences between these strategies. When a shopper gets cross-sold extra things, they have no intention of purchasing them. After receiving the suggestion, the customer may want to consider adding those items to their economic order quantity because they are similar to the original order. Upselling appeals to the desire of the buyer to make a purchase. Sellers make the offer to exchange for a higher-quality item, which is the end justification. 5 Upselling and Cross-Selling Tips and Tricks Keep It Simple Offering too many items or services simultaneously might backfire by confusing customers and diluting their attention. Teach your salesmen to focus on only a few things that provide clear value to the consumer regarding upselling and cross-selling. More possibilities to market additional items or services will naturally arise as they work with the client and develop a long-term relationship. In addition, you can get multi-channel sales fulfillment. Map Complementary Options Provide excellent maps to your salespeople to help businesses decide which services and products they can offer to which consumers at each stage of the customer journey. Analyze your current clients' purchase history and categorize by customer segment and products purchased to create a map of complementary choices. Further, your salespeople, account managers, and customer service representatives should be knowledgeable about the product. Offer Loyalty Perks Create a system for customers to earn rewards based on their purchasing habits. Customers who purchase more should be rewarded. Teach your salesmen about loyalty programs to use them in upselling and cross-selling effectively. Follow-Up Cross-selling and upselling opportunities often present themselves after a customer has made and enjoyed a purchase. Train your salesmen to follow up with existing clients to ensure they are happy and suggest appropriate upsells and cross-sells as part of their daily routine. Plan the Timing When customers have already committed to a purchase, businesses can cross-sell with WooCommerce at the end of the sales cycle. This can work but it is usually better to incorporate the upselling and cross-selling procedure into the sales process in complex situations. How Product Recommendations Can Help You Increase Your eCommerce Revenue by Online Selling With WooCommerce? Product recommendations can help you increase your eCommerce logistics based on product suggestions from the recently viewed category and also by the trending upsells and cross-sells. Offering free branded shipping also encourages more customers to buy your product, which can increase your eCommerce revenue. In addition, it increases your income by: Using personalizationPlacing product recommendations on similar pagesLeveraging herd mentalityCrafting engaging product recommendationsLetting customer feedback inform your product recommendations Selling digital products is a great way to increase eCommerce fulfillment services without dealing with the hassles of traditional order fulfillment. However, if you want to succeed, you will need a reasonable plan and a product that meets customer wants. Online selling with WooCommerce is a complete eCommerce solution that is quick to set up, simple to use, and adaptable to your business's needs. The points mentioned above mentioned are the step-by-step guide to setting up an online store and starting to sell with WooCommerce. Why Should You Choose WareIQ to Fulfill WooCommerce Orders? Consumers are becoming accustomed to same-day and next-day shipping alternatives. As a result, there is a significant demand for shipments that are quick and, most importantly, punctual. When your order fulfillment process is inconsistent or slow, it might be difficult to get shipments delivered on time. Overall, inefficient fulfillment procedures harm your firm. This is why if you sell with WooCommerce, outsourcing fulfillment services for your business can be advantageous. A fulfillment partner can help you with every aspect of your eCommerce logistics needs, from warehouse storage to shipping and refunds. WareIQ is one of India’s top and fastest eCommerce fulfillment providers, providing a centralized platform for multichannel sales fulfillment and a variety of services such as smart selecting and packing, same day and next day delivery, generating shipping badges, RTO Shield to cut RTO costs, Intelligent MOQ and EOQ calculators for warehouses and cutting edge intelligent warehouse management systems with our user-friendly app store be streamline online selling with WooCommerce Enabling WooCommerce Order Fulfillment with WareIQ by integrating your online store with WareIQ's fulfillment platform enables you, as a retailer, to focus on your core business while minimizing shipping concerns. Even the most seasoned entrepreneurs can rapidly become overwhelmed while focussing on expansion and large-scale client interactions. Customers are delighted when WareIQ handles their online selling with WooCommerce and inventory management, while merchants can focus on providing great products and items. Benefits of Partnering with WareIQ to Sell With WooCommerce Customer Service Our top concern is customer happiness. Customer service representatives at WareIQ will address your problems and handle package clarifications and claims on your behalf. It might be difficult to choose which fulfillment service is best for you if you sell a large number of items through your eCommerce site. That is why WareIQ places a high value on excellent customer care, which is a significant advantage of outsourcing fulfillment. Oftentimes, business owners get lost trying to figure out all of the details of fulfillment operations. WareIQ’s customer support team is available to help you through every stage of the order fulfillment process. We can assist in housing your products in our fulfillment center and integrating with our Warehouse Management System( WMS) so that you can effortlessly sell with WooCommerce. Furthermore, after you've completed your setup, we'll begin sending your orders to your clients as soon as possible. Cost-Effective We check shipping prices from reputable shipping companies to get the best one for your requirements. Take advantage of our bulk pricing — the more you deliver in bulk, the more money you save. When it comes to post fulfillment services, many firms are hesitant to choose 3PL services because they believe that they would be more expensive. However, selecting a fulfillment partner such as WareIQ might be far more cost-effective. Online selling with WooCommerce is free and highly effective but there are additional factors to consider. This involves challenges such as running out of inventory space or having to pay for packing and shipment. Not to mention the costs of hiring and management. WareIQ as your fulfillment provider can help you with all of that. You will get access to our warehouse for storing your items as well as 24-hour order processing. Our shipping and freight charges are among the most inexpensive in the market since we are a certified shipping facility. Overall, if you sell with WooCommerce and hire WareIQ as a fulfillment partner, you can save money on shipping, manpower, and warehousing expenditures. Time-Saving Another advantage of using WareIQ eCommerce fulfillment services is that it saves time. You probably don't have time to focus on expansion if you're so preoccupied with order fulfillment. You should be able to spend time as a business owner in sales and marketing, growing, obtaining new goods and ideas, and enhancing your overall business plan. When you choose to sell with WooCommerce, there is no additional time spent once a consumer places an order. This is due to our capacity to complete the fulfillment procedure rapidly. In other words, keeping your items in our warehouse saves you time. We can rapidly package, print your business labels, and ship client orders while your items are kept with us. Warehouse Management Warehouse management can be time-consuming and difficult but when you opt to sell with WooCommerce, it is critical. Better inventory planning can assist you in running your business more effectively and economically. Outsourcing inventory management is a fantastic approach to immediately improving company operations. WareIQ’s fulfillment centers deal with a variety of eCommerce firms and we have extensive knowledge of the best practices that we can share with you. When you sell with WooCommerce, we can handle all of your brand’s fulfillment needs, ensuring your consumers receive the best post-purchase experience in the country and have a hassle-free experience. [signup] How To Sell With WooCommerce FAQs What are the drawbacks of WooCommerce?The Drawbacks of Using WooCommerce is that it is unique to WordPress. WooCommerce is a plugin, thus you can't use it on non WordPress websites.While downloading and installing WooCommerce is free, certain extensions may demand money in order for your site to function properly. Can I sell for free with WooCommerce?The most convenient way is to use WooCommerce Payments, which allows you to manage payments straight from your WooCommerce Dashboard. There are no setup or monthly costs with WooCommerce Payments. For each transaction made using a credit or debit card issued in the United States, you pay 2.9 percent plus $0.30. For cards issued outside the U.S, there is an extra 1% fee on the transaction made. What is the difference between Shopify and WooCommerce?Shopify offers a platform as a service. They manage backups, security, and maintenance for your online store, as well as the software and website hosting. WooCommerce, on the other hand, is a self-hosted eCommerce platform. Is Elementor compatible with WooCommerce?Elementor's Pro and Free editions are both fully compatible with WooCommerce. Elementor Pro additionally includes a unique collection of tools that assist you in displaying your WooCommerce items on the web shop. What are the best WordPress themes compatible to sell with WooCommerce?Most of the themes are compatible to sell with WooCommerce plugin. Apart from ThemeForest, OceanWP, Elementor, and Avada, there are also many themes like The Shop Mania, Amaz Store, Neve Shop, Astra, and Shopping Cart are also the best themes available to sell with WooCommerce.
May 30, 2022
What is Stock Keeping Unit (SKU) in eCommerce in 2022? Definition with Examples.
If your business deals with a wide range of products, it becomes immaterial whether it runs on a small or large scale. Inventory management and control become a critical part of your operations. SKUs in eCommerce are more critical when the same items are being sold online and in physical stores. Stock Keeping Units help you manage and understand the nature of the products sold and the cyclicity of their demand. This article covers various aspects of SKUs in eCommerce such as what it is, what they are used for and how to make the most out of them. What is a Stock Keeping Unit (SKU)? Stock Keeping Unit is a naming and tracking system used by merchants to identify and monitor their product inventory or stock. A Stock Keeping Unit is a one-of-a-kind code made up of alphabets and digits that identify a product's manufacturer, model, design, type and dimensions. Companies create their own Stock Keeping Unit identifiers that are distinctive to the products and services they provide. Internal SKUs in eCommerce, from two firms offering the same item, such as t-shirts, are likely to be different. [contactus_gynoveda] Understanding Stock Keeping Units (SKUs) SKUs in eCommerce are used to help businesses account for all of their inventory precisely and rapidly. Model numbers are distinct from SKUs; however, model numbers can be integrated into SKUs if a corporation so desires. These codes ensure that your workers, consumers, vendors and software discuss the same procedures. Item codes, component numbers and the company's model number are used to describe SKUs. A Stock Keeping Unit isn't just for physical products; you could allocate them to other services you provide, such as bills and invoices, etc. Consider a situation where a retailer for a new, independent food and beverage store wants to come up with SKUs to start their inventory operations. They may give food items the letter F, with B denoting beverages and B2 denoting combos. The following set of alphanumeric codes will be a veg/non-veg and hot/cold beverages indicator, followed by an indicator for the size of the beverage. V may therefore be assigned to veg items, while NV could be assigned to non-veg food. The items might then be categorised further based on their shelf life. A veg patty expiring in 5 days would be FVP01062022, while a cold beverage in tall size would be BVCT020000. Importance of Stock Keeping Units (SKUs) SKUs are used for more than just identifying products and keeping track of inventory. This information will help you determine the profit margin of your business based on the data you've gathered. SKUs perform the following activities: Data Interpretation SKUs enable merchants to acquire data to analyse product importance or identify periodic and cyclical trends in their various client categories. This data allows them to store inventory that corresponds with trends in customer behaviour. Inventory Management A Stock Keeping Unit system's primary function is inventory management. Retailers can manage the storage and transport of inventory using one Stock Keeping Unit. They can use the data acquired from sales to define inventory levels and deadlines, which can function as a trigger for starting or stopping inventory reordering and exercising control. Assistance to Customers Employees may scan a Stock Keeping Unit to rapidly determine what is in stock when a client is looking for a different product version, resulting in increased sales performance and customer experience. How Do SKUs Work? SKUs in eCommerce are surprisingly simple to create. SKU numbers can be produced automatically by a system or a vendor. SKUs may be customised in an inventory management system and the system's technical team can ingest all the data creation of SKUs and correctly onboard the relevant inventory onto the software. Users may search for SKU numbers in the system's backend to detect quantity levels, orders, price and sales levels once the infrastructure is in place. Custom sales reports based on a specific Stock Keeping Unit number can also be published. What are SKUs Used For? SKUs in eCommerce can be used in a variety of ways by merchandisers. Simply put, they are accustomed to keeping track of inventory and sales. On the other hand, SKUs have the potential to accomplish a lot more when combined with a solid sales strategy. Inventory Analysis SKUs in eCommerce are utilised to manage items at a single store or across numerous locations at the most fundamental level. You can scan an SKU to discover the entire amount of inventory available. When combined with an inventory management system, ordering cycle management and supplier connections, SKUs enable a more systematic or automated method for administering your items. Future Sales Forecasting Your WMS software can provide comprehensive reports and sales statistics using product SKUs concerning each item on the list. A systematic approach to utilising this data can enable businesses to estimate sales and demand for different products in upcoming periods. These systems can be highly effective for a small-scale enterprise. Retailers may use retail analysis to analyse how each item is performing by their Stock Keeping Unit. Customer Assistance Properly estimating sales and demand will make future management easier. Knowing what to expect enables businesses to manage inventory levels. It's a narrow line that must be trodden carefully. Custom order suggestions via past order details also help you ensure that you have the correct quantity of goods on hand. Product Recommendations Employees can locate comparable items by looking at similar SKUs that are customised to meet different product range categories. For example, all fashion items on an eCommerce website may have the same starting SKU numbers, allowing the system to suggest a similar variety for customers looking to try something new. Pricing Finally, SKUs in eCommerce help provide discounts, offer attractive products and deconstruct packaged items into individual components. Businesses might use different SKUs for goods and packaging. A single beer, for example, may have a single SKU, but a case of the same beer would have its own unique SKU for a separate price and inventory unit. How to Design and Create SKU Numbers? Depending on the software, SKUs in eCommerce can be constructed in various ways. Creating SKUs may be simple and adaptable with the right inventory management system. The steps are listed below: Step 1: Begin with SKU Numbers Each Stock Keeping Unit’s first two or three digits/characters should reflect a primary identification. This might be a department, retail category, or even a vendor. A Stock Keeping Unit number, when scanned, specifies the top-level merchandising group and position of any product in your shop. If you own more than one business, you can also use SKU numbers to designate retail locations. Step 2: Create Distinctive Designations Using Middle Values Use the middle digits of SKU numbers to attribute distinctive qualities to your product, such as dimension, shade, product category or other required details. Arrange them in whatever way makes sense when arranging the items you offer. Step 3: Add a Sequential Number to the SKU at the End Employing sequential numbering for the last series of a Stock Keeping Unit number, such as 1, 2 and 3, simplifies the setup process and helps you distinguish old vs fresh goods amongst all your products. Trying to tie the last digit of a Stock Keeping Unit code to a supplier product ID might also be helpful in some cases. Methods that make logical sense for the products you sell should be employed. Step 4: Incorporate SKUs Into Your Inventory Management System You can generate SKUs and maintain inventory manually in notebooks or an excel file, but utilising a systematic approach with inventory tracking is more straightforward and efficient. A system-based approach allows you to monitor as much or as little product data as you desire. However, most small businesses can start by entering the following simple data: Product descriptionProduct nameProduct categoryBrief descriptionAny other relevant data Step 5: Make Use of Barcode Generation After creating a Stock Keeping Unit number, it needs to be integrated with your inventory management system. Here, you need to create barcodes that can be scanned into the system. These barcodes are placed on the items along with product labels. Barcodes can be generated using conventional barcode generation systems or through your inventory management system. Once barcodes are generated, you can print and stick them to your products. Learn more about differences between barcodes and SKU here. Examples of Properly Named SKUs in eCommerce Example 1 - ADMWALKWHI7213 The SKU created can be understood as follows: AD: Name of the Manufacturer (Adidas)M: MaleWalk: Walking ShoeWHI: White Colour7: Shoe Number213: Item Number Example 2 - BBHGTSHBLK02003 The SKU created can be understood as follows: BBH: Baby HugG: GirlTSH: T-ShirtBLK: Black02: Age003L Item Number 5 Best Practices for SKU formatting Be Simple Since Stock Keeping Unit numbers are so simple to create for your company, it might be tempting to incorporate as much data as you can. Choose 2-3 features that you wish to convey in your SKU number to avoid lengthy SKUs. Keep individual codes short if you want more features. Begin With the Most Important Features After determining important features, choose the most important one and add it to the beginning of the SKU number. Some stores like to begin with the most basic feature and work their way down. For example, begin with the identifier for the shoe brand before going on to type, size and item number. Do Not Start SKU Numbers With a Zero Most SKUs today are scanned into software stems and zeros at the start of a number are frequently perceived as non-existent. As a result, the SKU 003BBHGTSHBLK02 might also be interpreted as 3BBHGTSHBLK02. To reduce the confusion created by this issue, make sure that none of your Stock Keeping Unit numbers begin with a zero. Many firms work around this by starting the SKU number with a brand or supplier identity, as shown in the example above. Avoid Using Letters That Could be Confused for Numerals It may be tempting to use every letter of the alphabet because SKU numbers are alphanumeric. To avoid misunderstandings, try not to use characters that resemble digits. The letters O and I, for example, are frequently mistaken as zero and one. Do Not Repeat the Manufacturer's Numbers It may look easier just to use the manufacturer's number or include it in the SKU when creating a numbering scheme. However, this eliminates the benefits of having a custom SKU formula built to meet your company's particular needs. Conclusion: How to Use SKUs to Grow Your Business and Improve Your Customer Service? Consumers increasingly expect and want a personalised, seamless experience. As a result, in terms of generating an engaging and intriguing shopping experience, eCommerce, as well as physical retail, have become highly critical. Merchandisers must keep their stores/eCommerce sites updated with the best-selling and most in-demand products to keep customers interested. Having a detailed view of and easy access to optimised SKUs is crucial for creating enticing assortments and quickly updating product suggestions and trends to keep up with the latest market trends. SKUs are essential for merchants to be competitive in today's dynamic, fast-paced retail industry. They simplify extracting relevant information from product identification data that is particularly unique to your company and its products. They enable you, your workers and your clients to instantly verify the availability of products via an SKU query. Even small commercial enterprises should make use of SKUs. Create a decent SKU structure today and gain advantages across your business. This can be done with a 3PL fulfillment company like WareIQ. WareIQ offers a whole range of fulfillment services including creating and managing SKUs for all your products and access to our custom WMS that will make managing your inventory a breeze. [signup] Stock Keeping Unit: FAQs Can you use the same SKUs for 2 products?Whether the 2 products have major or minor differences, you should ideally use different SKUs to avoid any confusion. What all information should an SKU contain?A list with the most important information is listed below:- Color- Size- Item Type- Variation- Department- Store Location- Supplier How can you calculate your SKU?You first need to make a note of all the products and their variations in your inventory. The SKUs should reflect this number exactly. Does WareIQ help you create SKUs for your products?Yes. Using our custom WMS, SKUs can be created and managed for all the products that you want to sell.
May 30, 2022