Sustainability is a Growing Concern for eCommerce Brands

Sep 23, 2022 | Blog

Recent research shows that customers today care more about sustainability than ever before. According to a report by global professional services company Accenture, 72 percent of respondents are choosing to buy more environmentally friendly products than they did five years ago. Further, more than 80 percent of those surveyed expected to purchase even more of these types of products in the next five years. 

While companies may have felt they had to choose between profits and sustainability environmental responsibility in the past, changing attitudes mean that being sustainable is just good financial sense today. Fortunately, ShipHero is here to help with sustainability and other eCommerce trends of 2022.  Unfortunately, sustainability in eCommerce is tough to achieve. However, it is possible to take incremental steps that will eventually bring about significant impact when you adopt certain practices. 

Keep reading to learn about the future of eCommerce and discover how we can help your brand achieve its goals.

Understanding Sustainability in the Business World

Sustainability is the future of eCommerce for 2022 and beyond. A broad term, business sustainability refers to ways of doing things that avoid depleting natural resources. The goal is to promote environmental balance over the long term while still meeting short-term needs and objectives for your company. In the past, eCommerce activities have had a negative impact on the planet, often resulting in additional packaging waste and greater CO2 emissions. The good news is there are ways for eCommerce brands to achieve improved sustainability without compromising when it comes to Client Support or product quality. 

eCommerce & Sustainability Pain Points The Future of eCommerce in 2022 and beyond 

When it comes to the eCommerce landscape of 2022, sustainability is driving innovation, and for good reason. In the wake of the COVID-19 pandemic, shoppers are increasingly viewing the world through a more global lens, and savvy brands are listening. Here are just a few reasons to focus more on sustainability in the coming months.

Return Packaging Costs

When it comes to returns, the benefits of sustainability extend far beyond client satisfaction. By adopting more environmentally friendly returns practices, brands can save money on packaging and shipping costs. Third-party returns management solutions are one of the top eCommerce technology trends because they allow brands to optimize the reverse supply chain while limiting the effect of returns on the environment. Additionally, the use of augmented reality in eCommerce can enable clients to try out different items virtually prior to ordering. For example, offering shoppers access to a virtual fitting room may help reduce returns on clothes and accessories over the long haul.

Unsold Inventory

Of course, it’s impractical to think your company can prevent returns all together. According to the National Retail Federation and Appriss Retail, retailers got back nearly 17 percent of the merchandise sold in 2021. Depending on your business type, creating a resale marketplace may enable you to promote sustainability while finding a new home for some of your gently used merchandise. Known as the circular economy, this system involves giving products a second life by listing them on resale marketplaces or peer-to-peer networks. It’s especially popular with buyers from Gen Z who may have less money to spend purchasing goods new.

Client Perception

Shopper satisfaction is just one reason that sustainability is among the top eCommerce trends of 2022. According to a study by the Sustainability Institute, online shopping results in more than 2 billion tons of waste on an annual basis. While companies are probably aware that Millennials and Gen Zers care about sustainability, they may be surprised to learn that these groups can have a significant impact on the buying decisions of their Gen X parents and Baby Boomer grandparents. According to a report by First Insight, 90 percent of Gen X buyers are willing to spend an extra 10 percent or more for products that are considered sustainable. With social media continuing to drive the sustainability movement, companies that don’t adopt new practices may find themselves getting left behind. 

Long-Term Price Increases

Inflation and supply chain issues are impacting consumers and companies alike, raising prices on everything from electric bills to computers. In the past, brands often held the false belief that being sustainable was more expensive. However, times have changed, and these days adopting sustainable practices like chatbots can actually save you money by reducing labor costs and boosting productivity. 

One of the biggest benefits of chatbots in eCommerce is that they allow brands to provide superior customer service without bloating budgets. Not only can chatbots answer questions at all hours of the day or night, but they also help companies save on the cost of power and office supplies. As a bonus, businesses can save time and money that would otherwise be spent locating, hiring, and training customer service workers without sacrificing the quality of Client Support. 

Sustainability is among the top eCommerce trends of 2022 and will continue to be a concern. By listening more closely to consumer wants and needs and prioritizing eco-friendly practices, businesses can do their part to help the environment without seeing their bottom lines suffer. 

Talk to our software experts today and learn more about how our warehouse software is built for eCommerce brands to stay safe and optimized for the modern supply chain. 

Aaron Rubin, Founder & CEO

ShipHero 

About the author:  Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.

Follow Aaron on Twitter & LinkedIn.

Technology has Exploded DTC Growth: How Your Brand Can Capitalize

Sep 16, 2022 | Blog

In 2021, almost 60 percent of American adults purchased from a DTC brand. Also known as Direct to Consumer, DTC companies fulfill orders and ship them straight to the customer. With an increasing number of shopping channels cropping up online, clients have more choices than ever, and staying innovative is crucial to drawing sales away from the competition. Keep reading to learn more about how technology is making DTC explode and find out how your brand can benefit from the trend. 

Understanding DTC

ShipHero has built a strong foundation by partnering with DTC eCommerce brands. Thanks to the use of cloud computing and enhanced technologies in the warehousing and 3PL space, companies can cut down on wait times while providing more satisfying Client Support. 

A number of companies benefited from this eCommerce growth trend before the pandemic and then saw even greater success during the initial throes of COVID-19 . For example, sneaker supplier Allbirds won acclaim and financial success by selling products over the internet rather than through established outlets. Companies like Warby Parker and Casper are also leading the pack when it comes to online vs in store sales. There are dozens of brands, many ShipHero clients that also saw huge success.

eCommerce Sales Trends to Build Your Brand

New technological advances are enabling DTC to grow in exciting and lucrative ways. Not only can companies create websites with highly targeted content, but social media enables brands to build communities online, interacting directly with current and potential clients. Additionally, companies like ShipHero provide state-of-the-art warehouse management system software to enable end-to-end automation and allow your brand to integrate seamlessly with other eCommerce sites. The end result is faster growth for your business. Here are some of the ways in which eCommerce growth trends are helping businesses succeed.

Data Gathering

Acquiring data is key when it comes to building a successful DTC brand, and technology is making that process easier than ever. After all, growing your business means analyzing data regarding conversions, retention, and product returns and making more informed decisions going forward. Additionally brands can use forecasting services to minimize missed sales due to sold out items and ensure purchase orders don’t slip through the cracks. 

Personalizing the Shopping Experience

Just because you’ve opted to focus on online vs in store sales doesn’t mean you can afford to let client relationships suffer. Regardless of where they choose to purchase goods and services, today’s clients are seeking a more personal connection with brands. Without a brick-and-mortar store, businesses need to get creative, offering digital interactions and perks that take the place of physical encounters. Customers want brands to present them with shopping suggestions specifically tailored to their past purchases. Along with product recommendations, savvy businesses may provide price comparison info and even personalized interfaces for customers to try before they buy. As a bonus, helping clients make the right choices will help minimize the hassle and expense of dealing with returns. 

Selling Across Different Marketplaces

When it comes to retail sales by channel, today’s companies don’t have to settle for one marketplace alone. And while Amazon and Etsy have opened up new opportunities, brands can’t lose sight of the need for effective, efficient marketplace fulfillment. With multiple systems providing disparate data and orders coming in from all over, adopting an integrated fulfillment system is of vital importance. Fortunately, the latest warehouse management systems make it easy to interface with multiple marketplaces. You can manage inventory, pick and pack orders, and handle reverse logistics. The end result is happy customers who keep coming back for more. 

If you’re asking yourself, is eCommerce worth it in 2022, the answer should be a resounding yes. By staying abreast of the latest trends in DTC, you can take advantage of the opportunities to grow your brand while ensuring nothing slips through the cracks.

Talk to our software experts today and learn more about how our warehouse software is built for eCommerce brands to execute their DTC strategies more effectively. 

Aaron Rubin, Founder & CEO

ShipHero 

About the author: Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.

Follow Aaron on Twitter & LinkedIn.

Customizable Automation in the Warehouse

Sep 9, 2022 | Blog

The days of a predictable supply chain are a thing of the past, and maintaining a flexible fulfillment center is now a key strategy. The ability to adapt and overcome shipping challenges is at the core of a successful eCommerce business in today’s environment.

Unexpected problems are bound to arise, so you’ll want to make sure your warehouse is equipped to handle a fluid and ever evolving shipping situation. The adaptations are made much easier with the help of customizable automation in the warehouse. 

What is Customizable Automation? 

Customizable warehouse automation refers to the wide selection of shipping tools that use data capture technology to enhance the efficiency of a fulfillment center. In addition to software technologies that can be tailored to fit a specific user’s workflow, these tools can include physical machines like robots and smart conveyor systems. 

Examples of Customizable Automation

Let’s take a look at some common examples of customizable automation and see how they make life in the warehouse much easier. 

Sortation Systems 

Finding the most efficient layout for a warehouse can be a daunting task. Once everything’s up and running, moving SKUs around can become much more complicated. 

However, the right shipping software can easily identify opportunities for more efficient sorting. By scanning items as they enter a conveyor system, for example, your items can be automatically diverted to the optimal location in the facility. This your staff from having to walk across the entire warehouse to fulfill orders for popular items. 

Collaborative Robotics

Warehouse robotics seem like they’d be expensive, but on a smaller scale, these machines can offer automation that increases the speed and accuracy of your fulfillment center. 

More and more eCommerce warehouses have begun to install robotics that can sort and bag equipment, automate label printing and utilize wearable technology that boosts staff productivity while shrinking the workload.

As one of the more popular options, collaborative robots are built to shrink the shipping timeline inside a warehouse. By taking over the process of identifying an order, moving to its storage location, picking it from the shelf and returning it to the packing station, collaborative robots work alongside your staff to make the work easier. They’re also customizable and can are built to fit your fulfillment center’s specific needs.

With this new warehouse technology taking over the picking, labeling and shipping aspects of fulfillment, your staff will be ready to handle the increased demand for accuracy that comes with Q4.

Inventory Optimization 

Based on the data collected by these machines, you can start optimizing your warehouse in the way that best fits your brand’s needs. Inventory management has been a large concern for online retailers since the onset of the COVID-19 pandemic. One way of overcoming this challenge is leveraging an automated warehouse. 

Conclusion 

The benefits of even small amounts of automation cannot be underestimated. Efficiencies that save time, money and labor can be achieved with just a bit of automation. It’s worth investigating how your facility might benefit from some of the tactics above.

Talk to our software experts today and learn more about how our warehouse software is built to help eCommerce brands automate and optimize their facilities for the modern supply chain. 

Aaron Rubin, Founder & CEO

ShipHero 

About the author:  Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.

Follow Aaron on Twitter & LinkedIn.

How eCommerce Brands Can Leverage Brick-and-Mortar to their Advantage

Sep 2, 2022 | Blog

Many modern consumers see online shopping as the default for browsing and purchasing from their favorite stores. After all, eCommerce sales hit $4.93 trillion (globally) in 2021. By the end of 2022, that’s expected to rise to an impressive $5.54 trillion.

Think pieces about the death of brick-and-mortar stores have inundated the web since 2014 – with article after article claiming the end of the days of physical stores with eCommerce websites as “nice-to-haves” but no longer sustainable as they largely relied on foot traffic for profit. 

Yet, retail stores aren’t a relic. In fact, just 20.3% of retail sales are expected to come from eCommerce in 2022. Or, in the second quarter of 2022 in the United States, 14.5% of all sales. While that’s a marked increase from the just-over-5% of 2013, physical stores aren’t going anywhere. 

Instead, many eCommerce brands are now moving towards opening a brick-and-mortar store to supplement their web shops, stabilize their brand, and diversify how they reach customers. 

Advantages of having a retail store alongside your eCommerce brand

In fact, for many eCommerce brands, a brick-and-mortar store can offer advantages, including competitive ones.

1) More inventory points

Retail stores function as warehousing, allowing you to distribute stock, create a new logistics point, and to offer in-store pickup for local customers. Retail stores also benefit from having diverse stock, which makes it easy to use the point to distribute stock so that it’s as close as possible to your customers when they place an order. 

2) Additional customer service points

Retail stores provide physical customer service points, where customers can talk to a representative in person, drop off returns, and pick up orders they placed online. Any of these strategies reduces your costs by reducing spend on shipping, sorting, and poor customer experiences – while giving your customer a faster and more positive experience. 

Plus, if your customer can walk into a store with an item they ordered online, exchange it for something else, and walk out immediately with a replacement – they will be that much happier. 

Buy Online, Pick Up Instore strategies are also increasingly popular, led by large marketplaces like Walmart, which uses curbside pickup and instore pickup to reduce demand on its logistics. Smaller retailers can do the same – but with fewer logistics points. For Walmart, it’s so much a success that in 2021, nearly a quarter of its earnings were click and collect orders. 

3) Sustainability

Packaging, shipping, and delivery each have their own significant impact on C02 emissions and environment. Last mile delivery is particularly bad, as increases in traffic significantly increase congestion and pollution in cities but international shipping and even packaging are equally detrimental . eCommerce stores churn out massive quantities of packaging, from boxes to dunnage to paper and labels – and all of that is avoidable if you buy from a retail store. 

Having retail stores alongside eCommerce stores gives customers the option to make more sustainable purchases. And, with the option to order online and pick up in store, those same customers can get the best of both worlds – convenience and availability with reduced impact on the environment. 

How to bridge the gap between retail and online operations

While there are significant differences between online and in-person sales, you can run both with the same backend. In fact, as long as you have a front-end strategy in place to optimize the buyer experience for each, the back-end can be streamlined to avoid mistakes, to maximize inventory availability, and to reduce costs. 

Sales

If you’re moving an eCommerce store to brick and mortar, optimizing the in-person sales experience should be a first step. Point of Sale or POS software is normally the first system to invest in. Here, POS relies on scanned barcodes to pull relevant products from inventory management and then allow customers to make a payment using their card. That’s quite a bit different from online shopping carts, which only have to communicate with PIM software and then pass orders on to a payment gateway. 

At the same time, both should be synchronized, with data shared between each in as close to real time as possible. That’s especially important if you use your brick-and-mortar store as an extension of your warehousing. It’s critical that orders processed through the POS are updated in the online inventory in real time, as they are sold. That will prevent overselling or double selling products. 

Here, distributed fulfillment and inventory management systems like Flxpoint can synchronize your systems, keeping your POS and local inventory in sync with inventory in your third-party logistics, other warehouses, and on other channels. Then, whether an online customer orders the last of an item, a customer tries to order an item after it’s just been sold in-store, that’s all updated, and customers can see the product is out of stock before they place an order. 

Inventory

Similarly, it’s critical that you synchronize inventory across all channels, fulfillment points, and points of sale. If you don’t know what you have at every warehousing point at any given time, you have no way to track what you’re selling or why. 

That’s especially important when you add offline sales to the mix, because it’s extremely easy to oversell thinking you have products left, when they’ve already been sold offline. For that reason, POS systems have to synchronize to master databases, so an item scanned out is treated as an item shipped out in your eCommerce system. 

Flxpoint will resolve this issue as well, but can also help to avoid backorders or out of stock issues by diverting online orders to the next nearest warehouse location. If your customer is ordering closest to your retail store but the product is out of stock there, your eCommerce system could offer a delivery option or to ship to the store – but not immediate pickup in store. 

Delivery

One of the key benefits of opening a retail store is enabling customers to buy online and pick up in store. Achieving that means synchronizing your processes so that retail stores can receive orders using the same software you process orders with. 

Here, your brick-and-mortar store can serve as just another node in your inventory fulfillment network. Often, that will mean integrating the POS into your inventory management system, so you can receive orders in the same system where you process other orders in the system. 

Here, tools like ShipHero allow you to import logistics points to automatically route orders to the nearest geographical point. That can include automatically submitting orders to your system, submitting pick and pack orders, and automating the process of preparing shipping labels and order tracking data. 

Returns

Brick and mortar stores also allow you to create hybrid return options – with the intent of delivering a better customer experience. If customers want to show up in-store to return an item and get a replacement or money back, it also reduces costs on your end by reducing shipping, avoiding the issue of asking customers to take on the burden of paying return shipping, and providing a more immediate response. 

However, doing so necessitates carefully synchronizing online orders with in-store inventory and orders. Your POS has to map to your shopping carts and online sales, so you can see orders, what customers paid, when they ordered, etc. 

Here, tools like Loop Returns and Returnly can add return functionality on top of your omnichannel eCommerce solution. However, if you’re already using ShipHero, it also offers a native returns management solution – which may be a better call if you already use it.  

And, of course, once you accept returns in a store, you’ll still have to process those returns, sort them, and move them to a warehouse or other facility – which will mean having logistics and integration in place. 

Make your brick-and-mortar stores your competitive advantage

Eventually, brick-and-mortar stores can offer a lot of advantages for eCommerce brands. Not only do they give your brand trustworthiness, but they can also improve customer service, improve shipping speeds, and reduce costs for you and the consumer. And, if you choose locations based on where online orders take place, they can serve as valuable additions to your return and fulfillment processes. Of course, making everything run smoothly will require setting up tools to synchronize inventory across warehouses, sales channels, and points of sale.

About the Author

This is a guest post from Rachel Go. Rachel is a content marketer and strategist at Flxpoint, an enterprise ecommerce operations platform. Flxpoint enables merchants and brands to unify and automate every aspect of your ecommerce operations, and scale without manual processes or custom development slowing you down.