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By: Aaron Rubin, Founder & CEO of ShipHero
At a glance, selling on marketplaces like Amazon, eBay, Etsy, and others seems like a golden ticket for new and growing eCommerce businesses. The idea of selling products on the biggest marketplaces in the world should, in theory, increase your sales and grow your company. But there’s always something brands overlook when it comes to selling on marketplaces: order fulfillment.
How can you fulfill orders across multiple marketplaces that have their own shipping policies or customer expectations? With disparate data coming in from so many systems, it can be tough to fulfill orders and ensure you have enough inventory for all of them.
Marketplace fulfillment comes with its fair share of drawbacks that you should be familiar with before finalizing your decision. Fortunately, eCommerce brands can overcome these challenges with some help. There’s a reason almost 90% of Fortune 500 businesses are using 3PL providers instead to fulfill their orders.
eCommerce marketplaces have lowered the barrier of entry for new brands and contributed to the eCommerce industry’s rapid growth. However, the model isn’t flawless. Here are some of the most common problems eCommerce brands face with marketplace fulfillment:
No direct integrations with marketplaces
As your brand grows, integrations are vital to maintaining a seamless workflow. However, switching between different platforms to obtain crucial information is time-exhaustive and inefficient, inviting delays and possible errors.
Additionally, direct integrations are vital for streamlining fulfillment operations – they’re necessary to gain real-time order information and update inventory data according to recent orders.
Hard to sync inventory data between multiple marketplaces
Many sellers list their products on multiple marketplaces to reach a wider audience. However, this practice makes it difficult to sync your inventory data. If orders are fulfilled at different marketplaces, you’re prone to losing track of inventory counts, leading to shortages or overstocking.
Lack of centralized data to see which channels are performing best
Performance monitoring is critical for growing eCommerce brands; you need to identify areas of improvement and learn from your successes. Unfortunately, eCommerce marketplaces don’t offer centralized data, including key performance analytics and fulfillment insights.
Without the correct data, it’s challenging to monitor your brand’s success or lack thereof. Additionally, having access to meaningful insights helps brands streamline their marketing and customer support efforts.
Many eCommerce brands offer customers multiple fulfillment options, including various delivery options (including overnight and 2-day delivery), order pick-up, or mail-order delivery.
Unfortunately, the more options you offer, the more difficult keeping track of orders becomes. For example, if customers have arranged to pick the order up, you’ll have to keep track of whether the order was picked or if there’s been a rescheduling.
Amazon’s latest Seller Fulfilled Prime (SFP) option seems to offer eCommerce merchants the best of two worlds – you get access to the exclusive Prime label but retain autonomy over your fulfillment operations.
Unfortunately, while SFP fulfillment is an excellent idea, in theory, Amazon’s stringent requirements make it challenging to qualify for the program. To maintain the exclusive SFP status, your Prime trial orders must have a cancellation rate of less than 1%, a minimum 99% on-time rate, and all orders placed before 2 pm have to be fulfilled and shipped on the same day.
While marketplace fulfillment comes with its fair share of drawbacks, you can streamline and optimize the fulfillment process with some help.
Merchants can integrate advanced inventory and warehouse management system software with marketplaces to organize all relevant data, analytics, and insights in one place.
The right fulfillment software gives you access to order details in real-time, helps monitor sales and performance metrics, and reliably monitor inventory levels and forecast demand.
Work with a 3PL that offers fast shipping speeds
Meeting the shipping expectations of modern consumers is increasingly difficult, but third-party logistics providers help you provide expedited shipping options without incurring high costs.
Given that 43% of abandoned carts are due to high shipping charges, and 54% of consumers under 25 declared same-day delivery as their top purchase driver, growing eCommerce brands need to step up their logistics game.
Distributing inventory across multiple, strategically-placed fulfillment centers helps eCommerce brands simultaneously provide faster shipping times and reduce last-mile delivery costs. This is because, with a distributed inventory, you can ship products to customers from the fulfillment centers closest to them.
ShipHero’s leading warehouse management solution and fulfillment services help growing eCommerce brands optimize marketplace fulfillment. Our fully integrated system syncs your inventory and eCommerce store data, and you can set automation rules to streamline tedious processes.
ShipHero helps eCommerce brands grow sustainably with our:
ShipHero’s outsourced fulfillment services take the pressure of order fulfillment off your hands, so you can focus on growing your store. We’ll manage your inventory, pick and pack orders (and ship them, too), and take care of reverse logistics regardless of how many marketplaces you’re selling on.
Thanks to ShipHero’s leading warehouse management system and team of fulfillment experts, fast-growing eCommerce brands like yours can keep up with evolving consumer expectations. With our network of distributed fulfillment centers, you can offer customers 2-day and overnight delivery options without incurring high last-mile delivery costs.
Our highly trained workforce and advanced software collectively minimize pick and pack errors, reducing wrong order requests and protecting your bottom line.
Whether you’ve partnered with Amazon, eBay, Etsy, Walmart, or another marketplace, ShipHero’s warehouse management system integrates directly with your marketplace and centralizes all the relevant information.
You can view inventory data in real-time, access team reports, view order history, and access key information like actual shipping costs for each order, all from one central dashboard.
Your returns process dramatically impacts customer loyalty, and you don’t need to take our word for it. A report revealed that a positive return experience affects brand loyalty in 95% of online customers, and over 65% of online shoppers consult a brand’s return policy before making a purchase.
To meet consumer expectations and help our eCommerce partners secure customer loyalty, ShipHero offers done-for-you returns management and reverse logistics services. ShipHero integrates with your marketplace and manages returns as they come in, preventing delays and improving customer retention.
Marketplace fulfillment comes with its fair share of drawbacks, including a lack of integrations, disorganized data, analytics, and stringent requirements to qualify for more recognized fulfillment programs.
Thus, many growing eCommerce brands partner with ShipHero to overcome these challenges and optimize their marketplace fulfillment. With ShipHero, online retailers can offer expedited shipping times, minimize pick and pack errors, manage returns easily, and centralize their real-time inventory and order data.
Optimize your marketplace fulfillment with ShipHero today.
Schedule a meeting today with our experts to learn more about our inventory management and shipping software built for eCommerce brands & 3PLs looking to run their best warehouse and how ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.
Click HERE to Schedule a Meeting Today
Aaron Rubin, Founder & CEO
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.
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TikTok Shop is discontinuing "seller shipping" on February 25, 2026, a move that will halt fulfillment for any 3PL using non-integrated legacy technology. ShipHero's WMS is fully integrated and approved to support TikTok Shop’s new logistics requirements, allowing you to generate compliant labels and avoid a total operational lockout. By migrating to ShipHero before the deadline, 3PLs can eliminate onboarding fees and ensure their clients’ businesses remain active and profitable.
Starting February 25, 2026, TikTok Shop is officially discontinuing "seller shipping" (also known as "bring your own label") for all U.S. local sellers.
This means your clients can no longer use their own carrier accounts for TikTok orders.
As their 3PL, you will be unable to generate labels unless your WMS is directly integrated with TikTok’s new ecosystem. To keep your clients' businesses running, you must transition them to TikTok Shop Logistics Services through a verified partner.
ShipHero can keep your 3PL orders flowing from February 25 onwards.
If you are running your warehouse on legacy systems, you are at risk of a complete TikTok Shop lockout. Your fulfillment—and your revenue—will simply stop that day.
TikTok's latest policy creates a massive bottleneck for 3PLs using legacy technology.
To help 3PLs transition quickly and stay compliant, we are waiving all onboarding fees for new customers who join ShipHero before February 25.
There are only 6 approved ERP/WMS providers globally that meet TikTok’s new integration standards. ShipHero WMS is on that list. Most legacy WMS providers are not currently approved. To avoid a total operational blackout for your clients, you must move to a verified partner like ShipHero.
No. Starting February 25, TikTok will discontinue seller shipping. All shipping must go through TikTok Shop Logistics Services.
No. You can still manage fulfillment from your own 3PL warehouse using ShipHero’s direct integration, which pulls the required TikTok labels and logic directly into your existing workflow.
You will lose the ability to generate shipping labels for any TikTok Shop order. This will result in immediate fulfillment backlogs, client dissatisfaction, and potential loss of contracts.
Yes. ShipHero is the only U.S. based WMS currently supporting these requirements, allowing 3PLs to continue shipping without interruption.
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TikTok Shop is introducing mandatory logistics changes that will stop fulfillment for unprepared sellers on February 25, 2026.
ShipHero's WMS is fully integrated and approved to support TikTok Shop’s new logistics requirements, ensuring your orders keep moving without interruption. By switching to ShipHero before the deadline, brands can maintain compliance and eliminate onboarding fees during this transition. Here’s everything brands need to know to continue fulfilling orders.
Starting February 25, 2026, TikTok Shop will discontinue "seller shipping" for all U.S. local sellers. This means you can no longer use your own carrier accounts to generate labels for TikTok orders. To stay compliant and keep selling, brands must transition to TikTok Shop Logistics Services.
Relying on legacy systems like Extensiv, Deposco, or Logiwa puts your business at risk of account suspension and shipping delays that kill customer loyalty.
If your current WMS or 3PL is not integrated with TikTok Shop Logistics Services, you will face a total fulfillment blackout on that date. Failure to adapt to these changes risks shipping delays that kill customer loyalty and can lead to account suspension on the platform.
For brands onboarding on or after February 9, 2026, these restrictions are already in effect.
ShipHero has done the due diligence and has built a direct integration to ensure that merchants can fulfill TikTok Shop orders themselves while remaining fully compliant with TikTok’s new label requirements.
To help brands and 3PLs transition quickly and stay compliant, we are waiving all onboarding fees for new customers who join ShipHero before February 25.
Currently, there are only 6 approved ERP/WMS providers globally that meet TikTok’s new integration standards. ShipHero WMS is on that list. If you are using legacy providers like Extensiv, Deposco, or Logiwa, they are not currently approved to support these specific TikTok Shop requirements. To avoid a total operational blackout, you must move to a verified partner like ShipHero before the deadline.
No. Starting February 25, TikTok will discontinue seller shipping. You must use TikTok Shop Logistics Services.
You can use Fulfilled by TikTok (FBT) to store and ship items through their network, switch to one of the six approved ERP/WMS systems, or use ShipHero's direct integration.
You must use TikTok Shop Logistics Services, but with ShipHero, you can still manage the fulfillment from your own warehouse using TikTok’s required labels and logic.
This connection type will not support the new label requirements. You must switch to a direct TikTok Shop connection within ShipHero to avoid fulfillment interruptions.
Yes. ShipHero is currently the only U.S. based WMS that supports these requirements, allowing our customers to continue shipping without interruption.
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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