Branded Tracking Page: How to Re-Engage Online Customers Through a Branded Tracking Page in 10 Ways in 2025?

eCommerce as an industry relies heavily on customers and their feedback on your business. Focusing on producing a unique product and selling it at an appropriate price is hard enough for a retailer before needing to factor in how to target customers that would show the most interest in their products and would have the highest chances of converting potential interest into a confirmed sale and how to provide seamless order fulfillment and post-sales experience to them so that they’d be obligated to not only purchase from the same brand again but also give positive feedback and recommend it highly to others.Once retailers have figured out a strategic method to implement all these procedures, time needs to be dedicated to understanding how they can convert one-time purchase customers into repeat ones. One of the best ways to re-engage prior customers and entice current customers to keep purchasing from your business is to have an attractive branded tracking page for branded order tracking. Read along to learn about the benefits and best practices of using a branded tracking page and how WareIQ can be of assistance.What is a Branded Tracking Page?A branded tracking page is a page where retailers and customers alike, can track the order status amongst all the order fulfillment processes that it needs to accomplish to ultimately be delivered successfully to the customer. The “branded” aspect of the tracking page refers to various customization options that can be implemented to make the page reflect a particular message or design language that a brand is trying to convey to its customers. Examples can be product suggestions, offer summaries, and unique themes.The purpose of adding these elements, as opposed to just a static page with just the tracking details, is to try and entice the customer into purchasing another product or service and convey that the brand cares about presentation and customer experience, across the entire order fulfillment process, which will help them get a positive impression of the brand and could increase the chance of them becoming repeat customers.Generic Sample Branded Tracking Page[contactus_uth]Why is it Important to Engage Online Customers through Branded Tracking Page?It Helps to Enhance Customer SatisfactionCustomers will appreciate engagement through factors like being redirected to a well-designed, easy-to-use branded tracking page, being asked for their feedback, and if they were satisfied with the entire experience and will show their appreciation either with their wallets or through positive feedback. They will know that the brand actually cares about its image and it can be a big factor in how they perceive the overall purchase experience and whether they would choose to buy from you again or not.It Entices Customers to be Loyal to Your BrandEven though the eCommerce space is rife with competition selling similar products at similar prices, an easy way to differentiate yourself from the crowd is to have increased customer engagement. This will set apart your brand in their eyes and if they are satisfied enough, you may have a customer for life. A 10% increase in customer retention can increase revenue by 70% so it definitely pays in the long run.Suggested Read: Online Consumer Behaviour in 2025.It Helps You Track Their Preferences Through Their ResponsesBy engaging with customers, you can receive honest feedback, which may consist of bucketloads of praise but could also contain blunt criticisms. This will help you ascertain what processes work and what don’t and you can streamline the necessary procedures to mitigate those complaints. Similarly, you can double down on what customers like and appreciate so that you will continue to receive positive feedback.It Gives Your Brand a Positive ImageCustomers are sure to think highly of a brand if they make an honest effort to engage with them. It makes them feel like their experience really matters and so it should. They are the ones who vote with their money so it helps to keep all your customers happy and satisfied. Even if a customer has an issue, immediate engagement and steps to fix it instantly will help your brand’s image skyrocket.It Could Lead to Increased SalesBecause of positive feedback and reviews from other customers or prior customers who have experienced your engagement first-hand, your brand will be able to generate more sales from people who appreciate efficient customer service. Few things are more annoying to a consumer who cannot find a solution to order-related problems or queries from the company that has sold it to them in the first place. This can be avoided by engaging online customers.It Helps to Maintain Interest in Your BrandIf you consistently try engaging with online customers, whether they are prior or current ones, you will keep them reminded about your brand and all its positive aspects. It can be useful if you are trying to promote a product or an event, trying to generate buzz due to demand stagnation, or even simply trying to get feedback from them to optimize business processes.5 Must-Have Elements in Branded Tracking Page in 2025Customer Support Contact DetailsWhile a branded order tracking page may satisfy some customers about the status of their order, others may have other queries that they would like to contact you about. Make sure that you add details such as a phone number, email address, and social media handles so that they can contact you and check out your feeds for exciting content at the same time.Banners of Complimentary ProductsWith an appropriate 3PL company, you will be able to customize your branded order tracking page to your liking. This means that you can add banners of any product that you think is relevant, either based on customer preferences or what would be complementary to the ordered product, or products you would like to promote. This will increase the visibility of those products and could result in more sales.Status of the OrderThis is the primary piece of information that should be on your branded tracking page. You can make it look as fancy and promote as many products as you want but if the order cannot be tracked intuitively and clearly, customers will speak up. You should be sure to provide all the details of the order such as the placement date, dispatch date, ETA, and other items. You can read about order fulfillment status in detail here.Logo of Your CompanyPresenting your logo front and center on your branded order tracking page reiterates to the customer which brand they are buying from. They don’t need to be bothered about the courier service or manufacturing company. This will ultimately prove to boost your brand image and stamp your logo in the minds of customers.Top 10 Benefits of Using Branded Tracking Page in 2025Appreciation by CustomersCustomers pay attention to the finer details, especially in the eCommerce industry with a large number of firms offering similar products and overall experiences. Something as simple as an intuitive and well-designed branded order tracking page with concisely laid out information and representing the ethos of the brand can make the whole experience feel special and can result in occupying real estate in the minds of customers. Access to Free AdvertisingYou can design your branded tracking page any way you want, including adding popups and links to your other products and services. In addition, you can add snippets for offers you are running, new products you may be launching in the future, and promotion of your brand in general, all without spending an extra dime on advertising. Leads to Tertiary PurchasesAs a result of the point above, you may receive tertiary purchases from customers who browsed your branded order tracking page, found something they liked, and placed an additional order. The same process can be repeated on the branded tracking page of that order and can keep on going until they figure that they’ve had enough online shopping for one season.Assists in Post-Purchase EngagementOftentimes, customers are left neglected between the time they purchase their order and the time they receive it. Branded order tracking pages can be a way of engaging with them after they have spent their money, which makes them feel special and that they're getting a comprehensive customer service experience, which will add brownie points to their feedback and reviews, if and when they decide to give it.Conveys Your Brand MessageYour branded tracking page has the potential to be a window for customers to instantly learn more about your brand if they weren't aware of it already. You can choose to present your brand on your terms and convey any message that you desire, knowing that they will constantly be checking the page until their order arrives. This will give your brand a good amount of recognition on a personal level.Mitigates Confusion About the Order StatusCustomers often get anxious after placing an online order if they don’t know where it is or how long it’s going to take. A branded tracking page will mitigate that confusion and will give them easy access to check where it is on the go and clear any query directly from the page itself which will give them peace of mind and reduce the number of calls that your businesses receive from agitated customers who don’t know where their order is.Reduces Buyers RemorseOn many occasions, especially after placing an order from a small or mid-sized company with not much brand recognition, customers feel a sense of buyer’s remorse because they don’t feel assured about the quality of the product or the brand. One way to provide this assurance before they receive their product is to give them access to an efficient and well-designed branded tracking page. They will instantly feel gratified knowing that your company means business and that their money is in the right hands.Reduces Time Spent on Dealing with Agitated CustomersSince customers will always be aware of the status of their order and which fulfillment process it is currently in, in real-time, they would not feel the need to frantically try and get in touch with you to get this information. In turn, this puts less stress on your customer care team who can spend time personally handling cases where errors or mishaps have actually occurred and can focus on coming up with a solution as soon as possible.Enhances the Overall Purchase ExperienceIf a retailer can provide a stellar customer experience post-sale, in addition to providing a product that the customer needs, it is definitely a recipe for success and repeat customers. Taking care of every aspect of a customer’s experience with your company and making sure that they are never left wanting, is a sure-fire way of skyrocketing your brand image in the eyes of that customer and other customers who read their glowing reviews about their brilliant experience.Conclusion: How WareIQ Help eCommerce Businesses Engage Their Customers Through a Branded Tracking Page?Now that we have learned the many benefits and touchpoints of utilising branded tracking pages, you need to assess if your business requires them or not. Generally, businesses that are expanding rapidly or who are just trying to provide a professional experience to customers, in addition to standard order fulfillment processes, would be best suited to making use of branded tracking pages. Luckily, if you fall into the above categories, you don’t need to look any further. WareIQ has got you covered.In addition to providing all the above features and more, WareIQ provides a whole range of order fulfillment and eCommerce warehousing-related services to assist any requirement that your company may have in terms of inbound and outbound logistics operations. With respect to branded tracking pages, we offer the following services:Customizable Tracking URLYou can insert a customizable tracking link that redirects customers to your website or any page that you desire so that no click or tap goes to waste.Marketable Product PlacementsWith our customization options, you can turn your branded tracking page into a mini eCommerce store, complete with product descriptions, images, and options to buy them. This will help customers spend more time browsing through your products, as opposed to a competitor’s. Insert Links to Your StoreYou can add multiple links to take customers wherever you think would make a difference. Whether it is to your website homepage, your social media handles, or your eCommerce selling profiles, you can be assured that customers will only be directed to where you want them to go.Updates in Real-TimeOur branded tracking page provides customers and retailers updates to each and every metric of the order fulfillment process, such as location, ETA, and stage in the delivery process in real-time so neither you nor they will ever be left wondering about where the order is.Suggested Read: Why is branded shipping useful?Receive Customer FeedbackFor receiving customer feedback, you can add fields for customers to leave valuable feedback so that you can better gauge their tastes and preferences and how to improve and refine your products and services. This will not only help you to retain customers but will assist you in streamlining the process to find new ones.[signup]Branded Tracking Page: FAQs

June 06, 2022

Categories:

How WareIQ Helped Kama Ayurveda Scale-up its Online Business through Same/Next Day Delivery

WareIQ connects Kama Ayurveda’s existing supply chain infra & WareIQ fulfillment hubs to its central platform allowing them to offer a premium shipping experience in sync with their brand positioning.

June 06, 2022

What is a Retail Warehouse? Definition, Importance, Advantages & Challenges of Retail Warehouse in 2025

The world of retail warehousing is changing, constantly morphing to keep up with structural changes in the global eco-social system. Supply chain management is in flux. The constant changes here have amplified the crisis in supply chains. Demand is fluctuating YOY, and labour shortages have added to the turmoil.With all these in the larger economic equation, firms struggle to meet even basic demand-supply. When you factor in the eCommerce boom with the above, you realise that retail logistics are at a defining moment in their history. The Guardian reports that in the first half of 2021, a record six billion pounds were invested in U.K. warehouses. What’s more, the global warehouse automation market is expected to be just under 31 billion USD by 2025. There comes the need for retail warehouse putaway.As eCommerce warehouses, the retail backbone, change, only one option seems feasible. We need to respect the change, welcome it, and adapt to it. We need to see the challenge as an opportunity.What is a Retail Warehouse?The retail warehouse definition includes the following elements: It involves storing a retailer's goodsRetail warehousing involves online order fulfillmentFor the above two points, warehouse space is usedRetail warehousing for eCommerce is a part of the retail supply chain. It is an essential part of it, directly affecting the efficiency and quality of every part of the supply chain activity that occurs after it.To illustrate the above, imagine a disorganised storage process within the warehouse. Here, fulfillment will naturally slow down at the very first step due to the difficulty of product picking.On the other hand, imagine an optimised, tidy warehouse. Pickers can now quickly pick and pack without botheration.Warehousing can be done in one of the following ways, depending on the size of the business:Done from homeDone from the storeRented warehousing3PL warehousingCurrently, warehouse renting or 3PL partnering are considered cost-effective and plausible based on average retailer size.[contactus_gynoveda]Why is a Retail Warehouse Required?Retail warehousing is required because it performs an essential function within the supply chain. It is responsible for crucial supply chain functions, including the following:Inventory StorageCustomer Order FulfillmentRetail Store Order FulfillmentInventory StorageThis is a mission-critical process within the supply chain. It begins with procurement, wherein goods are ordered from the producer. After receiving the inventory, the warehouse organises and stores it.The process involves unloading every item of inventory. This is then sorted by SKU and type. Inventory counts are done to determine a match between orders and delivery. Inventory levels are reestablished. Once this is done, the inventory is stored methodically within the types of warehouse.Inventory organisation is essential. Popular SKUs are kept within easy reach. All SKUs have their location, and different SKUs are stored separately. For example, finished goods inventory is stored separately from production inventory.Customer Order FulfillmentA retail warehouse also functions as a fulfillment center, in which capacity they are also engaged in storage, picking, packing, and shipping preparation.Maintaining order accuracy while keeping the operations swift is the challenge. The warehouse management system, eCommerce platform, and inventory management systems need to work in sync to achieve this. Retail Warehouse Order FulfillmentOrder fulfillment is done in various ways by the warehouse:Retail warehouses often ship to retail stores rather than to the customer.DTC brands ship directly to the customer.Retailers can ship to both customers and stores.The Evolution Of The Retail WarehouseThere have been four generations of retail warehouses so far.Generation 1: Conversion of industrial units for retail useGeneration 2: Freestanding units built for a purposeGeneration 3: Retail parks consisting of many units in oneGeneration 4: Fashion parks that were more complicated than standard retail parks. As retail warehouses have evolved, the following changes have occurred within their setup:Well-trained employees: Due to the growing sophistication of the warehousing system, it is essential to keep employees well-trained. They need to know how to handle complicated software, like inventory management. They need to know when inventory needs to be restocked so as to always be ready for customer orders.Improved tracking systems: In the present generation of the retail warehouse, product scanning enables instant access to product information. Suppliers and customers can know important product information within seconds.Great storage systems: Modern tracking systems have made storage more efficient by optimizing available inventory spaces. This way, all the inventory space is utilized in the best possible way.The Developing Models Of Warehouses And Fulfillment CentersWarehouse management models are changing, and new bleeding-edge models are being born faster than ever before. Legacy systems are shifting. Let's talk about the strategies of warehouse and fulfillment centers in pointers here. These strategies have completely changed how warehouses function. Some of them are:Digital Warehouse TwinningPost-pandemic, the world now realises the importance of preparing for an emergency. Using technology, you can create a “twin” digital warehouse to simulate your physical warehouse performance.Twinning your warehouse (digitally) can provide a 20%-25% boost in your efficiency. New strategies for your warehouse can be tested on its digital twin. This can help make efficient business decisions regarding workflow and floor plan redesigns via simulation. Suggested Read: Factors affecting Warehouse KPIsOn-Demand WarehousingBusinesses face sudden spikes and declines in demand. This is why on-demand warehousing is gaining popularity. This model helps businesses meet short-term and immediate needs. Companies can now meet rapid fluctuations in demand without rigid and long-term contracts.The Service Angle Of Warehousing And Distribution (WaaS, DaaS)WaaS and DaaS are the new stars of the retail sector. Labour shortages and supply chain disruptions are tackled by shifting their management to competent partners. SMEs can now grow quickly with minimum risk. Firms can now focus on their competencies, free from logistical nightmares.The Magic Of Micro-warehousingAs eCommerce has risen, so have consumer expectations. The need for quick home delivery has led businesses to decentralise into physically separate, digitally connected units. This has allowed for same-day delivery. Underutilised physical stores are now used as “dark stores” that exclusively service online buys.Advantages of a Retail Warehouse For eCommerce FulfillmentRetail distribution warehouses are great for eCommerce fulfillment. The reasons are many:They use existing facilities optimally.Urban areas that are struggling (like the loss of a mall) can be helped out.They can serve niche markets competitively.They offer high standards complying with industrial use as well as ample parking.Furthermore, they add to regional and local floor fulfillment centers.4 Main Challenges of Retail Warehousing Faced by Online Brands in 2025If you want to scale your business online, retail warehouses are essential. As your business grows, warehouse management gets more complicated. As you scale, here are a few challenges you may face for the year 2025:Lack of ExpertiseNormal demand periods come with challenges of their own. When you are trying to scale, however, warehousing can overwhelm you. Small retailers often don’t know the nuances of warehousing as experts do. The lack of experience may mean retailers overpay for low-quality solutions. Easily preventable errors may cost you money, time, and resources. Similarly, badly-planned logistics can jeopardise company operations.3PL experience and knowledge can be a lifesaver in these circumstances. 3PLs can streamline warehouse processes and increase efficiency. Shipping protocols, last-mile logistics, and seasonal blockages can easily be countered by partnering with a great 3PL fulfillment provider.Inefficient/Outdated TechnologyOne of the challenges of retail warehousing that can be nipped at the outset is poor technology. Outdated technology can lower warehouse efficiency instead of increasing it. Poor technology may be better than manual operations, but it can’t scale to a high order quantity. To optimise warehouse operations, you need modern, relevant, and easy-to-learn Warehouse Management System Software. Invest in the best hardware (warehouse automation, robotics, labels, and barcode scanners). Also, invest in a modern IMS and WMS. Long-term, these will surely give you a high ROI.Inventory ManagementInventory needs to be managed religiously for one reason - so that businesses can always cater to demand. When order volumes are high, inventory is replaced at a rapid pace. This means inventory needs to be replenished and scaled to ensure there is no shortage. These are the steps involved in successful inventory management:Regular inventory audits to keep accounting practices and inventory levels at pace.Regular inventory replenishments to avoid stockouts and backorders.Demand forecasting, using trends and seasonality to hold enough ready stock and avoid deadstock.Keeping safety stock ready for emergencies.Keeping inventory counts current for all SKUs.Increased Order VolumeSometimes order volumes spike. To keep in tandem with high demand, an order fulfillment strategy that can manage higher than expected order volume is needed. To meet customer needs, you need proper warehouse workflow systems, staff, and storage space. If you don’t have these optimised, it may result in low order volume, low returns or worse.Study your supply chain before major growth periods. Ensure your processes, floor space, and storage space are adequate to meet all needs. Sometimes sudden, rapid growth calls for partnering with a 3PL.WareIQ Warehousing Solutions for Growing BrandsGrowing brands would do well to partner with WareIQ warehousing solutions. This full-stack e-com fulfillment platform helps brands increase sales. The cross-national network of last-mile couriers and fulfillment centers helps your business store goods closer to your customers. You are billed based on usage. The prediction engine based on machine learning optimises inventory placement and the design of the warehouse network. We offer the following services for growing brands:Logistics ConsultingLogistics consulting will help you optimise both efficiency and cost of your operations. This service works for larger and well-established businesses by delivering a high ROI. Keep everything in-house with our logistics consulting services.Warehouse Management SoftwareIf you want to save time and money via automation, use warehouse management software. WMS gives you a high return on the effort by automating different warehouse processes. You can analyse the productivity of your warehouse by tracking data. Order fulfillment mistakes can be minimised using WMS. This software helps retailers manage day-to-day operations and run their retail warehouses efficiently.Third-Party LogisticsPartnering with a 3PL is great, not just for DTC brands. It works well even for small businesses and large retailers, who can gain from the advanced technology and experience of 3PLs.3PL outsourcing allows retailers to scale efficiently. They gain resources to grow their business with direct capital and real estate investments. Some retailers find it beneficial to store inventory in a centralised location. Others may find it better to distribute their goods across multiple warehouses throughout one nation. This lets retailers reach customers across pan-country locations efficiently. One route to do this is to buy or rent warehouses that require large investments. But the more efficient and cost-effective solution is to partner with a 3PL.3PLs can minimise retailer costs by analysis, optimisation, and improvements in operations. 3PL also optimises time. For retailers who want to cut out planning, coordination, and execution of operations, partnering with a 3PL is a great way to go.Fulfillment SolutionsWareIQ enables businesses to use cutting-edge technology to optimise their logistics. These include services from warehousing to eCommerce shipping, including storage and fulfillment. Prominent growing businesses, as well as smaller retailers, can benefit from partnering with WareIQ. You can reach more customers with WareIQ using multichannel retailing, B2B, and retail drop-shipping. A network of fulfillment centers and warehouses help you achieve fast shipping affordably. Expect uniform operations and order fulfillment regardless of where you store your products. Best eCommerce warehousing practices are observed in every warehouse. Use automation to the fullest to optimise, analyse, and make sense of your business. WareIQ’s top-class fulfillment solutions ensure that you are at the top of your game.[signup]Retail Warehouse FAQs

June 02, 2022

Magento 2 Order Fulfillment & Shipping: 8 Easy Step Integration of Magento 2 Marketplace with WareIQ [2025]

Magento is an eCommerce platform that is open source and is coded using PHP, which aids in it being highly customisable by programmers who want to create their own eCommerce marketplaces and fulfill Magento orders. It was released in 2008 and has since been utilised by multiple household names around the world such as Samsung and Nike. Magento was acquired by Adobe in 2018 for $1.68 billion, which helped the platform grow at an even faster pace. The site has garnered popularity due to its easy-to-use, open-source nature and currently has over 100,000 active users and over 2.5 million downloads of the performance code. Magento roughly has a 2.32% share of the eCommerce market.In 2015, Magento released version 2.0 of its platform which consisted of multiple changes and improvements such as security and performance gains using PHP version 7+, minimised data table locking errors, company-grade database scalability, and much more. Read further to get a better understanding of Magento 2 order fulfillment, integrating WareIQ with the Magento 2 marketplace, and how WareIQ can benefit your business.How Can eCommerce Sellers Enable Magneto 2 Order Fulfillment & Magento Shipping?While Magento 2 doesn’t offer solutions for all the processes that order fulfillment encompasses since it is essentially a software platform that enables customers to build websites, users can fulfill Magento 2 marketplace orders by performing tasks such as order processing and automating processes through API integrations.To have a more cohesive experience, we recommend partnering with a 3PL fulfillment company like WareIQ, which offers the entire suite of fulfillment services such as inventory management, picking, and packing, delivery to the customer, and reverse logistics, in one centralised platform. In addition, users can also integrate WareIQ with the Magento 2 marketplace for a seamless experience. Users need to identify their requirements and financial abilities to partner with a fulfillment company that is best suited to them.[contactus_lilgoodness]Benefits for Retailers who Use 3PL Fulfillment Companies for Magento 2 Order FulfillmentUltra-Fast DeliveryIn the current eCommerce landscape, ultra-fast delivery such as same-day and next-day services has become a right rather than a privilege. To stay on top of their competitors, most 3PL companies constantly try to identify ways to provide the fastest delivery at the most competitive rates and the party that can take the most advantage of this are retailers and their customers.Brand-Specific PackagingIf you utilise the fulfillment services provided directly by an eCommerce selling platform such as Amazon, chances are that they would want to abide by certain standardised packaging processes that highlight their brand, as opposed to the retailer. However, with 3PL fulfillment companies, users can choose from a vast array of materials, themes, logos, and other customization options that will make their brand stand out from the crowd. You can view other channels such as Direct Fulfillment.Order ManagementOrder management is the bread and butter of 3PL fulfillment companies. Facilities ranging from high-tech order management systems where past, present, and future orders from various eCommerce marketplaces can be tracked and updated to smartly pairing orders with the closest and fastest shipping aggregator to enable the most rapid delivery to the customer are offered by most 3PL companies. All these services make order management more seamless and efficient.Transparent Payment PlansDue to the monopolised nature of most 1st-party fulfillment services, retailers are often surprised by new costs and more expensive services that they have to incur. However, since there are a vast number of 3PL fulfillment providers, all pining for your rupee, they are forced to offer the best services at the cheapest possible rates and also expose the fine print of every expense, upfront. They understand that if a customer has a bad experience, it’ll reflect poorly on them.Involvement in Decision Making1st-party fulfillment services offered directly by eCommerce marketplaces often lack flexibility and do not include retailers in important decision-making tasks. Conversely, 3PLs treat retailers like exactly what they are - paying customers. This helps sellers become more involved and can tailor every aspect of every service according to their liking.Multi-Channel SellingRetailers need to make their products and services visible to the most amount of potential customers as possible, in order to get conversions. They cannot do this by just selling on one platform and it becomes a lot harder to manage different accounts and update inventory and track orders, individually. However, retailers need not fret because most 3PL companies offer integrations with most large eCommerce marketplaces and offer software solutions to be able to track and manage orders and inventory in one master dashboard.Inventory Management3PL companies are usually equipped with state-of-the-art Warehouse Management Software (WMS) to be able to organise and manage the inventory of their users. These highly advanced systems are able to perform tasks such as forecasting demand and supply levels for future dates and recommending the smartest placement of inventory to reduce delays and damage to the products.Smartly Located Fulfillment CentersMost 3PL companies have fulfillment centers and warehouses scattered in different locations of the country, specifically near areas of high demand or in close proximity to transportation facilities. Retailers who partner with them can choose strategic locations to store their inventory to enable themselves to offer the fastest possible delivery to their customers and mitigate any delays or errors.Enable Magento 2 Order Fulfillment & Shipping: 8 Easy Steps to Integrate WareIQ with Magento 2 Marketplace in 2025eCommerce sellers who seek to provide Magento 2 order fulfillment with WareIQ can immediately utilise our advanced portfolio of facilities such as a pan-India network of fulfillment centers, country-wide courier service partners, and the ability to integrate WareIQ with the Magento 2 marketplace fulfillment so that you can have access to our WMS from where you can manage inventory and track orders across multiple other marketplaces.Sellers can integrate WareIQ with Magento 2 Marketplace in 10 simple steps:Step 1: Logging InOnce you get onboarded as WareIQ’s customer, you can log in to WareIQ’s OMS (Order Management System) “https://wareiq.com/login/” using the login credentials shared with you by WareIQ’s customer success team.Step 2: Access to OMS PortalOnce you log in to WareIQ’s OMS portal, you can see the dashboard that reflects important business metrics of your small business fulfillment like orders, revenue, shipments delivered, returns, etc. The time period can be chosen as per your choice.Step 3: Adding ChannelsClick on the “Settings” button in the left navigation bar.Click on “Channels” to add or edit channels.The channels already added to OMS will show in the list. Click on “Add Channels” to add Magento 2 from the list of channels available for integration to WareIQ’s OMS.Step 4: Integrating with Magento 2Go to Magento 2 & click on the “Integrate” button to proceed to the next step of Magento 2 marketplace integration with WareIQ’s fulfillment platform.Step 5: Getting Details from Magento 2Follow the step-by-step instructions given on the page to get the “Store Name”, “Store URL” & “Access Token” from Magento 2’s account.Step 6: Going to Magento 2 Admin Login PageEnter the store URL in the browser. The Store URL is the URL that would have been specified during the installation.The default Admin URLs resemble this - “https://www.yourdomain.com/admin”Enter Store Name & password.Step 7: Generating the Access Token from Magento 2Steps to be followed to generate the access token from Magento 2’s account:Log in to Admin and click System > Extensions > Integrations to display the Integrations page.Click Add New Integration to display the New Integration page.SourceEnter a unique name (WareIQ) for the integration in the Name field. Then enter your admin password in the Your Password field. Leave all other fields blank.Click the API tab. Select the Magento resources the integration can access. You can select all resources (recommended), or select a custom list.SourceClick Save to save your changes and return to the Integrations page.Click the Activate link in the grid that corresponds to the newly-created integration.Click Allow. The access token needs to be filled in the Access token field on WareIQ.SourceStep 8: Enabling Fulfillment with WareIQCopy & paste the access token, enter the store name & store URL and click on the “Submit” button to enable Magento 2 shipping & order fulfillment with WareIQ.Why should Merchants Choose WareIQ as a Fulfillment Partner to Fulfill Magento 2 Marketplace Orders in 2025?WareIQ has a large amount of experience in the fulfillment and eCommerce space and also offers the services and technology to back it up. Equipped with a custom WMS, fulfillment centers across the country, partnerships with the biggest eCommerce shipping and courier services, and integrations with multiple online platforms, we can make your job of outsourcing fulfillment and order management a whole lot easier and cheaper. Some services that we offer are listed below: Vertically Integrated Full Stack Fulfillment PlatformOther fulfillment and 3PL logistics players in the market have separate OMS & WMS. This is an issue for eCommerce businesses because there is a delay in syncing of orders in both platforms that creates a lag of 12-14 hours on order/inventory status in the 2 separate platforms.WareIQ is one of those fulfillment companies that provide an integrated OMS (Order Management System) +WMS (Warehouse Management System). This removes the 12-14 hours lag in inventory/order status to sync & hence removes the ambiguity in order status that ultimately leads to faster shipping as soon as the order is placed.Forward Supply ChainAssurance of QualityFacilities such as inbound management, coupled with rigorous product checks while complying with Legalities and Metrology ensure that quality levels are maintained.Intelligent Placement of InventoryWe analyze factors such as the velocity of SKUs, the density of orders, seasonal demand & trends in different regions for intelligent inventory placement to reduce any errors or delays.RTO ShieldOur custom RTO Shield limits the damage caused by return order requests by identifying orders of high risk and insuring them against losses to sustain the profit levels of customers.Personalization of ServicesWe offer special branding kits and unique packaging, specifically tailored to follow the requirements and brand image of each retailer’s company.Reverse Supply ChainRe-Stocking of InventoryWe protect retailers by protecting them from liabilities through Seller Protection Fund claims and simple settlement procedures.Intelligent RVPWe help last-mile delivery services to check product quality by leveraging reference to-do’s and images, removing misplaced or damaged products, and thus, reducing reverse logistics expenditures.Smart DisposalWe assist in sustainably disposing of items in various segments such as electronics, apparel, food, etc.Recovery of ValueWe help in recovering the value of goods that are returned through upcycling and recycling, liquidation to the secondary market, donations, and converting waste to usable energy which helps customers save money, time, and resources.[signup]Magento 2 Order Fulfillment FAQs

June 02, 2022

What is a Flash Sale in eCommerce? 10 Short and Simple Tricks to Run a Successful Flash Sale in 2025

These days, with everyone having a mobile phone and access to cheap, unlimited data, customers constantly browse various eCommerce marketplaces and try to keep their eyes peeled for the best possible deals and discounts. If they find something that catches their fancy at a reasonable rate, then they either buy it on the spot or keep it in their cart/wishlist to buy it later.There are also people who wait for festive season offers and flash sales in eCommerce to purchase items when the time is right. It will enable your store to get positive feedback from customers who leave reviews talking about how they purchased items for a highly discounted price. Such short-period discounts are also called flash sales in eCommerce, where a seller offers large discounts to either promote a product or get rid of inventory.Customers constantly scout for beneficial flash sales in eCommerce. It motivates people to buy products in bulk because they know they are getting a good deal. It is a win-win situation for both buyers and sellers. As a seller, you need to capitalize on these sales in order to generate buzz around your product. What is a Flash Sale in eCommerce?A flash sale in eCommerce is a promotional short-term sale on various products offered by eCommerce stores. Mostly, it lasts for less than a day up to a maximum period of three days.The goal is to tempt online buyers to buy on impulse, increase brand presence, occupy space in the mind of buyers, and increase customer loyalty. Also, it indirectly prompts buyers to check out other non-sale products listed on the same site by the same buyer.It is a new era of sales and marketing strategy that has become quite popular as it ignites interest among online buyers, has a greater impact on social networks to increase recall value, and generates more CTR in mailing and ad campaigns.It has resulted in great opportunities for selling a large number of products in a few hours and clearing up an inventory but a flash sale in eCommerce also requires preparation if you are expecting it to be a long-term profitable move. This psychology hits buyers and sparks excitement in their FOMO which encourages impulse buying.[contactus_lilgoodness]What are the Benefits of Running a Flash Sale in eCommerce?When you run a flash sale, you not only get a higher volume of orders and more revenue but you also get a lot more benefits than you generally would on a normal day. These benefits are:Advertisement OpportunityWhen a seller provides a huge discount, they keep promoting it so it helps you to advertise your brand and brings more engagement to your products.Gets Rid of Old and Unpopular StockIt is an opportunity for a seller to get rid of the old stock by offering discounts. They can promote an unpopular product and also get rid of products that may not have selling potential and occupy the inventory space for long periods of time.Increases Cash FlowCash flow in a business is a very essential thing. All start-ups, in spite of making millions and billions in profits, care about cash flow so that they can increase their profit margins and make their shareholders happy.Frees Up Space for InventoryExcess inventory, such as out-of-season items or deadstock, can be eliminated using flash sales. They aid in the reduction of inventory carrying and operating costs. Furthermore, if products have been accumulating dust in a warehouse, they can be moved out to create space for new, in-demand items. Drives Sales Through FOMO Customers dislike the feeling of missing out on something, especially a flash sale in eCommerce. You can entice potential buyers who have been waiting for the ideal price point by opting to run a flash sale.Has a Large Impact on Social MediaThe concept of a short-time eCommerce flash sale has a very huge impact on creating hype on social media and increasing traffic on your website or online marketplace. The buyer may come to buy discounted items but may start browsing for other products too, listed by the same seller.Suggested Read: How does Flash Sales impact Online Consumer Behavior?Helps in Generating LeadsWhen you run a flash sale, people can get discounts, sign-in, share their contact details, enable cookies and visit websites so it generates a lot of potential leads that a seller can use in the future as a push strategy to sell their products.Improves the Reaction RateWhen you run a flash sale, it directs existing and new buyers to your page if they can get a good, discounted deal. Not only will they buy from you again but they will also suggest your products to others. Providing a high volume of sales in a short period of time can result in more social feedback and reviews from buyers.Hindrance of a Flash Sale in eCommerceOrder FulfillmentAs an online seller, you would have 1st hand experience that order fulfillment can be a tedious task. During a flash sale in eCommerce, you could get hundreds or thousands of orders daily from all over India, and then you need to deliver them as soon as possible, accurately. You can also take help from 3PL logistics companies but it can also be a testing time for them.They need to take care of picking, packing, branded shipping, and delivering the order as soon as possible. It will ultimately ruin your brand image. If you are a multichannel seller and you run a flash sale on multiple channels, things get even more difficult.ProfitabilityYou should expect more traffic and sales volume if you provide larger discounts when you run a flash sale. However, if you discount too much, you risk selling at levels where you lose money. Because a retailer's average profit margin is roughly 50%, a flash sale in eCommerce where you give a buy-one-get-one-free deal or other lucrative discounts, will only allow you to break even at best if that margin applies to whatever you're offering.Groupon, which relied primarily on flash sales, saw its value plummet after becoming a publicly traded business, most likely as a result of undercutting profitability with flash discounts.TimingThe results of a flash sale in eCommerce depend very much upon the timing of the sale. You should choose a time of day when demand would already be high. Research says the most active days of the week are Mondays to Thursdays. Graphs of purchases are higher in the first week of the month as people get salaries and they can finally order items in their kart or wishlist.If a seller runs a flash sale when buyers are less interested and there is less demand, purchases may not result in the product category you were aiming for. You should never run a flash sale during a dip in general demand. Rather, you can have an end-of-season sale.10 Ways to Run a Flash Sale Successfully in 2025Define the Goal of the Flash SalePlanning is should be the very first step before starting with anything else. In this situation, since a seller is planning to run a flash sale, they need to make the checklist of the following:A seller must offer a good discount but not enough that they may have to suffer later.If a product is unavailable in the market, they shouldn’t decrease its price of it.They should scale the demand and limit the supply.They should plan for how long they are going to run a flash sale.They need to find delivery partners that are ready to fulfill across the nation.If the flash sale is being run across multiple channels, sellers should identify ways they can track the data.They should assess the expenses associated with it and figure out their cost-bearing capacity.Choose Your Target Market When we talk about quality over quantity, we are referring to how we should try and serve or cater to our target customers. A seller should identify which customers would be interested in their product and also if they’d be able to afford it. If the above criteria are not fulfilled, there is very less probability that they will end up purchasing your products.Suppose you sell computers and other electronics and you are willing to run a flash sale of graphic cards, you would not target children or people who are old. This is because children would not have the financial capabilities of purchasing the items and elderly people would not be interested in them. The ideal target audience would be in the age group of 18-35, college students, and young working professionals.Now that you have identified your target market and the right product, invest your energy there to get a good result.Choose the Duration of the SaleOnce you have chosen your target audience, you need to shortlist the perfect time to implement it.You may choose the weekend if you have a lot of inventory or vice-versa. You can either implement a flash sale in eCommerce during a festival if you have old stock or offer the sale post-festival when your stock accumulates.After you decide on the time, decide on the duration of the sale. It could range from minutes to days. The ideal duration of an eCommerce flash sale is around 72 hours.Promote the Sale to Target CustomersAfter you choose the target market and the perfect time and duration to launch the sale, it's time to tell the world about your offer. Design your promotional material so that it resonates with your audience. Try to start promoting a week before so that many people will be aware of it, save your products in a wishlist, set a reminder, and collect money for the product. As the sale approaches, keep sending out reminders and messages.Plan the Sale ClearlyAn impactful message is able to communicate with the reader/customer. It should be descriptive about what you are offering when you are offering it and on top of all, what your company strives for. To design an eye-catching message, you can go through the following:The offer should be clearly visibleVibrant colors should be usedUse words like free, discount, sale, offer, etc.It should not consist of too many wordsContain the features in bullet pointsUse good pictures of the productDesign messages according to the mediumOn social media or email campaigns, do not forget to give a relevant CTA buttonRun a Flash Sale for a Short DurationAlways try to offer a flash sale for a short period of time. When you run a flash sale for long periods of time, it has a negative impact on buyers. They may think that your products are not getting sold or there may be some manufacturing defects. Also, many customers don't take long-period sales seriously. When a customer buys a product in a sale that only runs for a short period, they perceive it as getting a good deal. Long sales take away some of that prestige.Keep Your Inventory ReadyKeep a perfect count and track of your inventory. You need to identify how many products you have, how many types and units you can add to the sale, where they are located, and what is the count of products in each warehouse.Many times, the purpose of a flash sale is to clear old stock so sellers should take care of material rotation by applying First-In, First-Out (FIFO), Last-In, First-Out (LIFO), or First-Expired, First-Out (FEFO) procedures.Suggested Read: Inventory preparation for sales seasonPartner with Trusted Shipping CompaniesUntil and unless your product reaches the customer, the purpose of the sale is not fulfilled. You have done the hard work of identifying your target group, designing the message for them, investing to increase items in your inventory, etc. And at the end of all this, if you do not have a delivery partner to deliver the product in a punctual manner, it will all be for nothing. You may never be able to attract those customers again. They will have a mindset that you cannot deliver at their address.You as a seller should partner with numerous eCommerce logistics companies, selecting them based on their expertise in different situations and locations.Aim for Customer RetentionThe ultimate goal of the flash sale in eCommerce is to make the world aware of the brand, forge a new customer base, and retain old customers. A seller should always sell a product that is in good condition, despite selling it during a sale because once a seller ships a defective product, customers will not only return it, they will never buy from you again and will also give poor feedback that will impact other customers and customer feedback is king in eCommerce.Measure the ResultsYou are operating a business so you must keep track of many things for paying your employee's salary, operational costs, profit margins, etc. When you have a flash sale in eCommerce, you need to think apart from monetary terms and calculate the ton-tangible profits that you earn from the flash sale. Measure how many items you sold, the total amount you got from sales, subtract the expenses and measure the profit, the number of people you reached, how many of them became repeat customers, whether you met their expectations, and many more factors.Reasons Why a Flash Sale in eCommerce Fail and How to Avoid ThemLack of Supply Chain OptionsTo be a good seller, you will have to place the utmost importance on delivery. You can run a flash sale and get orders but until you streamline your delivery process, you will lose money and customers. If you opt for prepaid orders, customers can ask for a refund, and incurring these extra expenditures will defeat the whole point of the sale.Lack of Knowledge of Inventory LevelsIf you are ready to have a flash sale in eCommerce, you need to assess your available inventory and which items would be a part of the sale. 2 situations can arise if you are not careful:Shortage of Items Sometimes, if proper forecasting of demand and supply is not done, you can end up in a situation where you do not have enough inventory to fulfill orders.Over StockingConversely, a lack of inventory forecasting can also lead to a surplus of inventory that you had not bargained for. Both these situations will result in extra expenses for the business.To overcome such situations, use MOQ and EOQ techniques for maintaining inventory.Website FailuresYour website is your virtual shop and is open 24/7, serving all the requirements of a buyer. It acts as a channel between you and your customers. If this communication channel breaks down, a buyer will not be able to browse or achieve what they wanted. After getting their attention and capturing their interest and desire, if they can't get what they wanted, they won’t opt to purchase from you again.Lack of ForecastingOperating a business is an uncertain task so it will always be considered risky. A seller should be predictive. If a seller does not do proper forecasting and is incompetent in measuring market demand, they will make a mess of things. An eCommerce seller should think of all the inefficiencies that could take place during a flash sale in eCommerce and have alternatives like retail fulfillment in case of inventory shortages or COD in case of a high chance of reverse logistics.Conclusion: How can WareIQ Help You to Run a Flash Sale in eCommerce?A flash sale in eCommerce has many implications, both positive and negative. If done right, a seller can increase awareness and demand for their products and can have multiple orders in a short period of time. Conversely, if it is not implemented properly, sellers have a significant chance of running into losses and increased expenses. WareIQ can help your business to run a flash sale, by being able to integrate multiple eCommerce marketplaces with our custom WMS, which assists in inventory management and order tracking facilities, in one place.WareIQ as a fulfillment partner will take care of the following aspects of running a flash sale in eCommerce:Receives and tracks orders across multi-channelsPicking & PackingUltra-fast deliveryOrder tracking facilitiesTakes care of COD ordersMeasures MOQ and EOQEnsures a good delivery experience for customers[signup]Flash Sale in eCommerce: FAQs

June 01, 2022

Inventory Vs Stock: Top 4 Differences, Definitions and 9 Ways to Manage Them Efficiently in 2025

Both inventory and stock are key components of any eCommerce company. They are directly responsible for a business being able to sell products in the first place. If companies don’t maintain an optimum level of inventory and stock, their ability to receive orders and fulfil them often falls by the wayside. In this article, we will take a look at the differences between inventory vs stock, examples of inventory vs stock, definitions and a lot more.What is the Meaning of Stock?The number of finished goods available to be supplied to the end customer is referred to as stock. If the store sells items directly to customers to make a profit, it can also include raw ingredients.Examples of Stock: Packs of pens in storage for pen manufacturers.[contactus_uth]What is the Meaning of Inventory?Finished items, raw materials and work-in-progress products can be included in inventory. Inventory must be kept at an optimal level since it is linked to carrying expenses so that all sold and unsold products can be accounted for throughout the financial year.Examples of inventory: lids of pens, ink, refills etc.Inventory Vs Stock: ExamplesExamples of StockPen companies use the term "stock" to refer to finished versions that are kept and ready to be fulfilled since they sell a wide range of pens to the end customer. Every completed pen has an SKU number and a barcode that can be scanned to identify and locate finished products, allowing them to be fulfilled swiftly.If a pen company supplies other firms with pen casings/nibs, they will be classified as finished items and computed as stock.Examples of InventoryPlastic, ink, metal, paper, packing boxes and other raw materials that are utilised to make pens are examples of inventory. A few other examples are:Individual lids and containers before they are brought together in the pen.Products that have passed all quality inspections and have finished all stages of the manufacturing process.Materials such as casings, lid pipes, nib metals and screws are necessary for the maintenance, repair and operation of machinery used in manufacturing pens.Inventory vs Stock: 9 Efficient Ways to Manage Stock Inventory PrioritiseThe first and foremost way of efficiently managing your inventory is the organisation into categories, based on priority. This will help you in determining the frequency and quantity of the inventory, as well as knowing what you need regularly. It will also help you in identifying the commodities that are vital to your business though they may cost more and take longer to sell.An easy way is to divide the items of inventory into three basic categories, X, Y and Z. The more expensive items that are required in lesser quantities are put into category X and items that cost less but are required in larger quantities are put in category Z. The middle category Y consists of items that are reasonably priced and have a turnover rate higher than category X and lower than Y.TrackThe next step would be proper maintenance of the records that contain product specifications and other information about every item included in the inventory. These records should include essential data such as SKUs, barcode data, suppliers, country of origin and lot numbers. The price of these items should also be tracked from time to time so that you would know their availability and seasonal fluctuations which may lead to changes in the price.ExamineSome firms conduct a comprehensive inventory count once a year. Other firms conduct random product checks on a monthly, weekly or even daily basis. Either way, it is a good practice to count your inventory frequently. AnalyseAt times, you may have to deal with an untrustworthy supplier who may jeopardize your inventory. It is important to analyze and take action if your supplier consistently fails to produce orders or has quality control issues. Address the issues with your provider to determine what is going on. Prepare to change business partners or deal with unexpected supply levels and the potential risk of running out of supplies.80/20 ruleIn general, revenues from 20% of resources lead to benefits for 80% of the workforce. It is important to make inventory management for 20% of products a top priority. You should possess knowledge as to the time period for how long they last on the market as well as the number of items sold during that time. This is essential so that you don't throw away the goods that will make you the most money.ConsistencyThe approach to inventory and stock management should be consistent. A hazy or shifting attitude will result in a mismatch between purchased orders and sales plus inventory. To maintain an efficient and successful system, a clear and straightforward inventory and stock management system should be implemented and followed by everyone in the organization.SalesIn a discussion about inventory vs stock management, sales cannot be ignored. In the interest of being accurate, sales, inventory and stocks should all match up comprehensively. In addition to matching inventory and stock, sales numbers aid in assessing the items that are selling quickly and how certain events drive or lower sales. It is necessary to constantly analyze sales volumes to correctly manage inventory and supplies. Sales numbers also aid in estimating the inventory-to-stock ratio.RestockingSome suppliers offer inventory reordering services. At first glance, this appears to be a good thing: delegating the method for at least a few of your items saves you money and time. However, keep in mind that your providers may not share your objectives. They want to move their inventory, while you want to stock the best products for your business. Take the time to review your inventory and rearrange all of your items.SoftwareIn a smaller organization, you may maintain the first few items of the inventory list manually with spreadsheets and diaries. However, if your company expands, you will need to dedicate more time to managing stock than to your business or you will risk having too much or too little stock. These responsibilities are simplified by investing in good inventory management software. Before choosing a technical platform, consider what you're looking for, if it has the information you need and whether it is user-friendly or not. At the same time, you should select a solution that can be integrated into your existing systems.Key Difference Between Inventory and StockWhen it comes to stock inventory, people do not find it easy to distinguish between the two. Inventory generally consists of three components: The finished product, work in progress and raw materials.For a Washing Machine manufacturer like IFB, the inventory will consist of:All the finished products, i.e., the washing machines ready to supply to the customer, whether at the retail site or warehouse.Inventory for IFB will also include all the washing machines that are under the process of manufacturing and are at different stages of completion. Finally, IFB inventory will also be inclusive of all the raw materials that the company has at its disposal for the purpose of manufacturing the same washing machines.This simply entails inventory consisting of all the items included in the manufacturing cycle of IFB, from the acquisition of raw material to the machines in the various stages of production and, finally, the end product.Now let us consider what the stock will be for the same manufacturer, IFB:IFB stock refers to the washing machines ready for delivery to the end-user.IF IFB supplies casing, motors or circuits to some other manufacturer, that will also be regarded as stock.We can simply say that any product that IFB sells to consumers or another manufacturer will be considered the stock of the company.Inventory Vs Stock: Comparative TableThe differences between inventory and stock are listed below:[table id=25 /]Conclusion: How Does WareIQ Sets Itself Apart From Other Logistics Companies in Inventory vs Stock Management?Inventory management systems may seem like an unnecessary complication when you start your business, but as you expand and the list of products you deal in increases, it becomes highly complicated to keep tabs on stock inventory. To manage the stock inventory efficiently, there is a need for a technologically efficient system that works based on artificial intelligence and machine learning. This will ensure that the management can glance through the inventory management system and arrive at various decisions regarding any product and this is where WareIQ stands different from other Logistics Companies.WareIQ provides all these facilities that are aided with visuals and graphical representations. WareIQ clearly sets itself apart on the basis of:A single system that is capable of maintaining inventory, order and billing data.WareIQ also enables storage facilities in fulfilment centers of their own for an efficient supply cycle as required.Another amazing feature of WareIQ is the ease with which it gets set up and integrates with your system. The system is adaptable to various market fluctuations as well.[signup]Inventory vs Stock FAQS

June 01, 2022

How To Calculate Shipping Costs Instantly in 2025? 6 Top Factors Affecting the Calculation of Shipping Rates

The eCommerce shipping industry is constantly evolving and changing. As a result, the methods used to calculate shipping costs also change from time to time. It is crucial to be aware of the most recent changes and trends in the shipping industry to budget your shipping needs and calculate shipping/courier rates accordingly.It's no secret that the cost of shipping charges can be a significant factor in eCommerce sales. Nearly 60% of shoppers said they would abandon their cart if shipping charges were too high. With that in mind, it's essential to make sure that you accurately calculate shipping costs to offer competitive rates and avoid losing potential customers.Information Needed To Calculate Shipping CostsKnow Your Shipping ZonesOne of the first things you need to do when it's time to calculate shipping costs is to determine which shipping zones your products will fall into. Shipping charges are based on these zones and distance from your fulfillment location and also range from local to international.Knowing which shipping zone your products fall into will help you calculate shipping rates. For example, local shipping is typically less expensive than international shipping.Use Flat Rate ShippingIf you're looking for a simple way to calculate shipping rates, consider flat-rate shipping. With this method, courier charges are incurred, regardless of the weight or size of the order.Flat rate shipping can be a great option to keep your shipping charges simple and easy to understand for customers. Plus, it can help you save money on shipping if you have heavier or larger products.You Can Also Read: Flat Rate Shipping vs Standard ShippingCalculate Shipping Costs Based on WeightAnother option to calculate is to base them on the weight of the shipped products. This is a common method used by many eCommerce businesses.While calculating shipping costs based on weight, you'll need to determine the average weight of your orders and then find a shipping carrier that offers rates depending on the weight of the shipment. Once you have that information, you can start to calculate your shipping costs.Make Use of Shipping SoftwareShipping software can be a great way to calculate shipping costs. Shipping software typically includes features like real-time shipping/courier charges and shipping label creation.Using shipping software to calculate shipping rates can help you save time and money on shipping. Plus, it can help you automate some of the more tedious aspects of calculating shipping charges.Get Shipping Quotes from Multiple CarriersWhen you calculate shipping costs, it's essential to get quotes from multiple carriers. This will help you compare rates and find the best option for your business.Getting shipping quotes from multiple carriers can be time-consuming, but it's worth it to make sure you're getting the best possible deal. You can use shipping software to get quotes from multiple carriers or contact each carrier directly.Keep these tips in mind to while estimating shipping rates and you'll be on your way to offering competitive rates that won't break the bank.[contactus_gynoveda]Factors to Keep in Mind Before Calculating Shipping Costs in 2025Shipping prices may be tough to calculate since there are so many variables that influence the final cost. But, there are four key pieces of information that you'll need every time. You should be able to receive an accurate price if you have this information. Here are the four factors that may impact your shipping rates every time:Points of Origin and Destination for ShippingThe distance traveled by a package from its point of origin to its shipping destination is an important element in determining the cost. In general, the greater the price, the more away you are. Shipping zones are used by couriers to properly calculate the distance a cargo travels from its origin to its final destination. There are now eight shipping zones in the United States, divided by zip code.Although it's a basic concept, you must first decide the location you are shipping from and the destination to which goods will be delivered before you can begin calculating prices.Gross Weight of the PackageThe deadweight of a package refers to its weight. Put it on a scale and find out how much it weighs. The more expensive it is to send a package, the heavier it is. But there's also dimensional weight to consider. This becomes more intricate and is determined by the dimensions of the box in which you are shipping the products.Dimensions of the PackageThe length, breadth, and height of the packaging used to ship the products are the dimensions. Because packages arrive in a variety of sizes, it's critical for eCommerce retailers to understand how this affects the price. Particularly when couriers charge by dimensional (or volumetric) weight as well. In a nutshell, this is the amount of room a product takes up in the delivery truck.To calculate the dimensional weight, couriers multiply the length, width, and height of your box, then divide the result by a cubic divisor of their choosing.It's a good idea to understand more about dimensional weight and how to save shipping expenses by optimizing your packaging. These modest measures will help you save money on shipping and receive a more accurate quotation for eCommerce businessesShipping Delivery TimesDelivery time refers to the time it takes for a product or cargo to arrive at its destination. Depending on the distance the cargo is travelling, this can range from overnight to over a month, & prices might vary accordingly.It will cost substantially more to get a parcel sent overnight than if you go for a typical 3-7 days delivery period. Before you settle on a shipping cost estimate, you'll need to determine how quickly you want your products delivered.Value of Products If you're delivering high-value items, you should consider having your shipments insured. Senders who have their packages lost, stolen, or damaged in transit can get reimbursed with shipping insurance. This service, while handy, can dramatically increase your delivery costs.Suggested tool - Calculate instants Shipping rates with WareIQ shipping rate calculatorTop 6 Factors Influencing Your Shipping Costs in 2025Because of the many extra taxes dependent on the destination country, the size and weight of the shipment, and the duration of delivery, international shipping can get complicated.It's critical to do thorough research and properly calculate shipping costs so that your consumers aren't surprised by exorbitant charges, which is one of the leading causes of shopping cart abandonment in eCommerce.Insurance for ShipmentsIf you're shipping costly items, consider obtaining shipping insurance to safeguard against items being lost, stolen, or damaged during transit. The majority of shipments arrive safely, but mistakes can happen, and if you're delivering high-value items, replacing inventory will cut into your earnings, so it's important to be insured.Couriers normally charge a little fee for this service - around 3% of the reported value of your package on average. Another option is to get shipping insurance from a third-party provider, which is usually less expensive. Through the Insurance Settings section of their dashboard, Easyship users can quickly add insurance to their shipments.Cost of FuelWhen fuel prices, particularly diesel, are greater in a certain location owing to taxes, market pressures, or other geographical variables, shipping charges rise. When fuel prices fall, shipping costs should fall as well. Carriers may raise their charges to protect themselves from abrupt fuel price spikes if fuel costs are variable at the time you're shipping.Keep in mind that shipping across states is typically more expensive owing to gasoline prices. Fuel prices in each state vary widely depending on local and state taxes. The cost of fuel in your location may differ from the cost of fuel in the shipment area. Fuel surcharge calculators are used by some truckers to estimate these fees, which are usually added to shipping rates.Minimum Costs for CarriersMinimum tariffs apply to all carriers. Regardless of how tiny your package is, if it falls below that level, you will be charged the minimum. Before hiring a shipper or looking into alternative shipping options like FedEx and UPS, you should make sure you have a package that is larger than the bare requirement.Extra ChargesIf your package necessitates lift gates, inside delivery, residential delivery, or other access difficulties for drivers, factor them into your freight shipping prices. Dock-to-dock transportation is a specialty of commercial shipping. If you deviate from that, you will be charged for the inconvenience. Accessorial fees might range from delivery to a strip mall to appointments scheduled in advance. Make sure you're aware of all of the alternatives ahead of time and that you consider them in the price of each task.Related Article: Ways to reduce transportation costsCharges for Handling Dangerous GoodsDue to the contents of the package, packing, weight, and dimensions, you may be charged extra costs.Chemicals, needles, weapons, and, most significantly, lithium-ion batteries for eCommerce businesses are examples of risky goods that a courier feels are dangerous to handle. The International Air Transport Association (IATA) defines dangerous products worldwide, therefore that's the best place to look for an official list.If the parcel exceeds the standard dimension or weight, is constructed of a substance such as wood or metal, or is cylindrical, an extra cost may be charged. It's a good idea to double-check these costs before buying any boxes or containers.Taxes and DutiesBefore your cargo is delivered to another nation, you or the recipient of your product may be requested to pay extra customs and taxes. Duties and taxes may be charged depending on what you're shipping and how much it costs. These can be complicated and differ from nation to country. You should be aware of two sorts of responsibilities since they are frequently the source of hidden expenses.DDU Shipments (Delivery Duty Unpaid): The recipient is responsible for paying the duty in order for the package to be released from customs. If the recipient refuses to pay the taxes or refuses to accept the delivery, you, as the sender, are still accountable. This is why, as a trader, it's ideal to keep your overseas shipping charges as transparent as possible. It helps you save money.DDP Shipments (Delivery Duty Paid): The sender is responsible for paying the levy, however, the computation is more complicated. When the shipment reaches the destination country, couriers will charge a "DDP handling fee" for paying the taxes and customs on your behalf. The proportion of taxes and tariffs is used to compute a "disbursement charge." Yes, it's complicated, but at the very least, you'll know that the box won't be returned because the receiver doesn't pay or declines it.When the cargo reaches the target country, the couriers will charge you an extra cost for paying the Taxes & Duties on your behalf. Aside from the predetermined DDP handling charge for managing certain taxes and levies, one can expect a disbursement fee.Under-declaring items on a commercial invoice might result in extra charges and lengthy delivery delays. If the customs clearing agency feels the claimed value is less than the market value, a fresh invoice is frequently requested, which might result in additional costs. There may be additional warehousing fees for keeping the product if it is not received within the desired time range. In addition, if you under-declare the contents of the box, the courier may charge you. As a result, this is an area where you must exercise extreme caution and pay close attention to the smallest of details.Importance of Calculating/ Estimating Shipping Costs AccuratelyThere are a lot of businesses out there that don't take the time to calculate shipping costs accurately. This can lead to many problems down the road, including lost customers and increased expenses. Here are just a few reasons why it's important to make sure you calculate your shipping costs accurately:You Could Lose Money on Each ShipmentIf you're not careful, you could easily lose money on each shipment you send out. You could either be charging your customers too much for shipping or not enough. In both cases, you're leaving money on the table that could be used to improve your business in other ways.Your Customers Could Get FrustratedIf your customers are constantly overcharged with shipping prices, they could get frustrated. This could lead to them taking their business elsewhere, which is the last thing you would want. Make sure you're fair with your shipping charges, so your customers will stick around.You Could Run Into Cash Flow ProblemsIf you're not charging enough for shipping, it could eventually lead to cash flow problems. You'll be spending more money on shipping than bringing in money from customer orders. Make sure you calculate shipping costs accurately so you don't run into any financial difficulties down the road.It Could Affect Your Bottom LineYour shipping charges will have a direct impact on your bottom line. If you're not careful, you could spend more money on shipping than you're making in profits. Make sure you're doing everything you can to keep your shipping charges under control, so your business can be successful.It Could Hurt Your ReputationIf customers consistently have problems with your shipping charges, it could hurt your reputation. Hence, it's important to make sure you calculate shipping costs accurately. By providing fair and reasonable shipping charges, you'll be able to keep your customers happy and maintain a good reputation for your business.As you can see, there are many reasons why it's essential to estimate courier charges. If you're not careful, it could lead to many problems for your business. Make sure you take the time to calculate shipping costs to avoid these potential problems.How Do Major Shipping US Courier Models Calculate Shipping Costs Instantly?The three big shipping services have their own cost calculators.Many of the above elements are taken into account by each delivery provider in order to provide varied shipping price models and shipment methods.Here are the price models and calculators for three of the most popular shipping companies in the United States: USPS, FedEx, and UPS.United States Postal Service- Shipping Prices and Calculator SourceThe United States Postal Service is frequently the cheapest of the three carriers, particularly for ground shipment. USPS already delivers to your end client every day because they operate local routes every day and don't have to go out of their way to do so.USPS consolidated its two business pricing models (commercial plus and commercial base) into one commercial pricing model in January 2019. Shipping reductions of up to 15% off retail shipping and fees are available with commercial pricing. You must apply for this price model through the United States Postal Service.Check out USPS's mailing and shipping pricing to figure out how much shipping will cost you.How to efficiently utilize the USPS Shipping calculator:To use the USPS Shipping calculator, go to the USPS Postage Price Calculator website. You may use this website to estimate shipping costs for both domestic and international shipments. If your company mails are pre-sorted, you can use the USPS Business Price Calculator to calculate your shipping rates.Fill up the details with the specifics of your letter or parcel. Choose your letter or package's destination from the drop-down menu, then input ZIP codes, the sending date, and the contents of your package.Choose a shipping type. After you've input your shipment's data, you'll need to determine how you want to get it to its final destination. You can use the USPS Shipping Calculator to select a Flat Rate or a shape, such as a postcard, letter, big envelope, package, or large package. When you select a flat rate option, such as Priority Mail Medium Flat Rate Box, you'll see the estimated arrival date as well as retail and online postage charges. You'll be prompted to input the weight of your letter if you pick a form resembling a letter. Select the shape that most closely resembles your letter by pressing "Continue." Following that, you'll be provided the estimated delivery date as well as the retail and wholesale prices.Examine your shipping choices. You'll see the cost details for your chosen shipment type at this moment. By clicking "Display All Alternatives" at the top of the page, you may compare pricing for various shipping options.Additional Services, you may add extra services here, such as a Certificate of Mailing, Insurance, Registered Mail, and so on.To see your outcome, click "Continue." See how much it would cost to mail your letter or item to its final destination.Pay for your shipment's shipping and postage. Go to the USPS website. To pay for shipping and print the appropriate stamps, go to the Click-n-Ship page. You'll need to utilize an online postage provider like Stamps.com to print postage for First-Class Package Service, Media Mail, Parcel Select Ground, and Letters. Federal Express- Shipping Prices and CalculatorSourceIf you want to ship some items by Federal Express but don't want to be surprised by the price, use the FedEx rate tool to eliminate the guessing. You can go over the many price alternatives at your leisure to discover which one best suits your delivery schedule.On their website, go to the Federal Express Rate Tools page. In the dropdown menu available in the Shipping box on the left-hand side of the web page, select one of the services offered for the destination you want to ship the package (the United States or International). If your shipping item is freight rather than a package, an option freight, is also available.By clicking on the relevant option, you may select the FedEx service speed you want to employ for this package (same day, overnight, 2nd day, ground). These options may be seen right next to the shipping destination selection.Choose between the standard rate type (where the item is delivered to your house or office) and the retail pricing type (where the box is picked up by you or your designee at a FedEx outlet in your region).Calculate your shipping prices by selecting the proper file type (pdf or excel) for your computer, then get your rates on the web page.Weigh your box to get an estimate of how much it will cost to send your item depending on your previous destination and service delivery time schedule choices.UPS - Shipping Prices and CalculatorSourceIf you are thinking of sending your package through UPS then follow these simple steps to send your package through UPS:You must know the following two things before mailing any shipment:When do you expect your shipment to arrive?How much will your shipping cost?These are the two most crucial things to understand before beginning the shipping procedure. UPS has a calculator that may be used to estimate shipping costs and timeframes for various places around the world where UPS services are available.Follow the steps below to calculate your shipping cost for UPS carriers-Get straight to the UPS Calculator for getting freight and package rates. This webpage will assist you in locating arrival dates and shipping rates for all UPS shipments and freight services in over 150 countries. It also assists in locating UPS shipping charges for various countries where UPS services are available, allowing you to determine your precise range.Put the mouse cursor on the shipping tab from the site UPS official site ups.com.Select the Calculate Time and Cost from the drop-down menu.Fill in all of the needed shipping information in the form, such as the destination, shipment date, origin, city, and country.It will display the result for the information entered on the right side of the page.There are some extra fields on the right side as well. Fill in these data accurately and click the update button to get the shipping cost.You will now get the cost of the shipment based on the information you have provided.The following are some of the benefits of utilizing this UPS shipping calculator:You will be given a UPS shipping estimate in the currency of your country.You will also receive shipping information for several items.This webpage may also be used to determine the additional cost that must be applied to the shipment.Get a summary of the review rate in the form of a graph.You may sort your results by cost and time.You will also receive information about the delivery date, time, and cost of international shipping.Conclusion: How Can Businesses Reduce Shipping Costs With WareIQ?As a business, it is crucial to be aware of different ways to reduce shipping charges when you have to calculate shipping costs to stay competitive and keep prices low for your customers. One way to do this is by using WareIQ.WareIQ offers businesses discounted rates on shipping, distributed inventory, and 2-day shipping. This means that you can save money on your shipping charges while still offering your customers the convenience of fast shipping. Additionally, WareIQ offers free shipping on orders beyond a certain order volume, which can further help to reduce your overall shipping costs. WareIQ also offers a choice of more than 20 of the best shipping services in the country so you will always be assigned the fastest option, at the best price.By using WareIQ in 2025, you can take advantage of significant savings on your shipping charges, which will also be felt by your customers. This can help to improve your bottom line and keep your prices competitive. In addition, the convenience of 2-day shipping can help to increase customer satisfaction. If you are looking for ways to reduce your shipping costs, WareIQ is a great option.[signup]Calculate Shipping Costs FAQs

May 31, 2022

Buffer Inventory: Meaning, Importance, Differences With Safety Stock, Benefits & Disadvantages In 2025

There are many variables and uncertainties that make operating an eCommerce business extremely difficult. Retailers constantly have to maintain the right amount of inventory to be able to fulfill orders but also not store too much to risk the items becoming obsolete or expired. Buffer stock can help businesses get through this uncertainty and can also make sure that their customers are never left waiting to receive their orders. Let’s take a look at what buffer inventory is, how it can help your business, the pros and cons and much more.What is the Meaning of Buffer Inventory/Stock?An extra amount of commodities is held on hand to meet any unexpected future demand or supply variations; this stock is called buffer stock. It is a backup stock that keeps some buffer room for any uncertainties that may arise in the future. Buffer inventory is typically used as a security net in an emergency, supply chain delays or an unexpected rise in demand. The quantity of buffer inventory you keep will be determined mainly by the items you offer, average production or order lead times and historical inventory data.A business maintains this stock in transit or on hand to guarantee no production, supply or lead time interruption. This type of stock is also known as a strategic stock, safety stock or buffer inventory.A business can make use of buffer stock at any point along the supply chain. The primary purpose is to keep production or sales processes operating smoothly.[contactus_gynoveda]Buffer Stock vs Safety Stock: What are the Differences?The words 'buffer inventory' and ‘safety stock' are used synonymously to refer to the additional stock that a business entity keeps on hand to act as a shield against supply and demand fluctuations.In certain circumstances, 'buffer/safety inventory' refers to inventory stored specifically for unexpected increases in product demand (for example, a promotion that generates more sales than planned), whereas ‘safety stock' refers to inventory retained in the event of work-in-progress products or delays due to the supplier (e.g., manufacturing shutdown).Both buffer stock inventory and safety stock serve the same function, i.e., guaranteeing an adequate inventory level to satisfy demand and fulfill orders on schedule.Why is Keeping Buffer Stock Important?Having buffer inventory is critical for your business since it allows you to save money on additional order fulfilment expenses while also providing your customers with a flawless shopping experience free of shipping delays. In addition, like any other security net, buffer inventory may help you improve your operations. The importance of buffer stock is as follows:Buffer inventory may be located at any point along the supply chain and is meant to lessen the occurrence or severity of stock-out incidents, resulting in improved supply chain continuity and customer service.It can be used in manufacturing or other inventory-related scenarios to guarantee that unexpected shortages or requests may be fulfilled with some assurance.Safety stock is often retained during uncertainty about the product's demand or lead time.The quantity of buffer stock a company decides to keep on hand on a general basis can have a significant impact on its operations.Overstocking can lead to excessive inventory carrying costs. But, conversely, stock-outs can repeatedly occur if there is insufficient stock. As a result, firms must strike a careful balance. Buffer Inventory Formula: Top 4 Methods to Calculate Buffer StockSeveral factors influence how much inventory you keep on hand to function as a buffer. There is no generic solution for establishing how much buffer stock to keep. It has to be calculated based on factors that decide your business's requirements. There are various methods for calculating ideal buffer inventory levels, but regardless of the approach you use, you'll need access to advanced analytics tools that help you control inventory by giving historical order data, SKU performance insights and demand forecasting statistics.Having the relevant data at your disposal will allow you to appropriately determine the amount of buffer inventory needed to optimise inventory storage and guarantee that orders are completed on time.Safety Stock CalculationA safety stock formula is an excellent approach to quickly estimate the ideal amount of buffer inventory in case of an unforeseen circumstance.To calculate safety stock, you first need to calculate the average daily consumption of your product and multiply it by the typical lead time, i.e. the number of days it takes between the time an order is first placed and delivered to your customer. Then deduct your maximum daily use and multiply it by your max lead time. The result is the product's safety stock number.You'll need to know the maximum daily consumption, maximum lead time, average daily usage and average lead time to calculate this value.The formula for safety stock calculation is as follows:(Maximum daily sales x Maximum lead time) – (Average daily usage x Average lead time)Hezier and Render’s MethodThe buffer inventory approach proposed by Hezier and Render employs the standard deviation of the lead time distribution and the required service factor (i.e., the probability that a stockout will not take place). Based on historical supply chain delays, this provides a more realistic picture of the amount of buffer inventory you should keep on hand.The Hezier and Render technique is computed by multiplying your desired service factor (Z) by the standard deviation in lead time (𝜎LT) and the extent and frequency with which the average lead time varies from the actual lead time.The formula for calculation using the Heizer and Render technique is as follows:Z x 𝜎LTAnalysts utilise such a calculation when the supply is questionable. By utilising the standard deviation of the lead time distribution, it provides a more accurate picture.As a result, it delivers a more precise and accurate picture of late shipments' lead time and frequency. This model, however, does not account for fluctuations in demand.Greasley’s MethodGreasley's inventory calculation approach considers the standard deviation of lead time, desired service factor and average demand. The standard deviation in lead times refers to the unpredictability or volatility in lead times. In contrast, average demand denotes the number of items required to fulfill consumer demand during a specific period.The formula is denoted as follows:𝜎LTx average demand x ZThis strategy is typically utilised when demand and lead time fluctuate greatly. However, it does not consider the number of products that are still in production and are not yet available for sale.Historical Demand-Based Buffer InventoryAnother method for calculating buffer inventory is obtaining and analysing historical data by evaluating inventory and order data. When you know the inventory turnover rate, SKU performance and other details, you can sensibly assess your safety stock.It's usually a good idea to access previous order and inventory data, regardless of how you calculate the buffer inventory. Inventory forecasting necessitates substantial preparation to guarantee that your company is ready to satisfy demand constantly while remaining mindful of not purchasing too much (which may increase the costs of storing excess inventory and decrease the profit margin).With demand forecasting technologies, you can quickly combine all the supply chain data from numerous channels to present an overview of the actual product and sales insights and forecasts.Advantages and Disadvantages of Buffer InventoryAdvantagesThe advantages of a business having buffer inventory are as follows:It assists in protecting the business against variations in demand and supplyIt aids in minimising production disturbanceIt contributes to the company's revenue stabilityBecause the firm has stock to take new orders, it decreases the odds of opportunity loss. Disadvantages Though having buffer inventory may prove to be beneficial to the business, it also comes with a few disadvantages that are stated below: Storing inventory in buffer may result in losses if the items are perishable or have limited shelf lifeBuilding and preserving might incur significant expenditures and add to the overhead costsMore space will be required to accommodate the extra inventory 5 Buffer Stock ParametersAccuracy in ForecastingAccurate forecasting is crucial to understand buffer inventory. Forecasting demand and supply can assist in determining the amount of buffer stock that is necessary.Adjustment of Lead TimeThe lead time is defined as the time it will take for a firm to create a particular quantity of goods. Planning buffer stock must be in tandem with the lead time or else stocking will either be delayed or arrive sooner than anticipated.Frequency of RefillingThe patterns and previous frequency of refilling might assist in restocking the supply. For example, the frequency of refilling once a month can help a company prepare more effectively for unforeseen circumstances.Perishability of ProductsThe shelf life or perishability of commodities is a critical factor in buffer inventory planning.A product with a higher rate of perishability must be handled differently than a product that does not perish quickly.Seasonal fluctuationsSeasonal differences must also be taken into account while keeping buffer inventory.Since the same product may sell more in the summer than in the winter, or vice versa, buffer stock cannot remain identical for both seasons. ConclusionInventory management is critical for any organisation that wants to stay competitive and profitable while expanding its operations. Inventory shortages can result in missed sales. But on the other hand, excessive inventory results in more storage and administration costs and therefore, lower profit margins.Working with a dependable distribution partner like WareIQ to manage your inventory helps increase manufacturing efficiency. It also liberates resources, concentration, and energy for growth and development.Taking care of essential resources is critical for manufacturing competitiveness. Businesses that decrease managerial distractions cut inventory carrying costs and can focus on core skills, thus gaining a competitive edge. Outsourcing inventory management can help you achieve these objectives. [signup]Buffer Inventory FAQs

May 31, 2022

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

The weighted average inventory method is a costing method that assigns a cost to each inventory unit based on the average cost of all units available for sale during the period. This method is used when companies purchase inventory in large quantities at different prices throughout the year. The weighted average cost per unit is calculated by adding the total cost of all units available for sale and dividing by the number of units available.This weighted average inventory method is advantageous because it provides a more accurate representation of the actual inventory cost than other methods, such as first-in, first-out (FIFO) or last-in, first-out (LIFO). However, the weighted average inventory method can be challenging to implement if many units are available for sale or if the prices of units purchased vary widely. In these cases, it may be necessary to use a different costing method.What is Weighted Average Inventory? How to Calculate It?The weighted average inventory method is a calculation that assigns a weight to each type of inventory based on its value or importance. This allows businesses to assess their overall inventory levels more accurately and better manage their stock.To calculate the weighted average inventory, using the Weighted Average Inventory Method, you need to first determine the total value of all your company's inventory. Then, assign a weight to each type of inventory based on its value as a percentage of the total. Finally, multiply every kind of inventory by its weight to find the weighted average cost for that item.For example, let's say your company has three types of inventory: raw materials, finished goods and work in progress items. Assume that raw materials make up 20% of the total value of your inventory, finished goods make up 60% and work in progress makes up the remaining 20%.To calculate the weighted average inventory using the Weighted Average Inventory Method for raw materials, you would need to multiply the raw materials by their weight and divide it by 20%. You would then need to multiply the finished goods by their weight divided by 60% for finished goods. And for work in progress, you would need to multiply it by its weight and divide it by 20%.The weighted average inventory for your company using the Weighted Average Inventory Method would be the sum of the three weighted average inventory calculations. In this example, the weighted average inventory would be (20% x Raw Materials) + (60% x Finished Goods) + (20% x Work in Progress).You can use this same method (Weighted Average Inventory Method) to calculate the weighted average inventory for various types of inventory. Just be sure to assign a weight to each one based on its value or importance.The Weighted Average Inventory Method can be a useful tool for managing your company's stock. By considering the value of each type of inventory, you can more accurately assess your overall inventory levels and make better decisions about using your resources.[contactus_gynoveda]What is Weighted Average Cost (WAC)? The weighted average cost is a financial metric used to assess the overall cost of a company's products or services. This cost is arrived at by considering the different costs associated with each production stage, including raw materials, labour, shipping and overheads. The final number is then weighted according to the relative importance of each factor.In many cases, the weighted average cost can be a more accurate reflection of true cost than simply using an arithmetic average. This is because it considers the quantity of each input and the quality or importance of that input. For example, if a company's product requires expensive raw materials but very little labour, the weighted average cost will be higher than the average arithmetic cost.The WAC is often used to set prices, particularly when offered by a wide range of products or services. By considering the different costs associated with each item, a company can ensure that it charges a fair price for each one. In some cases, weighted average cost may also be used to assess the profitability of individual products or services.The weighted average cost can be a valuable tool for financial decision-making when calculated correctly. However, it is important to remember that this metric should only be one part of a much larger analysis. Other factors, such as customer demand and market conditions, will also play a role in setting prices and determining profitability.4 Methods to Calculate Weighted Average Cost (WAC)There are various methods to calculate the weighted average cost. Some of the most common methods are: Average Cost MethodThe 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 MethodThe 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 MethodThe 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 MethodThe 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 CostThe 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 ValuationWeighted 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 PricingIt 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 CostingThis 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.SourceWhat are the Benefits and Drawbacks of Applying the Weighted Average Cost (WAC) Method?BenefitsSeveral benefits can be accrued by applying the WAC method and some of the most important ones are listed below:Accurate Depiction of Actual CostsPerhaps 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 FluctuationsThe 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 StandardsFinally, the WAC method is generally accepted by accounting standard-setters and is likely to be acceptable for financial reporting purposes.DrawbacksThe weighted average cost (WAC) method has a few disadvantages, which include:Bias Against Older InventoryThe 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 ItemsThe 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 CircumstancesThe 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.Suggested - Marginal Cost vs Average Cost: What’s the Difference?Conclusion: Choosing The Right Inventory Valuation Method for Your BusinessThere 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

May 31, 2022

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)SourceIn 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 destinationHowever, 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 WorksAccording 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 AmazonCustomer BasePrime 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 FulfillingWhen 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 BoxWhen 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 WarehousesAccess 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 CustomersAmazon 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 OptimizationAmazon 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 AmazonCosts Associated with FulfillmentYou 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 ExpensesThe 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 FeesHigh 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 AdministrationWhile 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 alternativesFulfillment by Merchant (FBM)SourceFulfillment 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 AmazonYou 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 networkWhen 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 MerchantMulti-Channel ApproachOnline 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-cuttingThe 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 BrandingSome 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 AvoidedAmazon has been known to update its rules and restrictions regularly. By utilizing Fulfillment by Merchant, the company may avoid regulatory changes that could cause service disruptions.If Amazon changed its labeling standards, for example, a retailer would have to rethink how it handles delivery. Every modification Amazon makes can cost the merchant extra time and money, whether they label their items themselves or outsource the process to a third-party logistics provider.Fulfillment by Merchant Prime Shipping It is a feature given by Amazon to Fulfillment by Amazon sellers. However, there is a program called Seller Fulfilled Prime that you may enroll in. A merchant must commit to and verify that they can supply two-day shipping at no additional cost to qualify for Seller Fulfilled Prime.A Seller Fulfilled Prime seller must complete a trial period to demonstrate that they can keep up with Amazon's fulfillment center alternatives. The conditions are stringent and severely enforced:Picking orders on the same dayThe order cancellation rate is less than 1%.At least 95% of orders are delivered on time.Easy To Launch Business and Generate Better Revenue GenerationFBM 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 DisadvantagesThe Absence of a Buy BoxIt'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 RankingsCustomers 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 ConcernsFulfillment 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 FBMDefinitionBefore 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 inventoryInventory 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 packagingFulfillment 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 ShippingUnder 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 ServiceIn 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 ExpensesAmazon 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' FavourabilityCustomers 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 ProductWhen 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 2025Dimensions of PackageThe 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 experienceAlthough one approach is more hands-on than the other, both allow you to improve customer experience in distinct waysFulfillment 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 SellerCustomers may browse reviews and comments from others who have purchased your goods using Amazon's "seller feedback" functionMore 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 TurnoverYour 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.LogisticsPicking, 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 ServicesWhile 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 FBA1. Greater Control Over Inventory ManagementWith 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 SpeedIn 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 ManagementReturns 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 FlexWhile FBA offers many advantages, it also presents challenges that can impact seller performance. WareIQ's Seller Flex services help mitigate these issues:Avoiding Compliance PitfallsThe 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 ManagementFBA 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 WareIQAs a Fulfillment, WareIQ has ready-to-use connectors that can be set up in minutes. Other benefits of employing WareIQ fulfillment services for Amazon merchants include:Possibility of using branded packaging as a highly effective branding and marketing strategyMore profit margins and fewer feesLow shipping prices, since 3PLs, have a lot of negotiating leverage with carriers because they bulk their clients' shipmentsFulfilling orders easily if the Amazon merchants are selling on other marketplaces tooEasy integrations of WareIQ fulfillment platform with 20+ other marketplaces to fulfill Amazon orders as well other marketplace ordersIncreased autonomy and flexibilityHaving access to a global logistical networkPrime options have the same delivery speed as Prime optionsAmazon FBA prep servicesThe 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

PREV 1 … 87 88 89 90 91 … 97 NEXT