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What is the Weighted Average Inventory Method? What are the 4 Top Methods to Calculate Weighted Average Cost (WAC)? 

What is the Weighted Average Inventory Method? What are the 4 Top Methods to Calculate Weighted Average Cost (WAC)? 

The weighted average inventory method is a costing method that assigns a cost to each inventory unit based on the average cost of all units available for sale during the period. This method is used when companies purchase inventory in large quantities at different prices throughout the year. The weighted average cost per unit is calculated by adding the total cost of all units available for sale and dividing by the number of units available. This weighted average inventory method is advantageous because it provides a more accurate representation of the actual inventory cost than other methods, such as first-in, first-out (FIFO) or last-in, first-out (LIFO). However, the weighted average inventory method can be challenging to implement if many units are available for sale or if the prices of units purchased vary widely. In these cases, it may be necessary to use a different costing method. What is Weighted Average Inventory? How to Calculate It? The weighted average inventory method is a calculation that assigns a weight to each type of inventory based on its value or importance. This allows businesses to assess their overall inventory levels more accurately and better manage their stock. To calculate the weighted average inventory, using the Weighted Average Inventory Method, you need to first determine the total value of all your company's inventory. Then, assign a weight to each type of inventory based on its value as a percentage of the total. Finally, multiply every kind of inventory by its weight to find the weighted average cost for that item. For example, let's say your company has three types of inventory: raw materials, finished goods and work in progress items. Assume that raw materials make up 20% of the total value of your inventory, finished goods make up 60% and work in progress makes up the remaining 20%. To calculate the weighted average inventory using the Weighted Average Inventory Method for raw materials, you would need to multiply the raw materials by their weight and divide it by 20%. You would then need to multiply the finished goods by their weight divided by 60% for finished goods. And for work in progress, you would need to multiply it by its weight and divide it by 20%. The weighted average inventory for your company using the Weighted Average Inventory Method would be the sum of the three weighted average inventory calculations. In this example, the weighted average inventory would be (20% x Raw Materials) + (60% x Finished Goods) + (20% x Work in Progress). You can use this same method (Weighted Average Inventory Method) to calculate the weighted average inventory for various types of inventory. Just be sure to assign a weight to each one based on its value or importance. The Weighted Average Inventory Method can be a useful tool for managing your company's stock. By considering the value of each type of inventory, you can more accurately assess your overall inventory levels and make better decisions about using your resources. [contactus_gynoveda] What is Weighted Average Cost (WAC)?  The weighted average cost is a financial metric used to assess the overall cost of a company's products or services. This cost is arrived at by considering the different costs associated with each production stage, including raw materials, labour, shipping and overheads. The final number is then weighted according to the relative importance of each factor. In many cases, the weighted average cost can be a more accurate reflection of true cost than simply using an arithmetic average. This is because it considers the quantity of each input and the quality or importance of that input. For example, if a company's product requires expensive raw materials but very little labour, the weighted average cost will be higher than the average arithmetic cost. The WAC is often used to set prices, particularly when offered by a wide range of products or services. By considering the different costs associated with each item, a company can ensure that it charges a fair price for each one. In some cases, weighted average cost may also be used to assess the profitability of individual products or services. The weighted average cost can be a valuable tool for financial decision-making when calculated correctly. However, it is important to remember that this metric should only be one part of a much larger analysis. Other factors, such as customer demand and market conditions, will also play a role in setting prices and determining profitability. 4 Methods to Calculate Weighted Average Cost (WAC) There are various methods to calculate the weighted average cost. Some of the most common methods are:  Average Cost Method The first weighted average cost method is the average cost method. This method takes the arithmetic mean of all the costs incurred in producing the good or service. This is the most basic and simplest method to calculate the WAC. Weighted Average Cost Method The second method of weighted average inventory valuation is the weighted average cost method. This method assigns different weights to different costs incurred in production according to their importance. The weight assigned to each cost is multiplied by the cost incurred. The sum of all these weighted values gives us the weighted average cost (WAC). Marginal Cost Method The third Weighted Average cost method is known as the marginal cost method. In this method, we consider only the costs incurred in producing one additional unit of the good or service. This method is useful when we are trying to decide whether to produce extra units or not. Opportunity Cost Method The fourth and final weighted average inventory valuation method is the opportunity cost method. In this method, we consider the opportunity cost of producing the good or service. The opportunity cost is the value of the next best alternative that we must forego to produce the good or service. This method is usually used when there are scarce resources and we have to choose between alternatives. Whether we use it to calculate WAC, it is important to remember that WAC is only an average cost and not the exact cost of producing a good or service. This is because different costs are incurred at different production levels and it is impossible to assign a specific cost to each output unit. WAC only provides us with a general idea about the overall cost of production. Top 3 Applications of Weighted Average Cost The weighted average cost is used when a company has inventory that has been purchased at different prices and they want to calculate the average cost of that inventory. This is important for companies because it helps them determine how much their inventory is worth and how much they should charge for their products. There are many different applications for weighted average cost, but some of the most common ones are listed below: Stock Valuation Weighted average cost is important for investors because it allows them to see what a company's inventory is worth. This information can be used to make decisions about buying or selling stock.  Product Pricing It is also important for companies because it helps them determine how much to charge for their products. If a company knows the weighted average cost of its inventory, it can price its products accordingly. Marginal Costing This is another important application for weighted average cost. This technique is used by businesses to determine the costs associated with producing one additional product unit. This information is important for companies because it helps them decide how much to produce and how to price their products. Source What are the Benefits and Drawbacks of Applying the Weighted Average Cost (WAC) Method? Benefits Several benefits can be accrued by applying the WAC method and some of the most important ones are listed below: Accurate Depiction of Actual Costs Perhaps the most significant benefit is that it provides a more accurate representation of the true costs associated with production. The WAC method considers all costs incurred during the production process rather than direct costs.  Less Susceptible to Fluctuations The WAC method is less subject to fluctuations in prices than other methods, such as last-in, first-out (LIFO), or first-in, first-out (FIFO). As a result, the WAC method can provide valuable information for long-term planning purposes.  Adherence to Accounting Standards Finally, the WAC method is generally accepted by accounting standard-setters and is likely to be acceptable for financial reporting purposes. Drawbacks The weighted average cost (WAC) method has a few disadvantages, which include: Bias Against Older Inventory The WAC method can be biassed if the company has a high proportion of older inventory that is nearing its expiration date.  Inaccurate Cost Depiction of Individual Items The WAC method does not consider the specific characteristics of each item in the inventory, so it may not accurately reflect the true costs of the individual items. Difficult to Calculate in Some Circumstances The WAC method can be difficult to calculate, especially for companies with large and complex inventory. It also may not accurately reflect a company's actual costs if it has significant changes in its inventory levels during the year. What are the Other Common Inventory Valuation Methods & How is it Different From the Weighted Average Inventory Method? Other common inventory valuation methods include the first-in, first-out (FIFO) method and the last-in, first-out (LIFO) method. These methods can produce different results from the weighted average inventory method, depending on the order in which inventory is sold. First In, First Out (FIFO) Under the FIFO method, inventory is valued at the price of the earliest units purchased first. So, if you have 100 widgets in stock and you purchased 50 at $5 each and 50 at $10 each, the value of your inventory would be $500 (50 x $5 + 50 x $10). The advantage of the FIFO method is that it more closely reflects the actual cost of goods sold (COGS). This is because the oldest units in stock are typically the ones that are sold first. As such, FIFO provides a more accurate picture of your profits. The disadvantage of FIFO is that it can lead to higher taxes. This is because, under this method, inventory is valued at the prices that were paid for the earliest units purchased - which may be higher than the current market value. As a result, businesses may pay more taxes than they would under another valuation method. Last In, First Out (LIFO) Under the LIFO method, inventory is valued at the price of the most recent units purchased first. So, using the same example as above, if you have 100 widgets in stock, and you purchased 50 at $5 each and 50 at $10 each, the value of your inventory would be $1000 (50 x $10 + 50 x $5). The advantage of LIFO is that it can lead to lower taxes. This is because inventory is valued at the prices that are paid for the most recent units purchased - which may be lower than the current market value. As a result, businesses may pay fewer taxes than they would under another valuation method. The disadvantage of LIFO is that it may not provide an accurate picture of your actual COGS. This is because the most recent units purchased are typically not the ones that are sold first. As a result, LIFO may overstate your profits. The choice of inventory valuation method can significantly impact a company's financial statements. For example, using the LIFO method would result in a higher cost of goods sold and a lower ending inventory balance than using the FIFO method. This would lead to a lower gross profit and a higher income tax liability. Companies should carefully consider which valuation method best suits their particular circumstances. Conclusion: Choosing The Right Inventory Valuation Method for Your Business There are a few different inventory valuation methods today, and the right one for your business depends on several factors. The first thing to consider is what type of business you have. Are you a manufacturer? A retailer? A wholesaler? Each type of business has different inventory needs and each will require a different method of valuing that inventory. Next, you need to consider your financial goals. What are you trying to achieve with your inventory management system? Are you looking to maximise profits? minimise costs? Or some combination of the two? Depending on your answer, different valuation methods may be more appropriate. Finally, you need to think about your accounting system. Does it allow for multiple valuation methods? If not, you may be limited in your choices. The choice of inventory valuation method can significantly impact a company's financial statements. The most appropriate method for a particular business will depend on that business's specific circumstances. Manufacturers, retailers and wholesalers will all have different needs, and each type of business will require a different valuation method. Additionally, businesses need to consider their financial goals in choosing an inventory valuation method.  Some methods are better suited to maximizing profits, while others may be more appropriate for minimizing costs. Finally, businesses need to check with their accounting systems to see if they support multiple valuation methods. Otherwise, they may be limited in their choices. WareIQ can be of assistance if you need access to the best valuation methods or help with other fulfillment and operational services. We can help you analyse the type of inventory you have and the goals you would want to set for your business in the future and recommend a valuation method accordingly. [signup] FAQs  What is inventory valuation?Inventory valuation is assigning a value to a company's inventory. This value is used for financial reporting purposes and can significantly impact a company's bottom line. What are the different methods of inventory valuation?Several different inventory valuation methods include FIFO, LIFO and Weighted Average Inventory Method.  Which method is best for my business?The best method for your business depends on several factors, including your business type, financial goals and accounting system. What is the impact of inventory valuation on financial statements?Inventory valuation can have a significant impact on financial statements. For example, using the LIFO method would result in a higher cost of goods sold and a lower ending inventory balance than using the FIFO method. What are the tax implications of inventory valuation?The choice of inventory valuation method can significantly impact a company's income tax liability. For example, businesses that use the LIFO method may pay less in taxes than those that use the FIFO method.

May 31, 2022

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FBA vs FBM: 6 Factors for Amazon Sellers To Consider Before Choosing Between Fulfillment by Amazon(FBA) and Fulfillment by Merchant(FBM) in 2025

FBA vs FBM: 6 Factors for Amazon Sellers To Consider Before Choosing Between Fulfillment by Amazon(FBA) and Fulfillment by Merchant(FBM) in 2025

Ecommerce is expanding at an alarming rate and has experienced a significant uptick in recent years. As per online shopping statistics by Tidio, there were more than 2.14 billion digital buyers worldwide in 2021, and the trend is expected to continue in 2025 with global eCommerce revenues expected to reach $7.4 trillion by 2025 providing eCommerce fulfillment services is a thriving business, and online marketplaces like Amazon, Flipkart, and many more are at the epicenter for selling. As a result of the mentioned stats above, small company owners, investors, and individuals working 9-5 jobs are all coming up with online selling businesses each year, many are now flourishing. Since its inception, Amazon has added various features to its ever-expanding platform, for instance, Fulfillment by Amazon and Fulfillment by Merchant, we will talk in detail about FBA vs FBM in this article. In 2021, Amazon had 3 million active sellers, based on Jungle Scout’s 2021 State of the Amazon Seller Report. In the eCommerce fulfillment industry, fast and safe order delivery is critical in e-commerce for both active sellers and purchasers. Individuals and businesses that use the Amazon marketplace to sell their items have alternatives for fulfilling their client orders, which are commonly referred to as Amazon order fulfillment models.  Introduction to Fulfillment by Amazon and Fulfillment by Merchant (FBA & FBM) However, deciding to sell on Amazon is simply the first step. Online businesses will also have to choose one of Amazon's several fulfillment options to utilize. In addition to the well-known Fulfillment by Amazon technique, e-commerce companies can also choose Fulfillment by Merchant or Merchant Fulfilled Network (MFN). As perplexing as it may appear, in addition to these models, there are further alternatives to employing Multi-Channel Fulfillment (MCF) by Amazon and Seller Fulfilled Prime (SFP). So, to make things as clear and accessible as possible, this article focuses on the two most common solutions - FBA and FBM. If you are selling or wish to sell on Amazon, you have two basic options for storing, handling, and shipping your products: Fulfillment by Amazon and the Fulfillment by Merchant or Merchant Fulfillment Network. In this article, after discussing the fundamental concept of the two, we will emphasize the benefits and drawbacks of these two fulfillment models. Finally, we will make it simple for you as to which one is the greatest fit for you. [contactus_uth] Fulfillment by Amazon (FBA) Source In this fulfillment model, the online sellers themselves advertise their products for sale on Amazon in this arrangement, but Amazon is responsible for keeping those products and completing shipping orders. Sellers do not need to rent or own a place to keep their items, nor do they have to ship orders to their clients. The Amazon Fulfillment approach does necessitate payment to Amazon for its services and also sending items to Amazon so that its employees can fulfill orders. However, from a risk management standpoint, it is a far easier decision. To work at a fulfillment center or run a fulfillment network, you do not need to recruit employees. You can simply depend on Amazon's existing connections to send your items to their destination However, there may be insurance needs and vendor agreements to deal with If all of this sounds pretty good, you may very well be wondering how fulfillment by amazon (fba) works. How Fulfillment by Amazon Works According to Jungle Scout, there are more than 3 million active sellers, out of which 57% are using FBA only, making it the most common fulfillment method for third-party Amazon merchants. It manages your items and handles customer service concerns like refunds and returns. But it doesn't mean Amazon FBA will do everything for you. As an FBA seller, you're in charge of listing, selling, and keeping your items supplied at Amazon fulfillment centers. If your inventory runs out, Amazon will be unable to fulfill orders because they cannot resupply your items. Sellers must do the following to keep FBA working smoothly: 1. List their items as Amazon fulfillment. 2. Prepare their items for shipment to Amazon fulfillment facilities while adhering to Amazon picking and packaging specifications as well as shipping and routing criteria. This is all explained in FBA prep services. 3. Ship inventory to fulfillment centers to ensure that items are in stock and ready to sell. Fulfillment by Amazon can provide much-needed relief for large third-party sellers who lack logistics, have high-turnover items, or can outsource fulfillment to Amazon at a lower cost. However, as predicted, its benefits come at a cost.  To utilize Amazon Fulfillment services, sellers must pay Amazon platform charges which include Amazon referral fee, closing fee, storage, and warehouse management fees, label service fee, and return and processing fee. Significant Advantages of Fulfillment by Amazon Customer Base Prime delivery is available on items fulfilled by FBA. This implies that buyers who have an Amazon Prime subscription will receive their goods with free 2-day delivery (even 1-day shipping in some areas). Because Prime users are anxious to take advantage of the fast delivery timeframes, this boosts the sales potential of your merchandise inventory. To put the scale of the possibility in context, there are over 200 million Prime users worldwide. They are far more inclined to buy something with the Prime label than something with ordinary delivery. Concentrate on Selling Rather than Fulfilling When it comes to managing your fulfillment, the list of obligations is vast. Hiring, training, keeping track of inventory, negotiating carrier prices, procuring branded shipping materials, sending on time, shipping the proper things... It's difficult to run a well-oiled shipping and storage organization. Amazon has a cutting-edge fulfillment infrastructure in place to process and dispatches your items quickly. Furthermore, because sellers do not need to increase employees or warehouse capacity as order volume varies, the Fulfillment by Amazon program allows them to grow simply. Many Amazon sellers would rather concentrate on product development, marketing, and sales. They are content to let Amazon handle their fulfillment operations on a day-to-day basis. The Amazon Buy Box When competing with other Amazon sellers offering the same goods, getting your offer inside the Buy Box is critical. On a product page, the Buy Box is where the "Add to Cart" and "Buy Now" buttons are situated. A sale made using the Buy Box is only granted to one seller at a time. The Buy Box accounts for 85 percent of all sales. One of the most critical factors Amazon examines when selecting which vendor gets the Buy Box is fulfillment. Basically, the better your shipping and delivery are for the consumer, the faster, cheaper, more convenient, and more trustworthy it is. Amazon Warehouses Access to Amazon's warehouses is arguably the most compelling reason to use Fulfillment by Amazon. When a seller uses Fulfillment by Amazon, their goods are sent to an Amazon warehouse and stored there until the order is placed. When customers submit orders, Amazon handles all packing, shipping, customer care, and returns, not the vendor. While Amazon handles all delivery, the merchant can focus on offering high-quality items and processing sales. Because Amazon handles shipment, you'll find that your shipping costs are lower than previously (especially if you're selling tiny, light products). Service to Customers Amazon handles all customer support and returns processing for your item when you use Fulfillment by Amazon. While you may lose out on opportunities to communicate directly with your clients, it will reduce the support costs that online merchants must bear. Amazon Search Engine Optimization Amazon has been tight-lipped about its A9 search algorithm's inner workings. While Amazon won't say it publicly, it's widely assumed that Fulfillment by Amazon is a ranking element in the search algorithm. In terms of search, FBA offers are likely to outperform FBM offers if all other factors are equal. FBA, according to Amazon, has near-perfect scores in all of these areas. As a result, FBA may significantly boost your earnings. Significant Disadvantages of Fulfillment by Amazon Costs Associated with Fulfillment You should not underestimate the fulfillment costs as an FBA vendor. Amazon is a major e-commerce operator, and they will accept your payment. Every product you sell will be charged for picking, packing, packaging, shipping, returns management, etc. In most circumstances, the prices will be greater than working with a 3PL service provider. Storage Expenses The same may be said about storage expenses. Cubic meters or cubic feet are the units of measurement. Be aware that storage fees, particularly for lengthy periods, might be prohibitively expensive. Also, keep in mind that Amazon charges extra Q4 storage costs for the final quarter of the year. Even though Amazon straightforwardly communicates this, many sellers do not account for these additional fees and are astonished when they are charged. Additional Fees High fees are one of the biggest disadvantages of utilizing Fulfillment by Amazon. It must be factored into your profit margins and, as a result, will diminish your earnings. As a result, Fulfillment by Amazon is more suitable for tiny and lightweight objects. All of this is on top of the standard Amazon costs that every seller must pay to conduct business on the platform. On top of that, there are inventory storage expenses, amazon referral fees, closing fees, storage, and warehouse fees, label service fees, and return and processing fees to consider. These are the fees you must pay to Amazon to have your items stored in one of their fulfillment centers. It depends on the length of time you plan to keep your stuff as well as the size of the item. Absent Administration While it's great that your purchases are delivered quickly, you lose control of your inventory and other crucial aspects of running an internet business. If you offer things that are pricey or not self-explanatory, you should think twice about whether or not to utilize Fulfillment by Amazon. One of the reasons for this is that Amazon will repay consumers without first determining whether or not the claims are true. For online merchants, this can be quite costly; nevertheless, Amazon's objective is to get customers to return to Amazon, therefore they don't care whether returns are costly for the seller. You may like: Amazon FBA alternatives Fulfillment by Merchant (FBM) Source Fulfillment by Merchant, also known as Merchant Fulfilled Network (MFN), is a fulfillment method in which an Amazon seller is responsible for the order fulfillment of the items offered on Amazon. This procedure, which includes storage, picking, packaging, and labeling, can be handled in-house or by a third-party logistics (3PL) partner. In addition, 3PL firms frequently incorporate returns management and customer support services in their packages (to assist merchants with parcel clarifications, among other things). How Fulfillment by Merchant (FBM) Works? This route isn't as common as the FBA route, with only 43% of Amazon merchants preferring it to fulfill orders. Fulfilled by Merchant is exactly what it sounds like, the merchant fulfills orders when their items are offered on Amazon, either through self-fulfillment or through a third-party fulfillment center. Because Fulfillment by Amazon needs a few approvals, shows inventory turnover, and takes time to set up, FBM is generally the sole fulfillment method available to new merchants selling on Amazon. Small businesses are more likely to fulfill orders personally, but bigger merchants are more likely to use a logistical network. Here are a few steps to Fulfillment by Merchant setup and get it running : List Your Products on Amazon You may start listing your items once you've created an Amazon Seller Central account. Using the correct graphics, videos, language, and more, be sure you provide the information needed on your listings to assist enhance your chances of conversion. Make sure you have an Amazon marketing plan in place. Many Amazon sellers are cutting back on ad spending in these uncertain times, which might be a chance for your marketing money to go a lot further. Store items at your fulfillment center. You may be able to distribute your items to strategic places to save on shipping costs and minimize your average shipping zone, depending on the number of fulfillment centers you have at your disposal. If your company is still tiny, a storage facility or even your house might serve as a temporary warehousing option. Start getting orders and Deliver through your own eCommerce logistics network When you get an order notice, you must send the product within the customer's specified delivery window. On the offer and checkout pages, Amazon shows consumers an approximate delivery time so they know when to expect an item they purchased from you. This takes into account handling and transportation delays. To properly set client expectations, you can change your shipping and handling time and transit time. You may order shipping labels from Amazon or print them yourself. In any case, you must always give the consumer eCommerce order tracking. Finally, for all Fulfilled by Merchant orders, make sure you update your Amazon selling account with acceptable eCommerce return instructions. When you authorize a buyer's return request, Amazon sends them a return label with your default return address, which must be legitimate. Significant Advantages of Fulfillment by Merchant Multi-Channel Approach Online shops may better execute and coordinate a multi-channel approach by fulfilling orders directly or with the aid of a 3PL firm. E-commerce enterprises may use FBM to coordinate many channels other than Amazon while still keeping track of stock and inventory. As a result, inventory from both online and offline channels may be merged, allowing for better storage, selecting and packing, shipping, and returns management. Cost-cutting The cost reductions are, without a doubt, the most significant advantage of FBM. Merchants with competence in selecting, packing, and shipping may discover that they can handle all logistics for less than what Amazon charges. The cost savings per order might not be considerable, especially if the items are little and/or light. For huge and bulky products, on the other hand, the benefit may be readily apparent. Similarly, cost reductions may pile up quickly over time. Complete Control Over Marketing, Merchandising, and Branding Some retailers may place a high value on branding. They might utilize their packaging materials, which are branded with the company name, to promote the product more. This is not an option available through Amazon FBA. Branded packaging adds to the company's marketing efforts. Most buyers aren't aware of the added benefit of having packaging that is tailored specifically to the items being offered. They like the attention to detail and are more inclined to use a product with branded packaging in the future. The widespread practice of emphasizing purchases on the internet has given branded packaging a whole new meaning. Unboxing videos are still popular. On social media, photos emphasizing purchases are widespread. The marketing value of a basic brown box is incomparable to the marketing benefits obtained by dynamic packaging.  Changes in Regulations Can Be Avoided Amazon has been known to update its rules and restrictions regularly. By utilizing Fulfillment by Merchant, the company may avoid regulatory changes that could cause service disruptions. If Amazon changed its labeling standards, for example, a retailer would have to rethink how it handles delivery. Every modification Amazon makes can cost the merchant extra time and money, whether they label their items themselves or outsource the process to a third-party logistics provider. Fulfillment by Merchant Prime Shipping  It is a feature given by Amazon to Fulfillment by Amazon sellers. However, there is a program called Seller Fulfilled Prime that you may enroll in. A merchant must commit to and verify that they can supply two-day shipping at no additional cost to qualify for Seller Fulfilled Prime. A Seller Fulfilled Prime seller must complete a trial period to demonstrate that they can keep up with Amazon's fulfillment center alternatives. The conditions are stringent and severely enforced: Picking orders on the same day The order cancellation rate is less than 1%. At least 95% of orders are delivered on time. Easy To Launch Business and Generate Better Revenue Generation FBM users establish their Amazon enterprises faster than FBA sellers, according to the most recent assessment on the condition of the Amazon seller in 2020. The apparent answer is that Fulfillment by Merchant vendors have greater freedom to operate as they like and are subject to fewer constraints. In the end, it's all about the money (most of the time). As a result, many sellers choose Fulfillment by Merchant. FBM vendors reported better profit margins than their fulfillment by amazon rivals. They also mentioned higher lifetime profits. The key reason for this is that the fulfillment option has cheaper Amazon costs. Significant Disadvantages The Absence of a Buy Box It's uncommon for fulfillment by merchant order to appear in the Amazon Buy Box. Without a highlighted item, a merchant is nearly certain to lose a sale to a firm that uses Fulfillment by Amazon. Seller Fulfilled Prime is the only legitimate way for a seller that fulfills orders themselves to be included in the Buy Box. However, this is a tough procedure that may be almost as expensive and time-consuming as Amazon FBA. Lower Search Engine Rankings Customers can choose to disregard any goods that are not part of the Amazon Prime program, as previously mentioned. Merchant sellers who provide fulfillment may find themselves omitted from client searches. Even if the merchant has lower pricing and superior quality, potential shoppers may never notice it. A paucity of search results might also be due to poor search engine optimization. Amazon sellers benefit from the company's search engine optimization. Even if the site user hasn't ruled out non-prime products, they will nearly always appear before things supplied by an Amazon merchant. Returns and Customer Concerns Fulfillment by Amazon allows Amazon to handle all aspects of customer service, including returns. If you don't want to use Amazon FBA, you'll have to handle any customer complaints on your own. This may be a good thing. When an Amazon seller has control of CSR, they may establish a reputation based on customer service and happiness. If clients are dissatisfied with their service, the Amazon seller can make the required changes. With Fulfillment by Merchant, this is not feasible. Unfortunately, the merchant will almost certainly spend far more time and money training and employing employees than if they had paid for Amazon FBA from the start. A vendor may also opt to work with a third-party CSR business. FBA vs FBM: Major Differences Between Amazon FBA and FBM Definition Before talking about FBA vs FBM, let's know about their basic meaning. Fulfillment by Amazon is an order processing mechanism in which Amazon accepts responsibility for all client orders for a merchant's product. Picking, packaging, shipping, and customer service are examples of typical Amazon actions in this regard. Under this approach, the merchant has no involvement in order processing. Fulfillment by Merchant, on the other hand, refers to the procedure in which the merchant keeps the merchandise himself (in their home or a leased warehouse) and handles the packaging and shipment. Under the Fulfillment by Merchant approach, Amazon is not involved in order processing. Controlling and storing inventory Inventory is held in Amazon fulfillment centers under FBA, whereas inventory is stored at the merchant's own or rented warehouse in Fulfillment by Merchant. As a result, the merchant has very little control over his product inventory, but an FBM merchant has more control. Customization of the packaging Fulfillment by Amazon entails Amazon taking care of the packing, which is normally standard for all of the items it distributes. However, under Fulfillment by Merchant, the seller is responsible for the packaging, which implies that the merchant can personalize a package to make it more appealing to the client. Product Shipping Under FBA, the merchant delivers his product inventory to Amazon's warehouse, and Amazon then ships the items to customers after receiving an order from him. The merchant, on the other side, sends things directly to clients under fulfillment by the merchant. Customer Service In the FBA model, Amazon handles customer support, exchanges, and returns, whereas, in fulfillment by the merchant model, the merchant is responsible for all of these operations. Fees and Other Related Expenses Amazon charges FBA sellers an order handling/fulfillment fee as well as inventory storage fees. FBM merchants are not required to pay these fees to Amazon; instead, they must cover their expenditures, such as employee salaries, warehouse rent, and shipping costs. Customers' Favourability Customers are more inclined to purchase items that carry the Amazon Prime logo and are delivered by Amazon because of the free two-day shipping. Because FBMs are fulfilled by the merchant, they are less popular and take longer to deliver. As a result, fulfillment by the merchant may miss out on several clients who normally choose items labeled as prime. Dimensions and Weight of the Product When selling on Amazon, product size and weight are two of the most important things to consider when choosing an order fulfillment plan. Because Amazon normally charges additional storage, handling, and shipping fees for items that are heavier and bigger in dimensions than Amazon's standard product weight and size, the Fulfillment by Merchant may be a preferable alternative if the product is heavy and large. For lightweight and small-dimension items that don't surpass Amazon's regular weight and size constraints, Fulfillment by Amazon may be a better option. Factors to Consider Before Choosing The Fulfillment Model in 2025 Dimensions of Package The cost of shipping is higher for heavier items. This should be a big consideration when determining which route to take, depending on the size and weight of your things. You'll have to bear the costs in fulfillment by the merchant and have to pay for shipping, handling, or packing, while FBA sellers pay the charges as a whole which include shipping, handling, and packing. FBA users are charged based on the size and weight of their things, which makes it perfect for smaller items like books. However, if a seller is selling something heavier and bulkier, such as a couch, fulfillment by the merchant will almost certainly be more profitable. Controlling and managing the customer experience Although one approach is more hands-on than the other, both allow you to improve customer experience in distinct ways Fulfillment by the Merchant gives you greater control by allowing you to communicate directly with your customers. Fulfillment by Amazon, on the other hand, allows you to brag about customer-pleasing features like the Prime badge and the "Fulfilled by Amazon" label. Feedback From the Seller Customers may browse reviews and comments from others who have purchased your goods using Amazon's "seller feedback" function More than 80% percent of customers examine reviews before making a purchase choice since the fulfillment done by the merchant is more actively involved in their online consumers' experiences. As a result, they will have more control over their client's comments. Rate of Product Turnover Your choice of tactics will be influenced by how rapidly you sell things. If an FBA seller has a higher turnover rate, they may be charged long-term storage fees, which will reduce their profit margins. As a result, many vendors with higher product turnover rates opt for Fulfillment by Merchant to avoid the additional expenses. Expenses  The costs for Amazon FBA cover the services Amazon provides for you, such as inventory warehousing and order fulfillment. Various fulfillment and storage costs become business expenditures for FBM sellers, who are responsible for managing them. Logistics Picking, preparing, and delivering products for an Amazon e-commerce firm can take a lot of resources, processes, and personnel. Some vendors prefer to manage it themselves, while others prefer to have Amazon handle it. Differences Between FBA and FBM- Tabular Comparison [Updated 2025] [table id=24 /] When should you Utilize Fulfillment by Amazon? Fulfillment by Amazon might be the ideal road for you if you don't mind investing a little money to get your Amazon business off the ground (or keep it running smoothly). In return for paying (possibly costly) Amazon fees, FBA is for individuals who wish to get rid of their company's process of preparing items for delivery and replying to consumers. To put it another way, It is ideal for sellers who want to outsource the majority of the complex process of online selling. Furthermore, this model is better suited for selling on Amazon, their website, or marketplaces that do not prohibit FBA use. FBA sellers are more likely to lack their warehouse, facilities, and employees to properly package, ship, and provide customer care. As a start-up, using Fulfillment by Amazon may be both dangerous and beneficial and on the one hand, it facilitates the start of your e-commerce profession (with eCommerce logistics already in place) However, if your items don't sell quickly or you decide that this fulfillment model isn't for you, you risk losing money. When should you Utilise Fulfillment by Merchant? Fulfillment by the Merchant is ideal for sellers that want complete control over every aspect of their business (from product packing to customer experience) and are willing to invest additional resources to compete with sellers who dominate the purchase box. Sellers that use Fulfillment by Merchant may find it simpler to diversify their e-commerce platforms because there isn't any constraint on the specific marketplace for selling. In the end, you're taking on more responsibility, which might lead to higher FBM rewards. FBM is likely the best option for you if you prefer better profit margins over Fulfillment by Amazon fees or monthly membership charges in return for more flexibility. FBA vs FBM- What is right for your e-commerce business? So, what's the verdict on the FBA vs FBM or Fulfillment by Amazon vs Fulfillment by Merchant debate after all of this? The answer is that it is dependent on your company and plan. Fulfillment by Amazon is best suited to tiny, lightweight items that sell rapidly and in large numbers because of its price structure. It may also be appropriate for enterprises that lack the necessary storage, handling, shipping, and customer support capabilities. Amazon will handle everything while you focus on other aspects of your business, such as online marketing and sourcing. Remember that seller ratings are crucial to Amazon Marketplace's success, so if you can't supply these services efficiently on your own, choose Fulfillment by Amazon. For large, heavy products with tiny margins, fulfillment by the merchant is the best option. It's also a good idea for one-of-a-kind or limited-edition items. Fulfillment by the Merchant will also avoid Amazon's storage costs if inventory turnover is slow. Shipping and customer service are likely to be in place for well-established enterprises selling through several channels. They can simply invest in specialist support software to increase productivity. The fulfillment done by merchant option is also available to start-ups who wish to develop their independent brand. It might be difficult to decide whether or not to employ Amazon fulfillment services. Use a fulfillment cost calculator to assess your prospective Amazon Fulfillment fees if you're still undecided in this discussion. Alternatively, you can register for both and manage your online selling in parallel. 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. Fulfillment by Merchant in collaboration with WareIQ As a Fulfillment, WareIQ has ready-to-use connectors that can be set up in minutes. Other benefits of employing WareIQ fulfillment services for Amazon merchants include: Possibility of using branded packaging as a highly effective branding and marketing strategy More profit margins and fewer fees Low shipping prices, since 3PLs, have a lot of negotiating leverage with carriers because they bulk their clients' shipments Fulfilling orders easily if the Amazon merchants are selling on other marketplaces too Easy integrations of WareIQ fulfillment platform with 20+ other marketplaces to fulfill Amazon orders as well other marketplace orders Increased autonomy and flexibility Having access to a global logistical network Prime options have the same delivery speed as Prime options Amazon FBA prep services The best thing is that Fulfillment by Merchant sellers who use WareIQ fulfillment services don't have to handle a single package, ensuring a hassle-free fulfillment solution while still having the opportunity to establish a strong brand. Staying flexible and being able to establish a strong e-commerce brand while not devoting too much time to fulfillment and shipping provider discussions will result in a bullet-proof business solution for merchants, ready to scale up your e-commerce firm. [signup] FBA vs FBM FAQs (Frequently Asked Questions)

May 31, 2022
SKU vs UPC vs Barcodes: Top 5 Differences in 2025

SKU vs UPC vs Barcodes: Top 5 Differences in 2025

Manufacturers face constant pressure to provide important information on their products to be as transparent as possible to customers who have purchased them. It can be cumbersome to fit information such as the manufacturers' name, manufacturing location and details about the product such as dimensions, category, weight etc onto a product or box that doesn't have much surface area. Retailers have multiple options to convey this messaging efficiently, without taking up much space. This helps their customers and also themselves because it enables them to identify each individual product or category amongst a sea of other products. This article will explain the differences between SKU vs UPC vs Barcodes and will help you to make a decision in terms of which one would be the best option for your business. What is a Stock-Keeping Unit (SKU)? SKU is a name and tracking system merchants use to identify and track their inventory or stock. An SKU - Stock Keeping Unit is a unique code of letters and digits identifying a product's manufacturer, model, design, colour and measurements. Companies develop their own SKU identities unique to their products and services. Internal SKUs from two companies selling the same product, such as T-shirts, are likely to differ. [contactus_gynoveda] What is a Universal Product Code (UPC)? UPC is a code imprinted on product packaging to help identify a specific item. It comprises two parts: the machine-readable barcode (a sequence of distinct black bars) and the distinct 12-digit code. When an item is scanned, UPC makes it easier to recognise the product details such as the trademark, product, dimension and category. In effect, it is logical to use UPCs to allow faster identification and processing of products. UPCs are also helpful for managing stocks within a shop or facility. What is a Barcode? A barcode is a relatively basic concept where distinct numerals are assigned to products (every single piece of each item). These digits are then printed on items and packages and scannable through a barcode reader. Barcodes require three individual components to function: Master System It is a database where items are listed, each with assigned codes and a provision for the addition of items due to restocking and reduction through sales is incorporated; this database also compiles the manufacturing, pricing and inventory details. Barcodes They are the codes that are printed on every single item. Barcode Reader It is a device to read and recognise the code imprinted on the system and translates the details into legible information. SKU vs UPC vs Barcodes: Top 5 Differences People generally do not know that there are differences in SKU vs UPC vs barcodes; they are typically used synonymously. But there are specific differences among the 3. Different businesses use these based on the applicability and suitability depending on their product offerings. The differences among SKU vs UPC vs barcodes have been listed below: [table id=23 /] SKU vs UPC vs Barcodes: Utilisation Based on Needs Using identifiers (SKUs or UPCs) greatly depends on business requirements and long-term goals. When the maximum utilisation of these codes is to be done internally and the business sells products directly to consumers only, there are no B2B selling SKUs that are more optimal compared to UPCs. Utilising SKUs for small businesses is more sensible, with the only risk being a competitor taking a UPC license before you. When the business is more of a global entity and many retailers sell your products or you have online stores on popular eCommerce websites, it is more sensible to obtain a UPC which is globally recognised and accepted. Depending upon the business and its reach of operations, a prudent decision for SKUs or UPCs can be easily taken. SKU vs UPC vs Barcodes: Best Practices Best Practices of SKU Keep the individual codes short if you want to depict 2-3 key features. Choose the most important one and place it at the beginning of the SKU number. Most SKUs today are scanned into systems and these machines frequently perceive a zero at the start of a number as empty space. To minimise the confusion created by this sort of issue, make sure that none of your SKU numbers begins with a zero. Avoid using letters that may be confused for numerals. Do not just repeat the manufacturer's numbers. Avoid letters that might be mistaken for digits. Best Practices of UPC You should only purchase your UPC identifiers from the GS1. GS1 is the only issuer of UPCs, so buying directly from them reduces the chances of fraud, mistakes and legal hassles. Do not apply UPCs for items that already have one. Proper research and analysis should be done before applying for a UPC. You can purchase a prefix capacity plan when a business application for a GS1 prefix has been granted. Every option gives you a certain number of UPCs (from ten to One lacs), beginning with the allocated prefix. When all the UPCs allotted above are utilised, you will have to purchase fresh UPCs; there is no option to change the plan. It is always better to estimate your requirement to avoid any hassles at a later stage of business. Best Practices of Barcodes Determine what you want to barcode and the barcode labels you wish to utilise. Determine where you want your barcodes to be placed on your equipment and what information you want your barcodes to include. Choose the kind of scanning gadget that your barcodes will be compatible with. In order for the barcode system to achieve long-term success, create inventory indicators such as cycle time, inventory carrying costs, fill rate and order status. Improve inventory forecasting by using reports from your barcode inventory system. Barcodes must be durable and the system must scan barcodes correctly every time. Train your staff on how to use barcodes appropriately. Conclusion A fitting inventory management system and an ideally suited product identifier system can take you a long way in properly managing your inventory. Proper management of inventory can help you free up working capital, which can be aptly utilised for more productive purposes. Choose your code system and inventory management system wisely, based on the requirements and financial capabilties of your business.  If you want to take advantage of seamless inventory management and a prolific order management experience, WareIQ, with its vast array of fulfillment centers and advanced WMS, can definitely help and offers competitive pricing. [signup] SKU vs UPC vs Barcodes: FAQs

May 30, 2022
Sell With WooCommerce: 10 Easy Steps to Build an eCommerce Website With WooCommerce, Digital Products to Sell in 2025

Sell With WooCommerce: 10 Easy Steps to Build an eCommerce Website With WooCommerce, Digital Products to Sell in 2025

You may all be aware of how the internet has changed business processes and consumer habits. The use of websites has become an integral part of everyone's life, whether they purchase or sell products online. Many different platforms enable users to tailor websites to their requirements. WooCommerce is one of the world's most widespread eCommerce platforms that offer these services. It is extremely adaptable, cost-effective, and simple to use, even for beginners. Over the last few years, eCommerce integration has been rapidly increasing in popularity. Whether or not their primary business is eCommerce, an increasing number of companies are utilizing online selling with WooCommerce. Being able to sell with WooCommerce allows big corporations, small businesses, and home-based entrepreneurs to develop eCommerce stores and sell with WooCommerce, effortlessly. Users should be aware of the numerous features of the platform so that they can make the most of online selling with Woocommerce. You will get a clear view of the step-by-step guide to online selling with WooCommerce by reading further. What is WooCommerce? WooCommerce is a WordPress eCommerce plugin that is both popular and well-reviewed. Unlike other eCommerce platforms, it is only available as a WordPress plugin and does not operate independently. WooCommerce can only be used on a WordPress site as a result. WooCommerce is open source and offers nearly limitless customization options and a solid and dedicated open-source community. Using a single platform, WooCommerce provides multiple online marketplace services. Even though you may want to sell with WooCommerce by turning your website into an online store for selling different types of products, many businesses also use it to offer services, rent rooms, and schedule appointments. For service-based companies, online selling with WooCommerce is the perfect option. [contactus_lilgoodness] Why Should You Sell with WooCommerce? WooCommerce is used by 99% of all WordPress marketplaces. WooCommerce is a simple plugin with a low difficulty level. It is simple to use for new site owners. Minimum order quantity, customer engagement, shipping status updates, inventory management, and more are available through online selling with WooCommerce. In addition to all these services, the best reason to sell with WooCommerce is that it has extensive reporting options, multiple payment gateway options, and other marketing and promotion options. How Do Traders Sell With WooCommerce? WooCommerce is a free plugin for WordPress. It allows you to convert a WordPress site into an eCommerce marketplace. WooCommerce is fully integrated with your WordPress site's features. This means you can create an eCommerce WordPress site with products, a shopping cart, and multiple payment options.  10 Easy Steps to Set Up Your Website and Start to Sell with WooCommerce in 2025 1. Install WordPress Once you have picked a host, it is time to set up WordPress as your website-building platform. You must log in to your account, go to the sites tab and select WordPress. Then, to begin constructing, select Create Site. You may need to install WordPress manually if you use a different web host. Because each website server has a slightly different setup, you can contact your host's customer care for further information on installing WordPress. Remember that you can move your WordPress website from your current host to another one, anytime. 2. Install the WooCommerce Plugin for WordPress You will need to install the WooCommerce plugin after you have set up WordPress. This will allow you to list products and collect payments from customers. Here is an easy guide to installing WooCommerce: Step 1: Log in to your WordPress dashboard using your username and password. Step 2: Go to the Plugins section. Step 3: The WordPress Plugin Directory will appear. Select WooCommerce from the drop-down menu. Step 4: The WooCommerce plugin will be installed. Click Activate when it is finished. Step 5: WooCommerce will now appear in your active plugins list. Then you have to set up WooCommerce. You will have access to all of WooCommerce's features once you have installed and enabled the plugin. Now you can: Create pages for your website Make a product list Create payment options 3. Customize Your WooCommerce Store You can customize the shop page using 2 different methods, and they are: Programmatically With a page builder Customize the WooCommerce Shop Page Programmatically Step 1: You can create a theme Step 2: Create the folder structure in your theme Step 3: Form content for your shop page Step 4: Create a page template for the shop Step 5: Using shortcodes, you can customize the shop page Step 6: Put the most popular product front and center Customize the WooCommerce Shop Page Using Page Builder Step 1: Make a listing page with page builder and fill it with content Step 2: Create the newly formed page for your Shop Page 4. Add Product Listings to Sell With WooCommerce After installing WooCommerce, go to WooCommerce - Products in your WordPress dashboard. Then click the Create Product button to start creating your first product. This should bring up the WordPress editor you are used to, but with some additional features.  5. Add Product Titles and Descriptions In the title section, type the product's name. Next, complete your product's description. The purpose of the description is to explain the benefits of a product. To make this section easier to read, you can use bullet points. Optimize the title and description for organic keywords when crafting them. Add semantic keywords to the long explanation if you wish to use them on the product page. 6. Choose Product Type WooCommerce allows you to use numerous product types depending on the type of business you operate. There are four basic product types to pick from: Simple Product: The default setting is a simple product, which is a one-size-fits-all approach. This is a popular product among WooCommerce store operators. Grouped Product: A grouped product is typically used to group simple things, such as a pack of five t-shirts. External/Affiliated Product: You can use this option to link the add to cart button to an external page if you have a dropshipping business or affiliate-based store. Variable Product: A variable product comes in various colors, sizes, and other features. Consider a t-shirt with sizes such as small, medium, large, and so on. Additionally, you have two more possibilities for customizing those four fundamental product types: Virtual Product: This option is for individuals selling a digital product through the internet that does not require shipping. Downloadable Product: You can enable this option if a downloadable file is related to the product such as an eBook or audio file. To make this decision, go to the Product data box directly below the WordPress editor where you added the product description and use the drop-down menu and checkboxes. Suggested Read: How to Choose a Product? 7. Fill Out the Product Data Meta Box After you have picked your product type, you will need to fill out the remainder of the details in the Product Databox. To browse between different sections, utilize the tabs on the left which are listed below: General tab Inventory tab Shipping tab Linked products tab Attributes tab Advanced tab 8. Write an Engaging Short Description Scroll down to the Product Short Description box after you have completed the Product Databox. On your single product page, the short description is normally shown clearly. The longer description you entered will normally appear further down. 9. Add Some Finishing Touches If you follow the steps above, your product page is almost complete. Before publishing the product, add the following to the right-hand sidebar: Product tags and categories: Product organization is helped by categories and tags. On the front end of your store, your customers can search for products using categories and tags. Make it as sensible and valuable to your target clients as possible. Product image: Include the product's main featured image. This will be the largest image on the single product page and also appear on the catalog page. Product Gallery: Additional photographs that display in the gallery on the single product page can be added to the product gallery. To publish, click the publish button. After double-checking that all the product data is accurate, click Publish to take your product live. 10. Next Steps for Launching Your Store You are almost ready to launch your store to sell with WooCommerce once you have added all your products. Next, you might want to check out some of the top WooCommerce plugins to help you expand your store's capabilities. Products to Sell With WooCommerce Simple Products The most basic type of products available in any store is simple products. They are the same as store-bought items. Each thing has a cost and may or may not be physical. Simple products do not go beyond the product's basic functionality. This is probably the product category you will use if you sell single products or large numbers of standard items with no variants. Variable Products Variable products go a step further than simple products, allowing for a comparable grouping of products with minor differences. If you owned a clothes store and your products were available in a variety of sizes and colors, each size and color would be considered a variation. If you have a lot of variations, you will need this product type or your shop will become difficult to explore. Individual SKUs, prices, sales, and stock amounts can be added to variations to support a wide range of use cases. When you visit a store selling variable products, each item has only one listing page. You can select your variant by going to that product's page and choosing particular parameters. Digital Products The main purpose of this product category is that you will only be given a link to download or visit the item once you have purchased it. This product type is ideal for selling digital goods that do not require complicated registration codes, such as software or eBooks. Custom Products  You may discover that the way you wish to present your product to sell with WooCommerce or other plugins can be easily achieved. WooCommerce is a wonderful platform for developers to create custom product layouts and types because it is so flexible. Custom payment alternatives are always feasible and product pages can be updated to improve the shopping experience. Customer account areas can also be built to suit your store better. Make sure to speak with one of the experts who can interpret your needs and turn them into a workable concept. Services to Sell with WooCommerce Client services can be sold using any product included in the WooCommerce store. It could be services like consulting, hairstyling, workshops, or any other service you can offer on your website. Consider the following options: Professional Services Architecture, conveyancing, document preparation and review, legal services, real estate consulting, medical services and will writing are examples of professional services. Design Services Brand identity work, graphic design, picture editing, infographics, online interior design, and stationery are all examples of design services (business cards, brochures, flyers, leaflets, and print layouts). Expert Services Online business, copywriting, CV writing and resumes, career development, coaching, consulting, lifestyle services, life coaching, love and relationship counseling, marketing, photography, search engine optimization (SEO), social media, and web analytics are just a few of the expert services available. Technical Services Printing, programming, and software development such as WMS software, sound mixing,  and technical support are some examples Digital Products to Sell With WooCommerce Online Courses Selling online courses is one of the most popular and successful ways to generate money online. Digital products to sell with WooCommerce are the latest development in the technological world. You can construct a training or educational program for whatever skill or subject you want to teach. Templates Templates are another digital product you should try selling. This can be extremely useful if you have basic graphic design or digital art skills. eBooks eBooks have long been one of the most lucrative internet money-making opportunities. They were among the first digital products to appear on the e-commerce market and they remain popular today. Memberships and Subscriptions You can sell recurring access to information and events in your sector, such as instructional material, training programs, webinars, and more, using membership services. You can also charge a fee for VIP access to your website. Professional Services Another alternative is to use your website to market professional services for order fulfillment. This is not a digital product in the traditional sense. Professional services can be a profitable method to make money online. Audio Another big category of digital assets that you might want to look into is audio. Many people are prepared to pay for audio files, including podcasts and music, to reduce logistics costs. Photography Selling your photographs might be another great option to make money online if you are a photographer. With so many companies shifting their activities online, high-quality images are always needed to use in marketing campaigns and websites. Graphic Art Many companies and professionals cannot design their graphics or brand assets. As a result, if you are knowledgeable and experienced in graphic design, you can use your WordPress site to sell visual art and creative bundles. How to Up-Sell and Cross-Sell With WooCommerce to Increase Revenue Generation  Since existing customers are significantly more likely to convert interest into a purchase than a new prospect, cross-selling and upselling are easy wins for growing revenue. What’s the Difference Between an Up-sell and a Cross-Sell? Cross-selling and upselling are two extremely similar strategies. They both improve the profit of small businesses but in opposite ways. UpSell with WooCommerce increases income by promising a higher-level product, and cross-selling accomplishes the same by suggesting more items to purchase. The customer's goal is also a factor in the differences between these strategies. When a shopper gets cross-sold extra things, they have no intention of purchasing them. After receiving the suggestion, the customer may want to consider adding those items to their economic order quantity because they are similar to the original order. Upselling appeals to the desire of the buyer to make a purchase. Sellers make the offer to exchange for a higher-quality item, which is the end justification. 5 Upselling and Cross-Selling Tips and Tricks Keep It Simple Offering too many items or services simultaneously might backfire by confusing customers and diluting their attention. Teach your salesmen to focus on only a few things that provide clear value to the consumer regarding upselling and cross-selling. More possibilities to market additional items or services will naturally arise as they work with the client and develop a long-term relationship. In addition, you can get multi-channel sales fulfillment. Map Complementary Options Provide excellent maps to your salespeople to help businesses decide which services and products they can offer to which consumers at each stage of the customer journey. Analyze your current clients' purchase history and categorize by customer segment and products purchased to create a map of complementary choices. Further, your salespeople, account managers, and customer service representatives should be knowledgeable about the product. Offer Loyalty Perks Create a system for customers to earn rewards based on their purchasing habits. Customers who purchase more should be rewarded. Teach your salesmen about loyalty programs to use in upselling and cross-selling effectively. Follow-Up Cross-selling and upselling opportunities often present themselves after a customer has made and enjoyed a purchase. Train your salesmen to follow up with existing clients to ensure they are happy and suggest appropriate upsells and cross-sells as part of their daily routine. Plan the Timing When customers have already committed to a purchase, businesses can cross-sell with WooCommerce at the end of the sales cycle. This can work but it is usually better to incorporate the upselling and cross-selling procedure into the sales process in complex situations. How Product Recommendations Can Help You Increase Your eCommerce Revenue by Online Selling With WooCommerce? Product recommendations can help you increase your eCommerce logistics based on product suggestions from the recently viewed category and also by the trending upsells and cross-sells. Offering free branded shipping also encourages more customers to buy your product, which can increase your eCommerce revenue. In addition, it increases your income by: Using personalization Placing product recommendations on similar pages Leveraging herd mentality Crafting engaging product recommendations Letting customer feedback inform your product recommendations Selling digital products is a great way to increase eCommerce fulfillment services without dealing with the hassles of traditional order fulfillment. However, if you want to succeed, you will need a reasonable plan and a product that meets customer wants. Online selling with WooCommerce is a complete eCommerce solution that is quick to set up, simple to use, and adaptable to your business's needs. The points mentioned above mentioned are the step-by-step guide to setting up an online store and starting to sell with WooCommerce. Why Should You Choose WareIQ to Fulfill WooCommerce Orders in 2025? Consumers are becoming accustomed to same-day and next-day shipping alternatives. As a result, there is a significant demand for shipments that are quick and, most importantly, punctual. When your order fulfillment process is inconsistent or slow, it might be difficult to get shipments delivered on time. Overall, inefficient fulfillment procedures harm your firm. This is why if you sell with WooCommerce, outsourcing fulfillment services for your business can be advantageous. A fulfillment partner can help you with every aspect of your eCommerce logistics needs, from warehouse storage to shipping and refunds. WareIQ is one of India’s top and fastest eCommerce fulfillment providers, providing a centralized platform for multichannel sales fulfillment and a variety of services such as smart selecting and packing, same day and next-day delivery, generating shipping badges, RTO Shield to cut RTO costs, Intelligent MOQ and EOQ calculators for warehouses and cutting edge intelligent warehouse management systems with our user-friendly app store be streamline online selling with WooCommerce Enabling WooCommerce Order Fulfillment with WareIQ by integrating your online store with WareIQ's fulfillment platform enables you, as a retailer, to focus on your core business while minimizing shipping concerns. Even the most seasoned entrepreneurs can rapidly become overwhelmed while focussing on expansion and large-scale client interactions. Customers are delighted when WareIQ handles their online selling with WooCommerce and inventory management, while merchants can focus on providing great products and items. Benefits of Partnering with WareIQ to Sell With WooCommerce Customer Service Our top concern is customer happiness. Customer service representatives at WareIQ will address your problems and handle package clarifications and claims on your behalf. It might be difficult to choose which fulfillment service is best for you if you sell a large number of items through your eCommerce site. That is why WareIQ places a high value on excellent customer care, which is a significant advantage of outsourcing fulfillment. Oftentimes, business owners get lost trying to figure out all of the details of fulfillment operations. WareIQ’s customer support team is available to help you through every stage of the order fulfillment process. We can assist in housing your products in our fulfillment center and integrating with our Warehouse Management System( WMS) so that you can effortlessly sell with WooCommerce. Furthermore, after you've completed your setup, we'll begin sending your orders to your clients as soon as possible. Cost-Effective We check shipping prices from reputable shipping companies to get the best one for your requirements. Take advantage of our bulk pricing — the more you deliver in bulk, the more money you save. When it comes to post-fulfillment services, many firms are hesitant to choose 3PL services because they believe that they would be more expensive. However, selecting a fulfillment partner such as WareIQ might be far more cost-effective. Online selling with WooCommerce is free and highly effective but there are additional factors to consider. This involves challenges such as running out of inventory space or having to pay for packing and shipment. Not to mention the costs of hiring and management. WareIQ as your fulfillment provider can help you with all of that. You will get access to our warehouse for storing your items as well as 24-hour order processing. Our shipping and freight charges are among the most inexpensive in the market since we are a certified shipping facility. Overall, if you sell with WooCommerce and hire WareIQ as a fulfillment partner, you can save money on shipping, manpower, and warehousing expenditures. Time-Saving Another advantage of using WareIQ eCommerce fulfillment services is that it saves time. You probably don't have time to focus on expansion if you're so preoccupied with order fulfillment. You should be able to spend time as a business owner in sales and marketing, growing, obtaining new goods and ideas, and enhancing your overall business plan. When you choose to sell with WooCommerce, there is no additional time spent once a consumer places an order. This is due to our capacity to complete the fulfillment procedure rapidly. In other words, keeping your items in our warehouse saves you time. We can rapidly package, print your business labels, and ship client orders while your items are kept with us. Warehouse Management Warehouse management can be time-consuming and difficult but when you opt to sell with WooCommerce, it is critical. Better inventory planning can assist you in running your business more effectively and economically. Outsourcing inventory management is a fantastic approach to immediately improving company operations. WareIQ’s fulfillment centers deal with a variety of eCommerce firms and we have extensive knowledge of the best practices that we can share with you.  When you sell with WooCommerce, we can handle all of your brand’s fulfillment needs, ensuring your consumers receive the best post-purchase experience in the country and have a hassle-free experience. [signup] How To Sell With WooCommerce FAQs

May 30, 2022
What is Stock Keeping Unit (SKU) in eCommerce in 2025? Definition with Examples.

What is Stock Keeping Unit (SKU) in eCommerce in 2025? Definition with Examples.

If your business deals with a wide range of products, it becomes immaterial whether it runs on a small or large scale. Inventory management and control become a critical part of your operations. SKUs in eCommerce is more critical when the same items are being sold online and in physical stores. Stock Keeping Units help you manage and understand the nature of the products sold and the cyclicity of their demand. Although there are 3 types of inventory in SKU: Raw material inventory, Work In Process Inventory, and Finished Goods Inventory. This article covers various aspects of SKUs in eCommerce such as what it is, what they are used for, and how to make the most out of them. What is a Stock Keeping Unit (SKU)? Stock Keeping Unit is a naming and tracking system used by merchants to identify and monitor their product inventory or stock. A Stock Keeping Unit is a one-of-a-kind code made up of alphabets and digits that identify a product's manufacturer, model, design, type, and dimensions. Companies create their own Stock Keeping Unit identifiers that are distinctive to the products and services they provide. Internal SKUs in eCommerce, from two firms offering the same item, such as t-shirts, are likely to be different. [contactus_gynoveda] Understanding Stock Keeping Units (SKUs) SKUs in eCommerce are used to help businesses account for all of their inventory precisely and rapidly. Model numbers are distinct from SKUs; however, model numbers can be integrated into SKUs if a corporation so desires. These codes ensure that your workers, consumers, vendors, and software discuss the same procedures. Item codes, component numbers, and the company's model number are used to describe SKUs. A Stock Keeping Unit isn't just for physical inventory; you could allocate them to other services you provide, such as bills and invoices, etc. Consider a situation where a retailer for a new, independent food and beverage store wants to come up with SKUs to start their inventory operations. They may give food items the letter F, with B denoting beverages and B2 denoting combos. The following set of alphanumeric codes will be a veg/non-veg and hot/cold beverages indicator, followed by an indicator for the size of the beverage. V may therefore be assigned to veg items, while NV could be assigned to non-veg food. The items might then be categorised further based on their shelf life. A veg patty expiring in 5 days would be FVP01062022, while a cold beverage in tall size would be BVCT020000. Importance of Stock Keeping Units (SKUs) SKUs are used for more than just identifying products and keeping track of inventory. This information will help you determine the profit margin of your business based on the data you've gathered. SKUs perform the following activities: Data Interpretation SKUs enable merchants to acquire data to analyse product importance or identify periodic and cyclical trends in their various client categories. This data allows them to store inventory that corresponds with trends in customer behaviour. Inventory Management A Stock Keeping Unit system's primary function is inventory management. Retailers can manage the storage and transport of inventory using one Stock Keeping Unit. They can use the data acquired from sales to define inventory levels and deadlines, which can function as a trigger for starting or stopping inventory reordering and exercising control. Assistance to Customers Employees may scan a Stock Keeping Unit to rapidly determine what is in stock when a client is looking for a different product version, resulting in increased sales performance and customer experience. How Do SKUs Work? SKUs in eCommerce is surprisingly simple to create. SKU numbers can be produced automatically by a system or a vendor. SKUs may be customised in an inventory management system and the system's technical team can ingest all the data created by SKUs and correctly onboard the relevant inventory onto the software. Users may search for SKU numbers in the system's backend to detect quantity levels, orders, price, and sales levels once the infrastructure is in place. Custom sales reports based on a specific Stock Keeping Unit number can also be published. What are SKUs Used For? SKUs in eCommerce can be used in a variety of ways by merchandisers. Simply put, they are accustomed to keeping track of inventory and sales. On the other hand, SKUs have the potential to accomplish a lot more when combined with a solid sales strategy. Inventory Analysis SKUs in eCommerce are utilised to manage items at a single store or across numerous locations at the most fundamental level. You can scan an SKU to discover the entire amount of inventory available. When combined with an inventory management system, ordering cycle management and supplier connections, SKUs enable a more systematic or automated method for administering your items. Future Sales Forecasting Your WMS software can provide comprehensive reports and sales statistics using product SKUs concerning each item on the list. A systematic approach to utilising this data can enable businesses to estimate sales and demand for different products in upcoming periods. These systems can be highly effective for a small-scale enterprise. Retailers may use retail analysis to analyse how each item is performing by their Stock Keeping Unit. Customer Assistance Properly estimating sales and demand will make future management easier. Knowing what to expect enables businesses to manage inventory levels. It's a narrow line that must be trodden carefully. Custom order suggestions via past order details also help you ensure that you have the correct quantity of goods on hand. Product Recommendations Employees can locate comparable items by looking at similar SKUs that are customised to meet different product range categories. For example, all fashion items on an eCommerce website may have the same starting SKU numbers, allowing the system to suggest a similar variety for customers looking to try something new. Pricing Finally, SKUs in eCommerce help provide discounts, offer attractive products, and deconstruct packaged items into individual components. Businesses might use different SKUs for goods and packaging. A single beer, for example, may have a single SKU, but a case of the same beer would have its own unique SKU for a separate price and inventory unit.  How to Design and Create SKU Numbers in 2025? Depending on the software, SKUs in eCommerce can be constructed in various ways. Creating SKUs may be simple and adaptable with the right inventory management system. The steps are listed below: Step 1: Begin with SKU Numbers Each Stock Keeping Unit’s first two or three digits/characters should reflect a primary identification. This might be a department, retail category, or even a vendor. A Stock Keeping Unit number, when scanned, specifies the top-level merchandising group and position of any product in your shop. If you own more than one business, you can also use SKU numbers to designate retail locations. You May Like: What is Merchandise Inventory? Step 2: Create Distinctive Designations Using Middle Values Use the middle digits of SKU numbers to attribute distinctive qualities to your product, such as dimension, shade, product category, or other required details. Arrange them in whatever way makes sense when arranging the items you offer. Step 3: Add a Sequential Number to the SKU at the End Employing sequential numbering for the last series of a Stock Keeping Unit number, such as 1, 2, and 3, simplifies the setup process and helps you distinguish old vs fresh goods amongst all your products. Trying to tie the last digit of a Stock Keeping Unit code to a supplier product ID might also be helpful in some cases. Methods that make logical sense for the products you sell should be employed. Step 4: Incorporate SKUs Into Your Inventory Management System You can generate SKUs and maintain inventory manually in notebooks or an excel file, but utilising a systematic approach with inventory tracking is more straightforward and efficient. A system-based approach allows you to monitor as much or as little product data as you desire. However, most small businesses can start by entering the following simple data:  Product Description Product name Product category Brief description Any other relevant data Step 5: Make Use of Barcode Generation After creating a Stock Keeping Unit number, it needs to be integrated with your inventory management system. Here, you need to create barcodes that can be scanned into the system. These barcodes are placed on the items along with product labels. Barcodes can be generated using conventional barcode generation systems or through your inventory management system. Once barcodes are generated, you can print and stick them to your products. Learn more about the differences between barcodes and SKUs here. Examples of Properly Named SKUs in eCommerce Example 1 - ADMWALKWHI7213 The SKU created can be understood as follows: AD: Name of the Manufacturer (Adidas) M: Male Walk: Walking Shoe WHI: White Colour 7: Shoe Number 213: Item Number Example 2 - BBHGTSHBLK02003 The SKU created can be understood as follows: BBH: Baby Hug G: Girl TSH: T-Shirt BLK: Black 02: Age 003L Item Number  5 Best Practices for Stock Keeping Unit or SKU formatting Be Simple Since Stock Keeping Unit numbers are so simple to create for your company, it might be tempting to incorporate as much data as you can. Choose 2-3 features that you wish to convey in your SKU number to avoid lengthy SKUs. Keep individual codes short if you want more features. Begin With the Most Important Features After determining important features, choose the most important one and add it to the beginning of the SKU number. Some stores like to begin with the most basic feature and work their way down. For example, begin with the identifier for the shoe brand before going on to type, size, and item number. Do Not Start SKU Numbers With a Zero Most SKUs today are scanned into software stems and zeros at the start of a number are frequently perceived as non-existent. As a result, the SKU 003BBHGTSHBLK02 might also be interpreted as 3BBHGTSHBLK02. To reduce the confusion created by this issue, make sure that none of your Stock Keeping Unit numbers begin with a zero. Many firms work around this by starting the SKU number with a brand or supplier identity, as shown in the example above. Avoid Using Letters That Could be Confused for Numerals It may be tempting to use every letter of the alphabet because SKU numbers are alphanumeric. To avoid misunderstandings, try not to use characters that resemble digits. The letters O and I, for example, are frequently mistaken as zero and one. Do Not Repeat the Manufacturer's Numbers It may look easier just to use the manufacturer's number or include it in the SKU when creating a numbering scheme. However, this eliminates the benefits of having a custom SKU formula built to meet your company's particular needs. Conclusion: How to Use SKUs to Grow Your Business and Improve Your Customer Service? Consumers increasingly expect and want a personalised, seamless experience. As a result, in terms of generating an engaging and intriguing shopping experience, eCommerce, as well as physical retail, have become highly critical. Merchandisers must keep their stores/eCommerce sites updated with the best-selling and most in-demand products to keep customers interested. Having a detailed view of and easy access to optimised SKUs is crucial for creating enticing assortments and quickly updating product suggestions and trends to keep up with the latest market trends. SKUs are essential for merchants to be competitive in today's dynamic, fast-paced retail industry. They simplify extracting relevant information from product identification data that is particularly unique to your company and its products. They enable you, your workers, and your clients to instantly verify the availability of products via an SKU query. Even small commercial enterprises should make use of SKUs. Create a decent SKU structure today and gain advantages across your business. This can be done with a 3PL fulfillment company like WareIQ. WareIQ offers a whole range of ecommerce fulfillment services including creating and managing SKUs for all your products and access to our custom WMS that will make managing your inventory a breeze. [signup] Stock Keeping Unit FAQs (Frequently Asked Questions)

May 30, 2022
What is Cost Per Unit? How to Calculate It & Top 5 Minimizing Strategies 2025

What is Cost Per Unit? How to Calculate It & Top 5 Minimizing Strategies 2025

A business’s survival depends on the bottom line. Whether your business is into providing products or services, the key metric you have to monitor is the net profit. Net profit is defined as the difference between total revenue and total cost. Analyzing revenues and expenses gives a clear indication of whether a company is performing and working effectively. A key way of increasing your profit margins is to calculate cost per unit and find ways of reducing it as much as possible. By applying the cost per unit formula, businesses can identify inefficiencies in their production or service delivery processes. This insight allows for more accurate pricing strategies and better financial planning. In this guide, we will learn how to calculate the cost per unit and explore strategies to minimize it effectively. What is the Meaning of Cost Per Unit? Cost per unit is the sum of all the expenses that a company incurs to produce, store and sell one unit of a product or a service. It is also known as the cost of goods sold. There are various elements to calculate cost per unit. They are classified into two groups – fixed costs and variable costs. In order to calculate cost per unit, the first step is to ascertain operational profitability. Fixed Costs: Fixed costs are those that stay the same irrespective of the volume of production. Examples include capital equipment, rent, insurance, etc. Variable Costs: Variable costs vary based on the volume of output. Examples of this are direct materials and direct labour. Both can be reduced by employing the cheapest labour or outsourcing production to the most efficient manufacturer. [contactus_gynoveda] Importance of Cost Per Unit Calculating cost per unit is important because it is a key determinant of net profit per unit or earnings per share (EPS). EPS is a key performance indicator used by shareholders to assess performance.  It also helps you to price your products appropriately. Knowing the cost of production will let you make a well-informed decision about the markup value. It helps you amplify the SKU (stock-keeping units), which are your highest profit generators, and assists in boosting customer loyalty and satisfaction.  Also, if you know the different costing elements, you can work towards reducing the different components. If your cost of production is accurate, you can undertake SKU rationalisation and decide which products to keep and discontinue.  These measures will help in space rationalisation and price optimisation with the key goal of improving cash flows, increasing return on invested capital, and boosting operating margins.  A large organisation can lower unit costs through economies of scale and optimise the market offering price. You must calculate the cost per unit for all the various SKUs. How to Calculate Cost Per Unit (with Examples)? You must ascertain the total fixed cost and the total variable cost of production to calculate the cost per unit. Their sum must be divided by the total number of units produced to derive the unit cost of production. Cost Per Unit Formula Cost per unit = (Total Fixed Costs + Total Variable Costs) / Total Units Produced Where: Total Fixed Costs are the costs that do not change with production levels (e.g., rent, salaries). Total Variable Costs change with the level of production (e.g., raw materials, direct labor). Total Units Produced is the number of units manufactured during the period. The cost per unit is (Total Fixed Costs + Total variable Costs)/Total number of units produced. Cost Per Unit Formula Example 1: Let the Total Fixed Cost be Rs 1,00,000. Total Variable Cost is Rs 2,50,000. In a year, 50,000 units are produced.  Cost Per Unit= (1,00,000+2,50,000)/50,000 which makes the cost of production Rs 7 per unit. Cost Per Unit Formula Example 2: Let Total Fixed Costs be Rs 1,00,000. The unit cost per unit is Rs 3. The total number of units produced in a year is 20,000.  Cost Per Unit = (Total Fixed Cost/ Total Output) + Variable cost per unit = 1,00,000/ 20,000 + Rs 3= Rs 5+Rs 3 which makes the cost of production Rs 8 per unit. If there is a reduction in the volume of units produced, total variable costs will reduce but the fixed cost per unit increases as the denominator decreases. If there is an increased output, total variable costs will increase proportionately but the fixed cost per unit will come down. Difference Between Cost Per Unit and Price Per Unit [table id=22 /] Based on the difference between its price per unit and cost per unit, the company can determine how much discount it can offer on its SKUs as part of its marketing campaigns. At a bare minimum, a company should cover its breakeven costs. Explore more aspects to better understand the difference. Aspect Cost Per Unit Price Per Unit General Description Cost per unit refers to the sum of fixed and variable costs per unit. This is the total cost per unit. A manufacturing company must cover at least the total cost per unit. This total cost per unit refers to the breakeven level. The company must achieve at least a breakeven level of revenue so that it won’t incur losses. Price per unit refers to the market price at which the company wishes to sell its products and services. All of its SKUs are marked up over the cost per unit to make up its market price per unit. The difference between the market price and unit cost of a product or a service determines its profit per unit. This is the basis for determining the net profit of the company. Definition The expense incurred to produce or acquire one unit of a product or service. The amount charged to customers for one unit of a product or service. Purpose Used to measure production efficiency and control costs. Used to determine revenue and set selling price. Calculation Total Cost ÷ Number of Units Produced Total Sales Revenue ÷ Number of Units Sold Includes Materials, labor, overhead, and other production costs. Cost per unit plus profit margin and other markups. Impact on Business Helps identify ways to reduce costs and improve margins. Directly affects sales volume and profitability. Focus Internal cost management Market pricing and customer value perception 5 Strategies to Minimise Cost Per Unit  Improve Logistical Strategy  It is important to build a logistics platform with a third-party logistics provider that has the required number of people, processes, and technology to report costs and service performance. Plan, execute, and optimise your transportation network with effective communication to all the involved parties. Use technology and analyse data to optimise freight. Look at procurement processes, mode selection, and supply chain network design. Don’t forget the KPIs, including reporting, monitoring, and logistics process improvement. Examining trends over time helps cut unnecessary costs and inefficiencies in the supply chain. Reduce Material Expenses  Some ways to do this include the following: Substitute lower-cost materials Eliminate unnecessary product features Reduce waste Negotiate until you get the lowest possible price for the best quality product Leverage suppliers for faster delivery times and lower financing costs Implement a system of Just-in-Time inventory to reduce excessive stocking and material-carrying costs Decide when to trade off material carrying costs with higher discounts from the supplier Make use of bargaining opportunities to access materials available at prices lower than their cost of production Barter finished goods for raw materials Offer faster payments for better price discounts Negotiate long-term supply arrangements to ensure a steady supply chain and stable material costs Reduce Overall Holding Costs  You can reduce overall holding costs by doing the following: Optimise reorder levels Make minimum order quantities work for you Avoid overstocking Get rid of your dead stock Decrease supplier lead time Use inventory management software Minimise the Volume of Wasted Inventory, Reshipments, and Cancellations  Use an efficient inventory management system to minimise overstocked inventory, leading to outdated, unsold inventory and incorrect customer demand forecasting, leading to overaccumulation of stock.  Be aware that the product life cycle is becoming shorter and people’s shopping habits also constantly change. Optimise inventory levels to reduce wastage and also logistics costs. Set up inventory buffers to prevent problems across the supply chain and avoid overselling and underselling inventory across marketplace channels.  Buffers are supplies or products kept in place to deal with demand forecasting or supply chain fluctuations that can arise in the future. Improving supply chain management helps reduce excessive inventory across various processes on the supply chain. Avoid excessive safety stocks to prevent stockouts unless you are in a cyclical or seasonal industry. Project future demand levels properly.  Consolidate your supplier base to get the benefit of improved delivery time. Centralise the inventory function and use the ABC inventory management system to manage inventory properly. Negotiate required minimum order quantities with your supplier. To avoid reshipments and cancellations, review product weights and sizes and ensure you have the correct measurements of each product and its packing boxes. Accuracy is important to avoid shipping delays.  Discrepancies between the actual sizes and weights and the numbers provided on the shipping container can cause unnecessary problems and delay delivery. Automate warehouse and order fulfillment operations to ensure minimal human error. Electronic documents for electronic signature verification help avoid human mistakes resulting in reshipments and cancellations.  Eliminate Underperforming Products To do this, you can then follow the points listed below: Assess the product’s profitability regarding its return on investment and return on time spent Assess customer feedback about the product’s acceptance in the market. If it is unfavourable, then it is better to eliminate it Re-evaluate your product offering to see whether you can recalibrate or revitalize it. If it is a divergent product, look to eliminate it Do a BCG or a GE-McKinsey Matrix to assess the product's performance and stability Suggested - Average revenue per unit arpu How WareIQ Helps Reduce Fulfillment Costs Per Unit Inventory Optimisation Inventory gets stored in proximity to areas of high demand, ensuring same-day and next-day delivery. WareIQ provides a Warehouse Management System and expertise for efficient management of inventory and warehouse processes. Payment Based on Utilised Storage Space You only pay for the warehousing facilities you use, so you incur lower inventory storing costs. Reduced Supply Chain Expenses WareIQ provides a one-stop shop for all your logistics needs, from managing inventory to shipping orders, solving COD, NDR, or fraud issues, and analysing performance. This enables eCommerce businesses to focus on growing their business and outsource all inventory management and shipping requirements while ultimately reducing shipping costs. Bulk Carrier Pricing WareIQ is integrated with all major selling platforms and on-demand courier companies. We find the fastest and most reliable option for each order to get it delivered to the customer; this also enables you to get the best pricing and fastest delivery on each order. Innovative Technological Solutions WareIQ unifies network, technology, and expertise to offer end-to-end fulfillment services. [signup] Cost Per Unit FAQs

May 29, 2022
What is Order Management & Order Processing? Definition, Importance, Key Features and Top 5 Order Management Software in 2025

What is Order Management & Order Processing? Definition, Importance, Key Features and Top 5 Order Management Software in 2025

If you are an eCommerce seller, your ultimate goal would be to sell hundreds of products daily. Once you start putting effort in the right direction with proper guidance then you will receive the targeted order requests sooner or later and have a bunch of buyers who trust your brand. Once you have found your niche in the eCommerce marketplace, the next step would be to streamline eCommerce order management for a better customer experience. For this, you will have to get listed on multiple selling channels, keep a good amount of inventory, operate multiple eCommerce warehouses in different locations, enlist competent human resources, employ software to automate and streamline processes, and tie up with logistic companies, and much more. All of the above steps can be summarised as order processing or management. It consists of every step that is related to online selling. An online seller may not be aware of some of these processes but their business will surely be involved if they have offloaded order management to a 3PL fulfillment company. To get a detailed understanding of order processing, how to perform it effectively, utilise all the benefits, and remove unnecessary time and resources, read ahead. What is Order Management? It refers to handling an eCommerce order from the very first step of receiving the order request from the customer to taking care of post-delivery processes like feedback, receipt of payment, reverse logistics, and maintaining the appropriate inventory levels. A company lacking proper order management will be unable to manage inventory and fulfill orders in a timely and efficient manner. eCommerce companies operating in India have to serve the largest market in the world, consisting of 1.4 billion people, and have to manage eCommerce orders in every corner of this vast country. It is impossible to cater to every customer if you do not have the time and necessary resources to do so. After getting orders, you need to fulfill them, maintain inventory, and a lot more. For this, you need a large, dedicated workforce operating 24/7. Once you have this in place, it is a daily requirement to coordinate with them to provide effective order management. [contactus_gynoveda] Why is Order Processing Important for eCommerce Businesses in 2025? Order processing is the process of receiving an order to deliver it. This is an essential aspect of retail order fulfillment in the eCommerce space, as reliability and accuracy lead to client satisfaction. Picking, sorting, tracking, and shipping are the steps involved in order processing. Depending on the business, It can range from manual (handwritten on an order log sheet) to highly technological and data-driven (through online orders and automated order processing software). Importance of Order Processing Management for eCommerce Businesses Inventory Tracking Before you receive orders, you must ensure you have adequate inventory. Both overstocking and understocking can be a weakness for your business. Overstocking can make you look like a sitting duck with less liquid cash. Conversely, understocking might result in delayed customer delivery, lowering your brand value. Through Minimum Order Quantity and Economic Order Quantity, you can manage seasonal sales based on previous customer purchases. This way, you can avoid both over and understocking. Accurate Order Fulfillment When you have to take care of only a few orders, it is accurate to deliver but quite expensive to fulfill exclusively. However, when your business gets off the ground, you will get a hefty amount of orders regularly. Errors will become inevitable. Your company's reputation will be harmed if you deliver incorrect orders or have shipment delays. Order management software automates the process and eliminates the risk of human error. Time-Saving If you manage an eCommerce business, you are a visionary entrepreneur. Most of your resources will be spent on lengthy order fulfillment duties if you don't manage orders in advance. You can employ a professional 3PL business to handle all of your order fulfillment tasks to avoid wasting important resources on all of these time-consuming duties. What are Order Management Processes? The order management process begins once a customer places and pays for an order. The order information is sent to the inventory department of the store, where warehouse staff handles the picking, packing, and shipping. The procedure concludes with the store contacting the consumer to see if they were satisfied with their purchase. The steps of the process are listed below: Receiving Orders The first stage begins when a consumer places an order. It includes the process of accepting a customer's order and collecting the payment for it. After that, the purchase details are forwarded to warehouse management, where a related person can prepare the products for shipment. Fulfilling Orders Fulfilling an order is quite a long and complex process that includes several steps. A few of the important ones are: Picking: The picking procedure, in which the items are picked from the warehouse, is the first step in fulfilling an order. Warehouses are typically lined with shelves packed with a variety of products, thus warehouse experts must be able to immediately and accurately select the ordered item. After the items have been picked, they are transported to a packaging station where they are packed. Packing: The packing station is responsible for more than just packing products and transporting them. They're also in charge of selecting the appropriate packaging materials for each product so that it arrives undamaged and in good shape to the buyer while also conserving resources. Shipping: The next step is to ship the order after you've picked and packed everything correctly. At the shipping station, warehouse staff is normally responsible for four tasks: Attaching the necessary shipping label and invoice to the packed items Assigning it to the best logistics partner Marking an order as shipped in every selling channel Emailing the buyer with delivery confirmation and order tracking information like tracking ID and ETA. All the above points are possible if a company has the products in stock. So, what happens when a consumer places an order for a product that a seller doesn't have in stock? In such instances, businesses have two options: turn away the consumer or postpone the order delivery to a later date by using back-ordering or drop shipping methods. Handling After-Sales Processes Handling after-sales processes are the final stage of order management. Here, companies follow up with clients to get feedback and ensure that they are happy with their purchases, as well as returns management and refunds. 6 Key Features of Order Management Supply Chain Visibility It looks at the entire supply chain and isolates incidents to predict future difficulties and design more efficient steps. Simplified Picking and Packing It knows where the item exists in the warehouse after it identifies which fulfillment center is closest to the buyer. It then initiates picking the exact products, breaking down bulk orders into individual or batches so further that they can be fulfilled accordingly. Inventory Management in Real-Time It provides a singular view of inventory, including what's in stock, in transit, and current demand levels, so you don't have to rush shipments or keep excessive safety stock on hand which holds your cash flow. Scheduled Delivery Order management allows for more efficient service requests by matching delivery commitments to inventory, resources, and expertise. Post Order Customer Engagement Order processing assigns the placement of orders, sends them to be shipped, and informs the buyer. It also provides updates through the tracking ID. Additionally, it can predict the customer’s behavior and expectations so a seller can execute transactions more effectively. Optimized Fulfillment It analyzes data and provides recommendations based on how and where clients want their orders transported, their delivery time, and cost. Top 5 Order Management Software in 2025 There is no such thing as a one-size-fits-all offering when it comes to order management software. Each solution has its own set of benefits and limitations, as well as onboarding and integration processes. The optimum fit for your company will be determined by your specific demands and objectives. Here are a few of the most popular options to compare: WareIQ Source WareIQs custom WMS software aids in efficient order management by syncing inventory levels and consolidating order data across multiple platforms. It can also predict future demand levels and supply requirements to provide the optimum inventory levels for faster and more efficient execution. NetSuite Source NetSuite's SuiteCommerce package includes an order management system that can handle orders from a range of channels, including a brick-and-mortar store, an online store, and even a kiosk. SuiteCommerce aspires to be a comprehensive eCommerce platform that eliminates the need for third-party integration. It's ambitious and powerful but it's probably too much for a small eCommerce shop and the learning curve is severe. SAP Source SAP has flexible order management software. Here a seller can manage a high volume of goods and run complex operations with fully digitized and accelerated warehouse processes. It is known for its on-premise and cloud deployments, comprehensive WMS solutions, fully integrated quality checks, production and track-to-trace processes, and real-time control of warehouse automation equipment. ShipStation Source ShipStation is a shipping program designed for eCommerce sellers. It integrates with most marketplaces, shopping carts, and carriers, making it the go-to for small eCommerce firms looking to offload their fulfillment. When DIY fulfillment is no longer viable, merchants must upgrade to a more scalable solution, such as outsourcing order management and fulfillment to a third-party logistics provider. Brightpearl Source Brightpearl is a retail management system designed for businesses with yearly sales of more than $1 million. They combine everything under one roof, from inventory and order administration to shipping, a POS system, and a CRM. It's powerful but also complicated. A simpler, more economical approach would probably be better for smaller businesses. Conclusion: Streamlining Order Management with WareIQ Now that you are aware of the importance of order management and may consider applying it to your business for better returns and less fatigue, the only factor that may restrain you is the investment required. However, offloading your order processing requirements to a 3PL could work out much cheaper than anticipated. It is possible to hire a third-party fulfillment company, such as WareIQ to manage your order fulfillment from beginning to end of each order placed. WareIQ is a Y-combinator-backed start-up providing a full-stack eCommerce fulfillment service that gives users an Amazon Prime-like experience. Once a seller gets partnered with us, they can access several order management facilities at a very nominal cost with no minimum order quantity. You can take advantage of our expertise and accelerate the growth of your business. What value does WareIQ’s technology platform add to the Order Management aspect? WareIQ's order window helps you take a quick snapshot of any orders that require action Our platform is integrated with 20+ leading marketplaces, which facilitates the syncing of all your sales channels and eliminates the manual import of data It triggers all necessary shipping notifications to your end-customer It provides you with a timelines view of your order, and revenue data, allowing you to study the fluctuations and trends and make better business decisions It also provides you with easy-to-comprehend graphical data about your zone-wise distribution, delivery timelines, and channel distribution, thus helping you gauge the current state of business deeply and take necessary steps to move towards your ideal state if required [signup] Order Management FAQs ( Frequently Asked Questions )

May 28, 2022
10 Best 3PL for Small Business in India in 2025

10 Best 3PL for Small Business in India in 2025

Large e-commerce companies have been enjoying the privilege of having 3PL or Third-Party Logistics companies as partners to take care of the logistics of their products, and that has helped them to focus on their core function of sales and marketing to expand their businesses. However, having the best 3PL for small businesses as partners is still a constraint for most e-commerce businesses, especially for those which are at the early stage of their growth journey. Small e-commerce businesses have been doing all their logistics by themselves owing to limited resources available at their disposal, and as such, they have been facing serious difficulties in matching the price and delivery timelines of large e-commerce businesses. Having understood this ground reality, more and more small e-commerce businesses are looking out for the best 3PL small business partners to improve their logistics framework and remain competitive in the growing market of e-commerce. What are 3PL companies? Order fulfilment is an essential and integral part of the operations of any e-commerce business. As the business grows, it may become very difficult for an eCommerce business owner to fulfil customer orders with in-house resources. 3PL or Third-Party Logistics companies act as eCommerce order fulfilment agencies for e-commerce businesses. Therefore, 3PL companies can effectively provide third-party logistics in supply chain management. They provide comprehensive ecommerce logistics services needed by e-commerce businesses to meet their commitments to their customers. 3PL companies help their e-commerce clients to focus on sales and orders received from customers through online platforms, while they take care of all the logistics operations required for the safe and timely delivery of products to customers. A 3PL company handles functions like warehousing and storage, inventory management, transportation, distribution, delivery to customers, and reverse logistics in case of rejection/return by customers and customer support 3PL fulfillment companies bring many benefits to their e-commerce clients. First and foremost, by engaging services of 3PL companies, e-commerce businesses are not required to make huge investments in infrastructures such as ecommerce warehouses, transport vehicles, and manpower among other things. A 3PL company with expertise in documentation, national and international markets, mandatory compliance, and regulations adds a lot of value in terms of reducing costly delays and cycle time. Logistics is a non-core function for an e-commerce business owner. The 3PL company helps the e-commerce business owner to focus on his core competency to manage and scale-up business instead of getting caught up in nuances of logistics management. Outsourcing of logistics to third-party also gives the flexibility to utilise services from 3PL companies based on business demand and needs. Above all, 3PL partners help improve customer satisfaction through efficient response time and timely deliveries. [contactus_gynoveda] What is the Significance of 3PL companies for Small Businesses? In today’s competitive business environment, specialisation is the key to the growth of a business enterprise. Executing all business functions in-house may not be possible without compromising on the performance of the core business activity. Outsourcing certain critical business functions to an experienced operator can be a good strategy for business growth. While large e-commerce companies are already outsourcing their logistics and order fulfilment activities to 3PL companies, small businesses are also now increasingly inclined to do the same to take advantage of the benefits that 3PL companies bring to their businesses. It may seem like a big step for a small business, but it helps small business owners to stay ahead of their competitors. Optimisation of logistics functions can entail considerable savings by reducing wastage and helping the business to improve its bottom line. A 3PL company with multiple customers creates extensive infrastructure for warehouse management and inventory management. However, small business owners need to pay only for what they use, and thus, they are insulated from fluctuating warehousing requirements and associated rates. Normally, a good 3PL company will be equipped with good technology and analytical tools to provide total visibility and transparency of its operations. It adds to the user-experience of small business owners by helping them track the journey of their products till they are delivered to the customers. Many small businesses do not have facilities or infrastructure to manage multiple functions under one roof. 3PL companies, on the other hand, offer many value-added services to ensure smooth operation. Timely delivery at a competitive cost is the biggest challenge for any e-commerce company today. The challenge becomes more demanding for small businesses as they have to compete with big e-commerce companies who have gained expertise in delivering a product to a customer at the most competitive price and within the tightest timelines. Top Expectations from 3PL Companies for Small Business Small businesses often manage their order fulfillment exercise in-house. It is manageable as long as the volumes are small. However, as the volume of orders increases, small businesses find it difficult to manage multiple activities due to limited resources and infrastructure. This is when they require the services of a 3PL company to handle their warehousing and order fulfilment requirements. While fulfilment exercise is labour-intensive, infrastructure needs are costly. 3PL companies for small businesses, which already have infrastructure and manpower in place, can easily help small businesses to meet their order fulfilment obligations. Small businesses have many expectations from 3PL companies. However, the following expectations top the list:  Packaging Shipment Inventory Management  Regular Feedback Reverse Logistics Packaging plays an important part in giving customers a satisfactory e-commerce experience. Customers like their products to be delivered without any pilferage or damage during transit. 3PL companies for small businesses, with requisite expertise in packaging, make sure that it is done with appropriate materials, dimensions, and designs to protect products to satisfy the customers.  Shipment is a critical process in a supply chain as the efficiency of this process determines the timeline for delivery of the product to the customer. The companies are expected to choose the best and the most cost-efficient shipping option for each order so that it reaches the customer in the expected time frame. The 3PL companies for small businesses are expected to manage the inventories with regular reporting on stock levels and issue alerts whenever stocks go below-predetermined levels. The best 3PL for small businesses is also expected to provide specialised storage and inventory services for perishable goods so that product owners can withdraw expired products from the inventory well in time. The 3PL companies for small businesses are expected to maintain total visibility in their operations for business owners by the use of technology and regular feedback. Any order fulfilment exercise is not complete till the product is accepted by the customer. In case the customer wants to return the product, 3PL companies are expected to efficiently manage the reverse logistics so that the product is safely returned to the product owner. How do 3PL companies differ from 4PL companies? [table id=8 /] 10 Best 3PL For Small Business in India in 2025 Stockarea Ekart Logistics India Post Blue Dart Express DTDC Express Ecom Express Shadowfax TCI Express Delhivery GATI With the exponential growth of e-commerce in India, the need for 3PL companies for small business has also grown dramatically, and even small e-commerce businesses are now having the luxury of picking up the best 3PL companies that meet their specific requirements. We have presented here the list of 10 best 3PL for small businesses for 2025 based on their cost structure, pin code reach, visibility, terms of service, market share and quality of service. Stockarea Source The company specialises in Digital Warehousing with a wide range of automated tasks related to Fulfillment, Bonded, General warehousing, Cold Storage, Freight and other logistics-related functions. Stockarea has a presence in practically every major city in India with 100+ warehouses in its network. One of the deep pockets of Stockarea is in the storage and transportation of perishable items (via its intricate, well-positioned network of cold-chain facilities) and heavy equipment (considerable care is taken and technical instructions are strictly adhered to in the process of handling). The company provides discounted quotations to the customers from its carrier partners for all types of freight - be it Less-than Truck-Load, Full Truck-Load or Last Mile Delivery. While Stockarea reduces the hassles of documentation on behalf of its customers, such as FSSAI Certifications (for storage and movement of food items), accreditations from BIS, CWC, FCI etc., customers are charged a considerable premium for such value added services. However, these value added services have helped Stockarea establish itself as one of the preferred 3PL companies for small businesses. Ekart Logistics Source Ekart Logistics began its operations in 2009 as the in-house supply chain arm of Flipkart. The company provides end-to-end fulfillment solutions to a multitude of e-commerce businesses, ranging from hassle-free order pickups, multi-mode payment collections for COD orders, first mile and last mile coverage and effective handling of order returns. Ekart Logistics has become one of the most popular 3PL small business partners in India because of their deep penetration into Tier-2 and Tier-3 cities and remote villages, seamless API based integration with eCommerce platforms, low rate per consignment, express deliveries and efficient reverse logistics. Ekart has also improved its communication systems over time to enable businesses to share the live status of the consignments with their respective customers via SMS, email etc. India Post Source Although the adoption rate of India Post as a 3PL small business partner among small businesses is slow, India Post offers three promising services to match the logistics and fulfillment requirements of small businesses precisely: Business Post - This is meant for very small items such as stationery, gift cards etc. and is usually the most affordable alternative for delivery to customers located in any part of India. Business Post centres are conveniently located in major cities and can also be established on request at the small business or company's request if monthly order volumes are satisfactory. Logistics Post - Under this scheme, India Post integrates features such as LTL & FTL services, Logistics Post Centres for collection of consignments, Multi-modal transport, Warehousing Services, Fulfillment services and Reverse Logistics. Media Post - This is a fairly new concept introduced into the Indian market and will enable small businesses to penetrate into the less tech-savvy segments in villages and remote areas with physical promotional materials like flyers, catalogues etc. The biggest advantage of India Post is its regulated pricing due to Governmental control and logistics experience of more than five decades. It is a popular choice among small businesses serving customers at remote locations where other 3PL players charge exorbitant prices or often do not deliver. Blue Dart Express Source Blue Dart Express Ltd. is a part of the DPDHL Group's Post-eCommerce-Parcel (PeP) division and hence has access to a giant logistics network and infrastructure across the globe. The company serves more than 36000 pin codes in India and enjoys tremendous popularity among customers for its reliability, experience, and sustainability. Blue Dart has established itself as a 3PL small business leader in the domestic and international air express services, providing the entire spectrum of logistics solutions including repair and return, strategic inventory management and direct express inventory distribution. For small businesses and eCommerce enterprises, Blue Dart has launched Smart Box - Air Express and Small Box - Ground Express, which are convenient and affordable packaging units for speedy and reliable delivery to end customers. Blue Dart has also developed multiple tech-enabled platforms, which the company refers to as E-shipping Tools, to better coordinate shipping management services for small businesses. DTDC Express Source Founded in 1990, it currently caters to over 10000 customers across 17500 pin codes and 430 operating facilities across India with easy accessibility for small Indian businesses. Apart from its Domestic Division which largely handles a large variety of orders, DTDC has established a dedicated Retail Division SBU that caters to the fast-changing requirements of D2C eCommerce brands and small businesses, with economical and customised offerings. DTDC specialises in handling a wide variety of goods including high-value goods, heavyweight goods, and even hazardous materials. On the tech-front, it has pioneered in the introduction of high-tech solutions such as Image-scan of Proof Of Delivery (POD) on the web, Logistics and Warehouse Management applications, Mobile-based instant delivery update etc., which help small businesses minimise delivery-related risks while satisfying end-customers. However, DTDC's prices for certain categories are perceived by small businesses as slightly on the higher side compared to those of its competitors. Ecom Express Source Established in 2012 and headquartered in Gurugram, Ecom Express pursued a business centred around customer-centricity, scalability and sustainability. The company uses latest technology and automated solutions to provide first-mile pickup, processing, network optimization and last mile delivery to a customer base spread across multiple business-sectors. The company has two offerings - Ecom Express Services (targeted as medium and small businesses, including D2C eCommerce enterprises) and Ecom Ground Services (targeted at larger enterprises and eCommerce brands for bulky medium-weight products such as furniture, appliances etc.). Both these offerings are equipped with provisions for QC-enabled reverse logistics. Ecom Express also provides value added services such as Try & Buy, Switch Deliveries and Valuable Goods Handling, which lets it price its services with a premium. Shadowfax Source The company specialises in low-cost hyperlocal deliveries within 30 minutes with API integration and live tracking and therefore can add lot of value to logistics needs of small businesses. It provides fulfillment and logistics services for eCommerce companies and Quick Commerce brands with its feature-rich technology and a closely-knit network of delivery executives, thereby leveraging both the Brand Advantage and Rider Advantage. For small businesses, Shadowfax enables Marketplace & warehouse pick-ups, End-to-end shipment tracking, COD/UPI doorstep payments on the Forward Logistics front and Air/surface transportation, Seller & warehouse pick-ups, Single integration for all deliveries on the Reverse Logistics front. Live imaging for quality check and instant refund issues to customer help small businesses keep their end customers satisfied while minimising risks of fraud. These tech features have enabled Shadowfax to make its mark among the top 3PL companies for small business. TCI Express Source It is a division of the Transport Corporation of India (TCI). While TCI Express specialises in cold chain (for perishable items) and bulky materials transport, it has a variety of offerings for small businesses as well. These include Surface Express, Domestic Air Express, Rail Express and Ecommerce Express. With 28 sorting stations, 51 air gateways and other allied infrastructure, TCI Express serve 40,000+ locations covering 7500 districts across India. The biggest strength of the company as a 3PL small business service provider lies in its completely owned network infrastructure such as warehouses, GPS enabled vehicles, packaging facilities etc., which provides it the flexibility to stretch to the best possible limits to delight customers and become a trusted 3PL small business partner. Delhivery Source Delhivery is a key player in the Indian small business order fulfillment sector. With 70+ fulfillment centres around the country, having a total storage and processing space of over 6 million square feet, it serves over 6000 small businesses across India. All the major demand channels and courier partners are integrated with their own warehouse management system. Delhivery is equipped to support efficient multi-tenant, multi-location warehousing, allowing small businesses to expand operations across India rapidly and flexibly with no fixed expenses. By combining warehousing and freight solutions, Delhivery can provide small businesses with integrated distribution solutions. This allows Delhivery to be one of the best 3PL for small business customers with quick and cost-effective offline delivery. Their services include: Same-day/Next-day Delivery Time-defined/Slot-based Delivery Person Specific/Address Specific Delivery Returns Management Product Replacement/Exchange Services Large/Oversize Order Delivery High-value Product Delivery HAZMAT/Dangerous Goods Delivery Real-time Monitoring and Control Consignee Address Validation Fraud Detection Flexible Payment on Delivery GATI Source Founded in 1989, it is one of the leading express distribution and supply chain management firms in India, dedicated to providing smooth and end-to-end solutions to customers, supported by cutting-edge digital tools and technology. It has world-class warehouses and fulfilment centres at strategic locations around the country. Gati helps small businesses in their fulfillment endeavour with its Surface Lite and Premium Flexilite offerings. Gati has also developed a unique niche in its customer base by being a 3PL small business partner for firms selling Art Products (fragile and antique items such as sculptures, canvas paintings, pottery etc) with its premium offering, Art Express. It has capabilities for handling all logistics-related documentation on behalf of the small business owners, thereby helping them focus on their core business. 5 Factors to be Considered for Choosing the Right 3PL Small Business Partner Small businesses aspiring to scale up their businesses can derive a range of benefits by partnering with the right 3PL companies. The challenge is to identify which 3PL partner is best suited to fulfil the specific needs of the business owner. Several factors are considered for selecting the right 3PL company. However, the following five factors are the most important factors considered by business owners while finalising 3PL service providers: Experience & Track Record: It is very important to know about the business experience and track record of a 3PL company concerning its performance and relationship with its principal stakeholders like customers and employees. The 3PL company should be reliable in terms of financial stability, and business ethics and should have a proven track record of handling disruptions. Customer Service: The service provider should have an exclusive and sustainable customer service mechanism in place that is professional and responsive to customer needs and grievances. The service provider needs to have robust warehousing and inventory management facility to ensure safe storage and delivery of the consignments and also for the safe return of consignments in case of non-acceptance by the customers. Flexibility & Cost: The service provider needs to have the ability to be flexible in scaling up operations as per business demands and provide services at a competitive cost by optimising its resources. Geographical Locations: The 3PL company should have a network of fulfilment centers to serve customers across the country and across the world to reduce last-mile delivery costs by maximising delivery speed and efficiency. Technology & Integration: The service provider should have access to the latest logistics software that is user-friendly and can be easily integrated with systems on different technology platforms for real-time information gathering and updates. Demerits of 3PL Companies for Small Business  As we have seen so far, there are many merits of 3PL companies for small businesses. However, 3PL companies also bring some demerits for business owners, and they need to be considered while engaging 3PL service providers. Loss of Control Over Goods: The biggest demerit is that the business owner does not have control over the process of delivery of his products to his customers as the whole process is independently handled by the 3PL company. The business owner can only check inventory levels, incoming shipments, and deliveries in real-time by co-ordinating with the 3PL service provider. Finding a Trustworthy 3PL Service Provider: The growth of e-commerce in India has given rise to mushrooming of many 3PL service providers, and many of them may not be of the desired level of competency that is expected of a 3PL service provider. In such a situation, it is difficult to choose the right 3PL partner, and it can be a stressful exercise as the wrong 3PL partner can do a lot of damage to the business. Impact of Bad Service On Business: Despite engaging a 3PL small business service provider, the business owner is solely accountable to his customers for the service provided by the 3PL service provider, and therefore bad service by the 3PL service provider can adversely impact the business of the business owner. Why Should You Choose WareIQ as 3PL Partner in 2025? While most of the 3PL companies for small businesses that we have discussed so far, take care of only the logistics operations, WareIQ offers a full-stack platform that integrates a series of operations essential for fulfillment, such as warehousing, an easily integrable tech platform for centralised monitoring, last-mile delivery/ 3PL and post-shipping experience. So, if your small business is facing numerous problems on the fulfillment front, you should seriously consider outsourcing fulfillment, and choosing WareIQ as your partner can help you save both time and money. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce order fulfillment tech solutions 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 the: Access to WareIQ’s strong nationwide network of 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 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 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 offering 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 realize 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, is its core offering, with the following functionalities: Shipping Management  Integration to all major national couriers and same-day courier partners through WareIQ platform with discounted rates Generation of bulk shipping labels & invoices in a few clicks Offering a branded tracking page and sending auto-alerts to inform customers of their shipment status Reduction in RTO % (Return to origin) by automating cases of failed delivery attempts (NDRs) by the shipping partner Preemption of COD frauds through integrated AI engine flagging risky orders Orders management Tracking of orders across the channels Filtering of orders by status Searching for specific orders A quick timeline view of where the order is in the fulfillment process (e.g. when an order is picked, packed, or shipped) Shipping-related information (e.g., weights, dimensions, or carrier service)  A quick snapshot of any orders that require action Syncing WareIQ’s out-of-the-box integrations with sales channels to eliminate manual importing of data and trigger all the necessary notifications to the end-customers Inventory management Tracking of inventory levels across multiple locations & sales channels – the website and marketplaces Using WareIQ platform to distribute inventory to multiple locations optimizing for speed & cost/order Setting reminders to proactively replenish inventory, bundle products for promotions, make inventory transfer requests, and much more Warehouse management Managing multiple warehouses and offline stores on WareIQ platform 100% inventory accuracy ​​​with scan-based operations Automated reconciliation tool helps to keep track of returns and unsettled invoices Integrations with all major ERP & Accounting systems Fulfilled By Amazon and Prime Status Assured tag on Flipkart without physically dedicating inventory to them The central 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. Best 3PL for Small Business FAQs (Frequently Asked Questions)

May 28, 2022
Dropshipping vs 3PL: What is Right for Your Business in 2025?

Dropshipping vs 3PL: What is Right for Your Business in 2025?

As a business owner, it takes a lot more than having the right products and a seamless ordering experience to be successful. The real task begins when the customer makes a purchase. How will the order fulfillment be carried out? In the interest of answering this question, we delve deeper into the top differences between dropshipping vs 3PL fulfillment, in 2025. To make sure that the brand's visibility increases, revenues get generated and more sales take place, SMEs and startups need to ensure that they make the right choice between dropshipping and 3PL fulfillment, for their requirements and ensure that customers experience a quick and smooth delivery process. To make that magic happen, it's important to have a strategy and process in place for order fulfillment. What is Dropshipping Fulfillment and How Does It Work? Dropshipping, also known as consumer direct fulfillment, is a business strategy in which online retailers collaborate with manufacturers or suppliers to distribute products directly to customers (also known as dropshipping products). An eCommerce merchant does not purchase or store an inventory of the products for sale in this arrangement. They offer it on their websites and get it delivered directly to the buyer from their supplier or manufacturing network. The Dropshipping Fulfillment Process eCommerce sellers add products to their online stores Customer orders a product from the online platform of choice where the store is located The customer is invoiced for the product and an additional shipping fee The seller now replicates the order with the manufacturer or supplier network The supplier/manufacturer packages the order and ships it directly to the customer While the seller is responsible for product marketing and customer service, the inventory management, warehouse management, and eCommerce logistics are handled by the manufacturer or wholesale supplier. Dropshipping fulfillment allows retailers and distributors to extend their product offerings without having to increase the amount of inventory they keep on hand. [contactus_lilgoodness] Common Misconceptions about Dropshipping Fulfillment Dropshipping is an order fulfillment model that has gained popularity over the years and has a successful business model. But it is a bit different from order fulfillment & there are some common misconceptions about this fulfillment method that causes sellers to shy away from leveraging it and utilising it to the fullest potential. Some of the common misconceptions of dropshipping are: 1. Dropshipping fulfillment is quick and easy to start No. Dropshipping as a fulfillment model is smart and simple, but it requires a lot of research and networking to enter the competitive market and thrive. Entering the eCommerce business, especially as a new player, requires patience, research, planning, and continuous improvement to stay relevant in the market and earn profits. Before stepping into the dropshipping business, sellers need to: Pick a niche. Investigate the products of competitors. Look for reliable dropshipping companies and build a network. Create an online store and get onto eCommerce platforms like Amazon. Promote the business. Analyze and improve the store's performance. 2. Dropshipping fulfillment does not have any upfront costs To have a successful dropshipping business, it is important to have a great online store and a good online marketing strategy. While the investment may seem lower than setting up a store that requires inventory and storage, there are still significant costs involved to get business visibility and attract customers.  Purchasing a domain and setting up the online store with attractive product pages, browser and device compatibility, responsiveness and live chat support are all key elements to building the brand and improving customer experience. Apart from this, advertising efforts on social media platforms and having good SEO content marketing are also regular expenses that businesses need to account for. Dropshipping fulfillment is only suitable for small-scale businesses. This is not true. Businesses of any scale can follow a dropshipping fulfillment model. SMEs and startups can easily scale their business and have a more streamlined order fulfillment process with dropshipping, but will need a bit more capital to purchase the right products from the supplier network inventory 3. Dropshipping businesses need to be located in the same location as their suppliers No. While many think that the business needs to be located in the same country as their suppliers, dropshipping can be completed from any part of the world. This is an order fulfillment method where global retailers can have an extensive supplier network and serve global customers from any corner of the world. The key here is visibility to the customers and having a reliable manufacturer and supplier network that can fulfill orders efficiently. Dropshipping is a great way for quick and easy sales and profits The eCommerce space is a highly competitive one, especially with all of the digitization taking place. Finding a niche and building a supplier network takes time and effort and business owners need to go through a lot of trial and error to find the right products for the target audience. Research and quality checks are also needed before products are listed in the store and it is important to make sure that there are no fallouts or delayed delivery times. What is 3PL Fulfillment? 3PL Fulfillment companies handle inventories, process orders, and ship items on behalf of other businesses. Business owners can partner with 3PL fulfillment companies to store, package, and ship their products to customers. Outsourcing fulfillment services to a third-party fulfillment logistics company, such as inventory management, monitoring SKU sales performance, forecasting customer demand, packaging and shipping orders, and so on, allows businesses to concentrate on product manufacturing, quality assurance, and customer satisfaction. 3PL Fulfillment Process Businesses manufacture the products or source them from their supplier network Products are sent to the order fulfillment center for storage Customers place an order from an online store or preferred platform Customers are invoiced and order details are shared with the 3PL partner The fulfillment partner processes the order, packages it, and ships it directly to the customer Pros and Cons of 3PL Fulfillment Order fulfillment setbacks for startups and SMEs can harm their business and operational efficiency. As the company grows and attracts customers from all around the world, creating an order fulfillment system in-house gets more difficult. Customer satisfaction and revenues can suffer if the order fulfillment process is inefficient. As a result, the company's reputation is also affected. A third-party order fulfillment partner can assist with inventory management and the end-to-end process of delivering the order to the customer. Pros of 3PL Fulfillment Experts and experienced partners take care of the heavy lifting of order fulfillment. Simplified logistics help business owners concentrate on creating more impactful business outcomes. Scalability and flexible service options to help manage the business and better maintain customer satisfaction. Less expensive shipping with the ability of 3PL partners to manage labour and transportation. Faster delivery to improve customer satisfaction and generate recurring sales. Inventory is stored and managed at fulfillment centers, freeing up the need for additional storage space and inventory management in-house.  Greater connectivity with fulfillment centers being available in multiple locations. This helps improve efficiency, and costs and provides quicker order delivery. Cons of 3PL Fulfillment Inventory is limited to what the business owns. This means monitoring the stock levels, analysing trends, and restocking inventory to avoid shortage. Inventory delivery is the business's responsibility. Third-party logistics partners will not be responsible for replenishing stocks without the business owner having them ready to be inventoried at the fulfillment center. Requires upfront investment to pay for the 3PL services like eCommerce warehousing and 3PL distribution. Bad service from the 3PL partner can affect brand reputation. Not providing a good tracking and delivery experience to the customer can impact sales and customer loyalty. Dropshipping vs 3PL Fulfillment: Why are These Models Important? The dynamics of customer order fulfillment have changed. The days of shopping in stores are long gone. The majority of orders are now placed online. As a result, businesses have had to alter their order management procedures. While some fulfill orders from their stores, offer in-store pickup, or have suppliers ship directly to the consumer, others continue to fulfill orders through their distribution centers (DCs). It is critical to use the correct order fulfillment strategy to boost sales, maintain a positive brand image, and cultivate a loyal client base. Dropshipping vs 3PL Fulfillment: Top Differences [table id=11 /] Dropshipping vs 3PL Fulfillment: Benefits Compared The main advantage of third party fulfillment is that it saves the business a significant amount of time. By outsourcing the order fulfillment process, business owners can invest time in critical business operations like marketing, sales, product design, and so on. Furthermore, businesses can scale by integrating third-party order fulfillment services with platforms such as Shopify, Meesho, Amazon, Flipkart and more. This in turn reduces the order fulfillment time as the eCommerce logistics partner detects and processes new incoming orders. Dropshipping fulfillment allows entrepreneurs to start a business quickly and easily. Since the cost for inventory or storage is limited, the investment required can be focused on improving brand visibility and customer attraction. Dropshipping also provides access to a diverse choice of products as business owners research and build their vendor and supplier network.  Dropshipping vs 3PL Fulfillment: What is Right for Your Business in 2025? The costs of dropshipping fulfillment are low enough for startups and SMEs to begin their eCommerce journey. This can play an important factor when businesses lack the infrastructure for storage and shipment. Dropshipping is a great order fulfillment option for new businesses that Have limited financial resources. The desire to try out new products, markets, or marketing tactics. Do not want to invest in their own warehouse space or employees. For eCommerce stores that sell their own unique products, third party fulfillment is ideal. As long as product customisations are not needed for each consumer, all the business needs to do is send batches to the logistics partner, who will take care of the inventory management, packing, shipping, and delivery. 3PL fulfillment is a great option for businesses that are scaling up and have large daily order volumes. don't have the labour or resources to finish the order fulfillment process in-house. have the sufficient upfront capital to partner with a 3PL provider In most cases, the benefits of 3PL logistics outweigh the cons. Why is WareIQ the Best 3PL Partner in India for eCommerce Sellers? When evaluating order fulfillment approaches, cost, quality, and control should all be considered. The good news is that changing the fulfillment process to meet business requirements is simple for startups and SMEs. Businesses can choose a procedure they trust and work towards developing their brand and consumer base after careful deliberation and assessing the advantages and downsides. After going through the entire article, you would have understood the benefits of outsourcing your fulfillment needs to a 3PL partner over dropshipping. WareIQ with its full-stack eCommerce fulfillment solution can not only help you with the last-mile delivery requirements but also with the entire end-to-end business operations. Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services in India for some of the most reputed brands. 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 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 offerings 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 service 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] Dropshipping vs 3PL FAQs (Frequently Asked Questions)

May 28, 2022
10 Best Small Business Fulfillment Companies In 2025

10 Best Small Business Fulfillment Companies In 2025

The e-commerce industry is experiencing the same surreal growth as the Indian economy as a whole. Small businesses fulfillment companies have arrived to help them flourish, as they have tended to be the slowest to adopt the growing trend of online ordering and fulfillment. Many of them lack the necessary finances and resources to make it big in this business. In this article, we take a look at the disadvantages small businesses may face, the benefits of small business fulfillment companies, and why it would make sense for them to partner with a fulfillment center for small businesses to be successful. Why Use Small Business Fulfillment Companies? You may wonder why small businesses (e.g., eCommerce startups) would want the hassle of working with a fulfillment company in India. Wouldn’t it be a lot easier – and more efficient – in doing it themselves? The answer is easy: While self-fulfillment may appear cheaper and more hassle-free in the beginning, a small business quickly realizes the time, effort, resources, and expertise required in managing the logistics and distribution involved in a successful business. It quickly dawns upon them that they’re better off outsourcing this task to an expert. It saves money, brings best-in-class expertise, and saves real estate. Therefore, the benefits of small business fulfillment services are endless!  Some Leading Advantages of Fulfillment Centers for Small Businesses Inventory management Warehouse outsourcing Benefit from 3PL economies-of-scale Best in class technology, software systems & data analytics Reduced number of employees Order processing Return-order processing [contactus_lilgoodness] But Why do Fulfillment Companies Reject Small Business Clients?  The barrier that new clients (e.g., eCommerce startups, D2Cs) face in finding a fulfillment center for small businesses is primarily related to order volume. Fulfillment is a high-volume business with low margins. And, unless clients promise a MOQ (Minimum Order Quantity), the fulfillment companies simply won’t find it profitable. Therefore, while the benefits are evident, small businesses must also carefully select the type of small business fulfillment companies to partner with. Weighing all the factors carefully in choosing the right fulfillment center for your businesses ensures a suitable match for both sides.  Are There Any Exceptions? The timing of tying up with a fulfillment center for small businesses is an important one. You may want to get off the ground first and then partner with one, or if you are entirely cash-crunched, you’d like to wait till you have sufficient funds. Also, outsourcing may be unfeasible for manufacturing firms that use a JIT (just-in-time) supply chain. However, these are more of an exception than the norm and in most cases, using small business fulfillment companies brings immense value to those businesses.  Significance of Small Business Fulfillment Services Small businesses, eCommerce startups, newly launched offline companies, and rapidly growing fledgling businesses are consumed with a host of frenetic daily business activities to manage their operations. And, when these companies are trying to achieve scale rapidly, such activities become greatly amplified.  Under such a scenario, a small business is much better off focusing its efforts on business growth and customer-satisfaction-related activities against spending the time and effort needed to execute the logistics and distribution function.  That’s not to say that the logistics process isn’t an essential part of managing the business – in fact, quite the contrary! In today’s times of global and borderless marketplaces, managing your delivery and logistics is an even more vital tool to achieve customer satisfaction. Often, a company’s differential advantage arises from this aspect. Therefore, all the more reason why the team is better off outsourcing this function to experts - like a fulfillment center for small businesses - is so that they can be reassured that it is in good hands.  How do Small Business Fulfillment Companies Deal with Minimum Order Requirements for Fulfillment Services? A fulfillment center for small businesses manages your inventory, processes, and dispatches your orders on your behalf.  Since they have several clients (online & offline), they need to know the order volumes they can expect from each platform to plan their operations, invest in resources, and create workforces accordingly.  As a result, they set limits, both minimum and maximum. This enables them to plan their resources and provide the best possible service to their clients. It also helps them calculate their critical internal metrics such as the number of vehicles, loaders, suppliers, storage space, MIS, full-time and part-time employees, drivers, slab-based pricing for various clients, etc. Read on to know more in detail about how order fulfillment services for small business here. Typically, small business fulfillment services use the following metrics to bracket clients: Minimum Monthly-Order-Quantity (MOQ), e.g., less than 500, 500-1000, 1000+ Minimum Monthly-Order-Value (MOV) Minimum monthly-fulfillment fees. If your bill doesn’t hit the minimum (e.g., Rs.50,000), you would still be billed that amount. A minimum number of trucks/ pallets/ tonnage (etc.) is sent out every month.  New or growing businesses like eCommerce startups must carefully calculate their requirements while negotiating with a fulfillment center for small businesses. This helps them to get the best rates and service from 3PLs. Given below are essential metrics for small-business clients to consider while committing to MOQs: Forecasting demand: Start with demand forecasting, i.e., the recorded demand for your products. Provide for scale, cyclical demand, seasonality, competitors, etc. Calculate your break-even point: This requires a solid understanding of your business model, including: Number of units sold to make a profit that covers operating-cost Number of units sold to make a profit Other costs, e.g., inventory carrying costs, overheads Use MOV (Minimum Order Value): If you sell a basket of products, you could commit to a monthly MOV to your small business fulfillment company, i.e., you may not meet the MOQ for each product, but if you achieve a combined MOV, they would still give you reasonable rates and service.  Collaborate with other same-space players: Combining with other companies in your ecosystem that use similar supply-chain, raw materials, etc., will help you reduce your operating costs. This allows you to earn more profit, grow your business faster, etc. Leverage the new business angle: Explain to your small business fulfillment company that you are still setting up and testing market conditions, demand, etc. And after gauging the results, you would gradually increase the quantity. Often, small business fulfillment services will be agreeable. Benefits of Using a Fulfillment Center for Small Businesses 1. Rapid growth: Small-business owners and teams must rapidly focus on growing their businesses by logical extension of the section above. And, you certainly wouldn’t want this growth to be restrained due to poor fulfillment. Partnering with a 3PL with a vast range of resources ensures your fulfillment partner matches your speed and enhances it.  2. Seamless integration of eCommerce platforms: Instead of grappling with integrating various individual systems, you’re better off using an experienced 3PL to integrate all your eCommerce platforms for a unified, comprehensive solution. This setup is guaranteed to reduce cost and time.  3. 3PL discounted rates: Small business fulfillment companies serve numerous clients and operate at a tremendous scale. Therefore, they can command bulk discounts from shippers like UPS, BlueDart, & FedEx on rates and get better terms of service. Thus, when you use 3PLs, you can avail of these bulk-discount rates and facilities – despite not reaching that scale yourself.  4. Own warehouse not needed: Using a fulfillment center for small businesses means you don’t need to own and manage your warehouse. This is very expensive, but it also requires massive resources and adherence to stringent practices to be effective.  5. Ease of selling internationally: When you sell across borders, dealing with various tax regimes, travel zones, international laws, customs, duties, and documentation becomes a significant challenge. It is common knowledge that a significant bottleneck of expanding internationally is dealing with global fulfillment. Using an order fulfillment service for startups reduces that burden.  6. Leverage 3PL expertise: Experts are good at what they do. And small business fulfillment companies are experts in providing 3PL fulfillment services. So, it is in your interest to outsource all your inventory and fulfillment activities to them, leaving you to concentrate on your company's growth. Related Article: 3PL Warehousing Companies Top 10 Small Businesses Fulfillment Companies and Startups in 2025 WareIQ Shopify Fulfillment Network Red Stag Fulfillment ShipMonk eFulfillment Service ShipBob FedEx Fulfillment Whitebox Shiphero Saltbox The following 3PLs have a reputation of being conducive to small businesses, can work without minimum order quantities or even with small amounts, and have received positive reviews from small-businesses owners. Source WareIQ Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfilment 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 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 fulfilment tech companies in the world that have same-day delivery service for their customers under their product WareIQ RUSH. With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfilment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and 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 (there are different types of warehouses for different requirements), 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. 300+ brands, such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, have trusted WareIQ as a reliable partner in their growth journeys. No minimum order quantity requirements make it suitable even for eCommerce firms having low order quantities to take advantage of the latest trends such as next day delivery and same day delivery. The onboarding process is simple, convenient and less time consuming, while the pricing policy is clear and transparent. WareIQ also undertakes strict safety precautions at its warehouses and complete ownership of the operations, thereby minimising the risk exposure of WareIQ customers. Source Shopify Fulfillment Network It was launched in 2006 in Ottawa, Canada and was specifically targeted at small-business clients. It is an excellent option for small businesses but still provides ample space for clients to expand into enterprises. Its platform is utilised by over 1.7 million businesses in over 175 countries. Clients can ship fewer than 10 orders or exceed a 1000 orders, daily. It suggests locations for inventory storage. Locations are vetted by Shopify and facilitated by a panel of fulfillment services across Canada and the USA. They have flexible contracts and customized pricing. They offer a custom API to track order progress and insights. Some features offered by Shopify are: Mobile commerce ready: Online Shopify stores contain an in-built, mobile commerce shopping cart. Customers can shop from the seller's store digitally, through a smartphone or tablet. Automatic carrier shipping rates: Shipping rates can be received automatically through major shipping carriers like UPS, USPS, and FedEx. Flexible shipping rates: Shipping rates can be set up according to fixed-price, tiered pricing, weight-based, and location-based rates. Customer profiles: Sellers can get more information about their customers and their preferences. Their personal information such as contact info and order history can be found in one place. Digital products: Customers can order and download digital products right from the seller's online store. Red Stag Fulfillment Source It is conducive for small businesses and maintains numerous fulfillment centers. Hence, it offers quick delivery times and reduced costs. A 30-day trial is also offered. The company has tie-ups with market leaders like WooCommerce and Shopify. As per statistics, 100% of orders are shipped on time and to an accurate location. Typically, the MOQ is set at 200 orders per month, but fewer orders can be shipped. It works with Amazon Prime and ships internationally. Some features offered by Red Stag Fulfillment are: Warehousing: 3 existing warehouses in the US are available for inventory storage and 3 more warehouses are expected to be added to their fulfillment network in the near future. Order fulfillment: Red Stag's fulfillment process consists of specialized training, handling, packaging, and shipping deals and makes it a unique proposition for merchandise that requires special handling. Same-day fulfillment with quick cutoff times, and heavy-duty packaging are also available. Shipping: Red Stag partners with the biggest names in distribution - UPS, USPS, FedEx, Amazon, and OnTrac - most of which offer discounted rates. Integrations: Red Stag offers integrations with eCommerce shopping carts and seller marketplaces. Special services: Unique services offered by Red Stag include kitting, custom packaging, bundling, reverse logistics, international shipping, and more. Source Shipmonk It offers services to all eCommerce firms. Fees are based on monthly order volumes, and no MOQ is set. Inventory storage fees are fixed depending on the size and scale. Provide discounted rates from all leading shippers. Picking fees gradually reduce as your order pickups increase. In addition to Amazon Seller fulfillment, it also fulfills orders from non-conventional marketplaces like Groupon and Etsy. Some features offered by Shipmonk are: Multiple Warehouses: Shipmonk offers multiple warehouses, located all across the country. Free Integrations: Shipmonk has over 100 shopping cart and marketplace integrations, usually with free setup. Transparent Billing: Their billing process offers a precise breakdown of costs in the portal so customers can maximise on budgeting efficiency. Freight Management: A specialised engineer can help in case you need to import inventory by guiding you through the process of filing the correct documentation and coordinating freight. Returns Management: Shipping labels for customers can be created directly in your account and alerts are sounded when a return enters back into the warehouse. Source eFulfillment Service You don’t need any long-term contracts. There are no MOQ requirements or setup costs for initiation. The company offers competitive pricing and an efficient cross-docking facility, i.e., orders shipped out upon arrival, cutting out any holding or storage costs. It is a good option for crowd-funded firms to test the market fit for new products by shipping them to promoters and backers. Some features offered by eFulfillment Service are: Simple, affordable pricing: There are no setup fees, long-term contracts, minimum order requirements, hidden fees, or fine print. Friendly terms for e-commerce startups: They provide outsourced fulfillment that is specifically targeted at startups. Integration with global distributors: They have integrations with every big name in distribution services such as DHL, Fedex etc. Order Fulfillment technology: They offer things like custom tracking software and customisable alerts to keep customers updated about the fulfillment status of their order. Best-in-class security: Their secure technology infrastructure ensures that your data is kept safe and protected. Source ShipBob Ship Bob is popular with eCommerce firms and is used by more than 5,000 online businesses. There are no MOQ requirements and its pricing plans are simple and transparent. It offers a growth plan service that suits fledgling start-ups with less than 400 orders per month. There are zero onboarding charges, payment is as per usage and it implements a self-service model. It is useful for flash sales and is integrated with BigCommerce, Amazon and Shopify. It offers a global shipment network and claims an impressive on-time delivery and accuracy rate of 99+%. Some features offered by ShipBob are: Large fulfillment network: ShipBob has multiple warehouses and fulfillment centers that enable sellers to manage their inventory by keeping a certain amount of stock in multiple warehouses. Web-based platform: ShipBob’s web-based platform helps you to keep an eye on logistics, manage, edit, and customize orders, track real-time stock levels from any location, and receive notifications whenever inventory needs to be restocked. Guaranteed 2-day shipping: ShipBob offers a 95% plus 2 day shipping fulfillment plan, regardless of where the order has to be delivered. Omnifulfillment: ShipBob fulfills orders for both online and offline channels to help provide a consistent customer experience, regardless of where people buy your products. B2B fulfillment: With ShipBob, you can easily connect to retailers for EDI-automated wholesale and retail workflows, and print retailer-compliant packing slips. Source FedEx Fulfillment It is a fulfillment company that is attractive for small businesses due to its one-stop fulfillment. It is a reputed, credible brand that is now hugely popular with start-ups because of its comprehensive one-stop solution. There are no onboarding charges. Their services include fulfillment, inventory storage, shipping, and packing. Clients benefit from its scale (like receiving significant shipping discounts) since its 3PL business is tied with its parent company. They do have a MOQ of 400 orders, but many benefits are offered in return. Some features offered by FedEx Fulfillment are: Warehousing: FedEx consists of 13 warehouses in the US and 1 international fulfillment center, that are all connected to FedEx's comprehensive transportation network. Order fulfillment: Through automation and process streamlining, FedEx Fulfillment ensures a reduction in the number of people handling each order, which increases efficiency and reduces the scope of errors. Shipping: FedEx Fulfillment only supports FedEx shipping services, but the offers worldwide fulfillment in over 200 countries. Reverse logistics: FedEx Fulfillment is a just a tiny portion of all services offered by FedEx’s extensive logistics business, so users have access to all of FedEx’s other services, including industry-leading return management services. Integrations: Integrations are offered with Shopify, WooCommerce, Magento, eBay, Walmart, Etsy, and a many more. Source Whitebox It is popular with sellers on Amazon as well as other B2C sellers. It offers several services to facilitate sellers operating on Amazon. It differentiates itself from it’s competitors since it offers marketing services in addition to order-fulfillment, making it convenient for clients. There is a flat monthly fee for using its platform which includes inventory storage, software, account handling, shipping, receiving, and processing. It does have a MOQ of 1,000 orders but has several success stories of small businesses that started with them and grew to become much larger firms. Some features offered by Whitebox are: eCommerce software: Whitebox uses its proprietary technology, Omnifi™ throughout the entire lifecycle of order fulfillment. This gives sellers access to insights and metrics about their customers and order fulfilment process. Marketplace management: Sellers can access tools to automate and simplify the management of online marketplaces, including review alerts, order tracking, reseller tracking and more. Warehouse and Inventory Management: Whitebox offers a flexible warehouse management system that gives brands valuable live insights into inventory. Optimised packaging and shipping: They offer recommendations about the best type of packaging for different types of products to help reduce damage and maintain a great customer experience. National and international coverage: Strategically located warehouses result in cost-effective shipping wherever the customer is located. Source Shiphero It has zero setup charges and offers two solutions – fulfillment and warehouse software. These are very helpful for eCommerce firms and start-ups. The order-fulfillment service is completely automated and runs across hundreds of company-owned warehouses. It is a very popular small business fulfillment company and is used by over 5,000 brands. Some features offered by Shiphero are: Order fulfillment: They smartly distribute and store your inventory across a country-wide network of warehouses, which offers faster delivery at a lower cost. Diverse Integrations: They are integrated with leading eCommerce, marketplace, shipping and robotics platforms. Mobile pick & pack: The order pickers are sent into the warehouse with mobile tech that makes picking faster and more efficient and cuts error rates by 99.99%. Rate Shopping: Using ShipHero’s real-time ship rate shopping enables you to save on postage. The cheapest carrier will always be suggested. Reporting: Built-in reporting features cover everything from COGS to Picker/Packer Efficiency to Replenishment. Custom reports are available as well. Source Saltbox It is a fulfillment company that is suitably designed for start-ups and small-business clients. There are no MOQ requirements. The company provides discounted shipping rates from leading shippers like FedEx, DHL, & UPS. It offers warehousing and workspaces, which is unique and helpful and is integrated with WooCommerce, Shopify and Etsy, among others. Some features offered by Saltbox are: Reduced transit time: They offer local drop-off which results in a reduction in both time taken to deliver the order and cost. Guaranteed inventory replenishment: They offer 24-hour guaranteed dock-to-stock on inventory Same-day fulfillment: They offer same-day shipping fulfillment for orders received by 3 PM Free packaging: They offer standard packaging at no additional cost. No penalty fees: There are no setup, onboarding or any other type of penalty fee that is applicable. Top 5 Factors to Consider While Selecting Your Small Business Fulfillment Company Firstly, select a small business fulfillment company that suits your business requirements. Just like players in any industry have their focus areas, so do 3PLs. Some are specialized, while others offer general logistics. Typically, 3PLs are classified into two categories:  General Purpose 3PL: Services range from transportation to storage. Generally handle cargo that doesn’t need any special care, packing, etc., and is fairly inexpensive. Niche-Specific 3PL: Serve specific markets and categories, e.g., eCommerce, certified 3PLs for special products, perishable goods, etc. Also, Consider the Following Points to Analyze which 3PL Suits Your Small Business Requirements Technology Only through modern technology like cloud storage, AI, ML, IoT, Data Analytics (etc.) can a 3PL provide you with real-time, transparent, and efficient services. Scalability While you still may be a small business, you would undoubtedly be looking to scale. Unless a 3PL has resources that can serve you as you expand, it isn’t the correct one for you. Financial Strength Select a financially stable 3PL since you will be dependent on them for an essential function of your business – you certainly don’t want customer packages held up because your 3PL is facing cash-flow issues or is going out of business! Industry Expertise This is a critical consideration. When a 3PL is experienced in your industry, they bring knowledge and experience. Since a small business is only just starting, this expertise is valuable.  Transparent Rate Structure While various 3PLs have their rates and tariff structure, you must select one whose tariff card is easy to calculate and understand. This is important for estimating your operating costs, breakeven points, and profitability. Typical cost-heads include storage, shipping, onboarding, order processing, etc.  Additionally, consider points like a 3PL’s management skills, warehouse locations and maintenance, work culture, and disaster preparedness. Finally, look for 3PLs that typically don’t ask small businesses to commit to long-term contracts or command hefty fees upfront. Limitations and Challenges in Dealing with Small Business Fulfillment Services Small businesses that partner with 3PLs may likely have to opt for those willing to work with small businesses in the first place. This could mean using a second-rung small business fulfillment company or accepting that the fulfillment center for small businesses will not immediately assign their best resources to you since you aren’t a cash cow for them (at least not immediately).  As a result, several challenges exist in the working relationship between small businesses and their small-business fulfillment company. Some areas of possible friction or inefficiency are mentioned below: 1. Limited warehouses and shipping locations: With increasing Ecommerce competition, delivering customer parcels at the earliest (and cheapest) is now a critical function. The location of your 3PLs fulfillment centers directly determines your delivery times. Unless your 3PL has an elaborate network of warehouses and fulfillment locations, both central and satellite, they will not be able to achieve optimized delivery times. 2. Complicated fulfillment systems: 3PLs use the latest and modern technologies to manage their logistics and distribution operations. These elaborate back-end platforms power their businesses and seamlessly integrate with clients’ MIS. However, given that such fulfillment systems are vast in their scope, a small business may find it overly complicated and difficult to understand or negotiate. Remember, small businesses like eCommerce sellers are still boot-strapping or only just finding their feet. Therefore, assigning precious resources to a task that is outsourced for its convenience in the first place is counter-productive. 3. Inefficient handling of order returns: Order returns are omnipresent in eCommerce – they will be a part of your daily operations. When you use a 3PL, your logistics are set up for order returns to reach their warehouse directly. However, suppose your 3PL isn’t set up to handle this efficiently and to the customer's satisfaction, including replacements, refunds, discounts on future orders, credit notes, restocking, returns to the manufacturer, etc., you will not only bleed profits but also create irate customers that will probably never return!  You May Read: Contract Logistics vs 3PL Logistics 4. Customer Service: It is much more difficult to retain a customer than get a new one. Unfortunately, eCommerce firms lose billions of dollars every year due to poor customer relations and processes handling. With new firms trying to sell to the same audience, you must provide good – if not excellent - customer service. 5. Stock-out problems: This occurs when an item isn’t available because demand is outstripping supply. Again, while this is never a pleasant situation, it is something that the supply-side will have to deal with forever – the solution is to minimize its occurrence and, therefore, mitigate its damage.  For that, suppliers and 3PLs need to understand historical order patterns across products, customer segments, high and low demand periods (etc.) and use this to predict future buying trends.  Conclusion: Should you use a Small Business Fulfillment Companies for Your Fulfillment Needs? The benefits of using a fulfillment center for small businesses like an eCommerce startup are evident. The trick, however, is for the small business to understand their business model and consumers comprehensively so that they can make well-calculated projections and commitments to the 3PL while entering into a contract and negotiating terms and conditions. This will benefit the 3PL by getting the best rates, but it will also help them plan and implement their small business fulfillment services in the best possible way. One such company that offers small business fulfillment services is WareIQ. WareIQ is a category-defining, best-in-class full-stack eCommerce fulfillment tech platform (with inbuilt inventory planning, order management & shipping system) for modern brands to accelerate online sales/ expedite revenue growth & profits with same/next day delivery. We not only help you reduce your logistic costs but also your delivery timelines – this could be the game-changer your business needs!  WareIQ offers a centralized tech platform for your entire eCommerce operations. ML-based prediction engine for efficient warehouse network design & smart inventory placement Centralized platform for core fulfillment & shipping operations Post-shipping apps for a delightful experience & zero to minimum supply chain leakages [signup] Small Business Fulfillment Companies FAQs (Frequently Asked Questions)

May 28, 2022