Aug 26, 2022 | Blog
Whether we like it or not, Peak Season has returned. While 2022 has proven to be a bit more predictable than 2021, the fact remains that some of the changes we saw as a result of COVID-19 and its impact on the global economy are here to stay.
To prepare you and your teams for Peak Season 2022, we’ve assembled some facts regarding what happened last year, what we can expect to happen this year and how some of the lingering effects of the pandemic continue to impact shipping and consumer sentiment this holiday season.
What We Saw During Q4 2021
The last few months of 2021 were not quite as dire for eCommerce as people predicted. In fact, retail sales grew.
During November and December 2021, retail sales grew by 14.1% for a total of $886.7 billion in sales. And in the last two weeks of 2021, sales increased by 23%. By contrast, retail sales during the last two weeks of 2020 only grew by 11%.
What Does This Tell Us?
Even in the face of economic uncertainty and supply chain delays, people still shopped in Q4. The end of the year surge could account for folks finding alternative items if the ones they truly wanted were unavailable in time for the holidays. The growth earlier in the season could account for people getting more shopping done early to avoid shipping delays (we’ll talk more about that in a second).
While supply chain disruptions most definitely impacted consumers more in 2021 than 2020, it didn’t gravely impact their holiday spending. The growth in sales for the end of 2021 proves that people were still willing and able to spend.
What We Can Expect to See During Q4 2022
This year, the biggest ongoing concern for most consumers is inflation. It is true that the cost of goods has risen and these increased costs have impacted everyone. With higher costs for necessities like gas and food, there is a chance that discretionary spending will decline as people keep their wallets closed.
However, the overriding belief is that the 2022 holiday season will offer growth in retail sales. It is also predicted that shoppers will continue a trend that started 2 years ago and shop early to avoid shipping delays or products being sold out. In fact, 57% of consumers stated they aren’t going to wait until Black Friday to start their shopping.
What Does This Tell Us?
Primarily this means that the retailers that offer deals and discounts as early as October might see an influx of dollars. In 2021, Black Friday pricing started early and many shoppers capitalized on the savings. We can expect more of the same this year.
We can also expect that m-commerce (or mobile-first commerce) will continue to grow at a rate of about 15%, and with it, Buy Online, Pickup in Store (BOPIS) and Buy Online, Pickup at Curbside (BOPAC). Services like BOPIS rose sharply during the pandemic and the impacts will be long-lasting. Seventy percent of consumers surveyed said that BOPIS has improved their overall retail experience.
Shipping Delays & Strategies
Shipping is still an issue and it’s not changing. Many industry experts believe that a lot of the shipping challenges that were part of the pandemic are here to stay. Brands have been trying to find strategies to overcome shipping delays and rising costs.
Despite the hope that shipping delays between China and the United States would lessen as we distance ourselves from 2020, in fact, those delays have quadrupled since March of this year. These delays will continue to challenge retailers to keep warehouse and store shelves full.
And while the world is aware of the challenges faced by businesses and carriers to get packages delivered quickly, 70% of respondents in a recent survey published by UPS, stated that free shipping at checkout is the most important factor when making an online purchase. And 54% said that an estimated or guaranteed delivery date is the most important.
What Does This Tell Us?
Primarily this tells us that people’s willingness to forgive delays or rising costs due to the pandemic has waned. Also, when faced with rising costs in other sectors, consumers will look for somewhere to find a deal. Free shipping is still considered one of the best “deals” in the marketplace, regardless of its toll on retailer bottom lines and transportation carrier bandwidths.
Load Balancing On the Rise
Load balancing your warehouse has proven to save up to 25% on shipping costs. That savings alone is worth the effort; however there’s also evidence that load balancing can reduce your total costs by up to 13%.
This tactic has been growing over the past few years as more strategic inventory placement has proven to result in cost savings. Getting the right products closer to the customers that will order them is just one way to cut down on shipping costs, and also a way to improve customer satisfaction with quicker delivery times.
Load balancing is not without its challenges though. It does take coordination and a warehouse management software system that can support moving your products across different warehouse locations.
Rebound with Better Returns Management
Returns are again taking center stage as online purchases were returned last year at a rate of 17.8% which was an increase over the rate at the end of 2020. Research has also shown that return rates for online purchases in general are twice as high as returns of goods purchased in-store.
Additionally, more than 80% of shoppers have stated that a bad returns experience has resulted in them abandoning the brand for good.
What This Tells Us?
Buttoning up your returns process and making it easy on the customer and your warehouse team is key to rebounding from revenue lost to returns during this time of year. Research has shown that 30% of all returns can also be converted into a new purchase, so there is a chance to recoup some of those dollars.
Working with partners that specifically manage returns (Loop Returns and Returnly both have direct integrations with ShipHero) can make this aspect of the holiday a little less stressful. Tracking items, knowing when to expect returns and having the proper capacity to process them when they arrive in the warehouse are all ways to manage returns right.
It’s also possible to find Warehouse Management Software (WMS) that has native returns management, like ShipHero. However you choose to manage returns it should be two things: easy for the customer; and easy for your team.
Peak Season is Here
The time has come for Peak Season 2022. At ShipHero, we’re excited to see what will happen in the wide world of eCommerce this year. eCommerce as an industry has continued to grow and often outpace most people’s expectations. We’re expecting the same this year as well.
No matter how you get through Peak, don’t forget that there are partners that can help. ShipHero’s Warehouse Management Software sets up your warehouse with the end-to-end solution you need to keep everything running smoothly and packages shipping on time every time.
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.
Aug 19, 2022 | Blog
As labor shortages and warehouse delays continue to cause headaches across the supply chain, more fulfillment centers are seeking out ways to streamline the shipping process.
One innovative solution has been an investment in warehouse robotics. While this technology can work to reduce the risk of human error, they’re also expensive. Most fulfillment centers wont have the luxury of adopting large, high-end robots to handle their picking and packing.
The thing that makes warehouse robotics so valuable is their capacity for automation. Workers can easily customize these machines to fit their specifications and have confidence they’re tasks will be executed without the need for more input. Luckily, there are cheaper automation tools available that make shipping easier, without the overhead that comes with robots.
Let’s take a look at warehouse automation beyond robotics, and see what affordable options there are to modernizing a fulfillment center.
What is Warehouse Automation
When people think about automation in the warehouse, they might think of a fleet of robots and self-driving forklifts picking items and carrying them across the fulfillment center. However, with today’s technology, warehouse automation can be achieved on a much smaller, and more affordable scale.
Warehouse automation is actually defined as automating the movement and processing of products when they arrive, are stored, or are shipped out of the facility. Automation also works to take some of the strain off your existing warehouse staff. By taking over some of the more tedious or laborious tasks, warehouse operators are better equipped to overcome challenges like labor shortages and turnover.
Rather than spending thousands of dollars on expensive new equipment, your brand can reach this level of automation with the right picking software.
Automation and Warehouse Management Software
Automation via warehouse management software, or digital automation, leverages the data collected throughout your warehouse’s fulfillment and helps recommend or push strategies that could optimize the process.
Let’s take a look at some of the advantages that come along with warehouse software that provides automated functionality.
Integrations
One of the key necessities for modern warehouse management systems is the ability to seamlessly integrate with other software platforms. Rather than manually input each third-party platform you work with to fulfill orders, quality software providers allow this to happen automatically.
If FedEx is your primary carrier, for example, your software should be able to integrate your orders and provide detailed shipping information without needing someone to actually enter that information themselves. Not only do automated integrations save time, but they also reduce the risk of human error, like entering mistaken or incorrect information into a platform.
Improved Safety & Security
Protecting the information of both their brand and customers is a top priority for today’s eCommerce brands. With so many bad actors looking to make a quick buck online, software providers have begun to emphasize their platform’s ability to identify and avoid potential scams.
Between firewalls, email filters and other digital security strategies, establishing these safety protocols on your own can get complicated. That’s why so many retailers turn to third-party software providers who can automatically implement data protection infrastructure.
eCommerce data threats can sound scary and difficult to understand, but by working with the right software provider, your brand gets an automated security system, giving you and your customers a greater sense of data integrity.
Data Management Efficiency
One of the most common hurdles for brands that run their own warehouse is organization. The placement and accessibility of your SKUs play a huge role in the overall efficiency of your warehouse. Finding the optimal approach to sortation, however, can take a lot of time and effort.
Luckily, this process can be made much easier with the help of automated software. Whether you’re receiving, moving, picking or packing items in your warehouse, modern software providers can offer strategies for placement to enhance the performance of your staff.
This level of data management is extremely valuable for anyone seeking to fulfill orders faster while ensuring things like accuracy and quality.
In addition to sorting, automated software can also leverage data to identify bottlenecks or slowdowns in the warehouse. When these delay points are identified, warehouse managers can take steps to solve the issue before the problem can impact the customer.
Conclusion
In the modern supply chain, automation isn’t something that’s reserved for only major retailers like WalMart or Amazon. In fact, small to medium sized eCommerce brands can now access the same data and automation tools used by the major players in the industry.
Warehouse management software providers like ShipHero specialize in helping scaling brands reach their full potential with automation tools and top-tier data management strategies.
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.
Aug 10, 2022 | newsroom
Partnership will offer best in class pricing and service to shorten delivery times and increase satisfaction for e-commerce brands and customers
NEW YORK, Aug. 10, 2022 /PRNewswire/ — Veho, the customer-first logistics platform that powers next-day delivery for e-commerce brands, has announced a partnership with ShipHero, the leading shipping and logistics platform for over 5,000 e-commerce brands and 3PLs. Currently active in multiple Texas markets, including Austin, Dallas Fort-Worth, Houston, and San Antonio, Veho and ShipHero will bring best-in-class on-time delivery and customer satisfaction to support e-commerce clients and end customers across Texas.
The partnership between ShipHero and Veho provides merchants and their customers with customer centric fulfillment and delivery solutions. E-commerce merchants that leverage ShipHero’s state of the art 3PL services can now enjoy Veho’s next generation, platform-driven, delivery services for their customers. The two organizations are dedicated to the customer and this partnership puts them at the forefront of the e-commerce experience.
“At Veho, exceptional customer service is core to our brand and our company. With our ShipHero partnership, we have found a brand that is as equally obsessed with the customer experience as we are and committed to building the e-commerce ecosystem of the future,” said Itamar Zur, co-founder and CEO of Veho. “We look forward to giving our Texas-based e-commerce customers a new solution with exceptional service at the forefront.”
As an official carrier partner for ShipHero, Veho’s technology and logistics expertise will help ShipHero stabilize pricing for its clients, minimize dependency on major national carriers, enable domestic zone skipping and get deliveries to the end customer faster and more efficiently. ShipHero offers a fully outsourced fulfillment solution with exceptional delivery times (up to 30% faster than many in the industry), eight owned and operated warehouses in major metro areas, and a like-minded commitment to helping clients find the best ways to ship parcels faster while also saving time and money.
“At ShipHero Fulfillment, our goal is to provide our customers with low-cost e-commerce fulfillment in three days or less,” said ShipHero COO, Maggie M. Barnett, Esq. “Veho helps us achieve this goal within Texas and we are looking forward to expanding our partnership with them to more regions in the future.”
ShipHero Fulfillment also opens up options for clients and customers. “Working with Veho helps us diversify our final mile delivery network,” said ShipHero’s Head of Transportation, Karen Schwartz. “We appreciate that Veho allows us to find alternative options to national carriers, as well.”
Veho facilitates next-day delivery from a brand’s distribution center all the way to customers’ doors via its technology platform and a network of independent, crowdsourced drivers. Veho’s proprietary technology powers a platform that seamlessly matches demand for deliveries with driver-partners, enabling them to collect packages from Veho hubs and deliver them to consumers on dense last-mile routes—including offering convenient doorstep pick-ups at a customer’s request.
With real-time customer support, 99.9% on-time delivery rates, and an average 4.9-star customer rating, the Veho platform provides an outstanding customer experience that ShipHero can leverage for their e-commerce clients and their customers.
About Veho
Veho is a technology company that is revolutionizing logistics to enable fast, transparent, and personalized deliveries that increase customer satisfaction and drive customer lifetime value. For e-commerce brands, Veho’s platform facilitates personalized delivery and returns that protects brands’ premium experience from their warehouse to their customers’ doorstep. By leveraging live customer communication, in-market warehouse locations and a dynamic marketplace to seamlessly match demand for deliveries with last-mile driver-partners, Veho provides e-commerce brands with a complete solution to make delivery a new competitive edge. For more information, please visit https://shipveho.com.
About ShipHero
ShipHero is a US based, leading provider of cloud-based e-commerce fulfillment solutions that gives online retailers and third-party logistics providers the tools to ship more efficiently anywhere in the world. With more than 5,000 customers located around the globe, ShipHero offers online retailers a suite of services ranging from warehouse management software to outsourced fulfillment as a service. Some notable customers include Glossier, Mars, Universal Music Group and Canadian Tire. Additionally, ShipHero is the official fulfillment network partner for Shopify, and is rapidly scaling a network of warehouses throughout the US to meet the growing demands of today’s online retailers.
Aug 3, 2022 | newsroom
But having simply more data isn’t the answer; better and more timely data is required, says Maggie Barnett, chief operating office of ShipHero, an e-commerce fulfillment outsourcer. “It’s becoming increasingly more important to have quality data at your disposal, especially on the warehouse floor,” she said in a report from Shopify entitled Supply Chain Trends That Will Shape the Future of Ecommerce. “With the widespread application of automation, AI, and other technologies, it’s critical to have data that can help those technologies become even more efficient and intelligent.”
Read more at Focus Investment Bankers
Jul 25, 2022 | Blog
When any industry experiences rapid growth, it tends to draw the attention of scammers and con artists looking to make a quick buck. Unfortunately, the recent surge in online shopping has shown that eCommerce is no exception.
At the onset of COVID-19, retailers and buyers alike were turning to digital marketplaces for the first time, creating a large pool of inexperienced internet users exchanging information and payments without knowing how to spot eCommerce fraud warning signs.
According to Statista.com, losses from online fraud climbed to $20 billion in 2021 alone, signaling a strong need for brands to make a stronger effort when protecting their customers from eCommerce scams.
What is eCommerce fraud?
eCommerce fraud is a criminal activity that involves stealing money or information from an online transaction. Also known as payment fraud, these scams typically target online retailers using misrepresentation, falsified orders or stealing customer information.
Whatever form eCommerce fraud takes, it always has a significant and negative impact on the retailer’s bottom line. In addition to directly impacting profit margins, a breach of customer data can permanently damage a brand’s reputation, with customers regarding them as an unsafe option and turning to competitors for their shopping needs.
Examples of eCommerce Fraud
eCommerce fraud takes many forms, and in order to properly protect yourself and your customers, it’s important to have an idea of what scams could be out there.
eCommerce Credit Card Fraud
As an emerging trend in online scams, card cracking is becoming a major threat for online brands and their customers. Card cracking involves stealing a customer’s debit card information under false pretenses, usually over social media.
These scammers typically message social media users with the promise of easy money or direct deposits that they’re owed from a financial institution. Assuming these messages are legitimate, users gladly send over their debit card info expecting to make a quick buck. Instead, their information is either sold to other fraudsters, or used to buy items on the victim’s dime.
Card cracking can be tough to spot, but there are a few warning signs. If a new customer account starts making large volume purchases, or sends those orders to a number of addresses not tied to the card itself, it’s possible there’s a scammer on the other side of the transaction. Stolen card information is also commonly used in conjunction with other online scams, such as account acquisitions.
Account Acquisitions & Takeovers
Once a customer’s information is stolen, it can be used to either create a new account under a falsified name, or infiltrate an existing account to make purchases. This form of eCommerce fraud is known as account takeovers, and are often the result of substandard cyber security practices.
Hackers get access to these accounts by setting up phishing scams, which trick users into logging on to a copycat website and handing over their credentials in the process. Once this layer of security is breached, accounts can be accessed and customer information can be stolen.
As security protocols like two factor authentication become more commonplace, the tactics used to take over customer accounts have become more sophisticated. Rather than attempting a break-in for one account at a time, today’s hackers will use an army of online bots to attempt millions of these attacks each day.
How to Prevent eCommerce Fraud
With so many bad actors looking for ways to make money off of you and your customers, protecting customers from eCommerce fraud requires a little bit more than just a strong password. Let’s take a look at some of the steps you can take within your own site’s infrastructure to make sure hackers are stopped in their tracks.
PCI Compliance
PCI Compliance refers to the Payment Card Industry Data Security Standard, which sets a threshold of security protocols that online merchants should meet to safely process and store customer information. Meeting this set of standards helps ensure transactions can be made without the risk of scammers infiltrating the system.
Setting up protocols for PCI compliance can be complex, but most warehouse management software providers come with these protections included. If you’re new to the world of online data security, working with a reliable software provider might be the best way to protect your customer information.
Internal Security Audits
Even when using software providers to help protect your brand’s data, it’s important to keep online security top of mind. Regular housekeeping strategies like security audits can help identify weak points before hackers get a chance to take advantage.
Taking steps to frequently update software, change passwords and conduct sitewide malware scans can avoid future headaches and help keep your site’s reputation intact. Without these audits, hacked accounts can go undetected, allowing scammers to cause more issues over an extended period of time.
Understand the Warning Signs of Ecommerce Fraud
Even with reliable software partners and periodic security audits, hackers won’t stop trying to make a quick buck from an online store. eCommece fraud can take many forms, but there are a few warning signs that a scam could be underway.
Inconsistencies in data, for example, can sometimes point to fraudulent activity on your page. Accounts with addresses that don’t match their city, or mismatched names and emails can be a strong indicator that an account acquisition has taken place, or a user is misrepresenting themselves for a nefarious reason.
Other red flags might pop up when an account starts behaving unusually, or shipping items to multiple different locations. If an account that tends to buy one or two items at a time suddenly ships an expensive, large volume order, it’s a good idea to verify its legitimacy before the fulfillment process starts.
Conclusion
Although card cracking and account takeovers have become a regular occurrence in online shopping, that doesn’t mean your eCommerce store has to fall victim. By understanding the warning signs and taking preventative measures, you can protect your brand and your customers from eCommerce fraud.
If you’re looking for a warehouse management software provider that prioritizes data security, contact the experts at ShipHero today.
Aaron Rubin, Founder & CEO
ShipHero
About the author: Aaron Rubin 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.
