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With each passing year, more brick-and-mortar retailers are taking their businesses online. In 2017, ecommerce accounted for roughly $2.3 trillion in sales and is projected to exceed $4.5 trillion by 2021. Every year, ecommerce accounts for nearly 10% of retail sales, but that number is expected to grow by as much as 15% each year.Since the internet has become readily available and due to the COVID-19 pandemic, more customers than ever are shopping online rather than in stores. Ecommerce retailers have the opportunity to cash in on this rising trend by providing customers with what they really want – easy access to the products they want, fast shipments, and excellent customer service. To keep your customers coming back time and time again, you need to ensure that your orders are fulfilled quickly, accurately, and efficiently.Optimizing your ecommerce fulfillment strategy is the key to minimizing your costs while maximizing profits and meeting customer expectations. Keep reading to learn more about the challenges facing ecommerce businesses and to receive some tips and tricks for creating a global ecommerce order fulfillment strategy that works for your business.
In the early years of ecommerce, the competition was low, products were flying off shelves, and the potential for profitability was high. Over time, technology has become more affordable, ecommerce platforms have made it easy to start an online business, and the world of ecommerce has become crowded with online retailers of all sizes. Opening and running a successful ecommerce business is no easy task, especially with monsters like Amazon controlling a significant portion of the market.Competition is one of the biggest challenges any ecommerce business has to face. Still, there are other factors to consider, particularly when it comes to planning and executing your order fulfillment strategy. Here are some of the biggest challenges facing ecommerce businesses today:
Understanding and accounting for the challenges listed above is a big step toward ensuring your online business’s success. If you want your business to succeed in the long term, you need to make sure that you have a solid foundation to build from, and that means creating and executing a successful order fulfillment strategy.
Order fulfillment is the backbone of any ecommerce business. Rather than offering a particular service, you’re selling goods and products directly to the customer (aka D2C). The strategy you use to fulfill customer orders affects everything from profit margin to customer satisfaction, so it’s something you need to think about carefully.Before getting into the details about different order fulfillment strategies, let’s quickly review the various stages involved in the order fulfillment process:
As you can see, order fulfillment is a multistage process, and there is room for error every step of the way. Choosing and utilizing a solid order fulfillment strategy determines both the immediate and long-term success of your business. Keep reading to learn more about the different fulfillment options available for ecommerce businesses.
Every company is unique, so the order fulfillment strategy that works best for one company might not be ideal for yours. Before getting into the details about choosing the correct order fulfillment strategy for your business, let’s take a look at some of the options.Here are some of the most popular ecommerce order fulfillment strategies:
Now, let’s take a closer look at each of these strategies.
Also known as in-house fulfillment, direct fulfillment is a strategy in which the business fills orders itself. This strategy is generally the starting point for smaller and at-home companies, though it also works for massive corporations with the funds to run their warehouse operations. Direct fulfillment looks different depending on the size of a business. You could be fulfilling orders from your garage or using a fulfillment center to ship out hundreds of orders a day. Here are some of the pros and cons:
This is an order fulfillment strategy in which you pay for fulfillment as your orders generally come from the vendor or manufacturer itself. When a customer places an order, it goes directly to the dropshipper who picks, packs, and ships the product on your behalf. You are then charged for that order. This strategy works well with ecommerce businesses that prefer not to own any inventory themselves, but it does require a certain degree of marketing expertise. Here are some of the pros and cons:
Also known as 3PLs, third-party logistics involves handing over the details of order fulfillment to a third-party provider. Your company will still be responsible for purchasing or producing your inventory, but you’ll be relying on another company to store, pick, pack, and ship it. When your customer places an order, the order goes to the 3PL who picks the item from its storage location in their warehouse, then packages it and ships it to the customer. Here are some of the pros and cons:
Now that you have a better understanding of the different options for order fulfillment, you’re ready to start thinking about the best option for your business. Though the three most popular strategies described in the previous section work for most companies, you may find that a combination of different methods works best for you. You also need to think about making the transition from one strategy to another as smoothly as possible, so you don’t have to shut down operations altogether.
The first factor to consider when choosing an order fulfillment strategy is inventory. If your business designs and manufactures its products, a direct order fulfillment strategy or 3PL partnership may work best. This is because dropshipping is best for companies that don’t produce or own inventory. Your business’s size and the number of products you sell are the determining factor between choosing a direct order fulfillment or 3PL strategy. For smaller companies with a limited inventory, you may be able to handle order fulfillment in-house until your sales volume and inventory grow to the point that you have the ability (and margins) to hand over operations to a third-party provider.
Another factor to consider when choosing an order fulfillment strategy is scalability. You need to think about the current size and state of your business and your hopes for the future. The supply chain for ecommerce stores is complex, and hiring the right experts can be time-consuming. Companies like Amazon and Nike can handle fulfillment in-house because they’ve spent billions optimizing their supply chain and sales channels. Unless you have millions in capital, it’s going to be challenging building a fulfillment network that offers Amazon Prime levels of transit times and shipping speeds.If you expect your business to grow quickly or if you hope to expand into additional markets, a 3PL provider may be the way to go. Many 3PL providers have multiple warehouses and distribution centers which can give you access to new markets without significantly increasing your costs.
Technology is another vital thing to think about when it comes to order fulfillment. If you plan to handle order fulfillment in-house, you’ll need some kind of order management system (OMS) software to organize customer data and process orders. This kind of software can be expensive, especially for large-scale operations where different stages of the fulfillment process are automated. If you’re worried about the upfront cost to purchase this kind of technology, choosing a dropshipping or 3PL order fulfillment strategy may be best.It’s also essential to have integrations between your technology. For example, if you use a warehouse management system (WMS), it must integrate with your ecommerce platform to sync order and inventory data, so orders are processed efficiently. Otherwise, customers could add products to their shopping carts and place orders for out-of-stock products.
Finally, you need to think about providing your customers with the best value when choosing your order fulfillment strategy. Customers want to find what they are looking for easily, pay a reasonable price, and receive their orders as quickly and accurately as possible. For small operations where you have time to prepare and process orders yourself, direct fulfillment is a cost-effective option. For more prominent companies with extensive inventories, however, drop-shipping or 3PL fulfillment may be the best way to speed order processing, reduce errors, and offer faster as well as more affordable shipping options.There may not be a clear right or wrong answer when it comes to choosing an order fulfillment strategy. You’ll need to think carefully about your business in its current state and consider the direction you want to go in the future. Factoring in these details, along with customer satisfaction and profitability, will help you make the right choice for your business.
Once you’ve chosen your order fulfillment strategy, all that is left is to implement it. Unfortunately, that is easier said than done. You'll need to make the transition as quickly and efficiently as possible so there are zero hiccups in your daily operations. Here are some tips for making the transition:
There are plenty of ecommerce fulfillment services available today. But ShipHero stands out. We work with over 4,000 ecommerce businesses to handle fulfillment. Here are some of the benefits of working with ShipHero as your 3PL.
Tired of losing sales to Amazon because you don’t offer 2-day shipping? With ShipHero, you can offer 2-day delivery and overnight delivery to compete with Amazon and other enterprise ecommerce companies. With our shipping discounts, 2-day shipping can be a powerful way to improve conversion rates, make more sales, and keep your customers happy.
Distributed fulfillment is a proven method to decrease shipping costs and improve transit times. For example, if you’re based in Los Angeles, the cost of shipping an order to New York is going to be much more expensive than shipping an order to San Francisco. With ShipHero’s distributed fulfillment, your inventory is split among our network of fulfillment centers. When an order is placed, it goes to the fulfillment center closest to the customer. You’ll save money on shipping costs, and orders will be delivered faster.
ShipHero supports a wide variety of ecommerce platforms, including Shopify, Shopify Plus, BigCommerce, WooCommerce, Amazon, and others. The integrations are simple to activate and are a great option for companies selling on multiple platforms. For example, if you sell on Amazon and Shopify, we’ll handle fulfillment for orders from both platforms. All the order data is available in one platform so you won’t have to fumble through multiple apps to track everything.
ShipHero believes in transparency. Unlike other 3PLs that nickel-and-dime you with hidden fees, our pricing model is simple and easy to understand. Our single shipping rate includes picking, packing, packaging and postage and is a flat fee for the lower 48 states and we don’t lock you into long-term contracts.ConclusionThe key to maximizing profits and efficiency with your ecommerce business is to choose the right order fulfillment strategy. The speed, accuracy, and efficiency with which you fill your orders directly impact customer satisfaction, which also impacts your bottom line. Take what you’ve learned here to evaluate your current order fulfillment strategy to see whether there might be room for improvement and, if there is, put the tips you’ve received to work.
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Imagine running a warehouse where orders are picked quickly, inventory is accurate, and all operations run smoothly without any errors or delays. Thanks to Artificial Intelligence, this can now become a reality with ease.
AI is transforming warehouse management by enhancing efficiency, intelligence, and the ability to meet the rapid demands of today’s eCommerce-driven market.
ShipHero is pioneering this revolution with its AI-powered warehouse solutions, setting new industry benchmarks. This article explores ShipHero’s AI Picking feature, highlighting how it’s transforming warehouse management and enhancing operational efficiency.
The integration of AI technologies, including machine learning, robotics, and predictive analytics, is revolutionizing warehouse operations, driving significant improvements in efficiency, accuracy, and overall performance. These innovations are optimizing processes across various areas, from inventory management to order fulfillment. Below are the key benefits of AI in warehouse management.
A combination of AI technologies is shaping smarter warehouse systems to help revolutionize warehouse management.
ShipHero has taken AI integration to the next level with its AI Picking feature, designed to significantly improve warehouse efficiency. This feature automates the picking process, reducing the reliance on manual labor and enhancing productivity in ways that were once thought impossible.
Let’s dive deeper into how ShipHero’s AI Picking works and the advantages it offers.
AI Picking optimizes warehouse operations in two key ways:
The AI Picking feature delivers a wide range of benefits:
The transformative power of AI extends far beyond just picking. AI is also revolutionizing other aspects of warehouse management, driving improvements in operational efficiency, inventory management, and safety.
AI automates tasks, reducing errors and increasing speed. Automated sorting and real-time inventory tracking ensure accuracy, while real-time monitoring helps managers adapt and ensure timely deliveries.
AI plays a vital role in maintaining accurate inventory levels. By leveraging predictive analytics, AI can forecast demand and optimize stock levels, helping warehouses avoid both stockouts and overstock situations. This leads to better inventory management and fewer disruptions in supply chains.
AI-driven systems can monitor warehouse conditions to ensure safety and compliance with industry regulations. These systems can analyze warehouse data and predict potential hazards before they occur, proactively reducing risks and ensuring a safer working environment.
AI technologies are playing a transformative role in the supply chain and logistics sectors by improving efficiency, reducing costs, and enhancing decision-making.
These intelligent systems effortlessly manage supply chain processes by using data to optimize operations, predict trends, and automate routine tasks. This ultimately reshapes everything, from how goods are moved to stored and delivered.
The future of warehouse management looks promising with greater automation and efficiency, but future warehouse digitization brings challenges, such as high upfront costs and the need for skilled personnel.
AI-powered drones, autonomous robots, and IoT integration are smart warehouse technologies that are revolutionizing warehouse operations. Drones will deliver goods quickly, while robots automate sorting and transportation, thereby reducing the need for manual labor.
IoT and AI integration will enable real-time monitoring and optimization of operations. Smart technology in warehouses is leading to fully automated systems that are faster, scalable, and need minimal human input.
While AI offers immense benefits, businesses must also consider certain challenges. High initial investments in AI technology, data security concerns, and the need for skilled personnel are just a few of the hurdles that must be addressed.
However, with a strategic approach, companies can eliminate the challenges and embrace AI’s full potential to boost accuracy in picking and improve overall warehouse operations.
AI minimizes error by automating tasks like inventory tracking, order picking, and sorting, ensuring greater accuracy and efficiency.
Yes, AI-driven predictive analytics can predict demand, track inventory levels, and improve supply chain efficiency by forecasting needs with greater accuracy to help businesses stay ahead of trends and market fluctuations.
AI solutions are becoming more cost-effective thanks to cloud-based services and subscription pricing models. These options make AI technology more accessible to small businesses, allowing them to take advantage of its benefits without large upfront costs.
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When pallets roll in and loading docks buzz, your warehouse’s receiving process becomes the gatekeeper of inventory accuracy. And if that gate isn’t well-guarded with structure, speed, and oversight, errors slip in.
A mislabeled item here, a damaged shipment there, and suddenly your warehouse faces stock discrepancies, late order fulfillment, or even lost customers.
A warehouse receiving process checklist streamlines receiving operations and ensures compliance across teams, regardless of who’s on shift.
A warehouse receiving process checklist ensures every shipment that enters your facility is properly documented, inspected, and integrated into your inventory system.
Unlike ad hoc or verbal processes, this structured document verifies product condition upon arrival, checks against purchase orders to confirm accuracy, and documents all inspections for future reference.
However, ShipHero’s digital platform already seamlessly integrates this checklist into your system, automating the tracking of goods from the moment they arrive.
Because it captures critical shipment details, a receiving checklist can double as a warehouse audit checklist sample, especially when preparing for performance reviews or inventory audits.
If you’re looking for ways to improve accuracy and accountability, learning how to audit your warehouse with a structured receiving checklist is a great place to start.
A well-structured warehouse receiving process checklist is crucial for ensuring accurate and efficient inventory management. Including the mentioned key components helps streamline the process, reduces errors, and enhances overall warehouse performance.
Here’s what you must include in your checklist to maintain control and accountability:
This anchors the entire inspection. By referencing the purchase order (PO) number, warehouse teams can verify the received goods against the original order, ensuring the correct items and quantities are delivered.
Having the supplier’s full details improves accountability. If there’s a delivery issue, this info helps your team evaluate supplier performance and speed up resolution.
Timestamping each delivery helps you review delivery schedules, track shipment delays, and identify potential gaps in receiving coverage.
Here, staff will assess damage or discrepancies, confirm specifications (e.g., size, color), take photos if needed, and record all inspections in case of claims or audits. An effective inventory audit checklist incorporates these inspection protocols to ensure accuracy from the moment goods arrive.
Listing the material name (e.g., product name, SKU, or description) prevents mix-ups during inventory allocation and ensures all items are accounted for. This also helps your Warehouse Management System (WMS) update stock records correctly.
Identifying who delivered and who received the shipment establishes accountability, helps resolve disputes over damaged or missing items, and ensures proper handoff records.
Maintaining proper documentation, such as packing slips, invoices, and bills of lading, facilitates order reconciliation and supports formal audits and record keeping.
A single receiving error often ripples through the entire warehouse. A structured receiving checklist breaks this cycle by establishing clear protocols that coordinate with supply chain operations and create accountability at every step. It drives big improvements in:
This plays out in real operations. A mid-sized clothing retailer had ongoing issues with stock discrepancies during receipt. However, implementing a standardized receiving checklist significantly reduced the number of missing items and stock inaccuracies.
Employees also appreciated having clear instructions to follow, which reduced confusion and helped maintain a smoother workflow during peak delivery periods.
Before drafting your checklist, take a closer look at your existing receiving workflow. Next, identify any inefficiencies and pinpoint areas that could benefit from more structure and consistency.
Choose the data points you’ll need based on your warehouse flow, system integration, and team size. Include only what’s necessary to document key handoff moments.
You can go with paper, but digital formats (via tablets or mobile apps) are easier to scale. Software-based checklists can instantly update records and integrate with your WMS.
Use inventory management platforms or cloud-based tools to build your checklist. For example, ShipHero’s template system allows you to configure fields, set mandatory requirements, and establish workflow rules that guide staff through the receiving process. This makes sure every receiving action is consistent and auditable.
Train staff to make sure every team member follows standardized procedures. This minimizes human error, especially for new or seasonal workers.
Roll out the checklist during a test period. Assign clear roles (e.g., receiver, inspector), gather feedback, and then launch warehouse-wide. Revisit and refine it quarterly to keep up with operational changes.
Your warehouse receiving checklist works even better when paired with these best practices:
Spacing out deliveries helps reduce bottlenecks and allows teams sufficient time to track inventory levels accurately. It also allows for more accurate inspections.
Keep receiving areas clutter-free and near the entrance. This shortens the time it takes to organize storage locations after goods are received.
Invest in equipment such as barcode scanners, conveyors, or forklifts to speed up receiving operations, especially during peak seasons.
Don’t let broken items enter inventory. Flag them, document the issue, and notify procurement so the issue can be escalated quickly.
By leveraging real-time inventory tracking and barcode scanning, you can eliminate the need for manual checklists, ensuring that every received item is accurately logged. ShipHero automates the entire receiving workflow, reducing human errors and speeding up the process.
Customizable receiving workflows allow you to tailor the system to your warehouse’s specific needs, eliminating the need for paper-based checklists. Improve efficiency, accuracy, and consistency, all with ShipHero’s advanced automation tools.
At least annually, or anytime your business introduces a new product line, supplier, or technology upgrades.
Absolutely. Cross-training builds flexibility, enabling teams to cover for absences and maintain efficiency even during peak periods or periods of high turnover.
One missed check can cost you thousands of dollars. You may have a damaged pallet, a missing fire extinguisher, or a skipped safety step that can put your team at risk.
Warehouse daily checklists serve as a pilot’s pre-flight checklist. Before takeoff, every switch, lever, and system is checked. Why? Because skipping one step can lead to serious problems. The same goes for your warehouse.
Without a solid checklist, you risk delays, missed shipments, or worse, accidents and safety violations. A checklist ensures your team follows the right procedures and nothing falls through the cracks.
Here’s everything you need to include in a warehouse daily checklist, its definition, and templates you could use to get started fast.
A warehouse daily checklist is a structured form that helps warehouse staff systematically inspect, verify, and record essential tasks on a daily basis. It covers all the daily to-dos that keep your warehouse operations running smoothly and safely, such as inventory tracking and forklift inspections.
The warehousing and storage industry reported an injury rate of 4.8 per 100 full-time workers, nearly double the national average of 2.7. Following a daily warehouse checklist ensures the right procedures and safety protocols are followed and nothing important gets missed.
A great warehouse daily checklist supports the safety of your warehouse, reduces errors, and keeps your workflow on point. Here’s how to make a checklist that your warehouse workers will actually use and benefit from.
Every component of your checklist ensures your facility, staff, and inventory remain safe, compliant, and productive.
Common components include:
Instructions should be clear and structured to help your team move through inspections efficiently and consistently.
Your daily warehouse checklist doesn’t have to be very detailed and complicated. It needs to be thorough, practical, and easy to follow.
Here’s how to build a great one:
When your checklist comprehensively details the tasks in a concise manner, it becomes a tool that delivers massive impact. This ensures your warehouse operations run smoothly, safely, and efficiently.
Ready to skip the setup and just get started? Feel free to copy our Warehouse Daily Checklist Template to your Google Docs or Microsoft Word document. It’s accessible, user-friendly, and 100% customizable to your needs.
Simply plug in your specific details, and you’re set. It’s built to save time, support compliance, and help you manage your daily workflow like a pro.
ShipHero’s Warehouse Management System (WMS) boosts warehouse efficiency by automating key processes like inventory tracking, order picking, and shipping. By streamlining these workflows, it reduces manual labor, minimizing errors and delays.
The system’s real-time data updates allow staff to make quick, informed decisions, improving overall productivity. Customizable features enable businesses to adapt ShipHero to their specific operational needs, further enhancing efficiency. With ShipHero, warehouses can achieve faster turnaround times, reduced costs, and improved accuracy.
Review a warehouse daily checklist, weekly, or monthly to maintain accuracy and relevance. Frequent reviews help align the checklist with workflow changes, new safety protocols, or operational updates.
Yes, you can customize a warehouse daily checklist template. Most templates are designed to be modified based on team size, warehouse layout, and operational goals. Customization improves relevance and usability across different warehouse environments.
Yes, basic instruction and simple training on how to use the checklist ensure employees understand how to follow the checklist, report issues, and meet safety or performance standards. Training improves consistency and accountability across shifts.
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