Amazon Seller Flex Windows Reopening Next Week: Here’s Why You Should Act Fast
Read More
What is D2C Fulfillment? 10 Reasons Why D2C Brands Need a Fulfillment Partner

What is D2C Fulfillment? 10 Reasons Why D2C Brands Need a Fulfillment Partner

Nowadays, e-Commerce logistics businesses are more convenient for both customers and sellers, and the modern world has already started to adopt this means of selling. In 2022, the benefits of D2C fulfillment by selling directly to the consumer are well known, such as better supply chain exposure, stronger customer relationships, and no middlemen involved. Also, there are numerous positive stories about D2C brands that have succeeded in getting a fast start. However, the quicker your company grows, the more critical it is to ensure that your D2C fulfillment operations can scale efficiently and capitalize on growth opportunities. What is D2C Fulfillment?  D2C fulfillment, also known as direct-to-consumer fulfillment, is an e-commerce shipping model in which a merchant sells directly to the end consumer through digital channels rather than relying on intermediaries such as retailers, distributors, or wholesalers to reach their target market. The involvement of these intermediaries may reduce your profit level and take more time to get your targeted customers. D2C brands are responsible for handling their stock and micro fulfilling and shipping orders that they can do in-house, such as through dropshipping or by outsourcing the process to a 3PL. [contactus_gynoveda] What are the Processes Involved in Direct to Consumer Fulfillment? The process begins when a customer places an order and concludes when they receive it. If the buyer needs to return a product, direct-to-consumer fulfillment will also handle the return logistics procedure. Here is the list of processes in direct to customer fulfillment: Receiving Inventory The initial step in the D2C fulfillment process is receiving inventory from the company warehouse or whole sellers. You should be very careful in counting the incoming stock lists to avoid future issues. Once you count the entries of the inventory, you need to inspect the quantity and quality of merchandise to ensure that you have received the proper amount of stock. Bar codes on incoming products are used in the receiving and storage processes and later, in the retrieval of goods from internal storage. Storing Inventory When goods arrive at the fulfillment center, they are inventoried and distributed immediately or sent to short-term or long-term storage. The next phase would be the proper storage of inventory. It is a good practice to store the appropriate goods, concerning their demand, instead of hoarding vast amounts of inventory in the anticipation of future sales. Processing the Order The picking and packing process of a product is dictated by an order processing management system for every newly received order. Order management software integrates with an eCommerce website's shopping cart to automatically initiate order processing in the online marketplace. Picking the Relevant Product One of the most important processes in direct-to-consumer fulfillment is picking the right items ordered by your customers. The process of picking the required item will either be automated or performed by a dedicated picking team, based on the packing slip's instructions. Product size, color, and number of units are some of the metrics mentioned in the packing slip, that is used to determine the right product to be picked Packing the Order The next interesting process after picking the required items is packing them properly. The packing team or robots will select the packing materials. Because space on delivery trucks is limited, optimizing the dimensional weight (or DIM weight) is critical for expediting transport while potentially lowering shipment costs. Return shipping material will be included by the packing teams when customers want to exchange or return the item for a refund. Shipping the Order The order is routed through a transportation channel or shipping aggregator before being delivered to the customer. Shippers and carriers calculate the billable costs of freight based on the volume. Even if the actual weight is low, as in the case of garments or other similar products, packing it to achieve the least DIM is often worth it to keep the packaging from significantly increasing the overall package weight and thus, the cost of the entire shipment. Delivery to the Final Customer The final process is delivery which means handing over the product to the customer. Shipping routes frequently use multiple carriers. For example, the carrier may pick up a package at the fulfillment center that will later be delivered to the customer's home by another carrier. These hybrid shipping methods are used for a variety of reasons such as delivery estimates and costs provided by each carrier. Why do D2C Brands Need a Fulfillment Partner? Top 10 Reasons The final stage of supply chain management is D2C fulfillment. Direct to Consumer fulfillment enables products to be delivered to the desired location. Below is the list of benefits that D2C brands experience by collaborating with a fulfillment partner: Enhanced Customer Satisfaction DSC Fulfillment companies devote their efforts to providing quick and efficient order fulfillment services. Working with a fulfillment company provides you with skilled staff and warehouse management systems. Your orders will be expertly packed and shipped, resulting in increased customer satisfaction. Obtaining Valuable Business Expertise  Companies need to value insights offered by their D2C fulfillment partners to be successful. When you find the perfect fulfillment partner and build a strong working relationship, the fulfillment company can be critical to the growth of your business. Furthermore, your partner is a valuable resource for queries about inventory planning, packaging, shipping, and other fulfillment-related topics. Adaptable Warehouse Space  Expansion and growth are crucial for any eCommerce company. However, the sudden increment in demand and supply may force you to scramble for additional warehouse space and fulfillment capacity. When you work with a direct-to-consumer fulfillment company, especially one that uses a variable cost model for the fulfillment, you can quickly and easily scale up or down your fulfillment requirements, based on demand. Differentiation From the Competition In today's competitive market, it is nearly impossible for D2C brands to differentiate themselves just based on pricing or product offerings. However, by focusing on providing a stellar customer experience during the fulfillment process, your brand can differentiate itself from the competition and establish a much stronger emotional bond with its customers. Increasing the Value of Your Offerings Every touchpoint in the order fulfillment process, especially the moment of delivery, must be streamlined if you want to be perceived as a premium service. It is much easier to justify high-end pricing when buyers believe they're getting an exclusive experience. According to a study, more than 75% of customers are willing to spend more at a company that provides a superior customer experience. Increasing Your Scalability The most difficult aspect of D2C fulfillment is scalability. Order fulfillment services are a fantastic way for brands to improve customer experiences, but they also pose one of the biggest obstacles in 2C fulfillment, because eCommerce shipping firms with a high volume of orders face unique challenges. D2C brands have a big edge over traditional stores through their ability to manage the entire consumer experience.  Improving Customer Service  It is often simpler to keep customers than it is to find new ones. Most order fulfillment companies offer phone or email support 24 hours a day, seven days a week, allowing for simple returns and exchanges. A D2C fulfillment partner can also provide you with assured delivery dates or same-day delivery services. It helps to improve the overall customer experience. Minimizing Operating Costs It is expensive to ship your packages, hire employees, buy packaging supplies, sustain quality control, and rent space. You can avoid these overhead costs by partnering with a D2C fulfillment company and sharing resources and space with other sellers. In short, 3PL fulfillment services will minimize your operating costs by outsourcing fulfillment for D2C businesses where you wouldn't hire or supervise any staff or worry about fulfillment logistics. Reducing Shipping Costs Many people will ignore outsourcing fulfillment requirements because they perceive it as an additional cost. However, D2C fulfillment service companies can save you money in various areas, including shipping costs. To begin with, a direct to consumer fulfillment partners may have fulfillment centers and shipping partners located throughout the country and even abroad. They ensure that your goods are closer to your buyers by balancing your inventory across this vast network of fulfillment centers.  Accelerating Delivery Speed The impact of being able to access numerous warehouses scattered across the country extends to reduced shipping times. Outsourcing fulfillment lets you deliver faster by locating inventory closer to your buyers. It is a huge benefit for retail businesses. Most consumers expect their purchases to arrive in two days or less. You may need a strong D2C fulfillment partner to meet those high demands and compete with the country's largest chain retailers. What are the Key Services Offered by D2C Fulfillment Companies? Inbound Logistics  Products are delivered in bulk to the warehouse, and inventoried, according to their demand, expiry date, and other metrics. Warehousing  Storing inventory is mandatory to deliver them securely to your customers. Your products are stored at the fulfillment center until they are shipped to the consumer. Inventory Management Once you have stored your inventory in a D2C fulfillment provider's warehouse, they will manage it for you. They will monitor and maintain optimal inventory levels to avoid understocking and overstocking.  Distribution Centers or Direct to Consumer Fulfillment Centers  D2C Fulfillment companies will offer distribution center services where the required goods will shift from the warehouse to these distribution centers to initiate the delivery process to the end customers. Packing and Moving  Sending orders in generic, lifeless brown boxes creates an unpleasant and impersonal client experience. The D2C fulfillment partner takes care of this by efficiently packing the orders securely with premium materials and attractive designs so that they can be shipped as soon as possible. Last-Mile Delivery Customers prefer to have their orders delivered to their homes rather than shopping in large crowds and queuing for payment, particularly during the pandemic. As a result, this requirement forces online retailers to invest in last-mile delivery management software to manage their last-mile delivery services, which are provided by d2c fulfillment partners. Returns and Outbound Logistics  Returns, also known as reverse logistics, are an essential component of direct-to-consumer fulfillment. Shippers and carriers pick up packages from the warehouse and deliver them to customers. Setting up an efficient returns process for your customers will increase your sales and reduce wastage. Route Planning and Optimization  Evaluating the most cost-effective route and mitigating any roadblocks and delays is known as route planning. It is more difficult than simply determining the shortest path between two points. D2C fulfillment companies also offer this effective service. Tracking Solutions  Customers who shop online expect real-time updates on the status of their orders. D2C fulfillment partners invest in cutting-edge technology to provide tracking solutions. It assists in ensuring efficient order mapping and timely communication with customers via fulfillment statuses. Centralized Delivery Planning  Fulfillment companies put a lot of focus on providing centralized delivery planning. Centralized delivery planning entails making decisions holistically at a higher level rather than independently at the local level. Automation  Automation eradicates the need for manual data entry, resulting in a more streamlined order fulfillment process that can process higher volumes of orders with fewer people involved. Four Different Ways of Fulfilling Direct-to-Consumer orders There are various ways to fulfill the demands of the D2C brands, and here is a list of  the 4 most prominent solutions: In-House Fulfillment In-house order fulfillment, also known as self-fulfillment, occurs when a merchant completes all the steps of the fulfillment process internally without the assistance of a drop shipper or fulfillment company. At this stage, in-house fulfillment typically consumes a significant amount of valuable time that could be spent on obtaining more customers, developing new products, and launching marketing campaigns. Both warehouse space and warehouse management are required for in-house fulfillment. Fulfillment Through an External Partner Fulfillment through an external partner is when a third-party order fulfillment company handles the shipping, storing, and order or refund processing. Employees of the fulfillment company will take on the entire fulfillment process, from receiving inventory from manufacturers to delivering products to the end customer. Inventory is stored in a 3PL-controlled warehouse, which means that companies that use outsourced fulfillment do not need to invest in their warehouse facilities. Companies that do not have enough storage space or personnel may opt for this option. Independent 3PL Fulfillment Third-party fulfillment companies are experts in direct-to-consumer fulfillment. When you work with a 3PL, you have complete control over the entire process. You can select which 3PL warehouse locations you should use for storage and shipments. Your products can be shipped in your own brands' packaging, and your 3PL can add package inserts to customize and personalize the customer experience. Furthermore, fulfillment centers also provide various services to assist you in growing your business.  Hybrid Model A hybrid fulfillment model is used by a company that uses a combination of the above order fulfillment options. A company, for example, may process some orders in-house, such as specially made items or easily perishable goods. Some businesses use drop-shipping for infrequently purchased items or that they would not want to store in-house, such as huge or expensive items. It is ideal for businesses requiring more flexibility or experiencing rapid growth. Factors to Consider when choosing a D2C Fulfillment Service You cannot randomly choose a D2C fulfillment service for your business, and the wrong choice may bring a poor reputation and significant losses to your brand image. There are a few factors that you should consider when choosing a D2C fulfillment service, and these are listed below: Price Hard-earned money is extremely, especially for a budding eCommerce retailer., As a business owner, you need to think about your requirements and available budget while choosing a D2C fulfillment service. Fulfillment services are a huge process for your business, and it is necessary to enquire about charges for various services. Try to compare the prices of 2 to 3 companies and pick the more reasonable and cost-effective option. It is not a good idea to opt for the cheapest service which may not be professional. Operational Network Apart from price, you need to consider various other things, including investigating their shipping network. If you plan on expanding your business operations, you would need a fulfillment company that already provides services in locations that you would want to expand to. Flexibility and Location Customers have grown accustomed to same-day delivery as even more eCommerce businesses strive to reduce the time between ordering and receipt of the product. When choosing a fulfillment service, the goal is to ensure that the products arrive at their destination as soon as possible and their services are flexible. The shorter the required time for delivery, the happier your customers will be. As a result, location is important when selecting a provider for your company, and don't forget to consider their flexibility. Inventory Management and Daily Reporting The next essential factor to consider is their inventory management and daily reporting services. Details about inventory levels are necessary for your business, and it is the D2C fulfillment provider's responsibility to analyze and report them daily. Look for a fulfillment provider who handles inventory management and provides regular and accurate reporting on your inventory levels to save time. It allows you to easily manage your stock levels and ensure a smooth order flow. Quality of Fulfillment Quality of fulfillment is an unavoidable factor to consider when selecting a fulfillment service provider for your business. There is a study that shows after having a bad delivery experience, 72.7% of poll participants claimed they are inclined to stop shopping at an online store. They expect to have a smooth delivery, customer support, and return options, which are not possible in self-fulfillment. Check the quality of the D2C fulfillment service by enquiring about previous client encounters, quality control procedures, etc., and choose the provider once you feel satisfied with their quality control levels. Existing Client Base The final factor to consider by you for choosing a fulfillment service provider is their existing client base. Knowledge about the experience that previous and current customers of the fulfillment company can equip you with all the tools that you need to determine if they are the right fit for your requirements. Why Should You Choose WareIQ as a D2C Fulfillment Partner? Delivering the orders to your customers directly without intermediaries is not an easy task without the help of a fulfillment service. If you want your D2C brand to shine better in this competitive world, hire the best fulfillment service company after considering the factors involved in developing your business. D2C trends in 2022 are peaking. Check every detail listed above, such as the process involved and the benefits of hiring the fulfillment service company. WareIQ stands apart from the rest as one of the best D2C fulfillment partners for businesses of every size and domain.  WareIQ, a Y-combinator-backed startup, has rapidly grown to be the leading full-stack eCommerce fulfillment company for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next-day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has customized offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. WareIQ’s next-day delivery and same-day delivery services are helping eCommerce businesses set new standards concerning setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realize significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in eCommerce warehousing, and data-driven decision making. [signup] Direct to Consumer Fulfillment FAQS What is D2C Fulfillment (direct-to-consumer)?DTC (direct to consumer) is a way of marketing items directly to customers. The intermediary is either totally or partially removed from the sales process when using DTC. Suppliers offer their items directly to clients, with no merchants or wholesalers involved. Why are D2C Fulfillment products becoming more popular?D2C Market is the new Retail Market. Some of the important factors that lead to D2C brand growth are lowering the prices of products, focusing on customer-related policies, quality assurance, consumer engagement, supplying products on demand What are the core benefits of D2C Branding?D2C Fulfillment companies have more data at their disposal to help them better understand what their customers want and why. The D2C business model gives brands more control over the brand image. D2C Brands can form direct relationships with their customers, and on-demand delivery which increases the quality of sales. How does D2C Fulfillment contribute to the supply chain network?Products are normally stored in a central site or a few satellite locations in a D2C firm. D2C businesses deliver things in packages directly to customers. As a result, shipping and handling is an important aspect of the supply chain. Why do customers like the D2C business delivery model?D2C businesses provide the most streamlined, convenient, and easy buying option, making them an appealing alternative to visiting a physical location.D2C is the new trend, more than 80% of active buyers consider buying online, and then the product is made available to buy through the d2c business model. What is the difference between B2C and D2C?The main difference in B2C and D2C business models is that D2C companies sell their product directly to their customers via outlet or website without any middleman or wholesaler or retailer. On the other side B2C businesses sell their products to end consumers through any sales channel. What is the reason that D2C brands fail?When properly marketed, D2C brands can generate massive demand, but without a logistics partner in place, they would struggle to make a profit. Major reason being, D2C brands not having the time or resources to set-up new warehouses or hire staff/labor to fulfill a high volume of orders. Does WareIQ offer D2C fulfillment?Yes, WareIQ provides direct to consumer fulfillment service. WareIQ stands apart from the rest as one of the best D2C fulfillment partners for businesses of every size and domain. Is D2C the same as eCommerce?Depending on the products sold on its platform, an eCommerce website may or may not be a D2C business. For instance, Flipkart is not a D2C eCommerce website on the other hand KamaAyurveda’s own website is D2C.

May 09, 2022

Categories:
eCommerce Logistics Guide: Definition, Processes, Factors to Evaluate and the 10 Latest Trends of Logistics in eCommerce in 2025

eCommerce Logistics Guide: Definition, Processes, Factors to Evaluate and the 10 Latest Trends of Logistics in eCommerce in 2025

A change in consumer mindset encourages evolution in the way eCommerce retailers plan on serving them. Two years ago, what began as a force majeure became a habit, where customers were able to receive everything that they could possibly think of, right at their doorstep. The answer is vast as to what is logistics for eCommerce. The eCommerce industry’s heavy reliance on a solid supply chain backbone has triggered a revolution in the logistics industry. But what is eCommerce logistics and what are the factors that it encompasses? Let’s take a look. What is eCommerce Logistics? eCommerce Logistics is the complete supply chain process undertaken by an eCommerce company to get their products from the seller or warehouse to the customers and back via reverse logistics if needed. All the proper systems and processes need to be in place for the millions of packages being shipped across the country to multiple different locations daily. eCommerce logistics begins with moving inventory from the origin point and ends at the customer's destination once they take ownership of their order. There are different types of logistics contract logistics, 3PL logistics, and more. [contactus_uth] How Does eCommerce Logistics Work? As mentioned above, eCommerce logistics refers to the entire series of processes, from receiving an online order to the safe delivery of the package to the customer by the estimated date and time. The 2 major processes involved in eCommerce Logistics are listed below: Forward Logistics Inventory Management This process is highly critical to keeping regular track of inventory. While stacking products in the warehouse or fulfillment center, warehouse management should occur where the high-demand products must be kept handy or easily reachable, followed by the goods where their accessibility is in proportion to their demand. eCommerce Logistics companies need to put in measures to ensure the safety and security of the inventory in their warehouses or storage spaces. Smart Inventory Placement Smart inventory placement refers to the automated recommendation of the best storage facility to place your inventory at based on a variety of factors specific to each SKU, such as seasonal demand, proximity to areas of high demand, market trends and more. This allows your inventory to be fulfilled faster and more efficiently every time an order is placed. Order Preparation The next step is to gather the inventory and prepare the final order per the customer’s request. The next step is packaging and labelling. Products are packaged in a single SKU or a kit with several SKUs before being labelled as per their batches and destinations. Many companies have adopted eco-friendly packaging and labelling to lure more aware customers. Shipping Processes Safe and timely delivery of orders is critical to the overall customer experience. This involves updating the customer regularly with the whereabouts of their package and ensuring that there are no errors or delays while shipping or transporting the product to their location. Suggested Read: What are Shipping Labels? Reverse Logistics Returns Management Around one-third of all products bought online are returned to eCommerce companies. The reverse logistics process comes into play when the customer or delivery agent triggers the return request. However, brick-and-mortar stores experience lower returns than online retail as the customers get the look and feel of the product before buying. However, both models employ a different set of logistical procedures to reach the final goal. Value Recovery of Goods This enables you to recover value from returned items by selling them on the secondary market, recycling and upcycling them, donating them and turning them into energy. This ensures that every returned product can fetch some amount of value rather than simply laying idle and eventually becoming obsolete. Disposal of Unusable Items For products that cannot be recovered or resold, they need to be disposed of in a healthy and environmentally conscious way. This involves the sustainable disposal of items for all categories, including food, clothing, electronics, health & hygiene, etc. How Does eCommerce Logistics Differ from Brick and Mortar Logistics?  [table id=15 /] How to Choose the Right Type of eCommerce Logistics for Your Business in 2025? Know Your Requirements An eCommerce business has many requirements for which they need to hire an eCommerce logistics partner. However, shortlisting a 3PL logistics company for eCommerce, the retailer should have an understanding of their own requirements, the services that companies offer that they seek to partner with, and their available budget. An eCommerce company can ascertain which eCommerce logistics company would be the best fit for them through the following points: Customer Demand Per Day: This refers to how many orders the retailer receives in a day and how much they expect to receive in the future. Product Categorization: Grouping products into different categories helps companies better understand their eCommerce shipping requirements. For instance, perishable products require time and temperature-sensitive eCommerce logistics, while glassware demands fragile-safe transportation. Technological Requirements: It is important to understand what technological services you require for daily operations and which companies provide those services.  Staff Requirements: This is determined by the amount of demand and what would be the maximum and minimum operational load. Speed of Order Fulfillment: This depends on the number of orders that need to be fulfilled per day and which parts of the country those orders need to travel to. Storage Space Needed: It is important for businesses to understand the scale of their operations and how much storage space they would need for available, unsold inventory. Find Suitable Partners After assessing all the requirements that are needed in different areas, eCommerce retailers can scout for eCommerce logistics companies that offer the same services. It is important to weigh your options as per the following criteria to find the best eCommerce logistics partner: Customer Service and Customisation: All businesses live to serve their customers. If the customer is dissatisfied, it affects sales and, in turn, the company’s growth. Online retailers need to check if the logistics partner can provide decent customer service, what their success rate is, and whether their services can be customised as per the customer and the product that the business caters to. Performance History: The performance of these companies influences the operations of an online retailer. Therefore the eCommerce business must collect all the relevant information on their past performance to analyse their track record and identify certain failures and how they were addressed. Same-day or next-day deliveries have become the norm these days, and the logistics company for eCommerce must be able to provide these services. If the eCommerce business has certain demands, the eCommerce logistics partner must keep a provision for exceptional distribution timelines like 10-minute deliveries without affecting the service quality. Omnichannel Presence: With severe competition coupled with rising customer expectations, it has become essential for businesses to employ multiple channels for order fulfillment. Before onboarding an eCommerce logistics provider, the business must ascertain if the 3PL company has an omnichannel presence to be able to reach as many customers as possible. Besides distribution, the partner should also provide multiple channels to ensure seamless communication and data flow between the two organisations. Technological Capability: This drives business operations productively. There are many tools utilised by 3PL eCommerce logistics providers, such as a Warehouse Management System (WMS), platforms to fulfill and track orders, inventory and distribution management, and any other cloud-based tech that empowers a business’ supply chain. Having a good onboard tech platform improves efficacy and productivity, leading to fewer errors and higher performance. Their system should also be able to integrate with other fulfillment services to enable seamless transfer of data and insights between multiple platforms, smooth order fulfillment, and customer service. Financial Strength: Without a solid financial backbone, no company can thrive. If an eCommerce logistics partner is monetarily weak, it can take down the eCommerce business’ supply chain, thus affecting the latter’s market image. Therefore, every company must thoroughly check the 3PL provider’s financial books before sealing the deal. The logistics provider for eCommerce must also be able to survive all kinds of business disruptions with stable financial backing. Having good relations with banks and financial institutions proves helpful in many different situations. If the logistics provider assures them of such support, they could be the ideal business partner. Scalability: The eCommerce logistics provider should have an expandable business model that inflates as the eCommerce business grows its reach. The logistics provider should be able to adapt to the growing demand and expansion of the retailer they have partnered with. Geographical Reach: Today, eCommerce businesses thrive on their reachability of tier 2, 3, 4, and lower towns and villages. The deeper and quicker their reachability, the more orders they can receive and fulfill, thus securing a better customer satisfaction ratio and obtaining access to new customers in different regions of the country. Overall Cost: The overall package deal offered by the eCommerce logistics provider is very important to observe. Your company should be able to afford them, with all the services they offer, rather than paying less for a company that does not offer important services. Companies need to strike the right balance between services and cost. Top 10 Latest Trends in eCommerce Logistics in 2025 eCommerce Warehousing Source This practice is focused on storing inventory and products for the daily operations of an eCommerce business. eCommerce warehouses are storage spaces dedicated to operating an online retail business. An eCommerce business needs to ensure that it operates and sets up storage closer to its customer hubs to reduce the time and expense of transporting goods. Partners like WareIQ help store the inventory closer to areas of high customer demand, thus enabling businesses to offer shortened delivery timelines. Inventory Management Source Many new trends in inventory management have emerged in light of the pandemic and other disruptions like the Ukraine-Russia war. A few such developments are the Just-in-Case method of managing inventory and the extensive automation of the supply chain. Simply termed as just-in-time inventory management. Just-in-Time meant procuring the inventory as and when the demand arose. The Just-in-Case method pushes businesses to procure excess inventory to avoid hassles in case of a contingency like a lockdown or an interruption due to war. This inventory management trend has seen an upsurge in the past few months by eCommerce companies wary of being unable to meet the existing or increased customer demand due to unforeseen contingencies. The shortage of workforce and other interruptions have pushed companies to look for measures that can support and maintain the speed and efficiency of the supply chain. Automating important processes is one such method. Advanced tech like AI and Machine Learning are driving the evolution of eCommerce logistics management systems like WareIQ. These tools enable real-time tracking of inventory nationwide which has pushed the efficacy levels higher, especially in the case of cross-country shipping. Order Packaging & Labelling Sustainability is not the only trend catching up with eCommerce packaging; minimalistic design is also gaining mileage. Besides eco-friendly packaging material, companies prefer labels and designs with minimal amounts of text and designs. (All that is covered under custom packaging for eCommerce). This trend has taken the ‘Less is more opinion to the next level. For example, Apple’s plain white boxes usually outshine other manufacturers. Sending the orders in generic, uninspiring brown boxes will create an unwelcoming and impersonal client experience. Instead, choosing an eCommerce logistics firm that provides branded packaging services can help companies create a brand and raise the visibility of their business. Besides just visual appeal, companies are also using packaging to communicate with customers. Adequate packaging needs three layers. When orders get punched, there's a label printed and stuck on another two layers of packaging and then dispatched. eCommerce logistics companies provide a wide variety of packaging strategies. For instance, bubble foil, padded paper, and plastic emailer bags help to prevent the damage of goods during transportation. Order Shipping Shipping the order to the customer safely and on time has always been the priority for eCommerce businesses. But they can never ignore the affordability of the shipping charges. While companies have been tying up with eCommerce logistics providers for decades now, the pandemic has proved that loyalty is overrated. It has changed the priority from allegiance to cost and benefits. There has been an upsurge in the spot pricing market for shipping, wherein companies shy away from long-term contracts and focus on getting the best price for their shipping right now. Another trend that is catching up is the need for business intelligence behind every shipment. Advanced tech backs every order from the origin to the customer and back. Weight Locking Source This is a great trick to avoid product weight discrepancies in order shipping services. When the eCommerce logistics partner picks up the order from the business’ warehouse, it weighs and measures the dimensions again before pushing the parcel out to the customer. Unfortunately, many times, there happen to be differences in the weight of the package due to unavoidable variations in weighing machines. There are a few useful hacks to ensure that this doesn’t happen: Calculate the Volumetric Weight of the shipment. This is done by multiplying the product of package dimensions in centimetres by 5000 (which may vary as per the carrier). The resulting weight will remain the same globally. For odd-sized packages, automating the weighing system helps avoid discrepancies in a manual cubic calculation. Associate with a supportive eCommerce logistics partner who resolves such discrepancies in a timely and effective manner. Click pictures while weighing the package which helps as an application of proof in case of a dispute Order Tracking Source Online retail customers want real-time information on the whereabouts of their shipments. Therefore, companies invest in advanced tech like superior order management systems to ensure effective mapping of the orders and timely communication with the customer through fulfillment statuses. Last-Mile Delivery Source It needs to offer sustainability, timeliness, safety, flexibility, real-time updates, and much more. These criteria define a significant share of a customer’s experience with an eCommerce retailer. And the statistics say that it is an essential part of customer engagement. Moreover, peak season shipping has become a perennial trend. Customers prefer to receive their orders at home than shopping amongst huge crowds and queuing up for payments, especially during the pandemic. As a result, they push online retailers to invest heavily in last-mile delivery management software to manage last-mile deliveries and recruit and retain the right personnel. Fast Shipping No words can stress the significance of fast shipping. Customer expectations have crossed all boundaries, pushing eCommerce companies to strive toward delivering orders within ten minutes. This scenario is in the process of making next-day delivery obsolete. This requirement has pioneered the invention of dark stores across the nation to cater to the growing demand for superfast supplies. One can only imagine how much faster it can possibly get. Same Day & Next Day Delivery Source Many eCommerce companies now focus on speedy deliveries so that customers get guaranteed next-day or even same-day delivery. Quick commerce is the next generation of online delivery systems, which enables the delivery of items within a concise time bracket of one or two days or less than 10 minutes for some business models. Convenience, delivery speed, and efficiency continue to define customer experience. Reverse Logistics WareIQ's Reverse Logistics for Efficient Returns Management An unsatisfied customer will initiate a return, and many eCommerce logistics companies oblige. This trend has given birth to advanced reverse logistics. Superior technology, sustainability, and creativity are driving the backward supply chain. With a high share of products bought online being returned, the eCommerce industry has been forced to revisit its return policies and invest in reverse logistics. Conclusion: Do You Need to Outsource Your eCommerce Logistics? eCommerce is no longer linear, and fulfillment is now Omnichannel. eCommerce customers may order online via mobile apps, phones, or online marketplaces. They may want home delivery, in-store delivery, or curbside delivery. All those fulfillment systems need to be taken care of by eCommerce logistics partners for efficacy and punctuality. eCommerce logistics strategies help to level up a business’s digital presence by bringing radical shifts in the business paradigm. Hiring a logistics partner is one such remarkable strategy. Here are a few benefits of delegating the task to an external expert.  The eCommerce industry is slated to experience massive growth and evolution in the coming years. As customer demand widens, every nook and corner of the sector will need to be organised. eCommerce businesses cannot manage these processes on their own. The expectations are too heavy to be borne solely by them. Delegation of the major parts of logistics can assist them in taking some load off. Teamwork will play a vital role in the sector’s development. Experienced players like WareIQ can lead your expansion story with creative ideas and are bound to enhance and improve supply chain processes. WareIQ, a Y-combinator-backed eCommerce fulfillment company for same/next day delivery. We execute this by helping you store inventory closer to your customers using our platform connected to 20+ top marketplaces & D2C websites, a nationwide network of fulfillment centers, and prominent last-mile couriers. WareIQ manages the entire range of complex operations in the eCommerce fulfillment process, such as inbound functions like scanning and quality check, 100% accurate Pick and Pack, and inventory management across all channels, with a centralized platform for core fulfillment and shipping operations and post-shipping apps for a delightful experience and zero to minimal supply chain leakages. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next-day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. WareIQ will definitely prove to be a more reliable and trusted long-term fulfillment partner compared to dropshipping and conventional 3PL companies. [signup] What is eCommerce Logistics: FAQs

May 05, 2022
Order Fulfillment: How Does it Work? Key Processes, Steps, and Strategies for 2025

Order Fulfillment: How Does it Work? Key Processes, Steps, and Strategies for 2025

Every eCommerce company strives to provide clients with the best products and an easy and hassle-free ordering process. When a customer makes a purchase, the crucial moment of a business’s success begins. Creating an order fulfillment system has become increasingly complex as the firm grows and attracts customers worldwide. If this process is inefficient, customer happiness and revenue may suffer. As a result, the company’s reputation is at stake. Read on to learn more about order marketplace fulfillment services and the best processes and strategies for 2025. What is Order Fulfillment? The order fulfillment process which is also called order processing involves storing, packing, and sending products to the customers. Receiving inbound wholesale shipments, sorting stock, and storing inventory for efficient picking and packaging are all part of order fulfillment. Later, these orders are checked for quality, packed, labeled, and dispatched to the buyer’s address. The products are then picked, tested for quality and accuracy, and shipped. Returns management (also known as reverse logistics) is an extension of the fulfillment process. [contactus_lilgoodness] What are the Steps Involved in Order Fulfillment Process? The order fulfillment process comprises various steps that can be divided into four distinct phases:  Create an order when a sale is done. Create an invoice for the order and send it to the customer.  Select, complete the quality check, and pack the order.  Deliver the order to the customer’s doorstep. Order fulfillment is carried out at fulfillment centers or warehouses and includes inventory management, supply chain management, order processing, quality control, and customer service to manage the entire value chain. Let us break down each process to understand it better: Receiving and Storing Inventory Source - pexels Every item received at the fulfillment center is counted, inspected, and inventoried before storing to confirm the correct number and ensure good quality. Each product has its own SKU or barcode allocated so that it can be quickly retrieved from internal storage. Order Processing Source: www.netsuite.com Order processing refers to the processes involved, once an order has been placed. The order must be based on SKUs, color, number, and size, before packaging and delivery. This will be completed in-house if self-fulfillment is determined. Packing The team selects packing materials to reduce the dimensional weight. This is a crucial stage because the weight impacts the speed of travel and the potential for cheaper shipping costs. Shipping Once the order is packaged and ready, we can choose the best transportation partner and the channel for shipping the orders to the customer. The freight charges are calculated by determining the actual package weight or the package’s dimensional weight. Most carriers have packaging restrictions to maximize revenues from the available shipping space. The shipments may be delayed if carriers refuse to accept the order when the standards are unmet. Delivery Delivery is usually the final step in the eCommerce order fulfillment process, until and unless the customer wants to return or exchange the product. Customers are provided with tracking information to receive real-time updates on the status of their orders. Returns Processing Returns Processing for Shein, a Major Online Fashion & Lifestyle Platform Returns processing begins with the original customer’s order, including shipping materials and a return label. Customers can seek a return or refund if their items were damaged during delivery or if they are displeased with their purchase. A quicker mechanism for storing and disposing of returned products based on their condition is also required. What are the Different Types of Order Fulfillment? It is critical to have an order fulfillment strategy and process in place to ensure customer satisfaction. It is vital to adopt the right strategy to increase sales, maintain a great brand image, and nurture a loyal customer base. The following are some of the different fulfillment methods that organizations can consider:  Self-fulfillment When a company decides to handle order fulfillment in-house, it must address all process aspects, including storage, packing, and shipping. Businesses can either hire a third-party company to execute the process or use drop shipping, with the rest of the work done in-house. Businesses can control product quality, customer service, simplified and timely transportation, and even material prices with self-fulfillment. However, it is logistically demanding and takes time away from marketing, sales, and product development. Dropshipping This method, also known as consumer direct fulfillment, is a business approach in which online retailers work with manufacturers or suppliers to deliver products to customers directly. In this arrangement, an eCommerce retail fulfillment does not purchase or store an inventory of the products for sale. They sell it on their websites and ship it directly from their supplier or production network to the buyer. While the seller is in charge of product marketing and customer support, the manufacturer or wholesale supplier is responsible for inventory management, eCommerce warehousing, and logistics. Dropshipping order fulfillment allows merchants and distributors to expand their product lines without having to raise their inventory holdings. 3PL Fulfillment 3PL fulfillment firms manage inventory, process orders, and ship items on behalf of other companies. They can help business owners store, package, and transport their products to customers. Businesses can focus on product manufacturing, quality assurance, and customer satisfaction by outsourcing fulfillment services to a 3PL fulfillment company. These could be inventory management, monitoring SKU sales performance, forecasting customer demand, packaging, and shipping orders. Why is Order Fulfillment Important? When a business is dependent on consumer orders, it is crucial to consider the storage and distribution of products.  The eCommerce industry has been growing more than ever before, thanks to rapid digitalization and the COVID-19 pandemic. Order fulfillment is an important aspect of any business’s success. It is critical to ensure that orders are delivered to clients on schedule. It includes receiving inbound wholesale shipments, sorting stock, and shelving inventory for efficient picking and packaging before it reaches the customer’s doorstep.  Setbacks in order fulfillment might hamper their business and operational effectiveness. Benefits of Having a Streamlined Order Fulfillment Process Having an order fulfillment process can help you maintain track of physical items inventory and handle the end-to-end process of getting the order to the customer, despite your company size.  Businesses can effectively manage the following by using eCommerce fulfillment companies for:  Warehousing  Picking and packing  Shipping  Logistics of kitting  Cross-docking  International shipping The following are some of the primary advantages of using order fulfillment partner services: One can retain inventory at the service provider’s warehouses and remotely maintain the list. These warehouses can be accessed on-demand or permanently at any preferred location to ensure a flawless experience for the customer.   The distance between the product’s source and the customer’s location is reduced by ensuring speedier order delivery. Small businesses can easily use the service partner's warehouse fulfillment technology to keep stock items in areas with the highest frequency of requests.  It is crucial to enhance customer satisfaction by eliciting positive feedback from customers about a speedy and flawless delivery process. Businesses may improve brand loyalty and promote repeat purchases by providing a pleasant client experience. One can use technology to make delivery services as frictionless as possible. Advanced technologies like AI and machine learning are used by order fulfillment services to improve the accuracy of product sequencing, order fulfillment, product tracking, and return order processing. It is also simple to get real-time updates on orders and keep track of stock and orders.  One can prioritize product sales and revenue generation by focusing on essential functionalities like marketing, product design, product diversification, and so on by allowing service partners to peek into the order fulfillment process, resulting in increased sales. What are the Challenges in Order Fulfillment? Developing an order fulfillment system becomes more difficult as the company grows and attracts clients worldwide. A clumsy procedure may hamper customer satisfaction and income. As a result, the company’s reputation may suffer. The challenges associated with order fulfillment are: Demand Forecasting  Demand planning is crucial for appropriate inventory stock. It is essential to ensure that businesses know what to store and what to hold back on, having the capacity to estimate product demand based on client buying habits.  Inventory Management  It is essential to maintain an outstanding client experience. Inventory management issues have a detrimental impact on everything from profitability to customer satisfaction, and they frequently result in higher fulfillment costs and dead inventory stock. Businesses often struggle to keep track of their inventory and know exactly what they have, how much they have, and where it is. Supply-chain Management  An efficient order fulfillment procedure needs a strong supply chain network. Building solutions to control each risk and reduce concerns caused by unplanned events is difficult.  Multichannel  It becomes more tricky to regularly ship the correct package on schedule and in good condition to the right destination. Taking orders across many channels can be complicated with all of the stages involved in the order fulfillment process. eCommerce orders may be completed at the expense of in-store goods availability due to a lack of real-time inventory control, or merchandise on the shelf vs. in a shopping cart may be unaccounted for. Logistics and Transportation Increasing logistics costs continue to influence the ability to fulfill orders, resulting in higher consumer pricing. For SMEs and startups, meeting delivery deadlines, resource management, and ensuring how client orders are prioritized is a challenge. What is the Strategy to Choose the Best Order Fulfillment Type for Your Business in 2025? Fulfillment solutions can give considerable benefits in terms of product management, shipping prices, delivery speed, tailored shipping services, and more as a company grows and order volume increases. Consider the following aspects when selecting order fulfillment services:  Shipping Time: The faster a consumer receives their item, the more likely they may return for additional transactions. Small businesses require these services for speedy shipping and delivery, particularly now that Amazon Prime offers choices like same-day and next-day delivery.  Costs of Fulfillment Services: Although working with a fulfillment partner requires an initial investment, make sure there are no hidden fees for long-term storage because the products are in low demand.  Warehouse locations for fulfillment: The closer the warehouses are to the consumer base, the faster the order will be filled. When choosing order fulfillment partners, make sure they have a large network of warehouse locations to reduce delivery distance and time. You can have a quick read on warehouse management system here. You can also get a better understanding of different types of warehouses here. Features of the order fulfillment service: Businesses need order web applications with simple features like clear order visibility, responsive dashboards, and simple inventory management so they can focus on sales and marketing rather than working out inventory levels to organize their order fulfillment.  Real-time order visibility: Total process transparency in the event of delays, among other things, are crucial while growing a business and enhancing customer happiness. The fulfillment partner should be able to track and manage orders easily. Packaging Options: Depending on the goods being carried, the selected service provider’s fulfillment center should be able to offer packaging options. Product damage can also be avoided by having a choice of packing options. Aside from packaging, using the right insulation material, such as corrugated paper, bubble wrap, or air pillows, ensures the safety of the products.  Returns Management: Orders will be returned at some point. The fulfillment provider should work with the business owner to reduce or eliminate them as much as feasible through better-advanced logistics. To prevent order returns and build the customer’s faith in their products, it is essential to recognize clients who return the orders frequently. Cost, quality, and control should be addressed when evaluating order fulfillment methods. The good news is that altering the fulfillment process to fit business requirements is simple for startups and SMEs. After thorough consideration of the benefits and drawbacks, businesses can select a technique they trust and work to expand their brand and customer base. An excellent third-party logistics provider, such as WareIQ, can assist with the entire fulfillment process and any other logistics needs a firm may have. What are the Best Practices in Order Fulfillment? To assist in making informed decisions for future demand planning, create a statistical forecast by analyzing sales patterns, purchasing history, and consumer interaction.  Collaborate with customers, distributors, and logistical partners to determine demand vs. supply expectations.  Analyze demand across channels to see which platform may generate the highest revenue.  To stay prepared for unforeseen demand surges, improve demand forecasting with the help of predictive ordering software solutions.  To avoid order fulfillment concerns such as backorders, delays, and disgruntled customers, maintain clear stock visibility.  To market the first-in, first-out (FIFO) products, use the first-in, first-out (FIFO) method. Create a mechanism for adding new products and stuff from the back so that older items for sale can be pushed to the front. Examine products that have not been sold in the previous 12 months to find low-turn stocks. Have sales to get them sold, and do not stock them until there is a higher demand.  Inventory should be audited to ensure that it corresponds to the forecasted demand.  To ensure no surplus or out-of-stock items, use cloud-based inventory management solutions with real-time analytics.  Keep an eye on stock levels and put the most expensive items first.  To create a unified, collaborative supply chain, work with suitable suppliers.  Identify potential supply chain risks and assess all possibilities and the chance of their occurrence. Conclusion: Why Should You Choose WareIQ for Your Order Fulfillment Requirements in 2025? WareIQ has quickly risen to become the leading provider of full-stack eCommerce fulfillment tech solutions for some of India’s most well-known companies since its launch in 2019. We are a full-stack platform allowing eCommerce businesses to offer customers same-day and next-day delivery, similar to Amazon Prime, but for everyone.  WareIQ manages the entire range of complex operations in the eCommerce fulfillment process, such as inbound functions like scanning and quality check, 100% accurate Pick and Pack, and inventory management across all channels, with a centralized platform for core fulfillment and shipping operations and post-shipping apps for a delightful experience and zero to minimal supply chain leakages. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next-day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ manages the entire range of complex operations in the eCommerce fulfillment process, such as inbound functions like scanning and quality check, 100% accurate Pick and Pack, and inventory management across all channels, with a centralized platform for core fulfillment and shipping operations and post-shipping apps for a delightful experience and zero to minimal supply chain leakages. The next-day and same-day delivery services help businesses set new standards for setting and meeting customer expectations. Due to enhanced negotiations with shipping partners, strategically positioned warehouses, warehousing economies of scale and scope, and data-driven decision-making, WareIQ customers benefit from significant cost reductions and a wider reach. A machine learning-based prediction engine is deployed for effective warehouse network architecture and creative inventory allocation. All fulfillment and shipping procedures are centralized on a single platform. Its post-shipping apps are beneficial for a pleasant experience and fewer supply chain breaches. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfillment centers, micro-fulfillment centers & urban dark stores near their customers Access to all major national & hyperlocal last-mile courier services at discounted rates for making same/next-day deliveries possible Easy integration across multiple online platforms & marketplaces enhancing multi-channel selling Horizontal marketplaces: Flipkart, Amazon, etc. Vertical marketplaces: Nykaa, Myntra, etc. D2C platforms: Shopify, Magento, WooCommerce, etc. Social commerce platforms: Bikayi Access to a superior centralised tech platform for eCommerce operations ML-based prediction engine for efficient warehouse network design & smart inventory placement Centralised platform for core fulfillment & shipping operations Post-shipping apps for a delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next-day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing, and data-driven decision-making. WareIQ’s WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. [signup] Order Fulfillment FAQs (Frequently Asked Questions)

May 03, 2022
What is Seller Fulfilled Prime(SFP): Advantages, Requirements & Comparisons for 2025

What is Seller Fulfilled Prime(SFP): Advantages, Requirements & Comparisons for 2025

Amazon Prime, a paid subscription service allows its members for availing services like two day shipping, video streaming, etc. Prime members are more engaged with Amazon as compared to non-prime members. This trend has been increasing for several years, and not only has it remained unaffected by the pandemic, but its demand has been further boosted by it. Seller Fulfilled Prime (SFP) is one of the primary services offered by Amazon. Read further to understand what it is and how it could be helpful for your business. In 2015, Amazon launched their Seller Fulfilled Prime order fulfillment service, which enabled high-volume sellers to sell under the Prime label, provided they meet certain requirements needed by the service. In fact, with 200 million Prime members, as reported by Amazon in April 2021, and worldwide spending at an average of $1,400 a year — compared to the $600-per-year average spent by non-members — the Prime subscriber pool offers a significant opportunity to reach ready-to-spend buyers. Thus, sellers cannot ignore the benefits of selling to Amazon Prime members. What is Seller Fulfilled Prime? Amazon Seller Fulfilled Prime is a program that allows a seller to deliver products to Prime customers from their own warehouse or third-party (3PL) logistics order fulfillment companies that they partner with. With this, the seller gets to display the Prime badge. Joining Prime also means fulfilling orders with two-day delivery at no additional charge for Prime customers. Since 2005, Prime has ensured two-day deliveries on all orders to their customers for a flat fee paid annually. Certain items are also delivered to customers in a few zip codes on the same day. Hence, products qualifying for the Prime badge are recognized by the 200+ million Amazon Prime subscribers worldwide and are deemed to be more trustworthy and inspire more demand. Amazon says that a 2015 sales analysis recorded a 50% increase in Prime sellers’ sales. [contactus_gynoveda] Suggested Read: How Trust Badges Improve eCommerce Sales? What are the Services Offered by Seller Fulfilled Prime? 1 and 2-day shipping The one and two-day premium shipping service to Prime customers are the standard criterion set by Amazon to be met by all Seller Fulfilled Prime sellers. They ship the Prime orders directly to the Prime customers from their warehouse or 3PL. In some zip codes, Prime shoppers receive same-day shipping for particular items. It is also necessary that the Prime seller uses only Amazon-approved shipping companies and must adhere to Amazon’s set benchmarks. Free shipping A Seller Fulfilled Prime seller displaying the Amazon Prime badge on his listings commits to offer premium one or two-day shipping with no extra charges for prime customers. This free shipping completely depends upon program guidelines. Same-day order processing Orders received must be processed and shipped by 2 PM at the Seller Fulfilled Prime seller’s time on the same day per the program guidelines. Same-day order processing means the Prime order must be checked for various information and sent to the warehouse closest to the delivery location. Pickers must pick up the item, pack, and hand it over to the shipping carrier the same day.  Saturday delivery and pickup Seller Fulfilled Prime sellers offer Saturday delivery and pickup. This delivery and pickup came into being because Amazon recorded less than 16% of orders being delivered to Prime shoppers within two days by Prime sellers as promised. Fewer orders were delivered because most sellers did not work during the weekends. Order tracking Order tracking helps the stakeholders monitor all orders received at every stage through fulfillment status – processed, fulfilled, shipped, and delivered. Order tracking also communicates the regular status updates and ETD (estimated time of delivery) to the stakeholders, including the customer. 99% timely deliveries Gartner says businesses lose 71% of customers because of poor customer service and on-time delivery is the most important metric for customer satisfaction in the shipping industry. Thus, on-time delivery is a key metric and is part of the Seller Fulfilled Prime program requirements. Which Types of Business is Seller Fulfilled Prime for? There are many eCommerce products, ranging from conventional retailing and private labeling to big brands selling direct, retail, selling stocks & shares, real estate, and selling second-hand or used items. While all these products can benefit from the Prime features, it is usually the retailers who have the most to gain. Retailers compete with countless other businesses and stock hundreds if not, thousands of product lines. With the Prime badge on their products, retailers can command more demand than their competitors and achieve massive sales. Seller Fulfilled Prime can benefit brand owners who already manage their shipping to customers. It can also help new brands build up their businesses using Amazon and can encourage them to become multi-channel sellers. Businesses that fulfill their orders are often reluctant to join the Fulfillment by Amazon (FBA) program. It doesn't make sense for companies who have put in the investment and hard work into shipping effectively to then outsource order fulfillment for fulfilling Amazon orders. The Amazon Seller Fulfilled Prime Program makes even more sense for perishable goods or products, such as vitamins and supplements, with low shelf life or specific storage restrictions. FBA warehouses are not climate controlled and need to ship such cargo right away to avoid expiry or damage. Below is a list of products that are suitable for Seller Fulfilled Prime. Although sellers also handle a few items in the below list via the FBA program, the list is for reference only and is by no means exhaustive. Appliances and furniture items High-value products or fragile items Seasonal items that will sell for a few months in a year Perishable items have a low shelf life or have specific storage restrictions such as being climate controlled Products having unknown demand variation Fast-changing fashion items such as clothing and apparel Slow-moving items/products Products shipped in multiple boxes What are the Requirements to Qualify for Amazon Seller Fulfilled Prime in 2025? Amazon takes exceptional care and pays a lot of attention to their Prime members during the purchasing period and product delivery, as it is one of their highest priorities. Hence, Amazon has strict requirements for sellers to qualify for the Seller Fulfilled Prime program. Here are a few of the basic qualifications for the Seller Fulfilled Prime program to be met by the seller:  Eligible sellers or their 3PL partners must go through the Seller Fulfilled Prime trial period and meet the following requirements on a minimum of 50 Amazon Prime trial orders.  Sellers register for a 90-day trial period. Seller’s listings DO NOT have the prime badge during this trial period. Sellers need to complete 200 orders in 90 days. Sellers need to use the free Prime shipping template and must offer Premium one-day to two-day delivery options. Sellers must use shipping services that offer Saturday or Sunday Pickup and Delivery. Sellers should ensure that at least 99% of all Prime orders must be delivered on time. Sellers should provide a valid tracking ID for at least 97% of premium shipping orders. Sellers should achieve a cancellation rate of less than 0.5% of pre-fulfilled Prime orders (by the seller). Sellers should use Amazon Buy Shipping Services for at least 95% of orders (this is when you purchase shipping labels in Sellercentral, and tracking information is automatically added). Sellers should process orders the same day that they are received. Sellers should ensure that orders are shipped out the same day if they are made by 2 PM in the seller’s timezone. Sellers should achieve a feedback rating of 4.5+ to be sustained over a 30-day rolling period. Sellers must offer one-day shipping to 30% of page views of potential buyers for standard-size products. Sellers must offer one-day shipping to 17% of page views of potential buyers for oversize products. Sellers must offer two-day shipping to 74% of page views of potential buyers for standard-size products. Sellers must offer two-day shipping to 63% of page views of potential buyers for oversized Products. Sellers should answer all product queries. Sellers must follow Amazon's return policy. The seller is auto-enrolled in Seller Fulfilled Prime on completing the trial successfully, and the product listing will then display the Prime badge. To continue to be eligible for prime services, the seller must consistently meet all the requirements on a rolling 7-day basis.  Sellers unable to adhere to the Seller Fulfilled Prime requirements will no longer be a part of the Seller Fulfilled Prime program. They may, however, continue to sell their products on Amazon. Top 6 Advantages of Amazon Seller Fulfilled Prime The advantages of Seller Fulfilled Prime are as follows: Increased sales Increased product exposure in the marketplace leads to higher sales. Amazon claims that Seller Fulfilled Prime sellers increased their sales by 50% when they displayed their Prime badge over their listings. Access to the Prime badge gives sellers the opportunity to reach Amazon’s Prime members, whose annual spending is twice that of average shoppers; Forbes says that 46% of Prime subscribers make weekly purchases, versus only 13% of non-Prime members. Displaying the Prime badge ensures the same Buy Box privileges as FBA Sellers. Inventory control By joining Seller Fulfilled Prime, sellers need not send stock to Amazon. For FBA services, sellers need to send the products to Amazon's order fulfillment centers, thereby losing control and visibility of the product. It allows the seller to ship their product from a non-Amazon warehouse, giving them more control of their inventory. This control is especially advantageous if the company is a mature business with multiple sales channels or has a seasonal product that spikes during the holidays. Cost control By using Seller Fulfilled Prime, sellers can do away with order fulfillment and shipping costs to ship their inventory to the Amazon warehouse, thus reducing costs. Such cost control is not possible with FBA, where sellers need to pay both the order fulfillment and shipping charges. Storage rates control Seller Fulfilled Prime gives sellers control over their own warehouse costs. Unlike FBA, where sellers have no option but to pay Amazon’s ever-increasing storage fees, It gives sellers who manage their supply chain efficiently and forecast their sales accurately the opportunity to save big on storage costs. Product flexibility  Product changes or upgrades could lead to last-minute customization of the packaging, which is impossible at Amazon fulfillment centers. Sometimes, the seller may wish to include a booklet summarising the features of the upgraded product or maybe change the labels on the box. Seller Fulfilled Prime sellers manage inventory at either their own warehouse or their 3PL partner's warehouse, giving them more control over their products and customization. Free trial of Seller-fulfilled Prime  One signs up for the Seller Fulfilled Prime trial period free of cost. Amazon FBA fees charge the cost of storing the products in Amazon's fulfillment centers, picking, packing, shipping, and customer service for the products sold. In addition, Amazon takes a commission on every item sold. Sale of products ineligible for FBA Certain items that are not eligible for FBA can be sold through the Seller Fulfilled Prime program. However, one must ship and sell products per the country’s rules and regulations. A few items that one cannot sell on FBA are perishable products, large or bulky products, such as furniture, fragile items, and fashion products, such as clothing. Control over returns and refunds CNBC reported that the retail industry loses $50 billion per year by mismanaging the reverse logistics process which results in increasing logistics costs. Customer returns and refunds have been a serious drawback of the FBA program. The seller must put in a claim with Amazon for a refund. To make matters worse, correctly linking specific items to specific returns despite tracking IDs is a challenge. With Seller Fulfilled Prime, the seller handling his returns can design his own system to stay on top of it.  Seller Fulfilled Prime or Fulfillment by Amazon: What is Right for Your Business in 2025? Both programs allow one to sell on Amazon Prime; however, the similarities end there. FBA and SFP are different, each having its pros and cons.  The key differentiation between the programs is as follows: [table id=13 /] Conclusion: Should You Choose Seller Fulfilled Prime for Your Business? Seller Fulfilled Prime generally works for the following businesses: Businesses with established order fulfillment capabilities meet the stringent requirements for participating in the Seller Fulfilled Prime program. The seller might own a warehouse and have the necessary staff to manage it or have an outsourced 3PL and is looking to outsource order fulfillment processes. Businesses selling heavy or oversized items. Businesses selling products require temperature/climate-control storage. Businesses having slow-moving products that could incur hefty FBA storage fees. Businesses that are able to keep tight control over the returns and refund process. It is challenging for small or new businesses to meet the Seller Fulfilled Prime program requirements and the costs incurred for managing one’s order fulfillment. Small businesses would be better off associating with the FBA program initially since they wouldn’t have the economy of scale that larger sellers enjoy for managing order fulfillment internally.  If the seller saves money on a transaction level by joining the Seller Fulfilled Prime program, the seller must then review the cost savings and see if it is worthwhile to continue. The seller must consider all the pros and cons and the associated value, benefits, and risks of participating in this program. The sellers that leverage their inventory across multiple marketplaces instead of depending only on Amazon benefit the most. Selling higher volumes across multiple marketplaces does make up for any costs incurred through Seller Fulfilled Prime.  Here are a few tips and tricks for Seller Fulfilled Prime sellers: One can shorten the trial period by using one’s fastest-moving stock-keeping units (SKUs). Keep track of one’s customer reviews to ensure customers aren’t confused by anything on your listings. Also, ensure to collect feedback from every customer in the form of a review. Set up Ship by Region to reduce the shipping cost, thus allowing one to offer Seller Fulfilled Prime to particular parts of states. Review one’s performance. Monitor all three Seller Fulfilled Prime-eligibility metrics to enhance the Prime experience for customers—request the defect report from Seller central to see which of the metrics is underperforming. If you are looking for the services provided by Amazon Seller Fulfilled Prime to outsource your order fulfillment requirements, in addition to many more technologically advanced facilities, WareIQ can be the solution for you. Seller Enablement Services_WareIQ Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ’s next-day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in eCommerce warehousing, and data-driven decision making. WareIQ also undertakes strict safety precautions at its warehouses and complete ownership of the operations, thereby minimising the risk exposure of WareIQ customers. Thus WareIQ will definitely prove to be a more reliable and trusted long-term fulfillment partner compared to dropshipping and conventional 3PL companies. [signup] Seller Fulfilled Prime FAQs (Frequently Asked Questions)

April 30, 2022
What is a Warehouse Management System (WMS)? A Detailed Guide for eCommerce Sellers: Features, Types, and Benefits of WMS in 2025

What is a Warehouse Management System (WMS)? A Detailed Guide for eCommerce Sellers: Features, Types, and Benefits of WMS in 2025

The world is now moving towards digital platforms at a supersonic speed. You can find almost everything on the Internet today. This is remarkably changing customer behaviour. Right from ordering foods to getting their favourite camera, individuals prefer online platforms like never before. Moreover, the payment process, shipment tracking, and even returning the product, everything is possible from anywhere, anytime. The overall paradigm shift in the supply chain has put the wholesalers, third-party logistics - 3PL companies, and logistics companies under tremendous challenge. As per the Statista report, in 2022, the number of online buyers crossed the 2.14 billion mark globally. In terms of value, in 2022, the retail eCommerce sales were 5.1 trillion U.S. dollars worldwide, and it is forecasted to touch 7.4 trillion dollars by 2025. There is no doubt that the situation will become more challenging in the future. Therefore, there is a need for an efficient, user-friendly, and fast Warehouse Management System (WMS).  Managing a giant warehouse 24 x 7 is not an easy task. Additionally, it is like a nightmare without an efficient tool when you need to order many Stock Keeping Units (SKUs). WMS is a great tool to manage the entire activities of a warehouse. The WMS handles everything effortlessly from inventory management, stock replenishment, receiving, warehouse put-away, pick, packing, eCommerce shipping, and tracking of the logistics system. It helps you improve productivity and profit through advanced software and technologies. Barcode systems, RFID labeling, hi-tech automated robots for pallet movement, ERP systems, transport management systems, logistics software, augmented and virtual reality wearables, etc. are some of the hi-tech features of WMS. This article will walk you through the basic understanding of the warehouse management system, what is wms system, its features, how and where it fits with the supply chain, and different WMS systems. We will also discuss the benefits of Warehouse Management Software and the future of WMS. What is a Warehouse Management System (WMS)? A warehouse management system is a software solution that provides transparency and visibility to the entire warehouse operations. WMS is efficient enough to manage inventories, order fulfillment, and inbound-outbound logistics deliveries of any single warehouse or multi-location warehouse cluster. It is highly efficient in manufacturing setup and retail industries as it can track every movement of materials. An effective WMS can optimise your warehouse resources and allow you to maximize space utilisation. Moreover, with a suitable investment in the equipment, warehouse management software benefits the organisation by remarkably saving the material movement time. This, in turn, increases the efficiency of the warehouse. WMS reduces human efforts tremendously by tracking the entire material movement on a real-time basis. These software solutions are so efficient that they can trace the exact time of order placement, the pick-pack time, the person involved, and where the product has been transported by which vehicle. [contactus_gynoveda] What are the Features of a Warehouse Management System (WMS)? An efficient WMS offers many features to its clients, and the final goal is to simplify the business process while improving overall efficiency. While planning for a software solution for your warehouse, you must consider what feature tools are required. In general, there is a spectrum of warehouse management system features. Here are some essential features of a sound WM system. · Warehouse designing: The efficacy of a warehouse operation is maximum when it is appropriately designed, depending on the material flow, loading-unloading dock locations, number of materials to be handled, and many more parameters. WMS provides excellent design solutions to optimise the operations. It takes care of every minute detail of inventory management like storage location, pallet allocation, minimum travel path calculation, and many more. · Tracking of inventory: Modern systems can track every movement and reflect the fulfillment status on a real-time basis. Advanced technologies like AR wearable gadgets, RFID systems, and barcoding ensure that every material has its area and vice versa. Moreover, we can get a clear picture of the invoicing data, packing size, space availability, etc. · Receiving and storing: This includes receiving materials from suppliers, checking with the purchase order, and leaving materials at the correct location without any error. Additionally, the inventory is updated on a real-time basis. · Pick, pack, ship: The intelligent warehouse system analyses several parameters and provides solutions for the best way of picking the material from the shelf, packing procedure, and shipping information. This smart software can generate packing lists, invoices, and bills of lading with a single click and can send advance shipping notifications to the clients. · Workforce management: Hi-tech WMS helps the warehouse manager to run the show efficiently. It provides visibility on the resources and indicates human resources availability. Additionally, you can monitor their performances and set KPIs (Key Performance Indicators) for performance evaluation. · Reporting: Reporting is a critical part of a warehouse. It comprises abundant information from receipt, invoices, inbound and outbound deliveries, inventory status, and more. An innovative WMS can generate customized reports in real-time. · Yard and dock management: It assists the dock supervisor in getting a fair idea about available docks and reduces waiting time for the trucks. Moreover, it helps in managing cross-docking and other inbound-outbound deliveries. Where Does a Warehouse Management System Fit into the Supply Chain? A warehouse is the central part of any supply chain. It plays a significant role in running a smooth supply chain by receiving goods, storing them without any damage, timely issuing raw materials and components to the production shop floor, and delivering the correct finished products to the right person at the right time and quantity. For example, suppose the warehouse cannot provide the suitable material or component to the production line on time. In that case, it will hamper the overall production and SCM process, cause a delay in deliveries, and ultimately hinder customer satisfaction. This is a simple example of how warehouse management can impact the supply chain. The modern supply chain operates on visibility and transparency. The warehouse is responsible for providing the correct information on the inventory front, order fulfillment, invoicing, etc. The more efficiently the warehouse works, the more the organisation can fulfill the customer’s requirements. WMS suppliers are hence charting profitable territories. The warehouse profoundly impacts supply chain management's revenue and business strategies. It plays a significant role in improving SCM performance by Efficient storage Strategic location Security Inventory Accountability Fulfillment of orders and warehouse distribution services Economic benefits Value-adding operations What are the Types of Warehouse Management Systems in 2025? Basically, we can categorise it into three major types: Standalone WMS  This is the most traditional form that most organizations use. It is deployed on the company’s premises and uses its hardware system. According to their business complexities, every organisation can do a high level of customisation on this standalone WMS. Though it is a costly option, you can have tighter control over the system. After the system development and implementation, it is the asset of the company, and they need to bear the cost of maintenance, expansion, and updates. Another drawback of this traditional system is the complexity of integration with other latest next-gen technologies. Cloud-based WMS With the introduction of cloud technology, the latest WMS has adopted this platform to provide seamless solutions. You can enjoy the benefit of horizontal implementation at a faster pace. This, in turn, reduces the implementation cost. This system has the next level of advantages. There is no need to use your own hardware and IT resources for implementation and maintenance. The auto-update facility keeps you away from the headache of regular hassle. This system can be scaled up with your business expansion without investing much. Moreover, as it operates through the Cloud, your data is safe from any internal disaster. SCM and ERP-based WMS There are many software solutions that provide an entire system to the organisations for every function. For example, Enterprise Resource Planning software like SAP and Oracle offers a package solution that includes all the functions as modules. They have a finance module, production planning, material management module, inventory management module, and warehouse management module. The beauty of these solutions is, that they are integrated, and all data is linked to each module. Therefore, such systems are capable of providing a holistic picture to the management and offer end-to-end transparency of the supply chain. What are the Benefits of Warehouse Management Systems? There are several benefits of having a robust WMS in place. This helps the organisations improve their efficiency in every facet in the long run. We have listed some of its crucial advantages: Improved operational efficiency: The WMS is connected to many new advanced technologies, which helps streamline processes and reduce errors significantly. Warehouse management software checks every step to avoid mistakes from the inbound receipt to the outbound deliveries. Moreover, with the help of automated tools, the warehouse team can handle larger volumes with less effort and less paperwork. By eliminating the non-value-adding activities (NVAs) and duplication of work, WMS enhances the overall efficiency of warehouse operations. Better inventory management: Inventory blocks a tremendous amount of money in terms of materials but is essential to manage unplanned situations. An efficient warehouse management system in logistics indicates the correct inventory level and defines the min-max levels of items. Based on their usage and the number of picks from the warehouse, WMS indicates the frequent, medium, and rarely used items, which helps in correct material ordering. Moreover, the advanced warehouse management software can identify excess and obsolete inventories and trigger you to take necessary actions. Holistically, to manage a healthy inventory, you need a robust WMS. Improve labour management: You need not worry about labour management if you have intelligent WM software in place. To enhance the productivity of the resources, it can define workloads for the staff and optimise the in-warehouse movement path. It can even indicate the labour requirement and create a schedule for them. Safety is today’s topmost priority, and advanced WMS reveals the possible hazards within the space, ensuring the safety of man and machine. Reduce cost: Modern store management software is smart enough to calculate and advise optimum space utilisation ideas for e-commerce warehousing. It also determines the minimum travel path of the materials to reach the assembly line or loading point. Suppose you adopt the high-tech WMS during the initial warehouse design stage; its advanced simulation will help you to create optimised floor plans. Moreover, it highlights the perfect pallet locations, shelves, and equipment areas to run the warehouse with the highest efficiency, which, in turn, saves you a lot of money. Waste reduction: Modern software is backed up by solid data. WMS automatically identifies and applies the First-in-First-out (FIFO), Last-in-First-out (LIFO), or Highest-in-First-out (HIFO) policy on the goods based on the strategy. In the case of perishable or shelf-life items, this smart system informs you well in advance about the items approaching their end. It triggers you to pick those items first or prompts you for a sales push to avoid wastage. Boost customer satisfaction: Today’s businesses are driven by customers, and boosting their experience and engagement is crucial for success. Top-notch warehouse management software can help to boost your customer delight by improving order fulfillment, quicker deliveries, and fewer inaccuracies. If your WMS is integrated with any CRM software that provides a status update to the customer, it will improve your customer loyalty and brand reputation. Enhance supplier relationship: Suppliers are the pillars of any business. You need a close, transparent, and real-time information-sharing system with your suppliers to have a robust supply chain process. Your WMS can be integrated into the supplier’s system, bridging the gap and establishing a two-way information flow. It makes the process more flexible, and your suppliers enjoy a healthy business relationship. The WMS also benefits as the technology takes the entire industry towards the cloud infrastructure. Advanced cloud-based warehouse management software solutions provide some fantastic benefits as listed below. Fast implementation: Considering the traditional systems, cloud-based WMS is faster to implement. Where the conventional system takes months to implement, the advanced cloud-based platforms can be implemented within weeks, depending on the complexities. Quicker implementation provides minimum interruption to the running business and improves ROI and profit for fast-paced organisations. Fewer upgrade hassles: The beauty of cloud management includes the updates and modifications that occur on the cloud system itself. The vendor takes responsibility for making necessary modifications and changes in the cloud server. There is no need to update the system at regular intervals. It saves time and hassle for the customers. Moreover, it avoids costly customisations like the in-house software. It ensures that you always work on the latest version. Lower upfront cost: Cloud-based WMS is significant in terms of initial and running cost savings. This architecture neither requires any hardware or software installation nor any IT administrator to manage it. Additionally, the auto-updates, installation of the latest version, and modifications help you save tremendous time and money. There is no need to allocate additional resources to manage. Scalability and flexibility: As your business grows, you need to expand the IT systems and WMS. Cloud-based structures are remarkable in terms of scalability. The WMS can be scaled up quickly and can handle more complex supply chain situations. Furthermore, the flexibility of such a system provides a huge advantage to organisations in managing difficult situations. Seamless integration: You may be using different software solutions like ERP systems, software for your accounting process, and likewise for your business. The advanced WMS cloud versions are easy to integrate with your other business software, and you can get an integrated IT solution for your needs. How do I choose the right WMS for my business? There are several factors to consider when choosing the right warehouse management software for your business: Determine your business needs: Identify the specific problems you are trying to solve and the features you need in a WMS system. Research potential solutions: Look for options that meet your business needs and compare their features and pricing. Evaluate the vendor: Consider the vendor's reputation, customer support, and ability to customize the software to your specific needs. Test the software: Ask for a demo or trial version of the software to see if it meets your expectations and is easy to use. Consider integration: If you have other systems, such as an enterprise resource planning (ERP) system or transportation management system (TMS), make sure the warehouse management system can integrate with them. Get customer feedback: Ask for references from other businesses that are using the software and get feedback on their experience. Evaluate the total cost of ownership: Consider not just the upfront cost of the software, but also the ongoing costs of implementation, training, maintenance, and support. What is the Future of Warehouse Management Systems in 2025? With the increasing demand in eCommerce and other industries, there is no doubt that businesses need to deliver the products in the shortest time period. The best possible way to handle such a situation is to manage your warehouse efficiently. WMS is going to solve the major issues of organisations by providing advanced solutions, and the future of this technology looks bright. According to a study, in 2022, the worldwide valuation of the WMS market was USD 4.7 billion, and it is forecasted to touch the mark of USD 8.9 billion by 2030. This shows a significant CAGR growth of 11.1% from 2022 to 2030. But how will the warehousing system reshape itself in these next couple of years? Let us see in detail. Introduction of Robots To manage the mammoth material's inbound and outbound flow, it is evident that warehouse management systems in logistics need automation. The introduction of robots in managing warehouse operations is a must. This revolution has already started, and many companies are offering best-in-class robotic solutions in this area. These robots can move materials to designated places, load and unload materials from vehicles, accurately pick-pack and ship, etc. Cobots, which are collaborative robots, work with humans to enhance productivity. Articulated robot arms and automated guided vehicles reduce human errors significantly and provide a safer environment for the warehouse staff. Drones for WMS Organisations are now keener to implement drones in their warehouse management. Drones are primarily used in different events, corporate activities, and defense purposes. However, their high efficiency, speed, and uninterrupted flow can significantly improve the movement of the materials in the warehouses. Many organisations are experimenting with deliveries with drones. It will not be a surprise to see drones lifting materials from storage racks and issuing them to the shop floor or unloading raw materials from vehicles. Using Smart Gadgets in WMS Renaissance in technology from industry 1.0 to industry 4.0 showed us drastic changes in every facet. We saw the shift of store management from pen and paper to computerised systems and laptops. It is the era of intelligent and handy devices. In the Internet-everywhere environment, WMS can be accessed from anywhere, and you only need a smart device and Internet connectivity. The advanced WMS can operate on any device and operating system. You can scan barcodes and RFID, access the warehouse management system, track inventory, invoice shipping notifications, etc. This makes the system handy, increases productivity, and optimises the man force. Augmented Reality Wearables The popularity of using AR gadgets in warehouse management increases daily. These are innovative gadgets packed with ultra-modern features like scanning, WMS access, auto-counting, etc. These devices can help you identify the exact item code of the component and backtrack the order number, WBS element, and even the customer order number. They remove the dependency on human memory, and thus, will reach the maximum accuracy level in the future. Smart Automated Vehicles and Forklifts Auto-guided vehicles are the best gift of technology to the warehouse management system in logistics. Due to its high buying and maintenance costs, you cannot find these in most organisations. However, the future smart warehouses will be managed by these machines. Software programming enables these machines to operate automatically without any assistance. This will help organisations to reduce operational costs and increase efficiency drastically. On-Demand Warehousing Solution This is another prospect that will be a popular option in the future. It will offer flexibility to the organisations to manage pick situations demands. The additional capacity of the rented warehouse on an as-on-when-required basis will help small businesses spend less on costs. Big Data and Machine Learning Big data and ML are not new terms but the latest introduction to the warehouse management system. For large organisations, it is vital to analyse all the data points related to warehousing and populate them with decision-making templates. Warehouses store a massive amount of data; therefore, in the future, using Machine Learning and Big data analytics will be essential.    You can also read about the top warehousing companies here. Conclusion: Does your eCommerce business need a Warehouse Management System (WMS)? Currently, the business processes are getting highly complex. There are several factors like same-day or next-day delivery, changes in customer demand and expectations, challenges in the lead time, higher competition in the market, etc. To mitigate the ever-changing requirements and stay ahead of your competitors, you need to operate your warehouse efficiently. A warehouse management system can do it for you. If you are planning to set up your warehouse system or thinking of expanding your eCommerce business, it is the correct time to introduce an intelligent and next-gen WMS. It is an investment to increase productivity and take your warehouse operations to the next level. Knowing about WMS and its necessity in today's business environment. You must have thoughts, to access such warehouses to boost your business. You have an option of outsourcing such warehouse plus fulfillment centers run by experts without owning and spending millions on the system. WareIQ provides fulfillment services to amplify your business which not only gives you the benefits of the Warehouse Management System in logistics, but a lot more. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next-day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfillment centers, micro-fulfillment centers & urban dark stores near their customers Access to all major national & hyperlocal last-mile couriers at discounted rates for making same/next day deliveries possible Easy integration across multiple online platforms & marketplaces enhancing multi-channel selling Horizontal marketplaces: Flipkart, Amazon, etc. Vertical marketplaces: Nykaa, Myntra, etc. D2C platforms: Shopify, Magento, WooCommerce, etc. Social commerce platforms: Bikayi Access to a superior centralised tech platform for eCommerce operations ML-based prediction engine for efficient warehouse network design & smart inventory placement Centralised platform for core fulfillment & shipping operations Post-shipping apps for delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels.  WareIQ’s next-day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing, and data-driven decision-making. WareIQ’s WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR report processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. [signup] Suggested Read: Warehouse Management Vs Inventory Management: Which Software is Better? Warehouse Management System (WMS) FAQs

April 30, 2022
How to Reduce Logistics Costs? Top 10 Ways to Reduce Logistics Costs in eCommerce in 2025

How to Reduce Logistics Costs? Top 10 Ways to Reduce Logistics Costs in eCommerce in 2025

Running an eCommerce business efficiently is an arduous task. Managing eCommerce logistics along with constantly thinking of various ways to reduce logistics costs further adds to the woes of owners of operations of online businesses. Expenses line up for the owner even before they set up the website. Although a responsive website and preferred domain cost around a hundred dollars, the eCommerce business demands anywhere between $1000 - $10,000 for a small company and north of $50,000 for a medium-sized start-up. Once up and running, the enterprise starts to demand cash inflow for various other activities like: Inventory: Things that an eCommerce business sells are the priority. Having good quality stuff to sell helps business owners make a brand name. Tying up with worthy sellers to procure the raw material or the finished good is critical for the business's success. Operational Costs: These include costs like incorporation and registration of the company, any legal fees, trademarking the logo, or buying software for internal or customer use. Website Costs: From buying the preferred domain, building and running a website to maintaining a secure payment gateway comes under website costs. In fact, purchasing a server costs around $200, to begin with. Although purchasing an SSL certificate adds to the cost, custom designing and developing a website that runs on all digital platforms alike can cost anywhere above $10,000. Offline and Miscellaneous Costs: From buying an office space to running it, involves rent, infrastructure costs, internet costs, and other maintenance costs.  Hiring and Retaining Staff: Having the right staff is critical for any business; a wrong hire costs around 30% of the employee’s first-year earnings to a company. Marketing Costs: Every business needs a good marketing strategy, more so if running an online store. Creating a logo, branding and ads, physical advertising copies, visiting cards for the employees, building and maintaining social media profiles, and sending customer updates via email marketing, all cost around 10% of the total expenditure as per Shopify. Logistics Costs: A majority of customers consider safe and timely shipping of their purchases as an essential criterion for rating a service. Everything boils down to nothing if the product they ordered arrives in pieces or is ruined. But logistics doesn’t only mean shipping the product from the warehouses to the customer. It embraces many layers that add to the eCommerce logistics costs. Let’s take a look at how to reduce logistics costs for eCommerce business and proven ways to reduce logistics costs according to experts. What is eCommerce logistics? Customers shopping in an online store add their liked items to the cart and head to the payment gateway. However, when they see the details like the expected delivery date or any additional costs associated with the logistics, they tend to abandon the cart midway. Similarly, if the returns take time to process, the customers tend to change their brand preferences. Getting the purchase to the customer safely, timely, and in the most affordable way is what eCommerce Logistics embraces. This includes all logistical and supply chain management activities undertaken to run an online store. eCommerce Logistics is the supply chain movement from the seller to the customer or back from the customer, in case of returns. Businesses running an online store sometimes tie up with logistics service providers to undertake all supply chain-related activities. Here’s what an e-commerce logistics supply chain looks like - Customers demand superfast deliveries and even agree to pay more to get them. India has moved on from one-day arrivals to receive their orders within 10 minutes of purchase for some items. With environmental enthusiasts calling for sustainable packaging solutions every day, the requirement for efficient and eco-friendly logistics has multiplied. eCommerce logistics has scaled manifold in the past five years. It is expected to grow to ₹492.8 billion by 2025 at a CAGR of 23.6% since the escalating demand from tier 2, 3, and 4 cities is driving this progress. [contactus_gynoveda] What are the Costs Associated with eCommerce logistics? An eCommerce business incurs many costs under the head of logistics alone (in simpler terms there are different types of logistics costs). Inventory Cost Managing inventory well requires a lot of planning, workforce, and money. Upstocking more than the demand can hog the company’s cash flow. Keeping less inventory can cause disruption in supply and meeting consumer expectations, thus causing considerable losses to the business. Likewise, many mistakes increase the overall logistics cost for a company: Incorrect forecasting Sky-high production costs Reduced inventory turnover Unexpected overheads Failed or delayed deliveries Mistakes in data keeping Loss of customers Inventory Costs are a function of the following: Inventory Cover or Inventory Days or Days on Hand It typically means, according to the rate of sale of a particular Stock Keeping Unit (SKU), how many days of inventory are we holding? (For example - I have 100 units of an electronics category SKU and my rate of sale is 20 units per day, my DOH or Days on hand inventory would be 5 days) The higher my inventory cover, the higher is storage required. The higher the storage space required, the higher would be my warehousing rental space.                   High Inventory DOH ↑  Higher Warehousing rental space & Cost↑                  High SKU Spead ↑  Higher Warehousing rental space & Cost↑ Every inventory manager must continuously review inventory health and keep an eye on high-ageing inventory. There are multiple data cuts that one can look at in inventory. 1. Pareto of Inventory - 80-20 rule can be applied to look at inventory. Inventory Value (in Merchandise Value terms, used as GMV or Gross Merchandise Value in the E-commerce industry) contributes to 20% of sales.  Inventory SKUs (count of stock keeping units) contributing to 20 % of sales Inventory basis ageing (Ageing of inventory means the amount of time the item has been in a warehouse since its first inbound) Risk of damage, unsold, redundant inventory, expiry Products with high shelf life do not have an issue with expiry, but a company dealing with perishable items (for example - grocery items, fresh category items, FMCG consumable or edible products) have a shelf life of 1 day to 1 year. A high inventory cover poses a risk of inventory getting stuck and potentially liquidated or written off.  Products like general merchandise, electronics, footwear, and apparel with high inventory pose a risk of being unsold and falling under slow-moving inventory. They further pose a risk of being liquidated at <30% of the original value of the item.  So how do we ensure low damages or losses, expiry or unsold inventory?  Review of slow-moving inventory and continuous focus by selling it off before the item loses value in the market. Ensure its visibility to customers.  Sales teams need to keep this a priority. If it is an e-commerce website, ensure the visibility of slow-moving items on the app. Pitch and do curated selling by checking past history of buyer purchasing Stack and store inventory by following storage norms to reduce damages. Packaging materials can be used to give protection to items. Stock verification teams need to check for damages and highlight to correct the inventory. If the company is capable of repackaging an item (with a packaging license available), the company must do so to avoid inventory damages In short, inventory costs impact 2 aspects - warehousing space cost and losses/damages.  The company must work towards inventory points to ensure warehousing space cost is optimized and losses/damages are minimal. Losses/Damages/Liquidation in logistics typically range from 0.1% to 5% depending upon the type of product.  Storage Costs eCommerce companies need to store the inventory, the finished goods in high demand, and returned products. With crunched delivery timelines in the current times, they need multiple storage spaces or dark stores across the country to fulfill customer orders rapidly. All these efforts add to the overall logistical costs. Storage costs can be broadly classified into: Warehousing & Hub rentals  Having the right network design keeps warehousing and hub rentals very low. In the Indian context, rent per sq. ft is a metric most e-commerce companies track. It can vary from as low as 10 Rs/sq.ft to 100 Rs/sq.ft. Companies operating in hyperlocal space have to spend higher as they need to be closer to the demand with quick delivery turnaround timings. Storage Designs Storage costs reduce non-linearly with the usage of shelving or racking. Depending on the type of products being sold, and the velocity or rate of sales, businesses can opt for multi-tier shelving type storage to reduce warehouse rental costs. There are multiple types of shelving and racking options right from long-span shelving to pallet racking which enables vertical storage possibilities with easy retrieval of inventory. The potential to store inventory in an sq. ft increases multifold with racking and shelving. But at the same time, some amount of material handling equipment would be needed for moving inventory which increases the CAPEX costs of the e-commerce company.  Other costs Operational costs such as electricity, repair & maintenance-related, stationery costs, and safety-related costs are part of storage costs. Such costs typically range from 5-10% of the facility or warehouse the company is operating Packaging and Handling Charges Different products need different packaging solutions. If the customers demand sustainable packaging, businesses need to procure specialised eco-friendly material to wrap the products with care. Moreover, fragile products demand extra care and time or temperature-sensitive commodities require expert infrastructure for transportation. Therefore, the company incurs many expenses to pack and handle its products effectively. Transportation Costs The expenses incurred in carrying the finished good to the customer or the returned product to the warehouse form 58% of the total logistical expenditure. If the inventory is not planned well, the transportation bears the burden of additional costs. Transportation logistics costs can be broadly classified into - First Mile transportation Middle Mile Transportation Last Mile Transportation Returns and reverse pick-ups Transportation costs are a function of - Load per trip or Utilization Distance of trip Type of vehicle used to transport Defined commercials for trip Delivery window to customer Type of product being transported Number of drop points [table id=35 /] Related Article: How to Reduce Transportation Costs? COD Charges Due to convenience, around 80% of Indian customers opt for cash on delivery. The delivery partners eCommerce companies hire for the job charge extra for COD for the payment collection from the customer and submitting the proof of delivery to the company. Moreover, the logistics provider incurs additional charges if the product needs to be returned to the warehouse, thus passing on the cost to the eCommerce enterprise. Non-Delivery Reports Failed deliveries cost a lot to the logistics service provider. If not managed well, they can disrupt the supply chain. Every undelivered product needs to be traced back to the eCommerce company. If the reason behind the unsuccessful delivery is not uncovered, the other attempts might fail too. Cost of Labour The supply chain survives through the presence of good employees. They are needed at every step, whether it is packaging, warehousing, transporting, or finding the way to the customer’s house for drop-off. Therefore, finding the right hire is critical for eCommerce companies to continue to exist, and they add to the overall logistics cost borne by them. Reverse Logistics Costs The charges are incurred when a customer opts to return the product to the seller. In such a scenario, the eCommerce company incurs costs for picking up the product from the customer’s place, transporting it to the warehouse, and inspecting and repackaging it for resale or recycling. Insurance Although insurance matters less to most eCommerce companies, the product's security being transported to or from the customer’s place holds utmost significance. The company doesn’t insure a product if it is of less value, but that doesn’t take away the need for top security measures to be in place and for readiness in case of unforeseen contingencies. Having insurance is a great way to lure more customers as it ensures the safety of their order. Many logistics service providers offer to insure their deliveries, and eCommerce companies negotiate the rates with them. Taxes The unavoidable devils of expenses and taxes form a crucial component of the logistics costs. The introduction of GST in 2017 condensed multiple taxes into one, but it still consumes a significant share of revenue earned by eCommerce Logistics companies. A variety of factors influences all expenses. Let's understand what those factors are for the logistics costs.  What Factors can have an Impact on eCommerce Logistics Costs? Consumer Expectations Like the others, eCommerce businesses take customer expectations and feedback very seriously. To address the growing consumer demand for shorter delivery timelines, even eCommerce startups invest heavily in dark stores and multiple warehouses across the nation, thus increasing logistics costs. They bring down product rates to lure more hits to the website as the quality goes up irrespective of the price tag. Technological Advancements AI and Machine Learning have entered the supply chain and are revolutionizing how eCommerce warehousing and distribution work. eCommerce companies are using superior software to drive the supply chain. Information is key in the logistics business, and improved online supply chain platforms assist logistics managers in carrying out tasks related to inventory, warehousing, transportation, and order management quickly. Having a solid tech backbone enables better information processing and, thus, better decision-making. Decision Support Systems (DSS) also give businesses the desired competitive edge. Economic Scenario A country's financial performance and regulatory framework influence eCommerce and the supply chain industry. When GST was introduced in 2017, it changed how taxes worked in India, especially in the supply chain industry. When the distribution had halted except for essential goods during the pandemic, the eCommerce industry was among the worst affected. The businesses couldn’t deliver despite the demand, and the industry faced losses more than ever before. Logistics is a critical industry that influences global trade. It generates employment, income, and infrastructure and invites foreign investment. However, a vicious cycle of influence runs between the industry and the economy. One cannot function while the other suffers.  The Emergence of Global Brands The entry of Amazon changed the face of eCommerce in India. Such global brands with deep pockets pushed the Indian eCommerce players to think creatively to secure their share in the vast market of Indian consumers. Soon, the war was not limited to mere price tags. It also spread to product quality, delivery timelines, and returns policies. Everything combined, the Indian eCommerce logistics has borne the brunt of escalating costs and consumer demands due to intense competition in the sector. Weather It is not just pizza that gets delayed in a hailstorm. eCommerce suffers as an industry due to poor weather, which directly affects the physical movement of goods. The weather seems to be a prominent factor that impacts the speed of this industry. However, climate change isn’t far behind. Climate change has been causing severe disruptions globally, and eCommerce is well aware of the indirect costs it is bound to bring. The above simple example of a failed delivery snowballs into reverse logistics costs, unmet customer expectations, wastage of perishable produce, expenditure on fuel and person-hours, and the resulting monetary loss. Fuel Prices Fluctuations in fuel prices trigger a chain reaction in logistical costs. All modes of transportation run on fuel, and steady fuel prices mean cheaper transportation costs. In case of an upsurge, even if the eCommerce company tries to save costs in other areas, it boils down to nothing as the fuel price hike burns down the additional savings. Package Dimensions Weight and dimensions play a significant role in eCommerce logistics costs. The heavier or bigger the package, the higher the transportation cost. Moreover, some odd-sized packages require specialised transport, which demands more money. eCommerce companies employ various hacks to save costs here. Using fitted packaging or intelligent ways of wrapping help save costs associated with weight and dimensions. Delivery Timelines As mentioned earlier, the international giants introduced tighter delivery timelines in the country, which fueled the competition in the eCommerce industry and pampered the customer’s imagination. While most players now have similar deadlines, they endure steep expenditures due to strict targets. Surcharges From public holiday extras to the cost of reaching a difficult-to-access destination, surcharges vary in range but add to the overall cost of eCommerce Logistics. With so many ingredients escalating the final number and a multitude of factors affecting the eCommerce logistics cost, it becomes imperative for corporates to adopt ways to reduce it. But how can eCommerce companies reduce logistics costs? Here are ten sure-shot hacks to reduce logistics costs and achieve them efficiently. 10 Efficient & Practical Ways to Reduce Logistic Costs for E-commerce in 2025 Source Here are 10 Proven Tips by experts for year 2025 to reduce logistics costs/ reduce transportation logistics costs for your online business; Partner with a 3PL Provider Sometimes, a business needs another pair of hands to delegate tasks and ease their workload and get an expert or a different opinion on managing work. That is why many eCommerce businesses outsource logistics to a third party that is an expert in customised supply chain solutions and can help them reduce logistics costs. These 3PL fulfillment service providers are professionals who can analyse and suggest ways to cut costs and still meet customer expectations. For instance, they can recommend the best means to widen the customer reach and shorten delivery timelines. Their services range from warehouse management, inventory management, transportation and distribution, technology solutions, and reverse logistics. However, the most critical service they provide is delivery, as it deals with the end consumer. Keeping storage spaces closer to customer hubs where a business receives most orders is a foolproof trick to improve delivery timelines and save costs. But not every business can afford to open a dark store or a storage center in various parts of the country. Buying or renting such spaces burns a hole in the logistical pockets of eCommerce companies. Logistics partners like WareIQ assist eCommerce companies to reduce logistics costs and ward off logistical nightmares by providing storage spaces closer to customers across the country.  But before signing up with a 3PL partner, eCommerce companies should ensure their end goals and vision sync with the logistics provider. They should be able to customise services per the company’s requirement and provide specialised handling services for fragile, delicate, perishable, and time-sensitive orders. But most importantly, they should give a bouquet of delivery options to ensure order fulfillment in case of contingencies. Read the blog on best 3pl for small businesses to understand factors online businesses should consider before choosing a 3PL Collect Data Extensively All good decisions have one thing in common. Availability of data in abundance. eCommerce players survive and grow on data collected from their customers, sellers, logistical partners, delivery personnel, suppliers, government, and other players in the industry. eCommerce companies need to know every pinhole that might be leaking revenue out of their systems.  But that’s not it. The data collected needs to be analysed well to churn out information that decision-makers can use. Good technology helps a lot in analysing and processing data. This is a proven way to work on ways to reduce logistics costs. Employ Extensive Tech To reduce logistics costs, a company needs to automate warehousing, transportation, and distribution. Many eCommerce companies looking for hi-tech solutions employ Warehouse Management Systems (WMS), shipping aggregators, or delivery tracking apps to manage operations. Some even use automatic container loading systems in their storage spaces to save staffing and time and prevent damage to the goods.  But the world has moved past these tools. Instead, AI and ML have changed how technology operates and adapts to businesses. For example, WareIQ offers a comprehensive, streamlined platform to keep a tab on warehousing, and delivery and drive customer engagement. These tools also help eCommerce players collect, store and analyze data and have been proved by experts to reduce logistics costs. Locate Suppliers Closer to Customers A business’ preferred supplier in Cochin could make it difficult to transport products to its distribution center in the East or most customers in the tier-3 town next to Patna. To reduce logistics costs and save time, the company must find sellers close by. A good seller next door is better than the best associate a thousand miles away. Consolidate Shipments Businesses must look out for consolidation opportunities for their shipments to a single location or team up with other shippers to increase and fully utilize their truckload. Both these techniques help reduce logistics costs for them and save time.  While consolidating their shipments, companies must use industrial-grade floor weighing very accurate scales. Reduced weight discrepancies lead to lower logistics costs hence help to reduce logistics costs. Moreover, rethinking and optimising their delivery routes is essential while combining shipments to a location to reduce transportation costs. Optimise Storage/ Reduce Warehousing Rental Cost Warehousing consumes a significant chunk of a company’s revenue and contributes around 10% to the total logistics costs incurred by corporates. ECommerce companies must optimise storage capacity by collecting in-depth data and adapting superior technology and out-of-the-box techniques. eCommerce companies need to analyse their storage, inventory, and order management systems to ensure no resource goes waste. They should minimise spaces and increase density for good optimisation to reduce overall costs of the supply chain, hence helping in reducing logistics costs.  Another trick is to reduce the inventory for items that don’t sell much or categorise items based on their rate of return. This way, companies can save time and space. The Supply Chain Planning team needs to build projections of sales basis on which warehousing rental space needs to be triggered keeping in mind at least 90% utilization of rental space. Any underutilization will lead to high fixed costs. The team scouting for warehousing space needs to ensure low Rs/Sq Ft Buy Packaging in Bulk A simple yet effective technique. Businesses should buy packaging material in bulk to save money and time. They could strike a deal with their preferred supplier for a regular supply of the wrapping ingredients in bulk. If the company is into eco-biodegradable packaging, purchasing in bulk can help reduce logistics costs. Define the KPIs A business cannot improve what it cannot measure, in order to reduce logistics costs one should define its KPIs. The extensive data collection techniques don’t serve any purpose if the companies don’t have performance indexes to measure them against. Therefore, all eCommerce companies must define their key performance indicators to measure their performance regularly. Beginning from delivery success rates to return rates and the level of inventory wastage, everything needs to be appraised. Ascertain All Costs Every business incurs some fixed and variable costs. Companies need to keep a tab on and strive to reduce individual expenses. For instance, preventive maintenance is a fixed cost but an indispensable expense, but varying shipping costs can be trimmed and we can reduce logistics costs through various tricks discussed above. Reduce Cart Abandonment Cart abandonment proves that the customers like what you are selling but not the overall proposition. In most cases, the biggest reason occurs to be the figure flashing on the checkout page. Other reasons are the delivery timelines or simply the additional shipping charges. Either way, it costs the company a customer as that buyer is unlikely to return to shop at this portal.  ECommerce businesses need to reduce their cart abandonment rates. A trick to do this is placing a minimum order quantity for purchase to get free or faster delivery.  MOQs increase revenue, which helps in managing logistics costs. Companies can keep a minimum order quantity while ordering pushes the users to add maybe one more item to get quicker or free delivery. As a result, they receive what they like, and the business gets closer to its profit margin besides being able to reduce the abandonment rates for shopping carts. Conclusion eCommerce companies face a cash crunch due to intense competition for prices and services and the flaws in the country's logistics infrastructure. Since logistics plays the most significant role in their success story, they must scout for solutions to reduce logistics costs. The right tools and significant associations make the uphill task i.e to reduce eCommerce logistics costs easier. Managing logistics in-house while focusing on the reduction of logistics costs is a difficult task for online businesses. Hence, it's advisable to outsource logistics to the best fulfillment services partner like WareIQ. Established in 2019, WareIQ, a Y-combinator-backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ's fulfillment platform optimises delivery speed, reduce logistics costs & customer experience through the 4 steps mentioned below: Sellers send their stocks to WareIQ's Regional Distribution or fulfillment centers WareIQ Intelligently places inventory across its network of 20+ FCs WareIQ picks, packs & ships orders across the online/offline channels WareIQ's Recommendation engine to choose from a wide network of courier service partners and prioritize shipping speed and logistics cost, with access to WareIQ Rush for same-day delivery  [signup] Reduce Logistics Cost FAQs (Frequently Asked Questions)

April 30, 2022
10 Best Last Mile Delivery Management Software for eCommerce in 2025

10 Best Last Mile Delivery Management Software for eCommerce in 2025

In today’s internet-driven world, most of us prefer to use our smart devices to manage our daily requirements. Starting from buying an expensive car to ordering essential groceries, there is a website or an application for every need. The most significant aspect of such websites is eCommerce shopping, which has become an indispensable part of the retail framework.  In this exponential growth trajectory of the eCommerce industry, last mile delivery plays an important role. Last-mile delivery is the journey of the final product or service to the customer from the final distribution hub. This is the most significant part of the overall eCommerce logistics process as the customer’s ultimate experience depends on it. In addition to this, the last mile involves substantial costs in terms of fuel, transportation, and other important aspects. The eCommerce fulfillment ecosystem is heavily dependent on on-time delivery. This is where the importance of last mile delivery management software comes in. Several last-mile delivery management software packages are available in the market that help in providing last mile software solutions to delivery issues and are also helpful in tracking and managing the final logistics.  Additionally, it boosts profitability by reducing logistics costs and other expenses.  This article will provide a brief about the last mile delivery process, its importance, and how the best last mile delivery management software can benefit your business. Stay connected. What is Last-Mile Delivery? The final lap, or the last mile delivery, is a significant process in the entire supply chain network. The journey of a product starts from the production house to the warehouse shelf and then gradually moves to the transport vehicle before finally reaching the end customer. There are several points where the product is housed, known as hubs. It is the final journey of the product to reach its ultimate buyer.  Last mile delivery is vital, not only from the shipment point of view but also from the customer point of view. It dramatically enhances customer delight and, in turn, helps in customer retention. It is the costliest and most time-consuming part of the overall logistics chain and could result in higher logistics costs if not managed efficiently.  [contactus_gynoveda] What is Last Mile Delivery Management Software and why is it Important? Last mile delivery is the final ride of the product to reach the buyer's doorstep. But as far as delivery is concerned, it may not be as simple as it sounds. The reason behind its complications is that the delivery driver needs to handle a lot of shipments of different customers in a single go. And there are numerous stops and routes that the vehicle needs to cover.  To manage the complicated process, software solutions provide services known as last mile delivery management software to last-mile delivery companies. These are advanced and feature-loaded products that offer considerable benefits to the overall supply chain, especially to the end customers. Last mile logistics software solutions can manage large volumes of customers and their orders. With live updates of the shipment status, both the logistics team and the customer can track orders and take necessary actions to mitigate any issue. It is imperative to deliver your product or services in the shortest possible time in this ever-changing business scenario. Due to the evolution of technology, customer expectations have changed significantly. And if you want to stay ahead of your competitors, you need to be intelligent, agile, flexible, and fast. No matter how great your products are, you will definitely lose the market if you fail to adhere to your delivery commitment. Therefore, in any business, supply chain and logistics are gaining attention and can help businesses regulate and de-clutter their eCommerce shipping processes. Read our blog on shipping aggregators to understand how they streamline your shipping and distribution process. Last mile delivery management software can give you the live status of the delivery at ground level. Such software provides information about details like the vehicle location, delivery status, information about ETA, and more. You can do a detailed analysis to improve the process, manage any complaints, enhance customer delight by reducing the delivery time, and much more. In this market scenario, last mile logistics software is a necessity, particularly for eCommerce businesses. What are the Key Benefits of Using Last mile Delivery Management Software? Customer experience is the key brand differentiator over price and quality. If your product can enhance customers’ delight, you will receive orders and if your last mile logistics software can ensure your customer receives your product on time, you will receive what most eCommerce shipping companies strive for - positive customer feedback. But how do the supply chain and logistics help brands to improve customer experience?  It's through the last mile delivery, your final touch can make or break the deal. You can see that most of the eCommerce players are now advertising the shortest delivery time as their unique selling point (USP). Same-day delivery is now standard. With this, organizations can now meet the ever-changing customer expectations. Let's check how last mile software solutions can benefit your business: Improves Shipment Visibility As per Gartner, visibility is one of the most significant challenges in the last mile delivery process. Businesses need to get clear visibility of the final lap as this completes the cycle. Last mile delivery management software provides real-time information regarding the final delivery process such as providing the pre-defined optimum route, identifying any delays in deliveries, idling time of the delivery van, and other things. Last mile software solutions are excellent for predicting the final delivery time and committing accordingly. You can better control your fleet process and avoid theft, pilferage, and spoilage. Helps in Route Optimization There are opportunities to improve your business process in every aspect. But you need to measure the elements first. An enterprise-grade last mile delivery management software helps you understand the best possible route to reach the maximum touchpoints and avoid unwanted delays. Drivers get real-time updates regarding the best-optimized path to ensure the fastest delivery. Such software is beneficial to cover the maximum number of deliveries within a short time period and increase savings in terms of fuel consumption. Enhances Customer Delight last mile delivery management software helps to integrate your delivery system with end customers through informative messaging and web updates. These platforms enable customers to have end-to-end visibility, and they can track the shipment on a real-time basis. From order placement to final delivery, buyers get information at their fingertips.  Last mile software solutions even share the estimated arrival time with the customer after they place the order. These updates - delivery notifications and updates regarding any delay - boost customer engagement and enhance their delight. A great customer experience is key to a successful business. Introduces Flexibility in Delivery The last mile delivery management software is developed, keeping the practicality of the customers in mind. In today's busy schedule, it is expected that you may not be available at the delivery destination. The advanced software allows you to update your delivery location and time, making the overall delivery process more agile. Boosts Productivity and Scalability Last mile logistics software is highly advanced and responsive. With the help of the latest technologies and tracking systems, these platforms provide live updates about traffic routes to help the fleet avoid unplanned diversions and unnecessary idling. Taking the optimized route saves time and helps the driver complete the maximum number of deliveries, which increases the fleet's productivity.  Most last mile delivery management software solutions are excellent in terms of scalability. They are developed keeping future expansion in mind as eCommerce businesses have tremendous growth potential. Even in case of in-house workforce scarcity, these platforms can help you connect with third-party (3PL) delivery providers to manage situations without any hassle.  Increases Profitability The overall goal is to increase the profit of your business. With all the features and benefits like quick delivery, route optimization and fuel-saving, managing delivery resources efficiently and the ability to enhance customer satisfaction, these platforms increase your profit margin significantly. Last mile software solutions provide a lot of data, which you can analyze to improve your logistics system. Boosts Transparency Supply chain and reverse logistics are highly dynamic processes that cannot operate efficiently without transparency. With the help of last mile delivery management software, supply chain managers can track every data point, starting from the date and time of order placement. They can get information as to who placed the order, what is the exact SKU, and which one is the nearest hub to deliver, among others. Such information is provided by last mile software solutions. Additionally, they can share the estimated shipping date and delivery time with the customers to make the delivery process even more transparent. 8 Factors to Consider While Choosing a Last Mile Delivery Management Software in 2025 You must be thinking about how to select the best last time software solution provider that suits your requirements. Selecting the best last-mile logistics software is a daunting task. You need to consider a number of parameters and points before you opt for a solution provider.  You can read the following list of important things you should consider before finalizing a software company: Pricing Model Budgeting is an essential aspect of any project. Choosing the right last-mile delivery management software for your eCommerce business needs a deep understanding of the available budget. It would be best to think about the quality, features, user-friendliness, flexibility, scalability, and aesthetics before thinking of the cost. This will be the tracking mechanism of your business that can make or break a deal. Ideally, it would help if you considered the long-term benefit and not the short-term one. Coverage Area The network coverage area that the last mile delivery software service provider offers is a vital aspect. As this is a network-based system, the software should cover the maximum area where your business operates. Along with this, checking the responsiveness of the network is a must. If the software faces a significant amount of downtime, it may cost a lot for your business. Dependability Before joining hands with a third-party last mile delivery management software provider, you should check the dependability factor, as in how much reliable it is. For a long-term venture, a trustworthy service provider is required to significantly benefit your business. Check their clientele and portfolio, and visit their website and social media to get a clear picture of their service. Going through customer reviews and ratings is a good practice. Payment Methods Nowadays, several payment options are available. And people use them at their convenience. Therefore, it is indispensable to check if the last mile software solution provider offers all possible options like e-wallets, bank transfers, UPI payments, cash-on-delivery, and credit points. Suggested Read: Which is the Best Cash on Delivery Courier Service in India? Transparency and Visibility To provide a fantastic eCommerce shopping experience, you should prefer a last mile delivery management software that offers you thorough real-time visibility and transparency. A live update and a superior interface and notification system greatly benefit the business for thorough tracking of the entire process. Customers want to get updates on the progress on different platforms like SMS, email, and WhatsApp, and your last mile software solution should be able to provide that. Customer Care Service After-sales service is a crucial part of any business. But unfortunately, many companies do not bother to resolve after-sales issues. Most of the time, businesses focus on generating new prospects as that pays off immediately. But poor customer support drags down all your efforts. Excellent after-sales support is the key to enhancing customer experience and retaining existing customers. And a happy customer will be your advocate at no cost. A mere 5% increase in customer retention can help you raise your profit by 25%.  Proof of Delivery Feature Your last mile delivery management software should provide the feature of proof of delivery (POD). The main aim of a supply chain and logistics team is to deliver the right thing at the right time to the right place. POD is a document that ensures that all the points are completed flawlessly, which helps to avoid any future ambiguity and gives you peace of mind. It can include a signature, a picture of the delivery, or a note from the receiver. Ease of Integration A last mile logistics software cannot perform well independently. It needs to work efficiently with other applications like Google Maps, Shopify Fulfillment, Salesforce, Oracle, Microsoft Dynamics, SAP, Amazon Web Services, etc. An easy integration process helps you avoid restructuring the entire tech stack. Search for a platform that plays nicely with advanced tech and absorbs updates efficiently. 10 Best Last Mile Delivery Management Software [Updated List 2025] Tookan Delivery Management Software Source Tookan is one of the most popular last mile delivery management software options available. It helps organizations to modernize their delivery systems and reduce overhead costs. It is the most accessible solution for eCommerce businesses, and companies operating with Tookan are benefitted in many ways. Key features Tookan dashboard helps to get all the details in one place and can be customized as per your requirement. Tookan logistics is highly efficient in managing same-day deliveries. Tookan mobile app offers many facilities to drivers and field operators. From taking proof of delivery, and reminders, to notifications, to-do lists, easy navigation, and bar code generation, everything is possible through Tookan. Upper Route Planner Source This is one of the most advanced logistics solution providers, especially in the last mile logistics field. Upper Route Planner can handle one-day delivery efficiently. It has numerous features like route planning and optimization, a robust reporting system, real-time fleet visibility, etc. Key features It has a unique one-click dispatch feature. It helps the manager dispatch, multiple drivers, over multiple routers with a single click, making the process very efficient.  You can download excel or CSV reports from the system for further analysis.  With its planned and advanced scheduling, you can improve the time management and productivity of the logistics team. Onro Last Mile Delivery Software Source Another leading last mile delivery management software player is Onro. It offers services to businesses of all sizes, and its unique features consistently help it to stay ahead of its competitors. Key features Onro is highly customizable. You can play with its design and aesthetics to match your expectations. It offers a white-level branded shipping page to its customers, i.e., your customers can see your brand logo whenever they open the application to track the shipment. Another cool feature of this software is that it offers a number of language options to make it more user-friendly. The real-time updates are highly reliable, and you can chat with the delivery agent to provide any specific instructions. Onfleet Last Mile Delivery Software Source Onfleet is one of the leading logistics companies that offer a last mile software solution. Based out of San Francisco, this company operates in more than 90+ countries globally and provides efficient solutions to untie the knots of the final lap delivery process. Key features Hitech Artificial Intelligence powers the application of this company. Onfleet can provide real-time information about weather conditions, traffic congestion, and optimized delivery routes. The efficient auto-dispatch feature allows the closest delivery vehicle to pick up the material and arrange for the delivery. The live tracking of this application works amazingly fast. It relays the actual status of the shipment to the delivery team as well as to the customer. It offers a POD whenever the delivery is done. Shipsy Last Mile Delivery Solution It is one of the best third-party logistics platforms in the Middle East and the Americas. It is headquartered in Dubai and India. Starting in 2015 with only ten people and two customers, this platform now handles 150+ clients globally. Shipsy provides the last mile delivery management software to e-retailers and ensures your product reaches its destination within the ETA. Key features Its application is integrated with a real-time route optimization engine which offers a multi-stop dispatch. The entire process of delivery, right from the pick up from the hub to the final destination, is transparent and visible.  With its fantastic features, this software can select the delivery vehicle and allocate delivery packages according to the size of the vehicle to utilize the maximum space. You can get the delivery reports and use those to analyze and improve your business. GSMtasks Last-Mile Delivery Solution Source GSMtasks is a brilliant last mile delivery management software that helps you to manage the entire fleet of vehicles, drivers, and technicians. It helps in optimizing routes, checking working conditions, analyzing customer reviews, etc. Key features Delivery drivers can check the to-do list from the mobile app itself. It shares the ETA and duration of each delivery with the fleet managers and the drivers. It offers tremendous automation to back-end employees, saving time and resources. Customers can change the place and time of delivery, and all changes will reflect on the delivery software. LogiNext Software Source The company provides unmatched customer experience in terms of last mile delivery management software. Loginext is currently providing services in the US, Indonesia, Singapore, and the UAE. Key features The dynamic rerouting feature helps the driver take the best suitable route to avoid traffic congestion, resulting in faster delivery. Along with all the digital payment options, this company provides a cash-on-delivery option.  The software accommodates the facility if the customer has opted for a COD option and finally wants to pay electronically. HyperTrack Last Mile Software Solutions Source HyperTrack uses the most advanced technology stacks to build unique last mile software solutions. Through its no-code and low-code infrastructure, HyperTrack helps develop flexible, scalable, and feature-loaded applications for the future.  Key features Its advanced no-code and low-code development architecture help developers create amazing applications in no time. Its accuracy level is top-notch. This platform uses AI-based technology, which offers a competitive edge over its rivals. G2 Deals Ecommerce Last-Mile Delivery Management Software Source One of the largest and most trusted software marketplaces is G2 Deals. This platform helps millions of people decide on software purchases through its great reviews and comments. G2 Deals help companies select the best delivery management software as per delivery requirements. Key features You can get authentic reviews and ratings on the last mile delivery management software to make a wise decision. It provides research reports, category taxonomy, and service provider profiles to give you the best solution. Track-POD Last-Mile Delivery Software for Ecommerce Source Track-POD is another provider that works through an application. You can easily download the app on android and iOS devices. The most exciting part is that this application offers a free seven-day trial, giving you full access to its features. Key features It is user-friendly and simple for newbies to navigate its features and pages. The geotagging system provides accurate real-time updates about the traffic condition and optimized route options to the drivers. No paperwork or physical signatures are required. If you want a POD, the customer needs to sign on the delivery person’s mobile screen. The accuracy level is very high. Conclusion: Does Your Business Need a Last-Mile Delivery Management Software? It is indispensable for eCommerce players to have the best final delivery process. Last mile delivery is now the only differentiator as customers are keen to get their products quickly and in excellent condition. The last mile software solutions provide significant benefits to businesses by making them simple, visible, and profitable. So if you are into an eCommerce business or planning to enhance your customer delight through exceptional last mile delivery service, your business needs a last mile delivery management software. WareIQ can help provide software solutions, not only to manage your last mile delivery, but a whole host of other services to enhance your entire fulfillment experience. The distance of the final shipping center from your customers’ location is one of the major factors that can determine how fast the last mile delivery can be performed. The closer the fulfillment center is to the final delivery location, the faster it can be delivered. It also implies that you will be travelling a lesser distance to make that delivery, saving some transportation costs. The math is direct, and this directly affects the volume and costs involved in handling your return orders too. How WareIQ is able to solve the challenges in last-mile deliveries? The distance of the final shipping center from your customers’ location is one of the major factors that can determine how fast the last mile delivery can be performed. The closer the fulfillment center is to the final delivery location, the faster it can be delivered. It also implies that you will be traveling a lesser distance to make that delivery, saving some transportation costs. The math is direct, and this directly affects the volume and costs involved in handling your return orders too. WareIQ is able to bring your inventory closer to your customer with its PAN-India fulfillment network. For example, Organic Riot, a consumer brand was able to leverage this network to perform a 2-day delivery to over 85% of their orders. This was only 22% earlier when they shipped through their central warehouse. With WareIQ handling the logistics, the return rate was reduced to just 3 percent. In another instance, a prominent D2C brand faced a high RTO rate (25-30%) due to various last-mile challenges like non-verified COD orders, fake delivery attempts by courier service partners, and slower shipping speed. WareIQ enabled COD and NDR verification through automated SMS and IVR calls to prevent these issues. It was also possible to bring their inventory closer to demand centers using the fulfillment network in metros. This resulted in a reduction in the RTO rate to just 6%. For last-mile delivery, WareIQ acts as a shipping aggregator and gives an option of 20+ last-mile delivery partners to the eCommerce clients to choose as per their choice & convenience.  [signup] Last Mile Delivery Management Software FAQs

April 30, 2022
What is Warehouse Management? Definition, Benefits, Strategies and Latest Trends in 2025

What is Warehouse Management? Definition, Benefits, Strategies and Latest Trends in 2025

Proper warehouse management is essential for the success of any business. If you sell goods, you must have a place to store them. These places are often fulfillment centers, distribution centers, or warehouses. You can purchase land and buy equipment, but many things need to be considered when managing inventory. You can have the most modern and state-of-the-art warehouse but if it's not operating efficiently, you will have lower profit margins, high operational logistics costs, ineffective leadership, and damaged customer relationships. What is Warehouse Management? Source Warehouse management spans all aspects of operation, from accounting to inventory. It includes receiving and supervising employees, as well as planning supplies and monitoring the flow of products through the warehouse. It is a very important aspect of eCommerce because much of the process of order fulfillment begins at a warehouse so efficient warehouse management is needed so that orders are picked, packed, and shipped efficiently and in the least amount of time possible. [contactus_uth] What are the Benefits of Warehouse Management? A warehouse is an invisible process that works to ensure that the customer gets their product on time. The operations are central to the success of any warehouse, and good management helps these processes run efficiently. Some benefits of warehouse management are: Optimized Space and Lower Operating Expenses  Warehouse management seeks to make the most efficient use of available space by determining the area size and analysing the floor plans. This determines where and how products can be stored, such as placing in-demand products and products close to expiry at the front, the rate at which products can be located, either to be shipped or packaged and results in the saving of time, resources and money. Inventory Visibility  Warehouse Management can also give insights into inventory levels for various products in multiple categories. This helps retailers to accurately forecast demand and avoid over-stocking or shortages. Effective Labor   Warehouse management enables maximum utilization of labour by intelligently assigning them to a specific warehouse based on their proximity, their availability, and their skills to ensure the highest levels of productivity and the complete mitigation of underutilization. This, in turn, saves on time, and money spent on labour and removes any chance of manual delays.  Traceable Materials  Warehouse management enables the traceability of inventory because products are grouped in sensible ways such as by demand, perishability or expiry date. All products have serial numbers which makes them easily identifiable in any given situation. Optimized Supply Chain  Warehouse management is designed to optimize existing processes within a warehouse, which can also extend to the external supply chain. WMS systems can troubleshoot any activity that is causing a delay and suggest methods to streamline those activities to mitigate such a delay in the future. It can also remove any unproductive activities from the process to ensure maximum productivity is being achieved. This helps in saving resources, time, effort, and money. What are the Various Strategies of Warehouse Management? By optimizing warehouse operations and managing inventory, warehouses provide the best services for clients. Warehouses that have poor strategy will have increased costs and wasted capacity. Quality warehouse management companies use a client-focused approach to their warehousing strategies. They provide logistics services to clients to support customer demand. The top expense of any operation is the labour required. Nevertheless, 3,000 hours each year are wasted due to inefficient planning of operations. If you're searching for strategies to increase your profits and lower costs, look at these nine ideas to improve your earnings. Use Sales Forecasts It's essential to use both past and future data when strategizing your warehousing. By thinking about how many orders will come in, you'll be able to plan accordingly. Planning for the future ensures that none of your employees is overworked. Having this strategy in place every quarter will help you foresee any potential problems and take appropriate measures to fix them. These strategies are especially useful in warehouses with heavy volumes, as they provide needed relief to your employees. Determine your expenses  It is possible to increase your revenue by reducing expenses. For example, there's a lull in dock activity during the last week of every month. It is an opportunity to reduce costs in labor and equipment. Still, without first figuring out where you need to invest money in your warehousing strategy, you won't be able to plan appropriately. Automate your processes Warehouses can use automation to increase efficiency by providing support for operations and analytics. The warehouse's needs determine the type of automation used. Companies often make life more difficult by using inefficient or ineffective technology. Make sure the software you choose is tailored to your day-to-day operations. Too much technology can be a distraction to your employees. Find that balance between state-of-the-art features and simplicity so employees can quickly transition as they would with an old system. Choose the right location When seeking a warehouse, find one where the talent is plentiful. Choose a location for your warehouse that provides access to the best possible employees for your specific needs. A competitive employer will find a place in reasonable proximity to its workforce when feasible, rather than being directly in the area of other businesses that might take away your talent. They also try to find a location within reasonable commute distance for their staff. Get rid of old inventory Unless you're selling long-term storage space, inventory that doesn't sell costs you money. Space is the primary factor in any warehouse and must be treated as valuable. Clear out your unused merchandise. When you find that the items you carry don't sell or only sell marginally, you could be stuck with them longer than desired. Getting rid of these products and saving space is an opportunity to make some profit. Choose centralized Warehouses Warehousing is a popular strategy in warehouse management, against the traditional use of smaller, regional warehouses. Companies see the benefits of a larger facility that serves the same customer base due to increased savings. Warehousing is cheaper, which means that the logistics of processing orders will also be more affordable. Warehouses require transportation, staffing, security, climate control, and lighting, which often leads to increased costs when there are many facilities. A centralized warehouse can take care of this issue.  Outsource To third parties Some companies outsource their warehouse management requirements to a lower-cost alternative that doesn't sacrifice quality to optimize profitability. Logistics providers understand warehousing well and can provide relevant information to help companies to improve quality while reducing costs. Read the blog on eCommerce Logistics Companies to know the benefits of partnering with them. Public warehouses are attractive to companies that outsource their emergency or temporary storage needs.  You can also see many other services related to logistics, such as shipping aggregators, freight transport, rail and receiving, container delivery, and import-export logistics. These work well for clients who want full-service logistics for an as-needed basis at an affordable rate. Use Electronic Monitoring Systems Warehouses are no longer reliant on security patrols to maintain safety. While security staff still poses a vital function, warehouses employ technological solutions to reduce the risk of theft.  Electronic monitoring systems work well for theft prevention, but they can also monitor against other threats like fire and water damage. Using this system is a great way to reduce your chances of being harmed by an internal or external source.  This type of warehouse system may deter theft and reduce the number of people who need access to your items. For customers, it means product safety and low prices. With a reduced amount of labor, businesses can keep costs down. De-clutter Warehouse Operations When carrying out warehousing tasks, it is essential to carry out Lean Operations. By optimizing the resources at our disposal and taking into consideration a "just-in-time" approach, we reduce the time it takes to undertake these tasks: Handling inventory Better coordination for effective supply chain management Looking for stock Loading and unloading onto transport Differences Between Inventory Management vs Warehouse Management [table id=14 /] What Facilities Should You Look for in a Warehouse Management Company? No. of SKUs ( stock keeping unit) Before you begin, you should assess your storage needs. Then, identify the SKU you want it under to track inventory in a warehouse. You can also think about the amount of space needed and what will be compatible or not. You might want to invest in durable shelving made of metal, as it will be a cheaper alternative. Warehouses will charge you based on the SKU, and this can get expensive if you have too many cereal items with different expiration dates. Warehouses often require a minimum monthly order from these companies. However, these minimum monthly orders are affordable if the inventory is readily available or rotated quickly. On the other hand, standalone warehouses are cheap for slow-turnover items with high SKUs. Product Type Warehouses usually don't have cold storage facilities. The product you sell will help determine which warehouse management company is best for your business. If a company requires space to store dairy products, it needs a warehouse that offers temperature-controlled storage. Customers will find glassware, manufactured goods, or perishable items like eggs or seafood in this store. Third-party fulfillment services provide workstations where value-added services are provided. Consider what storage option is perfect for your business. If you sell products that require strict safety protocols, you would be better suited to choose a warehousing management solution with trained staff, fire alarms, sprinklers, and adequate risk-reduction measures. Season Finding a warehouse management solution for your business needs is essential. Public warehouses are ideal because they offer short-term storage and competitive rates. It would be best to think about the time it takes them to deliver and their prices. Public warehouses are worth considering when looking to carry and store seasonal goods. If a company has a high demand, it might run out of space when they have periods of low sales. For example, if a store's turnover is generally slow in the winter season, it may find that stocking shelves during that time is difficult. Warehouse management providers solve this problem by providing automated material handling and storage automation solutions, such as forklifts for factories and warehouses. Contract warehouses offer reliable and long-term storage solutions, while short-term storage facilities are suitable for short-term needs. Under the contract warehouse, customers agree to the contract period before they're paid. Factors like the maintenance fees of inventory equipment affect their charges. Location Your warehouse location will affect the efficiency of your business. Location can impact how quickly you can deliver goods to consumers and where they are stored at your warehouse. The closer you are to customer hubs, the quicker the product can be provided. Warehouse management companies with facilities close to a transport hub make fulfilling orders much more effective than those in big cities. Your warehouse's location impacts your ability to meet the customer's expectations, improve profitability, and get products to customers faster.; however, this can come with a higher price if storage facilities are in rural areas. Read our blog on the 10 best eCommerce shipping companies in India to understand how you can outsource your shipping requirements. Here are some points to keep in mind: A small business should consider locating a warehouse close to their market or office. Companies with large market bases should look for warehouses that can hold specific quantities. Software & Technology Invest in a warehouse management facility and warehouse management software to handle inventory and shipments better. With these tools, you can enhance customer satisfaction by ensuring that the product matches their order, so they are satisfied with what they receive. Warehousing software is a vital tool for those who need to track and analyze each order. These programs are operated by intelligent robots, which automatically manage the order fulfillment process. The automatic routing of customer orders to your warehouse allows you to track order fulfillment more efficiently. You can also use automation to collect purchase orders and manage inventory items. Top 10 Trends of Warehouse Management in 2025 As we bid farewell to 2021, it's also time to gear up for the future with new ideas and strategies to make your business more productive. Warehouse management plays a crucial part in the supply chains of any eCommerce company. But sellers often overlook staying up-to-date with eCommerce warehousing trends to help them stay ahead of the game. As customers demand quicker turnaround times and pressure on eCommerce companies builds, warehouses will need to devise new ways of getting products picked, packaged, and shipped to meet the demands. The best way to increase warehouse efficiency is by implementing warehouse management technology. Warehouse management technologies will likely grow exponentially by 2025, with some reaching full maturities, such as warehouse automation and post-purchase processing. Automation (AI & Machine Learning) As the warehousing industry in India enters a period of consolidation, it will likely begin to integrate more advanced technologies such as robotics, machine learning, and artificial intelligence by 2025.  Although, in labor-intensive countries like India, the implementation of robotics can be difficult due to specific tasks only being performed by humans. Warehouse management companies are trying to incorporate machine learning and AI into the back-end. Technologies such as autonomous vehicles will cause the cost of warehouse operations to decline, causing this industry to almost double in size over the next two years. What are some ways in which we can plan for the future? The advancement of automation technologies has led to better self-driving with autonomous vehicles and inventory systems that reduce human labor. Receive instant updates about warehouse and shipping operations with the help of AI-powered inspections, packaging, and processes through business intelligence. The adoption of warehousing solutions that predict demand will take off in the following year. Robots Robotics is becoming integrated into the labor market, and this trend is projected to continue. Robotics help companies increase productivity while also tackling warehouse management and supply chain challenges.  Robots will become standard in warehouse management operations in the future. We will move away from fixed automation systems to miniature mobile robots. 5G connectivity and machine vision systems will also play increasingly important roles. Cloud-based Technologies Cloud technologies are advancing, and adoption is increasing. Current advances in hybrid cloud solutions, where components of a project reduce time and resources, will allow companies to implement better strategies. Cloud computing motivates many people to move to the cloud because it reduces costs and increases efficiency. It also helps eliminate data silos that predominate in many warehouse management systems and supply chains. Internet of Things (IoT) The Internet of Things has touched every industry and affected how we see the world. It stretches across interconnected devices, including cars, factory machines, appliances, TVs, and phones. Through IoT, your warehouse management processes can run simultaneously and increase efficiency. It can automatically complete tasks while you remotely access data and lowers costs since you have more efficient resource management. Sustainable Warehousing Many business owners will be looking for sustainable business methods in the coming year. It will change warehousing management techniques in 2025.  Ways you can opt for Sustainable Warehousing: Invest in Energy-efficient Equipment You can make your warehouse environment more environmentally friendly with eco-friendly lighting. While the initial cost will be higher, they will last longer and save on energy costs in the long run. Use Less Packaging Packaging made from biodegradable materials weighs less and costs less to ship. Switch from traditional packing materials to biodegradable products. Packing materials made from synthetic plastics and biodegradable materials take a long time to break down. Biodegradable materials can only last for months or years, while synthetics take hundreds of years to break down. Making your packing more efficient may mean you need less of it. Biodegradable materials are also compostable and can reduce waste and carbon footprint. Insulate your Warehouse Properly Ensure that your warehouse is insulated to keep air-conditioned air within the building. Insufficient insulation in your warehouse building results in higher energy costs, increased thermal output, and wasted resources. Water in a warehouse management system leads to wear and tear and increased energy bills. Block-Chain Technology Many stakeholders such as manufacturers, suppliers, customers, auditors and warehouse managers, are involved in warehouse management efficiency. Warehouses are looking for technology to manage transactions, assets, and data. The use of blockchain in coming years will be revolutionary for warehouses. Big Data Data is a significant point in supplying products and warehouse management since it helps with these tasks. Businesses rely on data for more reasons, and companies use more data-driven technologies now than ever before. It also allows for data products that can be used in data visualization to understand trends better. Good access to data and predictive analytics enables cross-disciplinary applications, which are instrumental in warehouse management. Proficient Last-mile Deliveries With the growth in eCommerce, last-mile deliveries are becoming more critical for the industry. In 2019, global eCommerce sales grew by nearly 21.5%. In the next few years, many business owners will strive to provide a shopping experience reminiscent of Amazon by working out logistics in a way that would make deliveries close to same-day. When customers place orders, the company will need to invest in more facilities and distribution methods. What are the last-mile facilities in supply chain management? The Right Warehouse Location Warehouses close to major highways and bridges reduce the cost of delivering to destinations. Building Quality Retailers should always look for properties that have features that allow for efficient utilization, given the demand for high volumes associated with today's retail environment. The archaic nature of traditional warehouses has led to structural limitations, and stretching the electrical capabilities of these warehouses is becoming more and more difficult. Substantial Ceiling Heights For warehouses, it's essential to optimize a high ceiling to set up modern racking systems. Every warehouse should consider the way goods flow in and out. Cross-dock Capabilities The food and beverage industry faces one of the biggest challenges regarding last-mile transport. A company may optimize its facilities' capabilities by cross-docking groceries to solve this problem. Cross-docking is receiving goods at one door and then sending them out through another. Perishable items can be delivered to your shoppers more efficiently, and food does not need to be stored. Sustainable Warehousing Electric charging stations will be essential parts of future sustainable infrastructure for that last mile. The gas costs combined with labor for the final stretch of delivery can add up to over 30% of a delivery's price, so cutting those expenses and providing an environmentally friendly solution could give you a winning advantage. Design & Layout One of the driving factors of warehouse management is its design and layout. It can be challenging to make changes to an existing warehouse, but you'll be glad you made an effort once you see improved productivity and lower accident rates. When you lack space for your automated systems, one solution is to use your vertical space. Technology solutions such as mechanical shelving and big data are also available to help more intelligent warehouse layouts. You can use analytics to monitor where your employees spend the most time so that you can create more efficient workflows. Introduction of Drones With technology moving on, these drones are starting to find their niche in warehouses. They're affordable and easy to use and can quickly map large areas. Drone technology has also been used in shipping and delivery, where it's used for scanning barcodes and RFID tags, inspecting goods in the warehouse, and taking items to an airport. Retail companies will likely use drones for warehouse management by 2025. Amazon has already had success in their warehouses by using them, and now smaller companies will probably start to do the same. For example: Humans are being phased out of the workforce. As technology advances, positions are no longer available to humans, and they are being replaced with machines that can do tasks much faster. A drone equipped with a special camera with optical sensors can scan barcodes at 100% accuracy even when the items are 10 meters away. Suggested Read: Warehouse Management Vs Inventory Management Conclusion: Does Your Business Need Warehouse Management? Warehouses have been around for years and have helped businesses with different storage needs. Today, warehouses are not simply storage facilities because they have changed to be more innovative. Companies that rely on warehouse management can expect increased productivity, satisfaction, and accurate demand forecasting. Some warehouse management companies offer additional services that optimize the supply. Warehouse management must monitor your inventory with many companies providing this service, renting out space, and providing other essential information such as the amount of heat produced or stock being moved. WareIQ can help with all your warehouse management requirements. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ has empowered brands to sell more, sell faster & sell everywhere due to: Access to WareIQ’s strong nationwide network of fulfilment centres, micro-fulfillment centers & urban dark stores near their customers Access to all major national & hyperlocal last-mile couriers at discounted rates for making same/next day deliveries possible Easy integration across multiple online platforms & marketplaces enhancing multi-channel selling Horizontal marketplaces: Flipkart, Amazon etc. Vertical marketplaces: Nykaa, Myntra etc. D2C platforms: Shopify, Magento, WooCommerce etc. Social commerce platforms: Bikayi Access to a superior centralised tech platform for eCommerce operations ML-based prediction engine for efficient warehouse network design & smart warehouse inventory placement Centralised platform for core fulfilment & shipping operations Post-shipping apps for delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform) WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfilment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with ecommerce shipping partners, strategically placed warehouses, economies of scale and scope in warehousing and data-driven decision making. WareIQ Fulfillment Centers WareIQ’s WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI. [signup] Warehouse Management FAQs (Frequently Asked Questions)

April 29, 2022
10 Types Of Warehouses in eCommerce & How Does it Work in 2025

10 Types Of Warehouses in eCommerce & How Does it Work in 2025

What comes to your mind when you think of  “eCommerce Warehousing”? Typically, we think of a huge shed-like space with an unsightly number of racks and shelves, goods and containers strewn all over, amidst a monotonous surrounding.  It is important to note that there are many types of warehouses and it may be surprising that typical modern-day eCommerce warehouses are the complete opposite. They are clean, brightly lit, well-organized, and filled with an unending buzz of frenetic activity. People, parcels, technology, monitors, goods carriers, and mini-cranes, the list is endless. Read further to get a better understanding of the different types of warehouses in eCommerce and which would be the right fit for your business. What are Warehouses? The concept of warehousing: The formal description of eCommerce warehouses is that they are huge structures such as a building or shed that houses goods and cargo (both raw materials and finished goods) till they are ready to be shipped further.   Naturally, the sizes, locations, infrastructure, and scale of warehouses vary greatly depending on what they are used for, the position they occupy in the fulfillment network, and so on. Several elements impact the selection of the type of warehouse you should choose, such as the industry it serves, what its ecosystem looks like, and locational and definitive business requirements. Importantly, all this directly impacts achieving customer satisfaction, which is the ultimate metric of a successful business. The eCommerce warehouse is an important cog in the order fulfillment wheel – it not only stores inventory but also forms a close working relationship between online firms, its distribution model, and the final customer. A strong network of eCommerce warehouses is critical-to-success for eCommerce firms.  Third-Party (3PL) logistics, warehousing, and fulfillment centers: 3PL fulfillment companies conduct a host of services for their clients. Typical examples are inventory storage, order receipt, processing, dispatch, and cross-docking.  Given the range of services and scale that 3PLs offer as a one-stop shop, it enables the supply chain to function more efficiently, faster, and more economically. As a result, its clients can focus on running the core elements of its business, i.e., sales, consumers, logistics innovations, profitability (etc.) without any extra hassle. When an online retailer outsources its warehousing and eCommerce fulfillment requirements to a 3PL, its capabilities - across locations, inventory, trained employees, optimized cost structures and compliance - help firms achieve seamless and efficient warehouse logistics. In addition, your 3PL’s warehousing capabilities should keep pace with your expanding needs as you grow. Additionally, you can learn about different types of warehouses here. [contactus_gynoveda] What Factors Do You Need to Keep in Mind While Choosing a Warehouse in 2025? When contemplating starting a new eCommerce business, or a business of any sort that involves the movement of materials and goods, your warehouses and fulfillment centers become an invaluable element for success. Not only must they synergize with your business strategy, but must also tick all the checkboxes that matter.  Listed below are some leading factors that you must consider while selecting between the types of warehouses for your business: Efficiency in design and layout Firstly, the design and layout of your eCommerce warehouse must be determined by your requirements, i.e., the type of goods, the storage guidelines, government rules (etc.). You shouldn’t put the cart before the horse.  Not all eCommerce warehouses are built equal. For example, if an old building with limited column spacing or ceiling height would affect that type of cargo and your eCommerce warehouse operations, then other types of warehouses would be better suited for you.  Select the one's where the design has been developed, keeping in mind the flow of raw materials into eCommerce warehouses and, likewise, the flow of goods outwards.  These warehouses are hubs of activity. People, machines, technological equipment, electrical connections, various controls, and many other components are all working in close proximity. As you would imagine, many of these elements could create a dangerous scenario for life and property if not managed properly. Therefore, make sure to check for an ergonomically designed layout that would ensure a seamless and efficient union of man and machine. For example, rough surfaces or sharp edges of shelves must be eliminated.  Availability of workforce By extension of the point above, they employ hundreds of workers who work around the clock. Selecting a warehouse because they are cheaper and whose locations are mostly in remote areas may affect your ability to attract workers or cause them difficulty in their daily commute, and safety, even if you plan on moving your existing workforce from one location to another.  Therefore, selecting a location that is easily accessible by your workforce is generally a key criterion for choosing the types of warehouses. Locations with a dense population and the presence of convenient transportation hubs generally score highly while making this selection, especially the latter. Even if commuting takes some time, at least it is made convenient. If your requirements have seasonal variations, then living quarters, canteens, banks, grocery supplies (etc.) to facilitate your workforce also become important. Operational intensity The intensity of operations and which way this intensity will go in the future is another important consideration. If your operations are light enough, then you can select the type of warehouses accordingly. Other variables such as outdoor facilities for storage, noise pollution caused, emissions (etc.) form a part of the consideration set when choosing a location(s) for your eCommerce warehouses. Accessibility to transportation Unless warehouses for eCommerce are closely connected with convenient modes of transport, it would be self-defeating. Remember that transportation makes up about 20-25% of your operating cost and directly affects the delivery times you can achieve. For goods that are fragile or need temperature-controlled transportation, poor accessibility would mean additional difficulties.  Whether air, water, rail, or land - whatever your needs are, it is important that the location of your warehouse is easily accessible.  For example, if you deal in heavy cargo across international borders and use ships to carry your goods, you would likely need a strong road or rail network to complete the cargo movement (both inward and outward).  The capability of handling material Again, the type of products, cargo, and materials that make up your business will always be the determining factor in the types of warehouses you select.  If fragile items (e.g., art, crockery, glass, and jewelry) are your main line of business, then ground floor locations are ideal, or at least not on a much higher level. In such cases, the layout of eCommerce warehouses should be spread out horizontally versus one with several floors. If hazardous chemicals or materials form part of your cargo, then you will almost certainly have to use locations that are peripheral to the city. Most governments also have guidelines that regulate the layout and location of different types of warehouses, depending on the inventory. Equipment, cross-docks, and staging facilities are critical in material handling, and you must consider this while choosing a warehouse. Available data makes it painfully evident that a significant percentage of breakages and product damage occurs during loading and unloading procedures.  If trucks are your first mode of transport, then eCommerce warehouses must have depressed docks, which may need to be internal, and so on. Similarly, one cannot operate a vast distribution network unless the warehouses have cross-docks.  Availability of space Well, this is probably the most obvious requirement of all. Unless eCommerce warehouses are sized to house your entire inventory in all its various shapes and sizes, they haven't fulfilled their most basic requirement. For companies starting or expecting to grow rapidly in the future, the capability of different warehouses for expansion is important. The network maintained by your 3PL is also important – you wouldn't want to select a 3PL that doesn't operate fulfillment centers or warehouses in locations you expect to grow into. Ability to comply with regulations Just like all aspects of business operations have to comply with their applicable rules and regulations, so do eCommerce warehouses. Before selection, you must be aware of the applicable laws in your location and ensure that your warehouse provider adheres to them. For example, you cannot store certain types of goods (e.g., hazardous materials) in certain areas. Or, you may need to hire local workers for your eCommerce warehouses. Proximity to customers Naturally, proximity to your end customers is an important consideration. If your target group is located around a specific region, using warehouses for eCommerce activities in that area itself will offer a strategic advantage. You can fulfill their needs quickly, better understand their requirements, and get accustomed to their purchasing habits. What Advantages Do Warehouses Offer? There are many advantages of using a capable and well-organized network of eCommerce warehouses. Let's look at some important ones: Operational efficiency When you outsource your warehousing requirements to a 3PL firm, you are aware of the capabilities of their services. The relationship is based on a well-defined SLA with clearly defined expectations from both parties. Therefore, once up and running, your partnership enables you to achieve an efficient operation quickly due to: Expertise Flexibility Measurability  The combined impact of all these factors results in a significant saving of time and resources. Inventory management Your warehouse management service's driving objective (WMS) is to keep your customers happy. That means delivering their parcels safely, on time, and at competitive rates. Additionally, customers want to be kept in the loop about the progress of their parcels. Therefore, WMS ensures real-time information on parcels in transit and identifies them with a host of trackers such as SKU, batch details, serial numbers, etc.  Data about the movement of goods, to and from eCommerce warehouses, is updated in real-time. The combined effect of all this is that your entire inventory management, including re-order levels, reverse logistics, current and developing trends, and projected requirements, is taken care of. This is very important for retail warehouse since it helps them understand consumer behavior, plan for future requirements, expand their range of products, etc. Flexibility If you decided to retain your warehousing and storage as an in-house function, you would potentially be limited by your ability to handle extraordinary circumstances or obstacles. For example, if an emergency were to arise or a larger-than-anticipated order was received, you would need to dedicate additional resources to handle such a situation. Possibly, workers wouldn't be trained or have enough time to handle the situation successfully. Because of this, partnering with a 3PL for your warehousing needs would set you up to benefit from their capabilities. 3PLs are vast global organizations that deal with a wide range of clients, ecosystems, and geographies. Due to their scale and experience, they are supremely equipped to handle a vast array of functions and annul potential problems.  Risk mitigation As you would've guessed by now, running operations of eCommerce warehouses isn't an easy task by any means. It requires significant investment, expertise, a large workforce, the latest technological systems, employee recruitment and training, and tax and legal compliance. While the scale of business offers profit and acquires market share, it also brings risk, i.e., the costs of failure such as being upstaged by competition, being made obsolete by innovation, or just being forced out by better, more efficient players and also a potential increase in logistical costs. Such significant expenses, including CapEx, when locked by order fulfillment and warehouse service activities, create inefficiencies that will show up in your business results sooner than later. However, using efficient warehouse services achieves the exact opposite, i.e., it takes away the risk of investing and maintaining your network of eCommerce warehouses and allows you to concentrate on managing the core business. Over a period of time, this improves profitability and productivity. Therefore, make sure you analyze your needs accurately and select the right 3PL accordingly.  Modern technological systems Just like the very birth and growth of modern-day eCommerce behemoths is a result of progressing technology, so are the benefits offered by 3PL warehousing services.  Fully integrated systems seamlessly connect with online platforms and stores. Some examples are given below:  Order management (receipt, processing, delivery) Order-delivery services Comprehensive distribution services Order tracking Inventory management in real-time  Automated re-order levels Detailed and automated reports  What are the 10 Types of Warehouses to Look for in 2025? Let’s look at the top ten types of warehouses. While each has its pros and cons, your business requirements determine which one would help you run your operations in the best possible way. Private Warehouse  Source As the name suggests, they are types of warehouses that are owned and operated by manufacturers, traders, and resellers and are exclusively used for their supply-chain management and activities. As the costs and fees of availing the benefits of private eCommerce warehouses can be high, many warehousing companies prefer to use (or combine them with) the services of public warehouses.  Maintenance costs include fixed costs and variables. CapEx, insurance, taxes, interest, etc. make up fixed costs, whereas outgoing monthly costs like operating/maintenance are variable. Firms typically use private eCommerce warehouses for: Building a competitive advantage over the competition  Servicing a geographic area with an elaborate network of warehouses and fulfillment centers Matching company scale/ growth requirements with the warehouse’s services and capabilities Typical examples of private eCommerce warehouses include: Producers (e.g., farmers) construct and manage eCommerce warehouses near their farmlands Wholesalers/ Retailers construct eCommerce warehouses close to their distribution and selling centers, or production units Retailers take eCommerce warehouses exclusively on rent Wholesalers lease or own eCommerce warehouses exclusively  Public Warehouse Source Public warehouses are types of warehouses that enable their customers to achieve a high degree of freedom of operations in managing their supply-chain network. Since private eCommerce warehouses may not be affordable, this option is always viable for such firms. Naturally, renting or buying is often unaffordable for eCommerce startups. Therefore, utilizing public eCommerce warehouses on a short-term or long-term lease, usually available by monthly agreement, becomes a viable option for such small businesses. Agreements could be based on cost-per-square-foot or even on a cost-per-pallet.  Generally, warehouses for eCommerce will also offer services like building maintenance, organizing transportation, inventory management, and employing workers to manage operations etc. It works out well since all costs are apportioned across several clients, and you pay a proportionate amount. Distribution Center Source Distribution centers are types of warehouses that have become a critical cog in the eCommerce supply-chain wheel. Due to the increased usage of technology and electronic tools, these distribution centers can now provide reliable and efficient transportation for cargo. Typically, such distribution centers have a much larger storage capacity than just a warehouse and provide prompt transportation facilities for huge volumes of cargo, on short notice. These centers are also located close to transportation hubs to optimize the speed of receipt and delivery. An ideal example is the distribution of highly perishable products, e.g., fresh vegetables and fruits. The receipt, sorting, and packing/ repacking of such products are done within a working day to minimize wastage.  Cold Storage Source Understanding the type of storage this type of warehouse provides is pretty transparent.  Cold-storage facilities are types of warehouses that are critical for temperature-sensitive products such as medicines, pharmaceutical products, fresh produce, ice creams, plants, meat products, etc. Perhaps, the importance of such a facility was recently reinforced when the Covid-19 vaccines had to be transported and stored under stringent temperature control measures. This goes a long way in ensuring the projected shelf-life for these goods.  Pick, Pack & Ship Warehouse  Source When eCommerce warehouses receive an order – whether from a physical store or an online portal – the process followed thereafter is to “pick, pack, and ship” the product. And, hence these are types of warehouses that are named after that process. They use modern gadgets like scanners and workers/robots to pick the products, required to fulfill their list. These "picked" products are then packed, tagged, and loaded into containers and shipped to their destinations.  Read our blog on shipping aggregators to understand how you can outsource your shipping and distribution requirements to dedicated companies. Smart Warehouse  Source Smart warehouses are types of warehouses that have increased in importance in the Modern Age, where everything is run by rapid advances in technology. The very existence of new business models such as eCommerce and the "App Economy" gives us daily reminders of this sensation. Additionally, tools such as data analytics, Artificial Intelligence, and Machine Learning provide the backbone for running these modern, tech-driven ecosystems.  Smart eCommerce warehouses are no different. When businesses seek to eliminate the costs of human error, smart eCommerce warehouses become a go-to option. Extensive use of drones and robots is deployed in warehouse operations, and manual intervention or usage is minimized or eliminated. However, this model does have some limitations and has stringent requirements for successful operation - the entire warehousing procedure needs to be redesigned so that the technology can be incorporated. This requires technical know-how, and upfront investment and necessitates training/retraining of warehouse employees. Breakeven and profitability may take several years. Bonded Warehouse Source Bonded warehouses are types of warehouses that can be owned by both private and government agencies and are a mechanism utilized by the government to ensure that the importers/exporters of these goods pay their due taxes on time. Without paying their taxes or duties (e.g., import duty, excise), an importer cannot even open their goods, let alone claim them.  As you can imagine, bonded eCommerce warehouses have a crucial role to play in cross-border trade, and those eCommerce firms that supply orders across international borders are well-served by them. This also works well for importers that can stock their goods here until they find a buyer for these products. Since firms do not have to pay any duty till they want their goods released, it works efficiently. For private agencies to operate bonded eCommerce warehouses, they need to get the required licenses as issued by the government. Climate-Controlled Warehouse  Source If you think that simply a temperature-controlled environment for your goods isn't enough, then climate-controlled eCommerce warehouses offer the next level of protection during storage. They are types of warehouses that control the temperature and humidity under which your goods are stored. For many products, the correct humidity levels prevent mold or mildew formation, which harms fabric, wood products, paintings, and artifacts, amongst many others. Both humidity and temperature are controlled to a stringent standard, and the variances allowed are minimal. This ensures a consistent atmosphere. Cleanliness and overall facility upkeep are important features that climate-controlled eCommerce warehouses must be particularly mindful of. Government-Owned Warehouse  Source They are types of warehouses that the government, whether State, Central, or an affiliated agency, owns and manages. They are available for use by private eCommerce firms and often present an economical option for startups or businesses that are growing while effectively offering the same services. Importantly, they offer peace of mind since the government manages them. The Central Warehousing Corporation of India is a renowned example. Cooperative Warehouse Source Cooperative Warehouses are one such type that are owned and managed by cooperative societies. They tend to be non-profit since their objective is to promote members of the cooperative, who can use these warehouse services at reasonable rates. Milk, winery, and farmer cooperatives are good examples. eCommerce firms that operate within their purview can take advantage of such types of warehouses. Conclusion: Does Your Business Need a Warehouse? Well, as evidenced by the above article, you should be able to see the numerous benefits that a well-researched, efficiently managed, and elaborate network of eCommerce warehouses brings to your eCommerce business.  While there may be cases of companies (e.g., a fledgling startup) that may make do with an in-house option (e.g., garage, basement) in the initial stages, growing companies will almost always opt for type of warehouse that suits their requirement and adds value to their business. WareIQ is a company that offers many ecommerce warehousing services that your business requires. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next-day delivery to customers – an Amazon Prime-like experience but accessible to everyone. WareIQ fulfillment is a service where WareIQ offers you seamless management of your inventory and order fulfillment operations in WareIQ fulfillment centers, which are located near high-demand clusters. You store your product in our fulfillment center where we take utmost care of your inventory. WareIQ has customized offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”. WareIQ's warehouses are present across the nation. We place inventory closest to your customer using a smart inventory placement system based on AI-ML algorithms. So when the customer places the order, the item is available in the closest fulfillment center to them and it is then delivered by same/next day via our shipping partners. [signup] Types of Warehouses FAQs (Frequently Asked Questions)

April 27, 2022
What is Fulfillment by Amazon (FBA)? How Does FBA Work in 2025?

What is Fulfillment by Amazon (FBA)? How Does FBA Work in 2025?

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

April 27, 2022