Apr 8, 2021 | 3PL Warehouse Management, Blog
Order fulfillment is a complex process involving multiple stages such as picking, packing, processing, and shipping customer orders. The smooth operation of these stages is crucial to prevent customer complaints and maintain a high level of customer service. One very cost effective way to manage inventory and streamline the order fulfillment process is by leveraging the expertise of a third-party logistics (3PL) company.
These companies, often referred to as experts in the field, offer access to 3PL software that automates many aspects of the logistics process, enhancing efficiency and reducing errors.
This article will delve into the role of 3PL software and the factors to consider when choosing a top 3PL provider or one, including the consideration of your business requirements, budget, and business goals.
Understanding 3PL Warehouse Management Systems
A 3PL warehouse and inventory management system is a software solution designed to aid in a company’s logistics operations. A 3PL system’s key features include warehouse task and inventory management, detailed processes for picking, packing, and shipping goods, delivery tracking, and shipping route optimization.
The level of automation provided by these systems can significantly improve warehouse operations, ensuring that items are managed efficiently and errors are minimized. These systems are particularly beneficial for large warehouses where manual inventory management can be time-consuming and prone to errors.
The Case for 3PL Software in Small Businesses
3PL software brings numerous benefits to small businesses, including the ability to streamline processes and manage sales, service and inventory levels effectively. Here are some reasons why small businesses should consider implementing 3PL software:
Efficiency and Cost Savings
3PL software can automate tasks such as order tracking, invoice generation, and payment processing, saving significant time and reducing the need for additional employees, thereby cutting operational costs. This efficiency can also improve the customer experience, as orders can be processed and shipped more quickly. In times of high demand, this efficiency can be particularly beneficial.
Minimizing Human Error
Manual data entry and processing can lead to errors, especially when information passes through multiple hands. 3PL software automates these processes, reducing the likelihood of costly mistakes. This automation can save time and also improve the quality of good customer service being provided to customers.
Meeting Diverse Business Needs
Different businesses have different needs, and 3PL software offers the flexibility to customize features according to these business needs. As your business grows, you can scale up the software by adding extra features. This scalability can accommodate the demands of growing retailers and ensure that the software continues to continuously improve to meet their needs.
Informed Decision Making
3PL software comes with reporting tools that provide insights into inventory levels, staff performance, and other crucial business information. These reports enable you to make better decisions based on accurate, real-time data. This data can also be used to inform product development efforts and improve customer relationship management (CRM) strategies.
The Advantages of Using 3PL Software
The success of your own third party logistics partner, provider partner or business largely depends on client satisfaction. In today’s marketplaces, customers expect their orders to arrive promptly and appreciate the ability to track their orders throughout the shipping process. For small businesses, these operations can often be managed in-house, but for larger businesses with high-volume supply chain operations, forming a partnership with a third party logistics partner or a 3PL provider can ensure accuracy and efficiency. Here are some benefits of using 3PL software ecommerce business:
Automation Saves Time
3PL software can automate various tasks and integrate processes, saving time for both the logistics services providers and their clients. For example, integrations with eCommerce platforms like Shopify and Amazon can automatically capture orders and add the information directly into your database.
This automation can also improve the customer experience, as customers can receive updates on their orders in real time.
Cost Reduction
The automation capabilities of 3PL software can reduce costs for logistics and warehousing providers by reducing the need for data entry clerks. These cost savings for a supply chain and logistics company can then translate into lower shipping and warehousing costs for clients. This cost-effectiveness is particularly important for businesses operating on a tight budget.
Error Reduction
Manual handling of different stages of the order fulfillment process can increase the risk of errors. 3PL software automates data storage and processing, reducing the likelihood of costly human errors. This automation can save money and also improve the quality of service provided to customers.
Customization and Scalability
3PL software can be customized and scaled to suit the needs of both supply chain management or individual clients, making it easier to manage changes such as adding inventory, opening a new distribution center, or entering a new market. This scalability is particularly important for businesses experiencing rapid growth.
Business Insight
3PL software reports on the entire supply chain activity of most companies, from production to shipping, providing visibility into any part of the business at any time.
This visibility can help businesses to manage their own supply chain, other supply chains, and SKUs effectively and ensure that they have the capacity to meet customer demands.
Increased Transparency
Entrusting a 3PL partner or logistics partner with your company reputation entire supply chain can be daunting. However, 3PL software and services like ShipHero provides full visibility into logistics performance and current inventory levels from reliable partners, ensuring everything is running smoothly. This transparency can also improve the customer experience, as customers can track their orders in real time.
Enhanced Customer Support
3PL software can track orders and payments from start to finish, allowing customers to track shipments in real-time and easily make returns. The software also enables the company to offer expedited shipping options like same-day and two-day shipping. This level of customer service can enhance the company’ customer experience and improve customer retention.
Every business is unique, and using 3PL software services may be more beneficial for some companies than others. If you’re considering transitioning your business to third-party logistics services, it’s important to know what to look for when shopping for 3PL software solutions.
Key Considerations When Choosing 3PL Software
When working with a third party logistics provider or third party logistics providers because of third party logistics providers third-party logistics companies, clients entrust the entire order fulfillment process to another entity. Making the wrong choice could cost your company in the long run, potentially leading to client loss and business challenges. Here are some factors to consider when looking for the best 3PL software:
Advanced Technology
Your third party logistics provider or chosen 3PL provider partner should have access to the latest technology. Advanced 3PL software can save you money and reduce errors through automation.
This technology should include enterprise resource planning (ERP) and transportation management systems (TMS) to ensure comprehensive management of your third party logistics operations.
Scalability
Many businesses outsource to a 3PL company when they’ve outgrown the capabilities of their in-house logistics department. If you plan to work with growing companies, choose 3PL software that can scale with their future business too.
Also, consider the capacity of the logistics partner and the software to handle increasing numbers of SKUs and items.
Compliance with Packaging and Labeling Standards
Logistics businesses need to comply with certain rules and regulations regarding product packaging and labeling. Good 3PL software can help you meet these requirements and prevent future issues. This compliance is particularly important to protect the rights of consumers and ensure that goods are correctly labeled.
Support for Multiple Client Accounts
In a single company, there may be several users of 3PL software as each division needs real-time access to the stored data. Good 3PL software should offer multiple user accounts so people from different divisions can log into the app simultaneously. This feature can improve collaboration and ensure that all employees have access to the information they need.
Invoicing Features
Most 3PL technology solutions include billing functions to ensure that invoices are paid out properly. This type of software automates put away, receiving, storage, and shipping, ensuring that charges for these services are always accurate and on time. This automation can also improve the customer experience, as customers can receive timely and accurate invoices.
Value for Money
Many clients work with 3PL providers to avoid the cost of logistics software. To provide your clients with the best value and service, choose a top 3PL partner or logistics partner, with software that offers advanced features at an affordable price. This value for money is particularly important for businesses operating on a tight budget.
There are many 3PL software options on the market catering to different needs. If you’re planning to become a 3PL provider, research the type of logistics software your potential clients prefer and match your software to the client’s needs.
The Bottom Line
The key to finding the best 3PL software partner is to take the time to examine your company’s needs and find a software partner and solution to meet them. Don’t forget to include the option for customization and scalability as well.
And remember, the things to consider when choosing a 3PL partner is not just about the software they provide and prioritize customer service, but also about the quality of their technology connecting their customer service, their ability to answer your questions, and their commitment to training their staff to meet your needs.
In the era of online shopping, shoppers have high expectations for fast and accurate delivery. This is where the role of a 3PL platform provider comes into play. A good 3PL platform provider will not only ensure the logistics company ensures efficient transportation of goods but the provider will also provide real-time tracking for shoppers, enhancing their shopping experience.
Apr 7, 2021 | Blog, Fulfillment
As online shopping grows in popularity and ubiquity, retailers and logistics providers have tried to find innovative ways to fulfill consumer expectations. While order fulfillment is still the backbone of retail businesses, today’s customers want fast delivery times. Thus, the main challenge for businesses is to deliver fast while keeping costs low.
The modern customer’s expectations of fast delivery come from online retail speed. By choosing products and finishing purchases with the click of a single button, they get into the mindset that their purchases should be delivered quickly. That’s why ensuring your product arrives at the customer’s door as soon as possible is essential to maintaining customer satisfaction.
Order fulfillment starts when the customer puts the order in and finishes when the item arrives at their door. For most companies, the final leg of the fulfillment process, often called last mile delivery, is the most challenging and expensive.
Keep reading to learn more about last mile delivery and how you can use it to optimize order fulfillment.
Understanding Last Mile Delivery
Last mile delivery is the final part of the order fulfillment process, where a product leaves the warehouse on the way to its final destination: the customer’s home, in most cases. The key challenge of last mile delivery is to ship items as fast as possible while keeping expenses down.
Last Mile Delivery in eCommerce
Last mile delivery can make or break an eCommerce retailer because the customer can find other stores that offer faster or cheaper shipping if you don’t fulfill their expectations. Unfortunately, last mile logistics are expensive – sometimes taking up more than half your logistics costs.
Online retailers and third-party logistics (3PL) companies usually face a dilemma regarding last mile delivery. To offer free or low-cost shipping, they must pay for delivery out of pocket or impose order minimums to cover costs.
Factors That Influence Last Mile Delivery
When you shop online, you may notice a gap between your item being marked “out for delivery” and arriving at your doorstep. This gap and lack of transparency signify an inefficiency in the last mile delivery process.
The last leg of order fulfillment operations usually involves an independent shipping carrier delivering the package from your warehouse to the customer. Several factors influence how long this process takes, such as:
- Shipping company or 3PL provider size
- Number of orders it handles daily
- Carrier pickup frequency
- Distance between fulfillment center and recipient
- Area characteristics (e.g., rural or urban regions)
- Number of deliveries/stops along the route
These hindrances to last mile delivery are usually out of your control and influence shipping times differently. For instance, smaller 3PL companies in rural regions may pick up items every two or three days, while larger logistics providers in urban regions typically schedule multiple pickups daily.
Last mile delivery is becoming necessary as eCommerce gains more ground in the United States. Moreover, the increased popularity of the free shipping movement means more pressure for you to foot the bill or implement minimum purchase amounts to reduce expenses.
Recent Last Mile Delivery and eCommerce Trends
The eCommerce scene is constantly evolving, so online retailers and 3PL companies have to change along with it. Adapting to the latest industry trends lets you capitalize on new opportunities and optimize your fulfillment strategy according to consumer demand.
Here are some eCommerce and order fulfillment trends you should watch out for:
- Crowdsourcing and gig economy
- Instant order fulfillment
- Rise of USPS carrier services
- In-house shipping carriers
- Last mile delivery upselling
- Smart and predictive technology
- Fulfillment networks
- Real-time package tracking and delivery updates
- Autonomous delivery vehicles
- Predictive shipping
Let’s dive into each trend and see how they can influence last mile delivery and other aspects of your business.
1. Crowdsourcing and Gig Economy
Crowdsourcing and gig-based delivery services have been rising these past few years. In addition to transport, companies like Uber and Postmates offer delivery jobs to their independent driving partners. While this system is less predictable than traditional route-managed delivery systems, it’s a flexible alternative that companies can use whenever they need something delivered quickly.
2. Instant Order Fulfillment
Thanks to the ubiquity of the Internet and online retail, people can find the products they need within minutes. As the purchase process becomes faster, customers expect fast delivery, resulting in high demand for same-day, one-day and two-day shipping.
As an online retailer or 3PL provider, you most likely use warehouse management software to assist in order fulfillment. However, even the most advanced software has limitations. You must work extra hard to provide same-day order fulfillment if you work in fast-moving industries like pharmaceuticals or food & beverage.
3. Rise of USPS Carrier Services
While private shipping carriers like UPS and DHL are still the most popular shipping choices for online retailers and 3PL companies, the United States Postal Service is also gaining some ground in this field. The USPS has started delivering eCommerce packages to compensate for declining traditional mail deliveries.
USPS often offers free package pickups, making them a strong choice for retailers and 3PL companies who want to save money.
4. In-House Shipping Carriers
Some retailers and logistics providers save money by using their own company vehicles and offering in-house delivery services. While cheaper, this shipping method is only viable in your company’s immediate area.
5. Last Mile Delivery Upselling
Most retailers already upsell on their product pages, but some are adopting last-minute upselling. With predictive technology, companies can guess what other products customers might want and offer them at checkout.
Some companies take upselling even further and stock their delivery vans with items the customer might want, so they can sell an additional item in person. Because this upselling method hinges on impulse purchases, it’s mostly implemented in food delivery.
6. Smart and Predictive Technology
Modern technology benefits both sides of the eCommerce coin. Customers know where their items are at all times through real-time tracking, and they can even monitor their status through temperature and humidity sensors.
Meanwhile, smart technology predicts the weather for retailers and 3PL providers to ensure that perishable and easily-damaged items aren’t compromised.
7. Fulfillment Networks
One of the best ways to improve delivery times and offer same-day delivery is to expand your fulfillment center network. Amazon, which is capable of two-hour deliveries, is one of the prime examples of great fulfillment center usage.
While most fulfillment center networks aren’t as big as Amazon, many companies rent warehouse space out in major cities to provide faster delivery.
8. Real-Time Package Tracking and Delivery Updates
Modern customers expect to receive orders quickly and track the entire shipping process. Fortunately, tracking technology makes real-time product shipping updates possible, giving your customer base complete visibility from when their item ships to when it arrives at their door.
9. Autonomous Delivery Vehicles
The availability of delivery drivers dictates shipping times. Since drivers are human and labor shortages happen, you can’t expect them to deliver goods 24/7. However, recent developments in self-driving cars and drones might mean that 24/7 delivery will eventually be a thing.
There are many gray areas regarding regulations and rules, but there’s also potential in self-driving delivery vehicles. Amazon has already invested $530 million into self-driving cars. Additionally, Amazon debuted the Amazon Scout delivery drone in 2019, with trials as recent as 2020.
10. Predictive Shipping
Reducing delivery times is the most common way to decrease last-mile shipping costs. But what if there’s almost no delivery time at all?
Major online retailers like Amazon are trying predictive shipping, which anticipates product demand based on consumer shopping habits. These companies often use predictive algorithms to determine high-demand seasons for certain items (e.g., fireworks leading up to the Fourth of July) and pre-ship items to local warehouses in anticipation of these demand spikes. This cuts down on delivery time and cost because the products are already halfway there.
Distributor Storage With Last Mile Delivery
Distributor storage is an integral part of last mile delivery. Most fulfillment companies or last mile delivery providers have a network of fulfillment centers where they store your products before shipping them out to customers.
When picking a 3PL provider, look for one with a good spread of fulfillment centers so you can offer high delivery speeds anywhere in the country.
Top Last Mile Delivery Companies
Last mile delivery companies ship items from fulfillment centers to customers. Different companies offer different benefits, so choose wisely.
Here are four great delivery companies used by many businesses and 3PL providers:
FedEx
FedEx is one of America’s biggest shipping companies, delivering packages all over the planet. It’s one of the best options if you’re looking for fast package deliveries and detailed shipment trackers.
However, FedEx’s rates are often higher compared to its peers.
UPS
UPS is another favorite among online retailers because it offers weekend pickups and deliveries. This company also provides same-day and next-day deliveries, which are indispensable for when your customers need their purchases delivered quickly. Moreover, UPS offers a high-volume discount if you’re shipping many packages simultaneously.
But while UPS offers affordable rates for small packages, you may need to pay extra fees and surcharges for heavier items.
DHL
DHL’s global presence means you can easily ship anywhere in the world. DHL also boasts great customer service with quick issue resolution and free pickup fees.
However, DHL doesn’t have a strong American presence compared to its counterparts, so finding a DHL office stateside may be a little more challenging.
USPS
USPS is one of your best options for small and lightweight packages, thanks to its low rates. With Saturday delivery and free home pickups, USPS is perfect for new online retailers who can’t spend too much on shipping.
Unfortunately, USPS doesn’t have a strong tracking system, so customers might not get full shipping transparency. Its customer service has also gotten a bad rap because of numerous unresolved issues.
How ShipHero Improves Logistics and Fulfillment
ShipHero is one of the best 3PL companies for eCommerce business owners. We outsource order fulfillment for over 5,000 stores to boost their shipping times and foster growth.
Here’s why you should choose ShipHero as your 3PL.
Distributed Fulfillment Centers
Keeping your entire stock in one warehouse may lead to high fulfillment costs and shipping delays. At ShipHero, we use distributed fulfillment centers to store your products at warehouses across the country. When your store receives an order, we forward it to the nearest fulfillment center to ensure faster and cheaper delivery.
Shipping Discounts
ShipHero has negotiated shipping discounts with carriers like UPS, USPS, FedEx, DHL and more. This lets us pass the discounts on to you, so you spend less on shipping.
2-Day Delivery and Overnight Delivery Capabilities
Want to build brand loyalty on par with Amazon and grow your market share? ShipHero lets merchants offer 2-day and overnight delivery to help compete with Amazon FBA sellers and other major retailers.
Conclusion
The solution to last mile delivery challenges is not one-size-fits-all. An online retailer or third-party logistics provider may find that a combination of improved technology and analytics could be the solution to rising last mile delivery costs.
There’s no singular solution for last mile delivery issues and challenges. However, using the right technology and analyzing relevant data helps your company develop the best cost-saving measures.
No matter your line of business, last mile delivery is an integral part of it. Always watch the trends and developments to capitalize on new cost-saving opportunities and measures.
ShipHero is a leader in order fulfillment. Contact us today to learn how we can help your eCommerce store.
Last Mile Delivery for eCommerce FAQs
What is eCommerce order fulfillment?
eCommerce order fulfillment encompasses the entire process of taking your product from the factory floor to the customer’s doorstep. Order fulfillment involves your supplier, warehouse manager, 3PL providers and shipping carrier.
What is the difference between drop shipping vs order fulfillment?
The key difference between drop shipping and order fulfillment is the party handling the order. With drop shipping, orders are delivered directly from the manufacturer or supplier. With order fulfillment, purchases are handled by the merchant or 3PL providers.
What are the bottlenecks in the order fulfillment process?
There are many bottlenecks in the order fulfillment process, like inaccurate orders, long packing times and courier delays. To eliminate these bottlenecks, examine your order fulfillment process and identify the cause before engineering a solution.
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About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With over 5,000 brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.
Let us know how we can help you today by scheduling a call HERE.
Apr 6, 2021 | Blog, The Fulfillment Innovation Wheel
ShipHero recently launched The Fulfillment Innovation Wheel to help 3PLs understand what capabilities and service offerings they need to implement in order to be successful and to help online retailers and brands choose which 3PL is right for them by allowing them to ‘check the boxes’.
The Fulfillment Innovation Wheel listed a set of twelve (12) capabilities that fulfillment providers and logistics companies should implement to continually delight their customers and push themselves towards greater success and innovation.
The twelve capabilities are:
- 2-Day Delivery
- Same Day Shipping
- At the Box Personalization
- Designed for Returns
- Sustainable Fulfillment
- Resilient Shipping
- Distributed Fulfillment
- Data Now
- Automation
- Scale Up and Out
- Integration Stack
- Professional Services
In this article, we will be diving into Capability #8: Data Now.
And be sure to stay tuned for future articles as we deep-dive into each capability.
Capability #8: Data Now
It’s Your Data, and You Need it Now!
Now that that’s out of the way, let’s talk about the data reporting and insights that will make or break your business. Business operations and logistics enjoys the rather large benefit of being highly calculable, and therefore predictable.
Of course with the infrequent exception, building a resilient and optimized supply chain is made possible through accurate data collection, in-depth analysis and reporting, and intelligent predictions to beat the competition.
In this article, we’ll dive into:
- How to create the right data reports,
- How you can build a robust data pipeline, and
- How to use those insights to make intelligent decisions
Analysis & Reporting
Your warehouse operations can be broken down into four disciplines: Inventory Management, Operations, Shipments, and Production Efficiency.
Inventory Management involves keeping your product in stock, replenishing when you’re out, handling stale inventory and more. Reporting asks how you can do this more efficiently and with less waste.
Operations is the day-to-day functioning of the warehouse, such as getting products safely delivered out of the warehouse (i.e., the pick-pack-ship process); it is also managing errors or mis-picks as well as FEFO/FIFO workflows. Reporting allows you to optimize warehouse capacity.
Shipments is the process of delivering packages from the warehouse to your customers door in the cheapest and most time-effective manner. Reporting helps you see where you spend too much or take too much time.
Production Efficiency is the performance of your employees, if they are adhering to policies, how quickly they can perform their task, etc. Reporting helps you increase productivity and identify rockstars.
Key Performance Indicators
The goal of your reporting should explicitly improve certain aspects within each of the four disciplines, commonly referred to as Key Performance Indicators (KPIs). A KPI is a very specific data point that your business will track and set SMART goals against.
For example, Time to Deliver is a very specific data point that your company can track to see the health of their Shipments processes. By measuring the duration between the product leaving the warehouse and arriving at the customer for each order, you will be able to understand how your business compares to the competition and customer expectations.
You should also set SMART goals for each KPI to continually improve your supply chain. SMART goals are:
- Specific, (e.g., Decrease Time to deliver)
- Measurable, (e.g., by .5 days)
- Attainable, (e.g., don’t set the goal at 8 hours)
- Relevant, (e.g., do your customers care about delivery time?)
- Time-Bound (e.g., by Q1 of 2022)
Understand every element of your warehouse at work by setting KPIs that have tangible benefits to your business, whether it’s reduced costs, increased efficiency, or improved customer experience.
Reference below for a non-exhaustive list of reports that ShipHero typically creates for their customers:
Inventory Management
- Inventory Change Log – Every inventory change is logged. Know what changed, why, when and by whom.
- Inventory Value Report – Review the total quantity and value of your inventory, right now, or by each month.
- Cost of Goods Report – Understand the product profitability across any given date period.
- Inventory Variance Report – Understand the actual quantity amounts of your inventory by any given date period.
- Sales by SKU Report – Quickly view product sales in each of your warehouses, with estimated time to sell based on historical sales velocity.
- Stale Inventory Report – Need to know the slow movers? Quickly identify products that might be sitting around and what to do about it.
Warehouse Operations
- Replenishment Report – Quickly identify inventory bins that are running low or are empty and replenish products.
- Serial Number Report – Individual products can be set to require a serial number log when shipped.
- Lots Report – Track inventory lots and expiration. Manage FEFO & FIFO workflows.
- Packer Error Report – Mistakes happen, no one is perfect. Just… Understand why they’re happening.
Shipments
- Shipments Report – Every shipping label, for every order, showing shipping cost and shipping charges.
- Shipped Items Report – Filter in detail what items have been shipping across orders.
Production Efficiency
- Picker Report – Every pick is logged. Review daily performance, including the number of unique items picked.
- Packer Report – Just as important to picking, know how your shipping team is performing.
Data Collection
Once you set your KPIs and important data points, you must now collect the right information to accurately track progress towards your goals. Many companies use software tools to automatically track and analyze KPI progress, but many startups implement manual counting and calculating on an Excel spreadsheet to yield the same results.
To begin building a robust data pipeline, you should ask the question “what do I need to know?” for each KPI.
In the Time to Deliver example, you need to know when the package was shipped out and when the package was delivered. But for the complete picture, you should also track how much the journey cost, who the carrier was, if there was any delay, etc. to be able to identify root causes of problems and create plans to improve the number going forward.
This may sound simple at first, but as your order complexity and business processes start to grow, finding automated solutions for KPI tracking and optimization is necessary. That’s why many companies turn to ShipHero’s WMS that gives powerful reporting capabilities with a simple click of the button.
Intelligent Decisions
Data analysis and reporting not only tells the current health and progress of your organization, but should also be used to make future-forward and long-term choices. This of course comes with a level of risk, depending on the quality of information.
In the example of Time to Deliver, if you determine that your product deliveries are arriving too late or over-budget, and you want to meet the 2-day delivery standard, then you can use reporting to make better inventory distribution decisions, like relocating inventory to closer warehouses.
Make sure you are getting the right reports into the hand of the right decision-makers so they can make the right choices. Nothing should be left to chance.
Wrap It Up
The amount of reports you can generate is virtually endless, so make sure you are starting with your SMART goals in mind. From there, ask yourself “what do I need to know” for each KPI and start collecting those data points. After the reports and KPIs are tracked, ensure your management team has proper visibility to be able to make intelligent business decisions.
Does your business have the right tools in place to offer affordable and sustainable 2-day delivery? If not, then you may find it hard to compete in the future, especially as more and more people elect for eco-friendly businesses with the same suite of capabilities.
If you’re already working with a fulfillment provider or 3PL, make sure that they’re well-equipped for the task. If not, maybe it’s time for a switch.
Our customers love that ShipHero can offer 2-day ground delivery anywhere in the contiguous United States at simple and transparent pricing. We attribute this success on the Fulfillment Innovation Wheel to Capability #8: Data Now.
Stay tuned next as we cover Capability #2: Same Day Shipping! It’s my data, and I need it now! ShipHero.
Learn more about ShipHero’s industry-leading warehouse management software.
Apr 5, 2021 | Blog
An eCommerce Science Series
In the world of SEO, social media and online sales, the very first step to marketing your eCommerce store is simple: content creation.
From there, you can employ all the tips and tricks of boosting conversion, ranking higher with Adwords, and all that technical jazz, but it all starts with making authentic and engaging content … which also just so happens to be the most difficult to do.
In this blog series, we’ll cover all the ways your e-commerce business can start creating engaging content that tells your brand story and speaks to your audience. To start, we’ll break down one of the best ways for B2B and DTC brands to build trust and engage with your customer base: video!
In the top 100 search result listings, video appears 70% of the time. Not to mention, viewers of your product video are 64-85% more likely to purchase after watching, depending on its quality. So if you aren’t already using video, you’re not being seen.
In this article, we’ll dive into why video is the most effective tool to be seen and to be understood. Then, we’ll explain the various types of videos you can make. Finally, we’ll give you video recording guidelines to make the best possible content.
Ready? Lights, camera, action!
The Benefits of eCommerce Video
We know you’re here for the how-to tips, so let’s keep this brief. Simply put, leveraging video allows your business to:
- Tell your brand story
- Convert viewers to customers
- Develop engagement and community
- Cater to a mobile audience
The facts:
- Average visitor session duration more than triples on product pages that feature videos.
- Customers who watch product videos are nearly twice as likely to complete their online purchase.
- For every one customer that reads a product description, four customers would rather watch a product video.
- Over half of shoppers say that watching product videos makes them more confident about their purchases.
As for mobile:
- According to YouTube (owned by Google), over 70% of watch time is from mobile users, with an average mobile viewing session of 40 minutes.
- Online retailers see nearly 50% of their traffic coming from mobile devices.
The science is out there, and video is the premier way to tell your brand story, convert customers both on desktop and mobile, and increase overall engagement. So what types of videos should you be using on your e-commerce store?
The Five Types of Video Content
There are five primary types of videos you can leverage on your e-commerce store:
- Landing Page video
- Product description videos
- Demonstration videos (demos)
- User-generated or UGC
- Mobile Shopping
Depending on your specific business and audience, try implementing some or all of the below to maximize your engagement.
Landing Page Video
When shoppers land on your website for the first time, whether through a search or ad, they immediately scour the page for what makes your brand unique from all the others. Landing Page videos are the perfect opportunity to tell the story of your brand, allowing you to use strong visuals that are worth a thousand words.
Place the Landing Page video in an easy-to-spot location with an appealing thumbnail. Most companies place the video right next to their icon or slogan for easy clicks.
Product Description Video
Product Description videos are an important tool to convert site visitors to customers. With clear product visuals and well-articulated details, product videos are a great way to grab the attention of your visitors and deliver a complete understanding of what you sell and why.
Place the product videos right underneath product photos, or even consider substituting photos for clickable videos. The primary call-to-action for these videos should be to place items in their online shopping cart.
Product Demonstration Video
If a customer is interested in your product but not completely sold, they will seek out more information. Product Demonstration videos show the customer how your product is used, and how the product can interact with the world around it.
If you have a physical product, show how a customer can interact with or use the product. If it’s a software or digital product, consider screen-recording and walking through real-life use cases.
Product Demonstration videos are typically less “polished” than an advertisement and should feel like an authentic experience. E-commerce brands typically put these on YouTube and include links throughout the shopper journey.
User-Generated Video
Beyond videos produced by your company, some customers still seek a more genuine, authentic opinion. This is where User-Generated Content (UGC) allows your loyal users to share their personal experiences with your product and your brand. You may also know this as Influencer marketing, Ambassadorships, and more social media advertising.
51% of shoppers in the US say they trust UGC more than any other content on a company website, because after watching the videos, they have a better understanding of how the products work in a sincere, real setting.
Modern online retailers add UGC to their webpages to create community, and if you’re an established brand, your users will compete and have pride in appearing on your website (e.g., Nike).
Mobile Shopping Video
Mobile Shopping videos are those optimized videos catered specifically for users watching on a smaller screen, with features built in to click and purchase directly from their mobile device.
With a specific size and aspect ratio for product videos and images, along with predetermined social media channels (e.g., Instagram Shopping), you can provide a holistic mobile-shopping experience.
Wrap It Up
Successful eCommerce retailers are able to reach large audiences with creative, shareable content, and then convert that audience into customers with a well thought out shopper journey.
Video is an important tool in both capturing your audience’s attention and giving them the information they need to make a purchase. With the above information, you are now on your way to telling a better brand story and using powerful visuals to explain your products.
Once you’ve made the sale and the customer has clicked the ‘Order’ button, what comes next? How do you get your product to your customer’s door? And if the customer needs to return your product, how do you handle it? That’s where a 3PL like ShipHero comes in, to help you simplify everything that comes after the ‘Pay Now’ button. Learn more at ShipHero.com.
Apr 2, 2021 | Blog, The Packet
Suez Colonic
After tireless digging and tugging, the mega-ton blockage that has been constipating global trade for the past six days has finally been cleared from the Suez Canal. The global trade community has given a collective sigh of relief as vessels are now starting to pass through.
What Caused This?
Besides a lack of fiber (kidding), a seasonal dust storm, known as the khamsin, blowing winds at 40 knots caused the Ever Given to veer too far right and become embedded in the canal wall. While this is the story for now, navigation experts and engineers at the Suez Canal Authority are investigating the crash for technical and human error — this could have massive insurance implications and lawsuits if a responsible party is identified.
How Did They Get it Out?
A full moon emerged (you can’t make this up) and brought in a high tide that buoyed the engineers efforts to re-float the ship. If this attempt failed, the tide would have fallen and they would have been forced to spend weeks unloading thousands of containers to help the Ever Given sit higher in the water. In total, hundreds of thousands of cubic feet of sand were removed.
The Fallout
Shipping operators estimate $12 billion of cargo is stranded along the 120-mile canal or idling outside it. Other shipping operators have already re-routed ships around the Cape of Good Hope, adding weeks and fuel consumption to the voyage. Experts estimate that this will result in another jam once all the vessels reach their destination at the same time, and over 360 vessels are waiting to pass through the canal. As a result, shipping and oil prices have risen, and the already beleaguered logistics industry will likely face additional delays and costs.
This post has been sponsored by: MiraLAX. Blockage in your canal? MiraLAX.
The American Jobs Plan
Where the American Rescue Plan was Joe Biden’s attempt to bring us out of the pandemic, The American Jobs plan aims to help us the U.S. compete with China and other global powers… but mostly China.
The plan calls for massive investment $2T in infrastructure modernization like highways, railways, hospitals, and more. It also calls for heavy R&D funds for a sustainable and secure supply chain, with large quantities of funding directed towards emerging technologies and their role in the supply chain.
The Future
Boston Dynamics has introduced a new robot prototype, named Stretch, designed to pick-and-pack boxes around warehouses and distribution centers.
Stretch can move up to 800 cases per hour, picking up boxes around 50 pounds. It can adapt to any facility layout change, and it’s battery lasts around an entire shift (and can run continuously when plugged in.) The robot is battery-powered with a charge that should last through an entire shift. It can also run continuously when plugged in.
Just Sue It
Nike has filed a trademark infringement lawsuit against a small marketing company, MSCHF Product Studio Inc, that released 666 pairs of Satan-themed sneakers in collaboration with Lil Nas X to promote the rapper’s new song (spoiler alert: in the video he gives a lap dance to the devil) at a price tag of $1,018 each. Nike has publicly announced the shoes were made without their approval or authorization.
This comes at a time where Nike is experiencing large-scale boycotts in China, for statements Nike (and H&M) made about China’s use of forced labor to supply XinJiang cotton.
ShipHero News
The Fulfillment Innovation Wheel: 2-day Delivery
Staying competitive in today’s e-commerce landscape is easy! From the moment when the customer clicks ‘Order’, you just need to be prepared to cover potentially hundreds of miles to deliver your products to their doorstep… in under 48 hours. Tick-tock! Learn more with ShipHero’s Fulfillment Innovation Wheel series: 2-day Delivery.
