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What is EOQ – Economic Order Quantity? What is the Importance of EOQ for eCommerce Business in 2025?

What is EOQ – Economic Order Quantity? What is the Importance of EOQ for eCommerce Business in 2025?

These days, order fulfillment for eCommerce sellers has become a relatively easy task due to the emergence of multiple high-quality logistics partners with huge supply-chain networks. From picking and packing to shipping services, they are also responsible for collecting payments post-delivery and managing inventory. But in the end, the seller is in the driver's seat so they need to determine the type of products they want to sell and price them competitively. To decide this, they need to do market research and study the demand and supply of similar products. This is where economic order quantity can help them streamline their decision making process.Things like minimum order quantity (MOQ) and economic order quantity (EOQ) assist sellers to get an accurate estimation of batches as per their requirements while also ensuring that there is enough free space for storage as opposed to an uninformed seller who may keep placing orders to their supplier only after their inventory gets depleted.What is Economic Order Quantity (EOQ)?Economic Order Quantity (EOQ) is the appropriate order quantity for a company to purchase goods in order to reduce inventory costs such as holding charges, shortage costs, order costs, etc. Inventory management, which oversees the ordering, holding, and usage of a company's inventory, requires the use of economic order quantity. EOQ is responsible for determining how many units a company should add to its inventory with each batch of orders, to lower the total inventory expenditure.The EOQ model aims to ensure that the appropriate amount of inventory is ordered per batch so that neither does a company have to place orders too frequently nor have an excess amount of inventory in hand. Sellers need to understand the difference between inventory setup costs and industry holding costs. When a seller can minimize both, only then can the inventory cost be minimized. How is Economic Order Quantity Calculated?To calculate the EOQ for your business, you must know the components listed below:D: Demand Rate (Quantity Sold Per Year)Q: Volume per OrderS: Ordering Cost (Fixed Cost)C: Unit Cost (Variable Cost)H: Holding Cost (Variable Cost)I: Carrying Cost (Interest Rate)Source​Order CostIt is a variable cost. It refers to the sum of all costs associated to fulfilling the order of products from sellers to buyers. This cost includes packaging (branded packaging), shipping (branded shipping), managing, etc.Before we arrive at the ordering cost, we will have to find the number of orders per annum. The number of orders annually can be found by dividing the ‘annual demand’ by ‘the volume per order’. The formula can be expressed as:Numbers of Orders = Annual Demand / Volume per Order (D/Q) Now that we know the number of orders, we need to find the annual ordering cost for each order with a fixed ordering cost (independent of the number of units- S) by multiplying the number of orders by the fixed cost. It is expressed as:Annual Cost Order = Numbers of Orders * S= Annual Demand / Volume per Order (D/Q) * SDemand RateDemand rate is the cumulative number of units of products that a retailer sells in a year. Might from retail fulfillment, drop-shipping etc.Holding Cost In any business, you need to have inventory to fulfill demand. Offline businesses can store their products in a shop whereas online businesses do not have access to a physical shop. For them, holding inventory is more expensive than maintaining the website or listing their products on multichannel eCommerce selling platforms. This cost can be a direct cost that is incurred by spending on the storage of inventory or the cost of holding inventory. Holding cost includes eCommerce warehousing costs, logistics costs, securing costs, insurance costs, etc.The per-unit holding cost is often expressed as the cost per unit multiplied by the interest rate, expressed as follows:H = ICThe Economic Order Quantity formula is  EOQ = square root of (2*S*D)/HHow Does Economic Order Quantity Work?Ordering a huge amount of inventory for the purpose of hoarding ultimately increases the cost which reflects in the per-unit cost of products. Conversely, ordering small amounts of inventory increases the frequency of orders which also increases the setup cost. So this is where economic order quantity helps. To make the process easier, you can try out the Economic Order Quantity Calculator. It finds out the actual quantity required which mitigates all the risks. Example/Case Study:Let's speculate that a company uses EOQ to assess demand, order costs, and holding expenses per unit per year over the previous year and anticipates comparable demand next year.If the information is as follows: Annual Usage is 20,000 unitsOrdering Costs are ₹400 rupees per orderCarrying Costs is ₹4 per unit per annumSolution: square root of (2AO/C)square root (2*20000*400)/4=2,000.The EOQ is 2000 units. In case a seller is short of inventory, they need to order 2,000 units. If a seller wants to order 10,000 units which is 5 times 2,000 units then you need to multiply 2000 by 5.Note: economic order quantity can change if any of the variables change.What is the Importance of EOQ?As the name suggests, economic order quantity is the economic means of ordering inventory, keeping in mind the size of the business(small scale/large scale) and increasing future demand and supply requirements. A few of the benefits of EOQ are:Gives sellers a figure to order and maintain their inventoryMitigate the risk to sellers of facing a stock shortage.Makes the supply-chain activities hassle-free.Helps eCommerce sellers as well as merchants in dropshipping.5 Benefits of Economic Order Quantity (EOQ)Bulk Order Discounts: Sellers can take advantage of the best bulk-order or economies-of-scale discounts offered by vendors if they plan and time their orders correctly.Improved Order Fulfillment: When a certain item is required for a customer order, optimal EOQ ensures that the product is available, allowing you to complete the order on schedule and keep the customer satisfied. It enhances the consumer experience of your customers and possibly increases sales.Lower Storage Costs: You should have fewer things to store when your supply effectively meets your demand. This can save you money on real estate, utilities, security, insurance, and other expenses.Prevents Over-Ordering: Over ordering and locking up too much cash in inventory can be avoided with a precise estimate of what you need and when you need it. It creates a smoother cash flow in the business.Reduces Wastage: More streamlined order schedules should reduce irrelevant inventory, especially for organizations with perishable commodities that can result in dead stock.Challenges of Economic Order Quantity (EOQ)Business Growth: For organizations with consistent inventory demands, the EOQ formula is perfect. Using economic order quanitity in a fast-growing business might lead to inventory shortages. Also it is mainly needed in scenarios of constant demand and inventory storage. Outdated Systems: Old and obsolete systems may contain incomplete data, resulting in missed savings opportunities. This issue can be solved with an inventory management software solution or a cloud-based ERP.Seasonal Needs: Seasonality makes EOQ more difficult, but not impossible. This is because client demand may fluctuate significantly throughout the year.Flawed Data: Access to correct and trustworthy data is one of the most difficult aspects of estimating economic order quanitity. Manual or spreadsheet-based solutions may generate erroneous calculations due to poor quality or obsolete data.Inventory Shortages: If you’re a new user of this method, you may often generate smaller orders. Also, if you are conservative with your calculations and expenditure on inventory then you will end up under-ordering.How to Use EOQ to Improve Inventory Management in 2025?In 2025, If you are operating a large eCommerce business then before you get to important tasks like creating a website, registering on third-party selling platforms and partnering with a 3PL logistics company, you have to take care of inventory management and here,  theories like minimum order quantity and economic order quantity are useful.While calculating the economic order quantity, you can figure out what order size is the best for your business. It eliminates guesswork and reduces the risk of over-ordering or running out of stock. You can use the stats and data to make a long-term inventory selection for your company.If you run a large organization, especially one that requires expensive inventory, or one that has high inventory holding costs, EOQ could have a significant impact on your operations, cash flow, and earnings for years to come.ConclusionWhen you are in a business, you need to take care of the demands of your customers. You can regularly check what they want and try to fulfill their requirements in the best possible way. Economic Order Quantity helps a seller in many aspects such as reminding them to reorder stock and running their supply chain smoothly. If the seller runs out of stock, they would not be able to deliver the product to their buyer on time.Inventory Management is an issue for most big as well as small eCommerce businesses. They face problems choosing between the Newsvendor Model, the Continuous Review (ROP), the Periodic Review (FOI), the Economic Order Quantity (EOQ) and lack of appropriate forecasting leads to several inventory management issues at the beginning of the supply chain inventory which travels down eventually causing the Bullwhip Effect.These days, many sellers are claiming to provide same-day or next-day delivery with the help of fulfillment partners like WareIQ, a full-stack platform for eCommerce companies. Their USP is using state-of-the-art technology to provide Amazon Prime-like delivery and fulfillment services for every eCommerce company. With the emergence of eCommerce as a full-time business, WareIQ provides its partners with several advantages. Other than calculating economic order quantity, WareIQ can assist in the following ways:Choosing multiple warehouses in which you can divide your inventory according to location or market-specific orders.Minimizes your inventory holding cost by charging only for the area occupied by the seller's product.Provides accurate data of inventory in real-time which helps sellers to get insights into their sales figures and forecasts demand and supply.Keeps EOQ logistics costs low with smart warehouse locations near cargo and shipment centers.Does all the economic order quantity calculations for a seller so that they need not get hassled and can focus on their core business operations.Sign Up Now with WareIQ to take advantage of our superior fulfillment tech platform & accelerate the growth of your online business.Economic Order Quantity FAQs (Frequently Asked Questions)

May 18, 2022

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Flat Rate Shipping: How is it Important for eCommerce Business in 2025?

Flat Rate Shipping: How is it Important for eCommerce Business in 2025?

If you are a part of the eCommerce Industry, either as an online seller or shopper, you would be familiar with the term flat rate shipping. It's likely that you've interacted with eCommerce shipping companies that have offered this service, or that you have chosen it as a customer when making online purchases.Shipping margins are crucial to the profitability and long-term sustainability of eCommerce businesses. You are wasting precious resources if you're not moving your products in the most cost-effective and efficient method possible. Flat-rate shipping is one approach to reducing operational and eCommerce logistics expenses.So, what is it about flat-rate shipping that has become so popular lately? What makes this such a popular choice for big packages? Should you use the flat rate shipping method as a seller or merchant? You can read further to find answers to all these queries, and also specifics on flat rate shipping charges and other related topics.What is Flat Rate Shipping?Flat rate shipping is a way to measure the cost of eCommerce logistics shipping based on the size of the parcel or envelope rather than the dimensional (DIM) weight. When there are no peak-season charges, flat rate shipping is an appealing choice for holiday buyers.For example, you might charge ₹50 for local delivery, ₹750 for flat-rate international shipping, and ₹10 for orders over ₹500. Furthermore, many merchants have chosen a few fixed flat rate shipping costs to cover their vast shipment requirements.Several shipping providers offer flat rate shipping, regardless of where the cargo will be dispatched from. If the goods appear to fit within the carton and weigh no more than the allowable limit, they can be delivered to any destination at no additional charge.Flat-rate delivery is an effective way for businesses to standardize shipping charges and eliminate major price fluctuations caused by factors like dimensional weight, shipment distance, and seasonal swings. Flat shipping rate deliveries are an ideal alternative for online businesses seeking to optimize their delivery procedures.[contactus_gynoveda]Importance of Flat Rate Shipping in eCommerceWith eCommerce rapidly expanding year after year, retail fulfillment shipping processes will also need to be adapted. For more than 50% of merchants, the key commercial limitation is the cost of delivery. eCommerce enterprises will need to find new ways to save money and streamline fulfillment processes as consumers become more accustomed to free and expedited shipping, as well as free returns.Based on how shipping prices are normally determined, flat rate shipping is an interesting shipping option for a few reasons:1. The further the distance or shipping zones are to which you ship your goods, the more expensive their services are and this only gets worse as the order size increases.2. Dimensional weight is a standard price method that is derived by multiplying a package's length, width, and height. Shipping rates are calculated by freight carriers like USPS, FedEx, and UPS depending on whichever number is greater - the package's actual weight or its calculated dimensional weight.3. Flat rate shipping simplifies things considerably and might be an excellent choice for certain companies, particularly smaller ones.What is the Process of Flat Rate Shipping?The term flat rate shipping highlights the fact that the cost of shipping is related to the weight, shape, or size of the shipped commodity. It is calculated by how much stuff can be crammed inside the packaging box. Following these procedures allows eCommerce warehousing enterprises to ship products at a flat charge.Flat rate delivery is now offered by all major shipping aggregators. Some carriers will insist that you use their packaging, while others will allow you to use your own as long as it meets specific dimensions. There are also weight limits that merchants must adhere to, to avoid incurring additional penalties.The process of how flat rate shipping works are discussed below: Choose your carrier and the size of containers or flat rate envelopes you require. Use the flat-rate packaging provided by your carrier or choose a box that meets your size requirements. Put your order together and ship it to your customers’ address. Attach a shipping label to the item and drop it off at the post office or arrange for a pick and pack fulfillment.Suggested Read: What is Commercial Shipping?How to Figure Out the Optimal Flat Rate Shipping for Your Company?Flat rate shipping costs vary depending on the goods, geography, and destination. While you would want to give your customers a comfortable checkout experience, you must also take into account the cost of delivering their products. This helps in devising a strategy that raises sales without any compromise.The most accessible way of determining how much to charge is to calculate your usual delivery cost. This average can be used as a standard shipping rate, signifying that depending on the purchase, businesses would either gain or incur losses on delivery. Now when you know the statistics of average flat rate shipping, you can eventually balance the revenue generated with the costs that need to be spent.6 Factors Affecting Flat Rate ShippingThe amount you will need to charge for shipping is unlikely to be the same as in any other industry. When it comes to your business, there is no one-size-fits-all solution, and flat rate shipping is no exception. Consider the following variables in year 2024 when determining how much you should charge:Size and WeightEach carrier has its terms and categories for describing weight and size regulations, but envelopes for standard documents, packages for larger documents, boxes, and pallets for compact objects, are the most common. Surcharges may apply to oversized or odd-sized packages. It's a good idea to ask your favorite carrier if you're not sure which size category your package belongs into.Dimensional WeightAnother aspect that can affect transportation costs is dimensional (DIM) weight. It refers to the package density, or how much space it takes up in comparison to its actual weight. When the DIM weight of your package exceeds the actual weight, it becomes the billable weight.Shipping DistancesYour shipping prices may be affected by whether you're sending domestically or overseas. Carriers frequently use dynamic geographic zones to determine how far your shipment must travel. The bigger the expense, the longer the distance.Time ZonesCarriers normally offer a range of standard and express service times depending on the country of origin and destination. Although the service titles may differ by carrier, the time frames generally fall into one of three categories:Time-sensitive delivery sends packages at certain times only.Overnight and next-day delivery services are available.Depending on the distance the item must travel, expected delivery dates range from two to seven business days.SurchargesSurcharges are costs that are placed on top of the base rate. It's critical that you're aware of them and knows which ones apply to your shipment. If the shipping needs more paperwork, effort, or time, additional costs and supplementary fees (for import shipments) may be charged. Anything not covered by ordinary shipping and handling will increase the shipment cost.The most common type of surcharges are listed below:Charges for FuelThis is the most typical surcharge, which compensates for fluctuations in oil prices. It's determined as a percentage of the total shipment cost, and it's usually modified weekly.Surcharges for Packages That are Too Big or Too LittleNon-stackable or cylindrical shipments, as well as packages that exceed your carrier's normal format, may be subject to additional charges. Charges for Extending Area Service to Rural AreasPackage delivery to remote places incurs an extra charge.Charges for Hazmat Items or Dangerous GoodsAdditional charges will apply to the shipping of any dangerous goods that may endanger a person or compromise other shipments.Charges for Documentation or Address InaccuracyYou may be charged penalty costs if your carrier needs to modify documents for you.Customer ExpectationsThe typical shipping cost for your customers will vary depending on your consumer base, the products you deliver, and the order's delivery schedule. According to research, 65 percent of customers are willing to pay more for speedy delivery. Find out the balance between how much your consumers are prepared to pay and getting those packages out the door without negatively affecting your revenues.What are the Positives and Negatives of Flat Rate Shipping?Positives of Flat Rate ShippingTransparencyWhen you choose flat rate shipping, you give your customers a fixed price, which simplifies the selling process. As a result, you acquire the consumer's trust and your company's relationship with the customer improves. They would also prefer your firm over your competitors because there are no additional shipping or handling costs. Predictable Shipping ExpensesMany online sellers' revenues are seriously impacted by DIM weight and peak season surcharges. While splitting shipments or comparing carriers that can save you money, it's hard to avoid paying for home delivery when using a regular shipping service. By adopting flat rate delivery, you can eliminate these extra costs and keep shipping prices reasonable for both you and your customers. Utilization of Carrier's PackagingIf you're using conventional packaging rather than more expensive custom-branded packaging, fulfillment costs can still rise significantly. For merchants, being able to partner with a carrier that provides their packaging for free is extremely cost-effective, especially for those who are just getting started.Packaging provided by the carrier also aids in the speedy eCommerce fulfillment process. You don't need to weigh and confirm the dimensions of each package before delivery because the DIM weight has been pre-determined by the carrier. This speeds up the direct fulfillment process significantly.Simplified ManagementYour eCommerce website will no longer require a shipping calculator after converting to flat rate shipping. The delivery prices of Individual products will not need to be adjusted based on weight or size. This frees you up to focus on improving your items and other fulfillment services such as packing and sourcing.Implementation of Promotions With Free DeliveryWhen you know exactly what your shipping expenses are and how much they cut into your profit margins, it's much easier to provide free shipping to customers. Merchants can confidently bake the cost into their product prices or set a free shipping threshold because flat-rate shipping rates don't fluctuate during the year or with each purchase, which indirectly helps in promoting the business.Cart ConversionFlat rate shipping allows you to communicate up front with your customers about your shipping prices.According to a recent study, 50% of customers abandon their carts because the additional expenditures, such as shipping, tax, and other fees, are too costly. Another 20% claimed it was because they couldn't estimate the total cost of the order upfront. Customers do not want any unpleasant surprises when they pay. Knowing how much shipping will cost before they begin purchasing from you will prevent shipping charges from negatively impacting your cart conversion.Negatives of Flat Rate ShippingIncreased Transit TimeEvery consumer wishes that their ordered items arrive in a shorter period. If you're charging a flat shipping rate, there's no other alternative than to use the surface mode for shipping. Customers may become irritated as a result of lengthier transit time.  UnderchargingInterpret which form of delivery will make you and your customer happy before making any decisions on the shipping alternatives you would be providing to your clients. Make certain that the flat cost you charge does not result in a loss for your company.Inaccessible To Various LocationsOne of the most significant disadvantages of flat rate shipping is that it cannot be extended to consumers who live in rural areas. Because shipping costs rise with distance, charging a flat fee may result in a loss for the firm, as the seller must absorb the additional costs.Easily Comparable With CompetitorsSince your shipping costs are transparent and there are no hidden fees, clients will be able to compare your rates to those of competing suppliers, perhaps resulting in the loss of customers to other companies. Missed Branding OpportunitiesOne of the most important competitive differentiators in eCommerce logistics is the time of delivery. However, by using carrier-supplied packaging, you're not able to sell your brand image.To summarize, flat-rate shipping might mean foregoing an important avenue for establishing brand familiarity and trust with customers, as well as foregoing remarkable unpacking experiences that increase customer engagement.How Can WareIQ As Your Fulfillment Partner Provide the Best Flat Rate Shipping Services in India in 2025?If your eCommerce business has outgrown your present delivery techniques, efficient shipping is another approach to reduce shipping costs and increase profitability. WareIQ as a fulfillment partner uses integrated technologies and various fulfillment facilities to speed up your delivery by optimizing your flat rate shipping expenses.  Here's how WareIQ handles fulfillment:Connects Your StoreThe WareIQ platform integrates with your online business (for example, to handle selling on Amazon and Flipkart Selling), allowing you to simply manage inventory and track the fulfillment process from beginning to end.Handles Your InventoryWareIQ's nationwide fulfillment network allows you to store your merchandise. This brings your items closer to your clients, resulting in lower transportation costs and faster delivery. Automatic Fulfillment of Orders Orders are automatically routed to the best eCommerce fulfillment center, where they are chosen, packaged, and shipped from WareIQ’s end.Hassle-Free Last-Mile Delivery with Flat Shipping Rates Across ZonesWareIQ has partnered with all national & hyperlocal courier service providers to provide hassle-free same-day or next-day shipping. eCommerce businesses can select their preferred last-mile delivery partner among the 20+ options available. In case of bulk orders or during sales events, WareIQ even offers flat shipping rates to its eCommerce clients to mitigate the revenue lost by them due to heavy discounts during sales events.Tracking and AnalysisOnce an item has been dispatched, eCommerce order fulfillment tracking information is supplied to the consumer so they can track its progress and you can also analyze your weekly and monthly performance on the platform provided by WareIQ.[signup]Flat Rate Shipping FAQs

May 18, 2022

Amazon Marketplace Integration 2025: How to Fulfill Amazon Orders with WareIQ in 10 Easy Steps?

Amazon Marketplace Integration 2025: How to Fulfill Amazon Orders with WareIQ in 10 Easy Steps?

Amazon is often credited with pioneering the boom of the eCommerce industry and popularizing the concept of shopping online and having your orders delivered right to your doorstep instead of needing to travel to physical stores. This phenomenon has also paved the way for advancement in other technologies such as online payments and automated warehousing processes. Today, Amazon is the largest eCommerce website in the world and changed the landscape of the Indian eCommerce industry when it entered the country in 2013.Since then, it has benefited a vast number of retailers who use Amazon to sell their products, by enabling them to expand and serve an increased customer base that extends all across the country. In today’s blog, we will take a look at the advantages of selling on Amazon, how to fulfill Amazon orders and how WareIQ can enhance your selling experience as a fulfillment partner in the year 2025. How can You Fulfill Amazon Orders?There are 2 methods with which customers can fulfill Amazon orders - Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). FBA is when you offload the entire retail fulfillment process to Amazon and FBM is when you sell products on Amazon but choose to fulfill Amazon orders on your own. For all intents and purposes, these are the processes that you would need to follow to fulfill Amazon orders :Processes Required from SellersResearch of ProductsResearch needs to be conducted for each product to figure out their demand, competition from similar products, prices customers are willing to pay and penetration of that product in the Amazon marketplace in order to optimize your business strategies.Sourcing of MaterialsYou need to partner with a supplier who will be able to manufacture your products in the right balance of cost and quality. They can then ship the finished products straight to Amazon’s warehouses.Listing of InventoryProduct listings need to be created for each type of offering with the marketable descriptions, clear photos and accurate metrics such as features and size dimensions.Promotion of ProductsYou need to create hype around your products and market them to be as appealing to your target audience as possible so that you are able to differentiate your products from the vast amount of competitors on the Amazon marketplace fulfillment.Management of SalesYou need to keep an eye on every order that comes in and manage inventory levels and listings so that the right amount of inventory is always available, depending on customer demand. Post receiving an order, you can leave it up to Amazon to do the rest.Services Offered by AmazonManagement of InventoryAfter Amazon receives the products from your supplier, it sorts out each product based on various metrics such as their type, price, demand levels, and expiry date, among others. It is then stored in massive fulfillment centers, where processes are followed by robots or Amazon employees. Keep in mind that it is in both your and Amazon’s interest to take the best possible care of your products because if anything is damaged in the fulfillment center, Amazon will pay you the retail price of what the product is worth.Automatic Processing of OrdersAmazon automatically processes order requests, as soon as they are received from a customer. The order fulfillment process is initiated with the relevant product being picked, packed and shipped to the customers' location, according to the estimated time of delivery. Management of Customer Support and ReturnsAmazon takes care of your entire customer support, even after the order has been delivered. This includes resolving issues related to the order, answering queries and managing the reverse logistics process in the event of an RTO request. Read our blog on Seller Fulfilled Prime to get more information on other services offered by Amazon.Why Does it Make Sense for Retailers to Use 3PL Fulfillment Companies as an Alternative to FBA?Fulfillment Across Different ChannelsIf you relegate yourself to selling only on the Amazon marketplace, you are cutting yourself off from a large number of local customers that possibly shop on other platforms. In order for a retailer to be competitive, it needs to open as many doors as possible. 3PL fulfillment companies often integrate with multiple selling channels seamlessly, to enable retailers to carve themselves a share of customers on each platform and fulfill Amazon orders at the same time.Transparent and Simplified Pricing PlansCosts in the Amazon marketplace, especially pertaining to FBA, constantly change and evolve depending on a variety of factors such as seasons, product size and nature, duration of storage and many others. This can lead to uncertainty in the amount retailers would have to expend to fulfill Amazon orders. On the other hand, 3PL fulfillment companies often have flat rates that are agreed upon beforehand, pricing per unit and no minimum order quantity. This provides transparency and enables sellers to budget accordingly.Customized PackagingAmazon has standardised most of its processes, including its packaging. While this may seem like a good thing on the surface, it means that Amazon’s brand is highlighted much more than the retailer's brand is. There are also little to no customization options available. With a 3PL fulfillment company, retailers can customize their packaging with their brand logo, choice of materials, custom stickers and themes and much more through branded shipping, which will contribute to customers attaining much more knowledge about their own brand, while they fulfill Amazon orders.Order ManagementMost 3PL fulfillment companies offer software that helps them efficiently fulfill Amazon orders. In many cases, they are more simple and more intuitive to use than Amazon’s offering, which can feel overly complicated and cumbersome at times. This order management software will help you keep track of past, present and future orders and will mitigate any unexpected errors along the way.Inventory ManagementGone are the days when the Amazon marketplace had a monopoly on smart inventory management services. Due to the widespread adoption of state-of-the-art technology and advanced Warehouse Management Systems(WMS), most 3PL companies are able to offer an enhanced level of inventory management capabilities to fulfill Amazon orders. This includes smart placement of inventory according to various metrics, monitoring inventory levels, forecasting demand and supply levels in the future and much more. Fulfillment Centers in Multiple LocationsMost of the larger 3PL fulfillment companies offer a vast network of warehouses and fulfillment centers that are strategically dispersed across the country in areas with high demand to be able to rapidly fulfill Amazon orders. This enables retailers to offer faster shipping services at reduced rates because of smart inventory placement at locations that are in close proximity to the delivery locations of customers. In addition, these companies are not bound by the red tape of the Amazon marketplace so this results in inventory being stored at much cheaper rates.Faster Shipping for Lower Prices2-day shipping was originally popularized in the Amazon marketplace and other retailers and eCommerce platforms had to adapt in order to compete. However, due to economies of scale and the technology behind fast eCommerce shipping becoming mainstream, there are many 3PL fulfillment companies that offer next-day, same-day and even 10-minute shipping for a fraction of the cost that Amazon charges for its fulfillment services and for companies to fulfill Amazon orders.Read our blog on how to become a Flipkart Gold Seller, Flipkart Fulfillment and Shopify Fulfillment to understand how to use competitive services.Amazon Marketplace Integration: 10 Easy Steps to Integrate WareIQ with an Amazon Seller Account in 2025Once eCommerce sellers get onboarded with WareIQ for their D2C fulfillment requirements, the sellers, apart from having access to WareIQ’s pan-India network of fulfillment centers & national courier partners, also get the benefit of integrating WareIQ’s platform with 20+ other online marketplaces & online platforms where they might be selling. Sellers can integrate WareIQ with an Amazon seller account in just 10 easy steps:Step 1: Logging InThe seller can sign up at https://wareiq.com/contact-us/ & partner with WareIQ for managing end to end fulfillment services for their eCommerce business. The seller gets the user ID & password from WareIQ’s customer onboarding team to log into WareIQ’s WMS portal.Step 2: Access to WMS DashboardOnce the seller logs in, the seller gets access to the WMS dashboard with an option to set up the account.Step 3: Navigating the DashboardClick on the three dots in the top right corner of the WareIQ’s WMS dashboard.Step 4: Accessing Account SettingsClick on “Account Settings”.Step 5: Adding Company AddressThe “Company Information” would have already been added to the portal by WareIQ’s customer onboarding team. Click on “Address”.Step 6: Adding ChannelsFill up the “BILLING ADDRESS” and “DISPATCH ADDRESS” and click on “Add Channels”.Step 7: Adding Amazon as an IntegrationThe seller can view all the online marketplaces & website builders with which WareIQ’s WMS can be integrated. The platforms already integrated will appear at the top like the “Shopify” logo. Scroll over “ADD NEW INTEGRATIONS” & choose AMAZON logo under “Select Marketplaces”.Step 8: Adding CredentialsA screen pops up to add a few credentials of sellers to integrate WareIQ with an Amazon Seller Account and also with WareIQ’s WMS.Step 9: Identifying Seller IDFollow the steps below to identify seller ID and fill out the other required fields:#1: Sign in to the Amazon central account of your businessOnce you reach the website https://sellercentral.amazon.in/, sign in with your Amazon account and scroll to “Settings>>User Permission”.In this section, scroll to Apps and Services and click the “Manage Your Apps” button.After that, select the "Authorise new developer" option.#2: Enter the required informationEnter “Easycom” as the developers name enter “1683-6824-8081” as the Developer ID. After that, select the "Next" option.#3: Choosing options on the checklistOnce you select all the check-boxes, click on the “Next” button.After you select the “Next” option, you will be directed to the below web-page:After the retailer has provided all the information in the pop-up, select the “Connect Amazon.in” option. Step 10: Syncing ChannelsSelect the “Close” option to close the pop-up window and then select the “Sync Channels” option. The steps to integrate WareIQ with an Amazon Seller Account and also WareIQ's WMS are now complete. The seller can start storing inventory for fulfilling orders from WareIQ’s fulfillment centers.Why Should Merchants Choose WareIQ as a Fulfillment Partner for Fulfilling Amazon Orders?There are multiple reasons why merchants should choose WareIQ as a partner to fulfill Amazon orders. Not only do we offer a seamless ability to integrate WareIQ with an Amazon seller account but we also offer many more features and cost-effective prices that are competitors don’t. Here is a list of some of the features that we offer:End to End SaaS Delivered SolutionWe offer a full-stack fulfillment platform with inbuilt inventory planning, order management & shipping system that are guaranteed to take care of every fulfillment requirement your business has.Efficient In-house Warehouse OperationsOwnership of warehouse SLAs by internal WareIQ fulfillment leads for each region provides assurance on the stability and efficiency of warehouse operations to mitigate any unwanted errors or delays.Shipping OptimizationOur custom inbuilt shipping engine allows access to all major national & hyperlocal couriers at discounted rates to offer same/next day deliveries at increased efficiency and reduced prices.Customer Success Led ModelOur team of experts offer their experienced capabilities in supply chain planning & operations execution far beyond what SMBs can afford.WareIQ is one of India’s leading and fastest-growing full-stack eCommerce fulfillment companies that offer a variety of services from same-day and next-day delivery, shipping badges and RTO Shield, to state of the art technological solutions such as our custom WMS and our intuitive, well-designed app store. We can take care of your brand’s entire fulfillment requirements and ensure that you and your customers get the best order fulfillment in the country and have a hassle-free experience and raise satisfaction levels to new heights.Over 300 of the fastest-growing eCommerce brands such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, already trust WareIQ with the fulfillment process of their companies, so they can focus entirely on core aspects of their businesses such as sales, marketing and R&D. You can also reap all these amazing benefits while stepping up your eCommerce game. We are tailored to every kind of business and offer the most competitive prices in the industry. Sign Up Now with WareIQ to take advantage of our superior fulfillment tech platform & accelerate the growth of your online business.Fulfill Amazon Orders & Amazon Marketplace Integration: FAQs

May 17, 2022

How to Sell on Amazon? A Step-to-Step Guide for Beginners in 2025

How to Sell on Amazon? A Step-to-Step Guide for Beginners in 2025

Amazon is the largest eCommerce in the world and has changed the retail landscape forever. Because of its large volume of resources and access to highly advanced technology, Amazon often initiates trends that need to be followed by other eCommerce platforms in order to stay relevant. This is why it is the goal of many online retailers, regardless of size and scale, to sell on Amazon. There are many benefits associated with it and also a few things to keep in mind. Let's take a closer look in more detail.Why Should You Choose to Sell on Amazon in 2025?Experience Higher Levels of Growth and ExposureEven though the advent of eCommerce marketplaces has given rise to multiple alternatives, choosing to sell on Amazon consistently enables brands to expand at faster rates than if they opted to join another eCommerce selling platform or sell on their own means. It also supplies retailers with increased levels of exposure to their target audience as well as potential customers in isolated or far-off locations.Many eCommerce analysts suggest that opting to sell on Amazon not only provides multiple benefits but that it is also vital for the long term survival of the company. Amazon is a company that continues to grow at a rapid pace due to an increase in the number of people who have access to the internet and who are getting accustomed to shopping online.Relatively Simple Process to Start to Sell on AmazonGetting started with your journey to sell on Amazon is a relatively easy process for most retailers who are able to meet the necessary requirements and regulations. Specific product categories are susceptible to more scrutiny than others but this is generally the exception, not the rule. It is also in Amazon’s interest to make the process as intuitive as possible to attract as many sellers as they can. The process in order to sell on Amazon is also far easier than setting up your own website, warehousing facilities and retail fulfillment processes. All you need to do is:Create listings for all your offeringsTransport your inventory to an Amazon warehouseMonitor the orders that come inAfter you finish these aspects of the setup process, Amazon will take care of the rest. However, you will need to put in an effort to make your product stand out from the crowd and this can be done through attractive listings and pictures, branded shipping or discounted prices compared to similar products.Tailored to Retailers that Have Exclusive Products and Stable Levels of IncomeChoosing to sell on Amazon empowers budding eCommerce retailers with all the tools they need to sustain and accelerate their growth. By removing the burden of important eCommerce logistics processes such as inventory management and order fulfillment, Amazon enables businesses to focus on the core aspects of their business such as refining and marketing their products.However, it needs to be said that all these services come at a price and would mainly benefit companies that can afford to give Amazon a significant commission, by maintaining profitability at a sustainable rate. It would not benefit companies that cannot afford to reduce their bottom line by giving a share of their profit to Amazon for their services.Benefit from Customers Association with Amazon as a Household NameWhen you make the choice to sell on Amazon, you automatically get access to millions of potential customers who already use and trust its services. Because of the extremely standardized nature of its offerings, customers associate brands who sell on Amazon with reliability, speed and quality and since your business is fulfilling orders through them, customers will extend that same association to your business as well. Amazon has strict quality control measures and will ensure that every order is delivered according to the estimated date and time and in the best possible condition.Customers expect everything to be seamless and that is what your business will provide to them, through Amazon marketplace integration. When you sell on Amazon, you also get the benefits of Amazon’s stellar customer service to make sure your customers are always satisfied, even if they have to deal with a minor issue or query.Gain Access to the Amazon Marketplace’s Advanced Technology and AutomationThe Amazon marketplace is known for its use of advanced technology and automation from drones to state-of-the-art Warehouse Management Systems (WMS). Businesses who partner with them will also get access to these facilities, without needing to do any of the heavy lifting themselves. Oftentimes, small and mid-sized companies would not have access to the resources or budget to conduct research and development on how to advance their services so it is highly beneficial to them to be able to take advantage of technology that would enhance their business processes, mitigate any manual errors and increase customer satisfaction.Read our blog on how to become a Flipkart Gold Seller to get more information on similar services to Amazon.How Can You Start to Sell on Amazon? 7 Easy Steps to FollowRegistering on AmazonThe first thing you need to do if you want to register your business to sell on Amazon is to go to the Amazon Seller Signup Page and click on the “Register Now” option. This is a setup page and would prompt you to provide various details about your business such as the name of your company, office address and contact information such as phone and email.Entering the Name of Your OrganizationDuring the registration process to sell on Amazon, it is beneficial to register your business as one of the following: Limited Liability Partnership (LLP)One Person Company (OPC)Private Limited Company (PLC)This is due to the fact that these types of companies are covered under limited liability protection and involve an easy setup process. This is important because retailers that choose to sell on Amazon or any other eCommerce platform can constantly come under the scrutiny of litigation from customers or other sellers.  Entering Your Business’ Address and Contact InformationYou should provide the official office address of the company in the relevant field and also enter an active phone number that can be used for calls and SMS identification. Entering Your GST  InformationProviding GST information is only required for products that are bound by GST, which are the majority of products that are available on the Amazon marketplace. Products that don’t fall into this category are exempt from needing to provide GST details.Entering Your Bank Account InformationSellers who wish to register to sell on Amazon are required to provide the following information regarding the bank details of the relevant company:Account TypeBank IFSC CodeBank Account NumberBank Account Holder’s NameListing of Available ProductsPost filling out the necessary information, potential sellers will have to participate in a compulsory Amazon Partner Quiz. After this, they can begin to sell on Amazon. Products will then have to be listed with detailed descriptions, pictures and accurate information regarding dimensions, features and pricing which can be done on the Seller Dashboard.Post Setup ProcessIf a customer shows interest in one of your products and ends up making a purchase, you will get an alert with all the details, prompting you to ship the order. You can then either start the delivery process of the ordered product on your own through Fulfillment by Merchant (FBM) or allow Amazon to fulfill the order on your behalf through Fulfillment by Amazon (FBA). They will deduct their commission and transfer the remaining amount to your listed bank account.Alternatively, you can also read how to sell on amazon without FBA.8 Best Strategies to Benefit the Most from Selling on Amazon in 2025Come up with a Detailed Business StrategyIt is important to chalk out a detailed plan for anything that you seek to accomplish and this holds true in order to successfully sell on Amazon. Important aspects to achieving a suitable business strategy would be:Core short term and long term goals for the companyAnalysis of potential customers and target marketsResearch and development of productsMarketing strategiesSales figures in terms of unitsEstimation of logistical, production and operational costsSetting a profit marginIt is also necessary to identify trends in the market, keep a close eye on your competitors' products and strategies and have a clear picture as to what kind of products you want to sell and what kind of customers you’d want to sell them to. Another thing that we recommend is to come up with a detailed list of schedules and relevant activities in order to streamline every process that would ultimately have an impact on your bottom line.Identify Your Place in the MarketOpting to sell on Amazon is no easy task as there are a vast number of retailers and offerings that would often overlap with your business model. It is important to identify where your products fall in terms of price and visibility, in comparison to your rivals. To achieve this, you need to constantly examine the indicators that would have an impact on your space in the market so that you stay ahead of the curve and be the dominating seller in your segment.Provide Exciting and Descriptive Product TitlesProduct titles are one of the first things that a potential customer will interact with, on the journey to getting them to make the purchase. Just like your product itself, you need to enhance and refine your title so that it will stand out amongst a sea of other products. The general consensus to come up with the best listing titles is to follow a simple hierarchy which is as follows:name of the brandname of the productdescriptive elements such as colour, dimensions, use case etc. If you follow this method, your title can rank highly in terms of keyword searches and customers will have a concise way of identifying your products. Provide High-Quality PhotosMaking sure that the photos on your product listing pages are high resolution and are able to encapsulate the positioning of your product is crucial. It can have a drastic effect on the perception of your products by customers. In this day and age where phone cameras are more than capable of taking high-quality photos, it isn’t hard to put in a little effort to make sure that your product stands out in its images. There are a few tricks that you can follow to get good shots:Take pictures of your product in its real-world use-caseHighlight your product from all anglesUse a tripod to avoid shaky or blurry imagesUse a subtle background that doesn’t overshadow the productAvoid using flashMake Sure Your Inventory is SyncedIf you sell on Amazon in addition to multiple other channels, you need to make sure that your inventory is synced across all of them to avoid any confusion regarding orders and available stock levels. You will also be able to seamlessly edit listings and orders that will reflect across all platforms, which will save you time and effort. Focus on Relevant KeywordsKeywords are a very important aspect to sell on Amazon by making sure that your product is not only visible to your target audience but also to as many potential customers as possible. Trending keywords are constantly changing based on customers' tastes and preferences, festive seasons, online trends and other factors so it is important to stay up to date on which keywords are relevant at the right time.Abide by Amazon’s Rules and RegulationsThere are a vast number of rules and regulations that retailers need to follow to sell on Amazon. The company is very strict about enforcing these rules so it is important to follow them at every step of the way. These rules exist to not only get the most out of your business but also so that Amazon can maintain its image of efficiency and quality.Push for Customer FeedbackIf you sell on Amazon, it is important that you get feedback to gauge the reception of your products from customers. If you are able to provide a positive experience to customers, it would benefit your business to highlight those reviews so that it can inspire confidence in other customers. Conversely, if you receive negative reviews, it is important to understand and solve the issues faced by the customers that wrote them, so that you can mitigate those same issues in the future.Read our blog on Seller Fulfilled Prime to understand how it can help boost your Amazon sales.Sell on Amazon: Pros and ConsPros for Retailers who Sell on AmazonAccess to Larger Customer BaseIn most regions of India and the world in general, Amazon has become synonymous with eCommerce retail. This gives retailers who choose to sell on Amazon, a significant advantage over their competitors who opt to sell through their own website or other eCommerce channels. This additionally unlocks access and visibility to the millions of customers who use and browse through Amazon on a daily basis which other eCommerce platforms simply cannot compete with on the sheer scale of active users.Access to Positive Perception by CustomersSince Amazon has a vast amount of rules and regulations for retailers to follow if they want to sell on Amazon, most processes across the board are standardised and customers experience a consistent level of efficiency and quality that they will start to associate with your brand as well since you sell on Amazon. Easy to OperateIn order to sell on Amazon, you do not have to be well-versed with technology because most of the services and functions are designed to be intuitive to people from walks of life, so that they can easily sign up by following the instructions and start to sell their products, without any hassles or complications.Access to Important Features in One PlaceFulfillment by Amazon (FBA) is Amazon’s 3rd party fulfillment service that all retailers who sell on Amazon can take advantage of if they want to. It provides access to Prime shipping, Amazon’s unrivalled network of fulfillment centers and complete D2C order fulfillment for a specified sum that is agreed upon beforehand. It will help businesses ultimately reduce logistics and operational costs.Cons for Retailers who Sell on AmazonSellers Need to Abide by Amazon’s RulesIf retailers choose to sell on Amazon, they need to follow all the rules and regulations otherwise they can be penalised. Rules can also be changed at the drop of a hat without any say from the retailers. It is also not uncommon for sellers to be booted from the platform for minor breaches in the rules.Sellers Have to Out-Compete AmazonWhen retailers sell on Amazon, they not only have to compete with a vast array of other sellers but also with Amazon themselves. Amazon sells its own branded products so preference would be given to those over any other, in the form of promotions, ads and appearing at the top of search results.Sellers are at Constant Risk of Being ScammedA big threat to retailers who sell on Amazon is being susceptible to cyber-attacks and scams. Sellers have had to face problems like people buying all their inventory, only to ship it back once the peak season is over, hijacking of orders and losing control of their own listings.Amazon Reduces Storage Space During High DemandRetailers that sell on Amazon and utilize FBA warehouses and fulfillment centers constantly have their available storage space limited, especially during holiday seasons. They can also do this if your products are not in demand and accumulate on a large number of shelves. You May Like: How to Sell on Snapdeal?Conclusion: Is it Viable for Your Business to Sell on AmazonWhile opting to sell on Amazon is something many retailers think is a no-brainer, it does depend on the nature of your products, the goals of the business, and the requirements for eCommerce fulfillment services. Selling on Amazon can give your business the boost and exposure that it needs to attain a steady level of growth. However, retailers would need to weigh the pros against the cons. If you do decide to sell on Amazon, and you want to preserve a little bit of your freedom, you can always opt for a 3PL fulfillment company like WareIQ, to take care of all your requirements. That way, you can focus on the heavy-hitting and leave the rest to us.WareIQ is one of India’s leading and fastest-growing full-stack eCommerce fulfillment companies that offer a variety of services from same-day and next-day delivery, shipping badges and RTO Shield, to state of the art technological solutions such as our custom Warehouse Management System (WMS) and our intuitive, well-designed app store. We can take care of your brand’s entire fulfillment requirements and ensure that you and your customers get the best order fulfillment in the country and have a hassle-free experience and raise satisfaction levels to new heights.Over 300 of the fastest-growing eCommerce brands such as The Man Company, Future Group, Kama Ayurveda and Wingreens Farms, already trust WareIQ with the fulfillment process of their companies, so they can focus entirely on core aspects of their businesses such as sales, marketing and R&D. You can also reap all these amazing benefits while stepping up your eCommerce game. We are tailored to every kind of business and offer the most competitive prices in the industry. Sign Up Now with WareIQ to take advantage of our superior fulfillment tech platform & accelerate the growth of your online business.Sell on Amazon FAQs (Frequently Asked Questions)

May 17, 2022

How Lil Goodness Online Order Volumes Grew by 260% in a Span of 4 Months using WareIQ’s Fulfilment Platform

How Lil Goodness Online Order Volumes Grew by 260% in a Span of 4 Months using WareIQ’s Fulfilment Platform

With WareIQ's help, Lil'Goodness has been able to rapidly grow its online order volumes and manage highly demanding sales seasons with ease and efficiency

May 16, 2022

14 Best Ways to Reduce RTO Charges in eCommerce in 2025

14 Best Ways to Reduce RTO Charges in eCommerce in 2025

Businesses these days are involved in cut-throat competition, mainly on online selling platforms. They try to offer all the services they can to create a better online purchasing experience for their customers. One of them is the return option for buyers. One of the painful realities that online retailers must accept is that there will be customers that seek to return their orders. In order to reduce RTO frequencies, sellers employ a variety of tactics.If a retailer wants to be profitable in the eCommerce space, they need to reduce RTO costs. If not, their profit margins will fall or it may also start creating difficult scenarios. It is widely known that it’s impossible to reduce RTO requests to zero but taking care of a few things can optimize and reduce RTO charges to a certain extent. To achieve significant RTO reduction, you need to first understand it in detail.What is RTO or Return to Origin?The term return-to-origin or RTO is often used in the eCommerce industry. The initiation of the return of a product and its return to the seller's warehouse is referred to as RTO. A package may be returned to the vendor for various reasons. An eCommerce business will incur more costs as a result of this. Setting strategies to reduce RTO costs is vital for the business to maintain its profit margins and not incur extra costs.[contactus_lilgoodness]What is RTO Related Costs?When an online seller or selling channel provides the facility of free shipping, they add the shipping charges to the final selling price of the product. In certain cases where the sale is done but the product is in the process of being returned, all costs associated with the returns process are known as RTO-related costs. For a seller, RTO reduction equals higher profitability. Let us understand the different RTO related costs and how to achieve RTO reduction.Charges for the Shipment to be Delivered and ReturnedProduct delivery is chargeable for sellers, which they account for in the final selling price. If an RTO is initiated, it costs the seller twice the amount which they will not make back during the sale. Therefore, sellers need to find ways to reduce RTO costs.Costs for RepackagingProducts are packed after picking them from the shelves of a warehouse, godown, or fulfillment center. Products are customized with multi-layer packaging and the invoices are posted on the outer packet which includes the receiver's address, barcodes, order number, etc. In the event of an RTO, this packaging needs to be removed and put back in the inventory. Later when the same item is ordered again by another customer the seller needs to pack it again. Thus, sellers need to find ways to reduce RTO packaging costs.Cost Incurred due to Product DamageThrough online selling, order fulfillment is done by achieved by traveling large distances. These products are picked up and kept with hundreds of other products, which could cause damage if they are not placed in a proper manner. This could result in an initiation of RTO because of product damage before it has even reached the buyer. Companies need to analyse how to reduce RTO caused by product damage.Costs During Handling of Recalled InventoryStoring and managing inventory carrying costs a huge amount of money to a seller. Holding a product for a while can proportionately increase the cost, to the amount of time and addition of new products being added. Sellers seek to reduce RTO storage costs by investing in better inventory management facilities.Costs Incurred due to ExpirationThe passing time makes a lot of products redundant. Christmas trees are mostly sold during the Christmas season. It applies for most festive seasons so if the product is delayed in transit, it may lose its importance and value due to which a seller will have to store it for a long period which may result in it becoming old-fashioned and irrelevant.Practices That Can Help Sellers for RTO ReductionYou can have the best products and most efficient eCommerce fulfillment strategy but you will still get RTO requests. RTO reduction can be achieved but it can never be entirely mitigated. To reduce RTO charges, sellers can keep a few things in mind:Store Inventory Near High Traffic Order Placement Locations: It will not only help a seller in saving shipment charges but also reduce RTO costs as distances to fulfill orders will decrease. Covering less distance is also effective in terms of limiting product damage.Choose Logistics Partners with Competitive Freight Rates: Freight rates in the supply chain matter a lot. Dynamic increases in fuel prices, and not using optimized vehicles can double the freight rate. If your logistics partner offers cost-effective rates, it can reduce RTO charges.Opt for RTO Insurance: This is a recent concept where eCommerce logistics companies and fulfillment companies give sellers an option of RTO insurance. If an RTO occurs, these fulfillment companies will bear the cost instead of the retailer, resulting in an RTO reduction.Choose a Third-party Fulfillment Partner: Third Party fulfillment companies give all-in-one solutions to a seller. It stores your inventory at the best location with high order traffic at the cheapest freight rates, provides individual buyer RTO rates, gives the option of RTO insurance, and provides facilities like RTO shields. All these factors can reduce RTO costs.How to Reduce RTO Charges & Frequency in eCommerce? 14 Proven Ways in 2025To make your business more profitable, you can apply some tricks to reduce RTO charges. These tested tricks will help you reduce RTO in the year 2025:Optimize Product DescriptionsIn online selling, people always complain about the difference between a product’s appearance on the website versus reality. When a customer buys a product, they read the product descriptions to get an exact idea of the product. So try to write a good description of the products with accurate facts and figures about their features and dimensions.Provide Order TrackingMany times, ordered products are not received by a buyer because the buyer is not present at the location. If the seller provides order tracking and order scheduling facilities, the buyer can plan and receive it accordingly.Offer Multiple Modes of PaymentThese days, people are more reliant on UPI or card payments. So if the placed order is COD and the receiving person does not have cash (higher chance in the case of expensive products), the delivery partner should have multiple options of payment available.Convert Returns/Refunds into ExchangesIf the seller turns the returns into exchanges, a buyer who often requests for RTOs will have to receive the parcel or they will not get the paid amount. In the case of COD, they can be noted and deprived of the COD option in the future.Check Customer Availability Before Attempting DeliveryMost of the time, last mile delivery partners deliver products during the day which may be working hours for the buyer and they may not be present at the given location. So for the delivery, the delivery partner can first check the availability of the customer and schedule a time or change location after verifying the details. This will reduce RTO frequencies significantly.Alert for Consumers with High Initiation of RTOsThese days with the help of technology and software, sellers have options to get the numbers of RTO frequency of individual buyers. If a person has a high rate of RTO requests, a seller could ban or restrict them from placing certain orders.Locations are also blacklisted by a few selling platforms as per bad fulfillment experiences.Offer Faster Shipping (Same/Next-Day Shipping)When a buyer orders a product, they expect to get it as soon as possible. They may find some other way to obtain it sooner or buy it from an offline market and when the order finally arrives, an RTO request gets sent. So, a seller should ensure to deliver products on the same day or the next day after the order has been confirmed to reduce RTO requests.Offer a Branded Post-Shipping ExperienceWhen a buyer reads the feedback about certain products and brands, they invariably find some feedback related to a bad delivery experience. Chances are that many customers may not have received their orders due to similar problems. The solution to reducing these kinds of RTO requests is to provide a branded shipping experience to your customers. Pick and pack it nicely, send confirmation messages, Message them the tracking ID/number, allow buyers to choose a favorable time to receive it and finally ask them to write a review.Reduce Cash on Delivery LossesData shows COD orders are mostly converted to RTO requests and from a customer's point of view, they don’t want to pay before they get the product. In this scenario, a seller has multiple options to reduce RTO requests:Verification of Shipping AddressA seller can verify the shipping address before dispatching the product to a logistics company. In case it is incorrect, which can turn into an RTO request, the seller or the logistics company can instruct the buyer to correct the eCommerce shipping address to achieve a successful delivery.The address can be verified with a address proof documents of the buyer.Profiling of Risky OrdersMake a database of risky fulfillment and mark them according to different parameters. Then choose whether you want to give them an option for COD or ask them to pay before the order delivery.Providing Dashboard AnalyticsDiscover indications that contribute to your RTO losses by getting RTO information at a state/city/pincode level. To better understand delinquent behavior and implement the learnings into your business plan, get full-order review reports. This will reduce RTO requests that are fraudulent.Customization of Business ModelLearn algorithms, evolve, and localize the learnings over time to continually increase accuracy based on your company's demands. To make it even more flexible, you can create your own flagging rules. Furthermore, blacklist specific persons based on email addresses, phone numbers, and other factors to reduce RTO costs.Automation of Important ProcessesAs your eCommerce firm expands, automation becomes increasingly important. Set up automated workflows to automatically accept or reject red-flagged orders based on risk factors, saving time and money in the process. To maximize your business and decrease operating expenses and reduce RTO charges, automate order confirmations, payment collections, and other operations.Conversion of Risky COD Orders to Prepaid Orders: If there are higher chances of RTO requests with an individual customer, only give them the option to pay before order placement. Prepaid orders result in RTO reduction and if an RTO request still occurs, allow an exchange instead of a refund.Optimizing Website Experiences in 5 Ways to Reduce RTO in eCommerceYou may have observed that brand appearance matters a lot in its positioning. In online selling, the appearance of a brand depends upon its website. Websites increase brand value and with good brand value, RTO reduction of a product can be achieved: These are some ways to make your website more effective:  Implement a Return PolicyFor eCommerce businesses, return policies should be a set of rules created by a retailer or a selling platform to manage returns and exchange unwanted merchandise that a customer has purchased. It should tell the buyers what items can be returned and for what reasons, according to a timeframe over which returns could be initiated.Enhance Product IlluminationWhen a product fails to meet the standards set out on the business’ website, it is a key contributor to product returns. It's disheartening to receive a shipment after waiting weeks for it, just to open it and discover it's not what you expected or required. Ways to reduce RTO requests in this regard are:Create an attention-grabbing headline summary.Summarize the product definition with a bulleted list of key characteristics and features.Use a paragraph to expand on what makes the product unique. Instead of focusing on describing benefits, focus on giving a solution.To persuade the consumer to buy, end with trust, social truths, urgency, and a call to action.Value Consumer ReviewsIf you have a high number of RTOs then there must be some reason why the majority of customers are not accepting the delivery. You can try to get feedback from the buyer who didn’t accept the delivery or read reviews of buyers who have written about their post-order experience. Read all and then try to provide a solution.Introduce Product VideosIf customers are returning items because they don't meet the product description's expectations, you might want to consider adding a video function to your product detail page. Brand films are now a highly effective technique for increasing conversion rates, and reducing RTO requests and more individuals determine that after watching a product commercial, they can better imagine themselves using the product.Provide a Post-Purchase Confirmation MessageSending a post-purchase message(mail) to your customers can be a very effective way to reduce returns. Reduce objections that lead to refunds and keep customers enthused about what they just ordered by informing consumers about the product between order and shipment.Strategies to Decrease RTOs in eCommerce with WareIQAccording to a recent study by KPMG, return shipments can make up to 20% of total shipments in e-commerce. This rate climbs to 40% in the case of Cash on delivery (COD) orders. Return to Origin (RTO) is a nightmare for sellers as it significantly increases the logistic costs. RTOs rates are expected to increase even further in India with demand surges in tier 2 and 3 cities. Given the situation, reverse logistics has become an integral part of a business plan. Given the convenience of online shopping and the lack of risk, buyers can frequently return items without second thoughts. RTO logistics become extremely important to decrease this trend as well as the costs involved.The sheer amount of revenue lost by companies through return items is about 20% of the sale, and that’s exactly where WareIQ pitches in to help you save the costs. We optimize your return order logistics and improve overall efficiency with the help of insights derived from customer data, customer retention metrics and return policies.How Does WareIQ Help eCommerce Businesses in Reducing RTOs in 5 Ways?Quick TAT (Turn around time): Logistic partners provide an estimated delivery timeline based on which the customers anticipate the delivery. If it fails to reach them as per this expectation, there is a risk of an RTO and the customer opting to order from a competitor. This also affects the customer retention rate. With WareIQ’s Prime-like shipping, data-driven insights, PAN-India network of warehouses, and excellent supply chain management system, orders reach the customers on time as promised. This ensures a higher rate of First attempt delivery, thus reducing the breach of TAT.Higher and Efficient First Attempt Strike Rate (FASR): Delivery success in the first attempt ensures happy customers and helps in their retention. This is an important metric since lower returns imply lower logistics costs on RTO. With WareIQ’s structured incentive plans, delivery partners are encouraged to deliver maximum shipments in the first attempt thereby increasing the FASR.Improved Non-delivery Report (NDR) conversion: Knowing the customer’s intent before performing the last mile delivery can save a lot of time and costs related to RTOs. This can be achieved by validating the attempted shipments by directly communicating with customers via phone calls, SMS, e-mail, WhatsApp, etc. Any change of preference or cancellation or order can be recorded and shared with the shipping partner in real-time to decide whether to “Reattempt the delivery” or “Make RTO”. Performing this manually at scale is almost impossible. With WareIQ’s innovative solutions, most of it can be automated via IVR (Interactive voice response) calling, auto-SMS, auto-mailer, WhatsApp alerts, etc. This also keeps the customer well informed and creates an impact on improving the delivery conversion percentage. In the auto NDR process, the customer will get an IVR call immediately after a failed delivery or when the NDR remark is updated by the delivery personnel. Automation makes the entire process quick and efficient.Wrong or Incomplete Address: Amidst the huge traffic across the supply chain and sometimes because of consumer ignorance, deliveries often end up attached with wrong or incomplete addresses. This is also one of the major reasons for RTO. Address validation becomes important in this context. WareIQ ensures this authenticity with various checks on the same. This increases the chances of successful delivery. In case of an incorrect address, shipping is cancelled prior to dispatch. It allows not only for lower RTO but also avoids wasteful shipping costs.Automated Partner Pin Code Allocations: With WareIQ’s cutting-edge technology, pin code allocation is automated. This altogether eliminates the hassles of manual allocations thus reducing logistics costs & shipping costs & RTO as well as increasing fulfillment serviceability and speed of delivery. Making changes in allocations is complex and takes a good amount of time. The system analyzes historic RTO percentages and cost per shipment (forward + RTO) to optimize the allocation and ensure that the courier with the lowest possible cost is chosen for the given pin codes. Such efficiency and cost reductions are not possible with manual processes. This also saves a lot of time in processing and shipping the orders.RTO ShieldWareIQ's RTO Shield provides eCommerce/D2C firms with a comprehensive checkout strategy to reduce RTO losses and increase revenue.Why WareIQ’s RTO Shield?Request a refund for any RTO order that was predicted to be safe by the company.Smart COD checkout option based on technology to detect problematic customers and save on shipping costsDisable COD for untrustworthy and blacklisted customers automatically.Identification and deletion of duplicate ordersVerification of shipping addresses and intelligent shipping selections based on address completenessBenefits of RTO ShieldIncrease conversions and decrease cart abandonment.The quickest checkout time is under 10 seconds.Identify high RTO risk consumers using data sets from telecom, banks, hyperlocal, and OTT providers.Identify scammers using previous data on their past purchasing behavior and win over them.How Does it Work?Integrate the website/application with WareIQ3 months of historical data will be needed to train the model to predict accurately.Go live in 3 to 5 days[signup]Reduce RTO FAQs

May 16, 2022

Flipkart Gold Seller Guide: Advance Towards Gold Tier Selling in 2025

Flipkart Gold Seller Guide: Advance Towards Gold Tier Selling in 2025

It is simply possible and easy to sell your products online on Flipkart and become a top eCommerce player with minimal cost, whether you're a manufacturer, seller, or supplier. At this moment every seller is aspiring to be a Flipkart Gold Seller. In comparison to the other tiers, Flipkart offers a lot of services in the Gold tier. The question now is how to become a Flipkart Gold seller, and how to maintain your Flipkart Gold tier status if you already are.Flipkart is an online marketplace with millions of products in more than 80 categories which includes clothing and accessories, automotive accessories, food products, books, industrial and scientific supplies, health care and beauty, mobile and accessories, home and kitchen, and many more.Flipkart was started in 2007 by Binny Bansal and Sachin Bansal and is headquartered in Bengaluru, India. The organization currently employs more than 50,000 people and has 150+ million registered users (Targeting 500 million by end of 2022), who visit the website daily. Flipkart's technical support allows them to send millions of shipments per month, and the numbers are still growing.Five Reasons for Establishing Online Selling Business With Flipkart in 2025The primary goal as a business owner is to promote and grow your brand, which enables you to generate revenue and indirectly increases the prospects of becoming a Flipkart Gold Seller. Even if you possess a prominent location for your business in a bustling market, you may be well-known, but your reach will be limited. What can you do about it? By starting to sell at online marketplaces like Flipkart, Amazon, and Myntra.When you sell products online, you can reach a much larger audience and potential customers. Building your brand value and making your products easily visible online to customers in various cities across India, will cause them to shop from you online. This way consumers can also easily order things online and have them delivered to their homes, without going to that place.Selling with Flipkart has its perks and benefits.Pan India ReachYou may have the most famous store in Connaught Place, Delhi, or in Commercial Street, Bangalore, but clients who aren't in that area won't be able to visit you. When you sell online, on the other hand, you can reach customers in your neighborhood and city just as readily as customers from distant parts of the country. For example, when you sell on Flipkart, you instantly gain access to over 150 million registered users. With this one move, you may transform your business by establishing an all-India presence.To be precise, a physical store owner may only be able to contact a limited number of buyers. They can deliver to consumers' houses, however, distance restrictions may apply. Hence reaching out to more customers can be beneficial to sellers who need to broaden their reach to find new customers.Low Set-up CostsUnlike a traditional shop, selling online on Flipkart doesn't require you to spend a lot of money on setting up and running your business. With a few clicks, you can easily start a small business that can grow without having to spend a lot of money.Organized Logistics NetworkWhen you sell things online, you don't have to worry about how you'll get them to the customer or how much they will cost. You may use the logistical network that has been developed and perfected with ease if you choose the correct platform, such as Flipkart. You may enjoy the delivery experience while simultaneously protecting yourself from losses with the Seller Protection Program, which offers hassle-free pick-up and delivery of products through 200+ pick-up hubs and more than 10,000 delivery agents and also reduces logistics costs.Low Marketing CostWhen you launch your business online, how will you stand out among the thousands of other sellers? Don't panic, you can promote your company without breaking the bank. When you sell on Flipkart, for example, you'll be connected with partners who will catalog and photograph your products so that they appeal to customers, as well as give you advice on promotions and advertising and assist you in making smart business decisions.Access to Market TrendsYou may take advantage of market trends when you start your online business on Flipkart. Flipkart collects data on a variety of topics to assist you to understand what products are in great demand, what new market trends are emerging, and what products sell better. You can utilize this data to make appropriate stock changes and, as a result, enhance your revenue.With these five reasons in mind, start selling online and take your business to the next level. You may register in a matter of minutes and utilize the simple seller platform to manage and build your business. Flipkart's online marketplace, which has over 150+ million registered users, has more room for expansion than you could ever dream of. This, together with all of the assistance you require, makes it simple for you to get started and become a Flipkart Gold Seller.Also, read our blog on Seller Fulfilled Prime to get an idea of competitive eCommerce services.[contactus_lilgoodness]How To Get Started With Selling Products on Flipkart?While many people find the lengthy process of becoming an online vendor burdensome, Flipkart has simplified the procedure to the satisfaction of sellers. When you complete the Flipkart seller registration procedure, it will ask you for information and documents about the sort of legal business organization you wish to register with.Identify Legal Business EntityWhen you start to think about an online selling business on Flipkart, even before the seller registration process, you should be well informed about documents about the type of legal business entity you wish to register with. As a fact, before you join Flipkart as a seller, you first must establish a legitimate company entity.There are the three classifications Flipkart has been offering:  Private Limited Company  Limited Liability Partnership Firm  Individual or Sole Proprietorship FirmEach legal entity has its own set of characteristics and regulations. As a consequence, you need to determine which one meets your requirements. It might be detrimental to your business if the structure you choose is inappropriate. It is also significant in terms of the fact that the firm must file income tax returns and annual filings with the company registrar.Let us provide the detailed information and advantages of registering as a legal business entity:Registering as a Private Limited CompanyThere are various benefits of registering as a Private Limited Company on Flipkart. This is by far the most appropriate corporate structure. Sellers benefit from the advantages of a Private Limited Company, such as limited liability, which provides security to its promoters and shareholders, easy transferability, easy access to financing, independent legal entity, perpetual succession, and risk-taking ability to build the business, among others. It is an extremely progressive move to register as a Private Limited Company for selling/trading things on online platforms like Flipkart and Amazon. Documents required are-Identification proofA copy of the Private Limited Company's registration documents or certificate of incorporationMOA Copies (Memorandum of Association)The company's PAN cardAddress VerificationElectricity bill under the company's nameLease or rental arrangementCancelled current account checkGST Identification Number Registering as a Partnership Firm or LLPAs a Partnership Firm, a seller can join Flipkart. Limited liability protection, a separate legal entity, and easy transferability are all advantages of registering as a Limited Liability Partnership (LLP) on Flipkart. Documents required to become a Flipkart seller using a partnership or LLP business type include-Identification ProofCertificate of LLP Incorporation or Partnership RegistrationPartnership Firm or LLP PAN CardDocuments indicating the PartnersAddress proofOfficial document verifying the Partners' addressElectricity bill in the name of Partners/LLP Telephone bill in the name of Partners/LLP Rental or Lease agreement Electricity bill in the name of Partners/LLPRegistering as an Individual or Sole Proprietorship firmFor individuals who do not want to maintain their business storefronts but still want to sell their products, online markets for them are usually very simple. Organizations like Flipkart make it easy for them to list their products and sell them across the country.The majority of people are using these portals to register. The sole proprietorship is immediately granted to the person who registers under a brand name. This business model provides no insurance to the owner and limits the owner's capacity to expand due to unconstrained liability and limited access to loans, company grants, and banks. As a consequence, selling as a sole proprietor is ideal for small business owners with minimal risk. Here is a list of documents and information required to register as a sole proprietorship-Identification proofA signed statement on the company's letterhead stating that the person controls and owns the company's bank accountProprietor's PassportProprietor's PAN cardProprietor's voter ID/driving licenseIdentification card with the seller's photo ( Aadhar Card)Address verificationA proprietor's bank account statement or a cancelled checkThe proprietor's electricity bill License or Lease agreementGST Identification NumberHow to Register as a Seller On FlipkartSteps to follow to register your business on Flipkart·    Go to the Flipkart Seller Homepage to register as a Flipkart seller.·    When you click "Register Now," you'll be sent to the seller registration page.·    After submitting the basic details (Name, Email-Id, GSTIN) you will receive a confirmation email from Flipkart that registration has been successfully done.·    The next screen will ask for your pick-up location. You must first enter your pin code, which will be confirmed, followed by your address.·    Business information will be requested in the next following step.·    After providing the information asked, there will be another verification email request to confirm the email address. To confirm the email address.·    The Flipkart seller account would be finally created. After that, the individual will be brought to the final page for authenticating the account, where filling out the following categories is mandatory. Attach a scanned copy of each supporting document to demonstrate the legitimacy and functioning of the business entity.The store's nameBusiness InformationDetails on the Virtual Signature BankA photograph of a cancelled chequeGSTIN Documents Supporting KYC DocumentsList of Products Interested in Selling Tax Registration DocumentsTo begin selling on Flipkart, one must submit Tax-Related business documents.Listing The Products On FlipkartClick the listing in your Flipkart Seller AccountBy clicking on Listing, select 'Add New Listing’Depending on your preference, you can submit a single product or a batch of productsTo check your inventory, click ‘check Inventory health’ after uploading the details of the productsFlipkart also features a dashboard for sellers to manage their accounts. Update or change all of the product's details using the dashboardSetting up for Shipping and Logistics OperationsFlipkart offers shipping and operational support. It has collaborated with major logistics partners across India to pick up and deliver orders quickly wherever in India. Packaging expertise, materials, and training are provided by the logistics company or courier services. After receiving the order, the seller is responsible for packing the product and keeping it ready for dispatch. The courier service representative collects the order from the vendor and delivers it to the specified location.Flipkart Smart FulfillmentFlipkart assists you in achieving maximum results with less investment. As a result, the Flipkart Fulfillment service allows you to access cutting-edge fulfillment centers at a very low cost. Where products are stored at fulfillment centers. Flipkart fulfillment offers space for fulfillment centers, efficient delivery of products, professional inspection of products for quality, and aesthetic packaging.The benefits of Smart Fulfillment are:·    Orders are processed quickly.·    Strict quality controls·    Packaging materials of high quality·    Assured by Flipkart·    Inventory is distributed across several fulfillment centers.·    People that join up for Flipkart Fulfillment and sell high-quality products earn the Flipkart Assured badge. A seller must meet the following requirements to receive this badge:·    Least customer returns·    Smart retail fulfillment should be listed.·    A product's rating should be higher than the standard.·    Flipkart imposes shipping charges if you receive the Flipkart Assured badge.·    You can determine delivery charges depending on your costs if you lose the Flipkart Assured badge.Managing Payment and ReturnsFlipkart deposits funds directly into your bank account between 7-15 business days of receiving your order. The reward varies according to the performance level. Seven business days for gold sellers, ten business days for silver sellers, and fifteen business days for bronze sellers.Flipkart also charges a minimal fee on successful orders, and you have complete control over the price of your products.A returns policy is a collection of rules and regulations that enables customers to return goods if they are disappointed with them. Flipkart's return policy protects customers from products that are damaged or defective.  It allows buyers to request a return, replacement, or refund based on predetermined criteria.Seller Account Analysis Every Flipkart seller has to analyze data, and Flipkart has made it simple for them to do so by creating the Sellers Hub mobile app. It gives real-time information on listings, payments, D2C order fulfillment, refunds, and other topics.Flipkart also has its dashboard where vendors may view the metrics analytics. Sellers can easily comprehend data from a certain period and also recognize return orders.The Flipkart dashboard assists you with evaluation, management, and analytics. It includes all of the relevant information for a seller, such as listings, payments, inventory, orders, growth, reports, and advertising.Seller Profiling on FlipkartIt became increasingly difficult for Flipkart to treat all merchants fairly as the number of sellers increased exponentially. Flipkart had to decide which sellers' products would get the most visibility, which sellers would want a dedicated account manager, which sellers would require advanced seller support, and so on.In 2016, the Seller Tier System was implemented, with sellers being paid based on their performance. To assign a particular tier to the seller, Flipkart evaluates a seller's performance using these inspection criteria: sales, product ratings, service quality, and regional utilization.Sales- The performance of sellers on Flipkart is one of the most important distinguishing factors. Flipkart evaluates a seller's sales success using one of three metrics: units sold, revenue earned, or growth index.Product Ratings- Flipkart enables consumers to rate products based on their usability and customer service aspects. The scale for these ratings is zero to five, with five being the highest (topmost rating).To earn favorable feedback, sellers must ensure that their items and services satisfy the required customer expectations.Service Quality- Flipkart expects its sellers to just provide prime-quality service. To do so, they've instated strict guidelines that sellers should follow, as well as penalties for any breaches. Flipkart evaluates a seller's service quality using two criteria: Ready to Dispatch (RTD) violations and seller cancellation. When selling on Flipkart, sellers must be careful with inventory updates and Service Level Agreement (SLA) driven order processing.Based on the analysis of the performance of the seller, they are provided with certain benefits. These benefits are considered to be directly proportional to the performance of the sellers and this becomes important from the seller’s point of view.Better the seller performs while selling on Flipkart, the more perks he will receive. Performance is reviewed and rewarded, and it is classified as a Bronze, Silver, and Flipkart Gold Seller (prime-tier). This rating is valid for 90 days, after which it will be upgraded if you meet all of the criteria for the following tier.GMV (Gross Marginal Value), or the number of units sold, seller cancellations, Ready to Dispatch (RTD) breaches, and product ratings are all factors considered for the specific classification.Requirement for Becoming Flipkart Bronze Seller As a seller, you are automatically assigned to the Bronze tierTo progress to the Gold/Silver-tier on Flipkart, sellers must focus on expanding by hitting benchmarks using the tools provided on the dashboardRequirement for Becoming Flipkart Silver Seller A minimum of 30 lakh rupees in revenue or 4,000 units sold is required. Seller cancellations are less than 0.50 percent RTD breaches of less than 1.40 percentRequired ratings must satisfy the vertical benchmarkRequirements for Becoming Flipkart Gold SellerEvery seller at Flipkart aspires to be a Flipkart Gold Seller on the platform. In comparison to the other tiers, Flipkart offers a lot of benefits in the Gold tier. The question now is how to become a Flipkart Gold Seller, and how to maintain your status as a Flipkart Gold Seller, if you already are.To attain Flipkart Gold Seller tier status on the Flipkart marketplace, you must meet certain conditions-Seller Cancellation- If the seller cancellation rate is greater than 0.15%, then the seller will not grow out from the existing tier.Ready to Dispatch (RTD) Breaches- If dispatch breaches are greater than 1%, then the seller again will be kept in the existing tier.Product Ratings- There are various vertical benchmarks for analyzing product ratings. It is possible that if a seller has a bronze seller rating in any product or category, Flipkart will promote them to a higher tier, however, this is entirely dependent on Flipkart, and WareIq suggests you keep your product ratings as high as possible.Sales- Either 50 lac rupees in sales or 6000 units are required. Flipkart requires to fulfill either sales or unit criteria. If any one of them is accomplished within 90 days from the start of the current tier, the seller progresses to the next tier.Growth Index- The growth index compares your performance to that of other sellers over the same period. You may examine the growth index by going to the Growth tab and selecting Performance Overview from the drop-down menu. It will demonstrate your progress in comparison to other sellers. The growth Index should either be equal to or greater than 2.Regional Utilization- The number of units sold and delivered in the same local or zonal region is divided by the number of units sold. It should be in the 30 percent range or higher.These are the most critical pre-requisites which are to be keenly obeyed to become a Flipkart Gold Seller. Dare you miss any of them.Flipkart Gold Seller BenefitsFlipkart always incentivizes its sellers in an attempt to keep its customer base in the face of raising the level of competition amongst sellers. Flipkart Gold Seller tier members receive a 20% discount on forwarding shipping costs, a 7-day payment cycle, high product visibility, a dedicated account manager, exclusive participation in exclusive Flipkart events, and first-page high visibility on the Flipkart website. This Flipkart Gold tier features to assist in the expansion of the Flipkart Online Selling business.4 Smart Ways to Achieve Flipkart Gold Seller Tier StatusAfter registering on Flipkart as a seller and spending the majority of your day there, sellers probably noticed a large increase in their overall sales. However, the sky's the limit in online business. If you're still wondering how to increase your Flipkart sales and maintain the Flipkart Gold Seller status, you are at the right place to learn the tactics.Improve Overall Sales PerformanceParticipate in Spike or Flash SalesA flash sale is one of the most effective ways to achieve Flipkart Gold Seller status. Vendors can advertise the sale in advance, which will work as a stimulant, resulting in greater sales and money. Go to the 'growth' section of the seller dashboard to participate in such events. Flipkart actively encourages vendors to participate in its promotions. With Flipkart's spectacular shopping events, often known as spike sales, you'll have a lot of opportunities to grow your brand. There are interesting offers on practically all categories during spike sales. This draws a large number of purchasers and delivers a lot of traffic to websites and mobile apps. Sellers not only increase sales with little work but can also reach out to more buyers all at once. Participating in spike sales can also help increase buyer satisfaction and helps in getting established as a Flipkart Gold Seller.Flipkart makes sure suppliers receive a large number of buyers during the sale by providing everything from extra operational employees to TV commercials and promotions on web portals.Running Advertising CampaignsRunning ad campaigns on Flipkart is another effective approach for increasing the discoverability of your products on the platform and attaining Flipkart Gold Seller status. You can develop highly-targeted and tailored commercials for customers who are most likely to buy your products using paid advertisements. Simply go to your Flipkart seller dashboard and click on advertisements to use Flipkart ads. Flipkart has a comprehensive rate card with various CPCs for various categories. Sellers can start advertising after selecting the appropriate category and defining targeted demographics.The more clicks your products receive, the more likely they are to be purchased. Product Listing Ads are the simplest approach to obtaining more clicks for your products on flipkart.com.Select a product and develop an advertising campaign for it. Then these products are displayed as 'Featured Products' on relevant Flipkart pages.When a buyer comes across an ad while looking for things to buy, he clicks on it. If it is relevant to the buyer search query, most probably it is purchased.Offer Better CatalogingOn an eCommerce website, a catalog displays a list of products and plays a key function in influencing shoppers. To become a Flipkart Gold seller, it's critical to have a well-designed catalog with a concise explanation of your products if you want to convert traffic to sales. Remember that most people shop online to save time, so your product description should impress them without making them waste time trying to figure out what you're selling. Adding your goods to the appropriate category and sub-category is another key aspect of cataloging that can help you enhance sales. This will make it easier for shoppers to find your products and increase traffic.Make sure you have enough things to pick from for your customers. Even if your product line is small, you can give your clients the option of selecting numerous product versions such as colors and other features. This improves their chances of making a purchase.Improve Overall Product ratingsUse of High-quality ImagesImages are the closest a customer can come to the look and feel of a real product on a digital platform, making images a crucial component of online selling. Your product's images should always be high-resolution, with every detail visible. Because what looks nice sells more, make sure that product images are professionally photographed to pique buyer interest.Customers may never know what they are buying if you display your products with pixelated or blurry images. This increases the likelihood of your products receiving negative feedback. To avoid this, make sure all of your profiles include high-resolution photos of your products. This can help you achieve Flipkart Gold Seller statusUse Informative Descriptions for ProductsCustomers may have unrealistic expectations of your products if you don't use accurate and helpful product descriptions. This may result in people giving your products a low rating. You should include content-rich product descriptions, including characteristics, materials used, weight, size, and more, to avoid any mistakes. Using detailed descriptions will escalate your chances of becoming a Flipkart Gold Seller.Accurate and Easy to Read Size ChartsThe ratings of clothes and footwear brands, in particular, suffer because buyers order the wrong size. Furthermore, there is a small size difference across brands. Customers will order the correct products if they include an easy-to-read sizing chart, which will also help boost product reviews. This can also help in making you a Flipkart Gold Seller.Improve Overall Service QualityReduce Ready to Dispatch BreachesRTD stands for ready to dispatch, and an RTD breach occurs when the product is not dispatched on or before the scheduled dispatch date. On a priority basis, sellers should pack orders and designate them as ready to ship.A procurement Service Legal Agreement (SLA) is decided upon by the marketplace and the sellers. According to their order processing capacities, sellers should apply procurement SLAs to their product listings.In the event of a resource shortage, quickly boost procurement SLAs across all listings to avoid an RTD breach. Finally, avoid packing orders on the last day and designate them as ready to ship.Reduce Seller CancellationWhen a seller lacks sufficient inventory or is unable to obtain an ordered item, the seller is compelled to cancel the order.Regularly update product listings with the correct selling price and quantity.If an ordered item is not in stock, strive to locate it immediately so that the order can be fulfilled on time. Remove the product from the listing immediately if you are unable to source it and avoid submitting too many product listings and then failing to fulfill some of them.Improve Regional UtilizationAnalyze the Most Demanding ZonesAnalyze the region with the most orders using your previous order history. It assists you in distributing products according to high-selling zones. Flipkart has built a robust seller panel that may generate performance reports for you. These reports can be used to determine the most important zones for storing your merchandise. If you're just starting, it can make sense to disperse your goods across the country's big metropolises, such as Mumbai, Delhi, and others.Identify High Selling Products and Improve Regional InventoriesFind products with a high sell-through rate and distribute them to various eCommerce fulfillment centers. Distribute stock of your flagship products if you're starting from scratch and don't have sales data to identify top performers.These ways when adopted help the seller to achieve Flipkart Gold Seller Tier.In case, you want to expand your sales channel and want to start selling on Meesho, read our blog to know about 8 effective strategies to become a top Meesho seller.How WareIQ, as a Tech-Enabled Fulfillment Partner can Upscale Flipkart Sellers from Tier Bronze to Flipkart Gold in 2025?The technology behind WareIQ prioritizes speed and scale to give you complete control over your logistics and provide clients with Amazon-like delivery. WareIQ combines all of your logistics operations into a single platform, allowing you to manage everything from inventory, orders, and warehousing to shipping, delivery, and refunds all in one location. There will be no more squandered resources or data fragmentation from a hundred separate tools but WareIQ provides a one-stop solution for every eCommerce complication and reduces logistics costs.Since customer expectations have risen dramatically as a result of changing consumer preferences and high digital adoption and eCommerce logistics expansion after the COVID-19 pandemic. To stay ahead of the online selling competition, brands now must improve their website interface and services to become a Flipkart Gold Seller. In this article, we'll go through numerous pain points that can affect your online selling and how WareIQ can help you deal with them.SLA Driven Order Processing: Ensure High-Quality ServiceThe SLA-driven and streamlined pick and pack automated systems in WareIQ ensure that every order is packed and marked as "ready to dispatch" on time, every time.We assist our sellers to avoid RTD breaches and seller cancellations by properly processing orders while keeping the SLAs in mind which helps sellers to attain Flipkart Gold Seller status.Efficiently Handle Flash Sales or Promotional EventsWhen participating in flash sales and promotional events, frictionless fulfillment is essential to satisfy the peak needs and complexity of direct-to-consumer and direct-to-business orders, with automated order fulfillment systems, this can be productively fulfilled. Effectively handling exponential increases in order quantities, WareIQ combines its enormous fulfillment infrastructure with well-organized procedures. All you have to do is tell us when and how long the flash sale will last, and we will handle the rest – everything from raising your daily pick capacity to allocating dedicated labor is taken care of.Avoid Overselling with Correct Inventory RelayWith the correct inventory relay, you can avoid overselling. Overselling is one of the leading causes of SLA breaches. When a seller is unable to fulfill a customer's order owing to a shortage of inventory, this occurs. To avoid this, WareIq syncs your inventory across all channels regularly, allowing you to accurately transmit inventory levels to marketplaces and avoid overselling, which can result in seller cancellations.With WareIq you only receive orders for inventory you have which causes zero cancellations from sellers.Terminate Low-Quality Products Reaching Your ClientsTo ensure that your consumers receive premium quality products, WareIQ runs quality checks at the time of receiving inventory and order processing. If you have one-of-a-kind products that require further scrutiny, WareIQ lets you tailor the inspection criteria to meet your requirements which indirectly assists you in increasing your average product ratings by presenting the appropriate products. With precise order processing, we won't let you deliver a low-quality product to your clients. This will assist you in becoming a Flipkart Gold Seller.Improve Your Regional Utilization with WareIQOur storage facilities and fulfillment centers are scattered across India and closer to your demand centers. This is how WareIQ helps you to reach a wider audience in less time. Also, our strategic inventory placement keeps your demand centers filled and allows for effective and timely delivery. WareIQ can assist your transition from a 5-15 day delivery system to an Amazon-like same-day/next-day delivery system. With WareIQ, you can split your inventory based on your most popular zones and improve your regional utilizationWareIQ Helps You Secure a Flipkart Gold Seller SpotWhat if we told you there is a method to become a Flipkart Gold Seller right now, that is too hassle-free?  All you have to do now is contact us and our executive will help get you onboarded then as a vendor you will start enjoying the benefits of being a Flipkart Gold Seller in less than 90 days.[signup]Flipkart Gold Seller FAQS

May 16, 2022

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

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

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

May 09, 2022

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

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

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

May 05, 2022

What is Order Fulfillment? How It Works, Key Processes, Steps, and Strategies for 2025

What is Order Fulfillment? How It Works, Key Processes, Steps, and Strategies for 2025

Every eCommerce company strives to provide clients with the best products and an easy and hassle-free ordering process. When a customer makes a purchase, the crucial moment of a business’s success begins. Creating an order fulfillment system has become increasingly complex as the firm grows and attracts customers worldwide.India's eCommerce industry is growing rapidly. A report by IBEF shows that the sector is expected to reach US$99 billion by 2024, up from US$30 billion in 2019, growing at a rate of 27% annually. Grocery and fashion/apparel are expected to be the main drivers of this growth.If this process is inefficient, customer happiness and revenue may suffer. As a result, the company’s reputation is at stake. Read on to learn more about order fulfillment and the best processes and strategies for 2025.Order Fulfillment in India: Key StatisticsGMV Growth: India's eCommerce is projected to reach US$99 billion in 2020, increasing the need for efficient order fulfillment to handle higher volumes.Online Shoppers: With 360.1 million online shoppers, businesses must optimize fulfillment to manage increased order frequency and delivery speed.Smartphone Shipments: 50 million smartphones shipped in Q1 2020, boosting mobile commerce and highlighting the need for fast, mobile-friendly fulfillment solutions.Sector Growth: 47% growth in electronics and 33% in apparel sales calls for specialized fulfillment to manage diverse product needs and ensure timely deliveries. (Source)What is Order Fulfillment?The order fulfillment process which is also called order processing involves storing, packing, and sending products to the customers. Receiving inbound wholesale shipments, sorting stock, and storing inventory for efficient picking and packaging are all part of order fulfilment. Later, these orders are checked for quality, packed, labeled, and dispatched to the buyer’s address. The products are then picked, tested for quality and accuracy, and shipped. Returns management (also known as reverse logistics) is an extension of the fulfillment process.Key TakeawaysOrder Fulfillment Impact: Efficient fulfillment boosts customer satisfaction and revenue.Process Steps: Involves inventory storage, order processing, packing, shipping, and returns.Fulfillment Types: Choose from self-fulfillment, dropshipping, or 3PL based on your needs.Challenges: Key hurdles include inventory management, demand forecasting, and logistics.Best Practices: Streamline processes for better efficiency, timely deliveries, and customer satisfaction.[contactus_lilgoodness]Order Fulfillment Process: 6 Key Steps InvolvedThe order fulfillment process comprises various steps that can be divided into four distinct phases: Create an order when a sale is done.Create an invoice for the order and send it to the customer. Select, complete the quality check, and pack the order. Deliver the order to the customer’s doorstep.Order fulfillment is carried out at fulfillment centers or warehouses and includes inventory management, supply chain management, order processing, quality control, and customer service to manage the entire value chain. Let us break down each process to understand it better:1. Receiving and Storing InventorySource - pexelsEvery item received at the fulfillment center is counted, inspected, and inventoried before storing to confirm the correct number and ensure good quality. Each product has its own SKU or barcode allocated so that it can be quickly retrieved from internal storage.2. Order ProcessingSource: www.netsuite.comOrder processing refers to the processes involved, once an order has been placed. The order must be based on SKUs, color, number, and size, before packaging and delivery. This will be completed in-house if self-fulfillment is determined.3. PackingThe team selects packing materials to reduce the dimensional weight. This is a crucial stage because the weight impacts the speed of travel and the potential for cheaper shipping costs.4. ShippingOnce the order is packaged and ready, we can choose the best transportation partner and the channel for shipping the orders to the customer. The freight charges are calculated by determining the actual package weight or the package’s dimensional weight. Most carriers have packaging restrictions to maximize revenues from the available shipping space. The shipments may be delayed if carriers refuse to accept the order when the standards are unmet.5. DeliveryDelivery is usually the final step in the eCommerce order fulfillment process, until and unless the customer wants to return or exchange the product. Customers are provided with tracking information to receive real-time updates on the status of their orders.6. Returns ProcessingReturns Processing for Shein, a Major Online Fashion & Lifestyle PlatformReturns processing begins with the original customer’s order, including shipping materials and a return label. Customers can seek a return or refund if their items were damaged during delivery or if they are displeased with their purchase. A quicker mechanism for storing and disposing of returned products based on their condition is also required.What are the Different Types of Order Fulfillment?It is critical to have an order fulfillment strategy and process in place to ensure customer satisfaction. It is vital to adopt the right strategy to increase sales, maintain a great brand image, and nurture a loyal customer base. The following are some of the different fulfillment methods that organizations can consider: Self-fulfillmentWhen a company decides to handle order fulfillment in-house, it must address all process aspects, including storage, packing, and shipping. Businesses can either hire a third-party company to execute the process or use drop shipping, with the rest of the work done in-house.Businesses can control product quality, customer service, simplified and timely transportation, and even material prices with self-fulfillment. However, it is logistically demanding and takes time away from marketing, sales, and product development.DropshippingThis method, also known as consumer direct fulfillment, is a business approach in which online retailers work with manufacturers or suppliers to deliver products to customers directly. In this arrangement, an eCommerce retail fulfillment does not purchase or store an inventory of the products for sale. They sell it on their websites and ship it directly from their supplier or production network to the buyer.While the seller is in charge of product marketing and customer support, the manufacturer or wholesale supplier is responsible for inventory management, eCommerce warehousing, and logistics. Dropshipping order fulfillment allows merchants and distributors to expand their product lines without having to raise their inventory holdings.3PL Fulfillment3PL fulfillment firms manage inventory, process orders, and ship items on behalf of other companies. They can help business owners store, package, and transport their products to customers. Businesses can focus on product manufacturing, quality assurance, and customer satisfaction by outsourcing fulfillment services to a 3PL fulfillment company. These could be inventory management, monitoring SKU sales performance, forecasting customer demand, packaging, and shipping orders.Why is Order Fulfillment Important?When a business is dependent on consumer orders, it is crucial to consider the storage and distribution of products. The eCommerce industry has been growing more than ever before, thanks to rapid digitalization and the COVID-19 pandemic. Order fulfillment is an important aspect of any business’s success. It is critical to ensure that orders are delivered to clients on schedule. It includes receiving inbound wholesale shipments, sorting stock, and shelving inventory for efficient picking and packaging before it reaches the customer’s doorstep. Setbacks in order fulfillment might hamper their business and operational effectiveness.Benefits of Having a Streamlined Order Fulfillment ProcessHaving an order fulfillment process can help you maintain track of physical items inventory and handle the end-to-end process of getting the order to the customer, despite your company size. Businesses can effectively manage the following by using eCommerce fulfillment companies for: Warehousing Picking and packing Shipping Logistics of kitting Cross-docking International shippingThe following are some of the primary advantages of using order fulfillment partner services:One can retain inventory at the service provider’s warehouses and remotely maintain the list. These warehouses can be accessed on-demand or permanently at any preferred location to ensure a flawless experience for the customer.  The distance between the product’s source and the customer’s location is reduced by ensuring speedier order delivery. Small businesses can easily use the service partner's warehouse fulfillment technology to keep stock items in areas with the highest frequency of requests. It is crucial to enhance customer satisfaction by eliciting positive feedback from customers about a speedy and flawless delivery process. Businesses may improve brand loyalty and promote repeat purchases by providing a pleasant client experience.One can use technology to make delivery services as frictionless as possible. Advanced technologies like AI and machine learning are used by order fulfillment services to improve the accuracy of product sequencing, order fulfillment, product tracking, and return order processing. It is also simple to get real-time updates on orders and keep track of stock and orders. One can prioritize product sales and revenue generation by focusing on essential functionalities like marketing, product design, product diversification, and so on by allowing service partners to peek into the order fulfillment process, resulting in increased sales.What are the Challenges in Order Fulfillment?Developing an order fulfillment system becomes more difficult as the company grows and attracts clients worldwide. A clumsy procedure may hamper customer satisfaction and income. As a result, the company’s reputation may suffer.The challenges associated with order fulfillment are:Demand Forecasting Demand planning is crucial for appropriate inventory stock. It is essential to ensure that businesses know what to store and what to hold back on, having the capacity to estimate product demand based on client buying habits. Inventory Management It is essential to maintain an outstanding client experience. Inventory management issues have a detrimental impact on everything from profitability to customer satisfaction, and they frequently result in higher fulfillment costs and dead inventory stock. Businesses often struggle to keep track of their inventory and know exactly what they have, how much they have, and where it is.Supply-chain Management An efficient order fulfillment procedure needs a strong supply chain network. Building solutions to control each risk and reduce concerns caused by unplanned events is difficult. Multichannel It becomes more tricky to regularly ship the correct package on schedule and in good condition to the right destination. Taking orders across many channels can be complicated with all of the stages involved in the order fulfillment process. eCommerce orders may be completed at the expense of in-store goods availability due to a lack of real-time inventory control, or merchandise on the shelf vs. in a shopping cart may be unaccounted for.Logistics and TransportationIncreasing logistics costs continue to influence the ability to fulfill orders, resulting in higher consumer pricing. For SMEs and startups, meeting delivery deadlines, resource management, and ensuring how client orders are prioritized is a challenge.How to Choose the Best Order Fulfillment Strategy for Your Business in 2025?Fulfillment solutions can give considerable benefits in terms of product management, shipping prices, delivery speed, tailored shipping services, and more as a company grows and order volume increases. Consider the following aspects when selecting order fulfillment services: Shipping Time: The faster a consumer receives their item, the more likely they may return for additional transactions. Small businesses require these services for speedy shipping and delivery, particularly now that Amazon Prime offers choices like same-day and next-day delivery. Costs of Fulfillment Services: Although working with a fulfillment partner requires an initial investment, make sure there are no hidden fees for long-term storage because the products are in low demand. Warehouse locations for fulfillment: The closer the warehouses are to the consumer base, the faster the order will be filled. When choosing order fulfillment partners, make sure they have a large network of warehouse locations to reduce delivery distance and time. You can have a quick read on warehouse management system here. You can also get a better understanding of different types of warehouses here.Features of the order fulfillment service: Businesses need order web applications with simple features like clear order visibility, responsive dashboards, and simple inventory management so they can focus on sales and marketing rather than working out inventory levels to organize their order fulfillment. Real-time order visibility: Total process transparency in the event of delays, among other things, are crucial while growing a business and enhancing customer happiness. The fulfillment partner should be able to track and manage orders easily.Packaging Options: Depending on the goods being carried, the selected service provider’s fulfillment center should be able to offer packaging options. Product damage can also be avoided by having a choice of packing options. Aside from packaging, using the right insulation material, such as corrugated paper, bubble wrap, or air pillows, ensures the safety of the products. Returns Management: Orders will be returned at some point. The fulfillment provider should work with the business owner to reduce or eliminate them as much as feasible through better-advanced logistics. To prevent order returns and build the customer’s faith in their products, it is essential to recognize clients who return the orders frequently.Cost, quality, and control should be addressed when evaluating order fulfillment methods. The good news is that altering the fulfillment process to fit business requirements is simple for startups and SMEs. After thorough consideration of the benefits and drawbacks, businesses can select a technique they trust and work to expand their brand and customer base. An excellent third-party logistics provider, such as WareIQ, can assist with the entire fulfillment process and any other logistics needs a firm may have.What are the Best Practices in Order Fulfillment?To assist in making informed decisions for future demand planning, create a statistical forecast by analyzing sales patterns, purchasing history, and consumer interaction. Collaborate with customers, distributors, and logistical partners to determine demand vs. supply expectations. Analyze demand across channels to see which platform may generate the highest revenue. To stay prepared for unforeseen demand surges, improve demand forecasting with the help of predictive ordering software solutions. To avoid order fulfillment concerns such as backorders, delays, and disgruntled customers, maintain clear stock visibility. To market the first-in, first-out (FIFO) products, use the first-in, first-out (FIFO) method. Create a mechanism for adding new products and stuff from the back so that older items for sale can be pushed to the front.Examine products that have not been sold in the previous 12 months to find low-turn stocks. Have sales to get them sold, and do not stock them until there is a higher demand. Inventory should be audited to ensure that it corresponds to the forecasted demand. To ensure no surplus or out-of-stock items, use cloud-based inventory management solutions with real-time analytics. Keep an eye on stock levels and put the most expensive items first. To create a unified, collaborative supply chain, work with suitable suppliers. Identify potential supply chain risks and assess all possibilities and the chance of their occurrence.Also read: What is the Order to Cash Process in Logistics?Conclusion: Why Should You Choose WareIQ for Your Order Fulfillment Requirements in 2025?WareIQ has quickly risen to become the leading provider of full-stack eCommerce fulfillment tech solutions for some of India’s most well-known companies since its launch in 2019. We are a full-stack platform allowing eCommerce businesses to offer customers same-day and next-day delivery, similar to Amazon Prime, but for everyone. WareIQ manages the entire range of complex operations in the eCommerce fulfillment process, such as inbound functions like scanning and quality check, 100% accurate Pick and Pack, and inventory management across all channels, with a centralized platform for core fulfillment and shipping operations and post-shipping apps for a delightful experience and zero to minimal supply chain leakages.Established in 2019, WareIQ, a Y-combinator backed startup, has rapidly grown to be the leading provider of full-stack eCommerce fulfillment services for some of the most reputed brands in India. WareIQ offers a full-stack platform for eCommerce companies to enable same-day delivery and next-day delivery to customers – an Amazon Prime-like experience but accessible to everyone.WareIQ manages the entire range of complex operations in the eCommerce fulfillment process, such as inbound functions like scanning and quality check, 100% accurate Pick and Pack, and inventory management across all channels, with a centralized platform for core fulfillment and shipping operations and post-shipping apps for a delightful experience and zero to minimal supply chain leakages.The next-day and same-day delivery services help businesses set new standards for setting and meeting customer expectations. Due to enhanced negotiations with shipping partners, strategically positioned warehouses, warehousing economies of scale and scope, and data-driven decision-making, WareIQ customers benefit from significant cost reductions and a wider reach.A machine learning-based prediction engine is deployed for effective warehouse network architecture and creative inventory allocation. All fulfillment and shipping procedures are centralized on a single platform. Its post-shipping apps are beneficial for a pleasant experience and fewer supply chain breaches.WareIQ has empowered brands to sell more, sell faster & sell everywhere due to:Access to WareIQ’s strong nationwide network of fulfillment centers, micro-fulfillment centers & urban dark stores near their customersAccess to all major national & hyperlocal last-mile courier services at discounted rates for making same/next-day deliveries possibleEasy integration across multiple online platforms & marketplaces enhancing multi-channel sellingHorizontal marketplaces: Flipkart, Amazon, etc.Vertical marketplaces: Nykaa, Myntra, etc.D2C platforms: Shopify, Magento, WooCommerce, etc.Social commerce platforms: BikayiAccess to a superior centralised tech platform for eCommerce operationsML-based prediction engine for efficient warehouse network design & smart inventory placementCentralised platform for core fulfillment & shipping operationsPost-shipping apps for a delightful experience & zero to minimum supply chain leakages (Branded tracking page with smart marketing placements; Trigger-based updates & smart communication platform)WareIQ has customised offerings for merchants experiencing different order volumes as well as having different delivery speed expectations. WareIQ is probably one of the very few fulfillment tech companies in the world that have same-day delivery service for their customers under their product “WareIQ RUSH”.With world-class WMS functionalities, WareIQ handles the entire range of intricate operations in the eCommerce fulfillment process, ranging from Inbound Operations such as scanning and quality check, through 100% accurate Pick and Pack, to Inventory Management across all channels. WareIQ’s next-day delivery and same-day delivery services are helping eCommerce businesses set new standards with respect to setting customer expectations and fulfilling them with high efficacy. At the same time, WareIQ customers realise significant cost savings and wider reach due to better negotiations with shipping partners, strategically placed warehouses, economies of scale and scope in warehousing, and data-driven decision-making.WareIQ’s WMS, a centralised tech platform helps to better manage undelivered orders by reducing NDR processing time by 12 hours – a multifunctional NDR dashboard helps to track and take immediate action for undelivered orders in real-time, thereby reducing RTO by up to 10%. Automatic replenishment recommendations and easy purchase order creation capabilities on the WareIQ platform further empower eCommerce companies to leverage all possible ways of increasing their ROI.[signup]Order Fulfillment FAQs (Frequently Asked Questions)What is the fulfillment process in commercial order processing?Order Fulfillment refers to the process taken by a corporation between receiving a new order and delivering it to the customer. The procedure entails warehousing, picking and packing the product, shipping it, and notifying the consumer by automated email, through text message or on Whatsapp that the product is on its way.What does it mean when an order is in the process of being fulfilled?The stages between taking new orders and providing the items to customers are known as order fulfillment, supply chain fulfillment or inventory fulfillment. Order processing, warehousing, packing, and shipping are all part of the process. The process usually indicates that the order is in the fulfillment process but has not yet been delivered.What is order fulfillment in eCommerce?Order fulfillment in e-commerce refers to the process of receiving, processing, and delivering a customer’s order in an online retail setting.What is an example of order fulfillment?To quote it simply, the most common example would be a manufacturer using Amazon FBA fulfillment centers to handle its online order fulfillment from top to bottom.How long does WareIQ take for order fulfillment?Fulfillment takes 2 days on average & WareIQ enables same-day delivery with WareIQ RUSH and next day delivery as well. However, if the item is being shipped within 7 metro cities, the order gets delivered to the customers within 24 hours or 1 day.What is the order fulfillment rate?The order fulfillment rate is a measure of efficiency that is computed by dividing the total number of orders by the number of orders already processed. The order fill rate is another name for it.Order Fulfillment Rate = Total number of order processed / Total number of ordeWhat are the steps in the order fulfillment process?There are 6 steps, namely, receiving inventory, storage, order picking, order packing, shipping and delivery.How to start an order fulfillment business?You’ll need a strong business plan outlining all the crucial information, from building and technology costs and location plans to company prospects, sales predictions, and the projected capital you’ll need to get started and stay afloat. Make specific preparations for receiving, storing, processing orders, and shipping techniques after outlining your goals. Implement your plan and make any necessary adjustments to fine-tune and streamline your company in order to maximise earnings and steadily raise client satisfaction.Is order fulfillment part of logistics?Yes, order fulfillment is a part of logistics. Logistics refers to the process of planning, implementing, and controlling the movement of goods from the point of origin to the point of consumption in order to meet the requirements of customers. Order fulfillment is the process of receiving, processing, and delivering customer orders, and it is a key aspect of logistics. This includes activities such as inventory management, warehousing, transportation, and distribution.What is the sales and fulfillment process?The sales and fulfillment process encompasses the steps from receiving a customer order to delivering the product. It includes order receipt, inventory check, picking, packing, shipping, and post-delivery support, ensuring timely and accurate delivery to enhance customer satisfaction.What is the difference between distribution and order fulfillment?Distribution focuses on moving goods across regions or channels—warehousing, transportation, and logistics—while order fulfillment deals with processing individual customer orders from receiving the sale to delivering the product.What does “self‑fulfilled order” mean?A self‑fulfilled order is one where a seller or retailer manages the entire fulfillment process in‑house — from storing inventory, picking and packing, to shipping directly to the customer — rather than outsourcing to a third‑party logistics provider.

May 03, 2022