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Understanding the Role of an Ecommerce Warehouse Management System

In this article
The end of seller shipping
The Solution: Integrated TikTok Shop logistics
Critical action for Shopify users
Join us before the deadline and save

A warehouse management system (WMS) or a warehouse management software is an essential tool for controlling inventory and ensuring products are delivered to customers efficiently. It plays a vital role in warehouse operations, coordinating various parts of the supply chain, and enhancing the picking process within the whole warehouse system. This system is crucial for managing inventory levels, inventory visibility, controlling stock, and ensuring seamless operations, meeting the needs of businesses, distributors, and sales channels. Learn more about warehouse management processes here.

What Is Warehouse Management Software for Ecommerce?

A WMS for eCommerce is a software solution that monitors inventory levels, tracks stock, and streamlines warehouse processes. It automates order fulfillment, optimizing a proper warehouse management system, supply chain fulfillment operations and meeting the needs of businesses, users, and customers. This system is crucial for managing inventory, controlling stock levels, and ensuring seamless operations, integrating with other ERP systems and software systems and providing support for various organizational needs.

How Does WMS Software Work to Streamline Warehouse Operations?

Managing effective logistics operations can be challenging without the proper warehouse management systems. a WMS system is an online storage platform designed to help businesses store information about their business locations and products. Functional features vary based upon requirements like picking, packing, or shipping. The major goal of this is the smooth movement of your products between the warehouses. This warehouse management system benefits and optimises warehouse space utilization by analyzing information from the system. This software manages inventory and supplies while monitoring inventory performance, etc. The best solution will help you to get more customers.

What Is the Difference Between a Warehouse Management System and an Inventory Management System?

A warehouse management system software monitors the storage of products at warehouses or warehouse centers. It helps keep items in optimal storage places with proper packing and pick-up. WMS software is a useful tool for managing all labor in an industrial warehouse and monitoring worker performance. Inventory management systems help manage inventory in the warehouse staff inventory room including raw material, finished products, or components needed in manufacturing. They monitor stocks and notify businesses of how much final goods and raw materials are required to produce products.

Profiling the Types of Warehouse Management Systems

Different warehouse management systems offer various features and functionalities. Choosing the right WMS depends on the company's size, order volume, shipments, and the number of products. It's essential to consider the business's specific needs, including vendors, stock control, devices, and overall determine the role of warehouse management software. The system's level of integration with business processes are also vital considerations.

Integrated Vs. Standalone WMS

Warehouse management software has two types: An integrated WMS is generally included by a current ERP provider. ERP software is the primary system for billing, accounting, inventory management. Warehouse management software accepts orders and manages inventory, order delivery of goods. If all the items can fit into a single software platform, it becomes much easier to know which order should be invested in.

On-Premises Vs. Cloud-Based WMS

On premises WMSs are those that require you to manage and maintain the hardware and software that runs your computer. While this provides you full control in terms of up-time and security, it also has a high upfront cost since it is your responsibility. You must also maintain a regular WMS system operation. While very little enterprises may enjoy an on-site WSMS, managing things is difficult. Alternatively, cloud-based WMS systems can be charged as a service fee, but can be hosted remotely.

An Examination of Traditional On-Premise WMS Solutions

Traditional on-premise WMS solutions provide customization and integration with other enterprise systems and platforms. These systems adapt to the company's specific warehousing needs, including vendors, stock control, devices, and more. They offer benefits in managing inventory, tracking products, controlling the warehouse process, and integrating with manufacturing and distribution channels.

Exploring the Benefits of Cloud-Based WMS Solutions

Cloud-based WMS solutions adapt to technological changes and integrate with eCommerce platforms for data exchange. They ensure compliance with shipping regulations and scale operations to accommodate business growth. These cloud technology and software solutions are essential for warehouse automation, cost control, and enhancing efficiency in the warehouse or distribution center operations, providing visibility into supply chain management and 3pl integrations.

Mobile Apps for Enhanced Warehouse Management

WMS mobile apps enable real-time reporting of stock items and warehouse status. They provide insights into the warehouse and retailers, enhancing visibility, planning and control. Training on WMS apps is essential for warehouse managers and employees to maximize efficiency and functionality, and they often include tools for order management and performance tracking for warehouse workers.

Top 10 Best WMS for Ecommerce

The top 10 best WMS for eCommerce include:

  1. Shopify
  2. Netsuite
  3. SAP
  4. Ordoro
  5. Linnworks
  6. Infoplus
  7. SkuVault
  8. Mintsoft
  9. Manhattan
  10. ShipHero

These major ecommerce platforms offer various features for inventory management, order processing, and shipping, catering to different business needs and market demands, including solutions for order management, fulfillment, and supply chain management tasks.

ShipHero

ShipHero is an optimal WMS for eCommerce businesses, enhancing visibility and customer satisfaction. It organizes operations, and inventory accuracy reduces common warehouse issues, and integrates with various platforms. ShipHero is a solution that caters to both DTC and B2B operations, providing a seamless workflow and efficient warehouse management solution, including capabilities and modules for storage systems, sales, and service distribution centers.

Core Features of a WMS for Ecommerce Businesses

WMS platforms offer features to optimize picking, packing, and maintaining stock levels. They provide real-time tracking inventory data, automate warehouse operations, and enhance customer service. Integration with sales channels, shipping label generation, and coordination with logistics are essential functionalities. Explore best practices for warehouse bin storage systems here, including aspects of cost management, picking efficiency, and tracking inventory and online tool integration.

Examining the Benefits of a WMS for Ecommerce Businesses

With the right WMS solution, businesses can improve efficiency across operations, from stock management integrated logistics to better customer service and satisfaction. WMS software assists organizations in reducing costs, enabling faster shipping, and saving on shipping & logistics. Understanding warehouse automation costs can further optimize eCommerce through warehouse management systems, including aspects of supply chain automation, order tracking, and inventory control.

Key Takeaways

In the realm of eCommerce warehouse management systems implementation, several crucial insights emerge:

  • Holistic Optimization: Effective warehouse management systems serve as pivotal tools for optimizing various facets of eCommerce operations, from inventory control to customer satisfaction.
  • Integration of Technologies: The integration of advanced technologies such as AI, robotics, and augmented reality is reshaping the landscape of warehouse management, enabling streamlined processes and heightened efficiency.
  • Customer-Centric Focus: Beyond operational enhancements, these systems prioritize enhancing the customer experience by ensuring accurate order fulfillment, timely deliveries, and hassle-free returns.
  • Security and Accountability: Warehouse management systems extend their capabilities beyond logistics, embracing security measures that safeguard inventory and uphold the integrity of the entire supply chain.
  • Sustainability Considerations: As sustainability gains prominence, warehouse management systems play a role in minimizing waste, optimizing packaging, and aligning with eco-friendly practices.
  • Adaptation to Trends: The dynamic nature of the eCommerce sector requires warehouse management systems to continually evolve, adapting to emerging trends and market shifts.
  • Strategic Decision-Making: With real-time analytics and reporting, businesses gain insights for informed decision-making, optimizing inventory levels, and staying ahead of customer demands.

In sum, eCommerce warehouse management systems stand as essential pillars that not only enhance operational efficiency but also empower businesses to navigate the complex and evolving eCommerce landscape with agility and customer-centricity.

Frequently Asked Questions About Ecommerce and Warehouse Management Systems

What Are the Different Types of Warehouse Management Systems?

There are two main types of storage space for enterprise systems: on-premise and cloud-based. On-premise is installed on company devices, while cloud-based uses cloud storage.

What Are the Three Components of a Warehouse Management System?

The three components of transportation management systems are software, data recording via mobile or cloud based systems, IoT communication equipment, and automatic identification technology like SKUs or barcodes.

What are the four 4 benefits of a warehouse management system?

Many businesses have adopted WMS systems to optimize efficiency and productivity for the best performance possible. Using an integrated logistics and storage system, the company can move outbound processes, reduce human error and maximize efficiency while improving overall business performance through automation upgrades.

What are the benefits of using a WMS rather than a physical inventory system for a large company?

By using an automated Warehouse Manager system, the business can improve inventory accuracy and increase transparency as the system provides the warehouse with an accurate view of demand. Moreover, enterprises have the ability to leverage specialized WMS systems to monitor order management.

What are the potential benefits of WMS?

A WMS can dramatically increase inventory administration, resulting in faster turnover. The ability to reduce inventory movements can help an organization reduce lead time and reduce the need for safety stocks.

What is the role of WMS in warehouse operations?

Warehouse management systems (WMSs) are software applications used for managing warehouse activities and tracking inventory. This warehouse yard management also takes care of all shipments from their entry into a stockyard to their storage location until the delivery is complete.

What is the role of WMS?

WMS helps ensure efficient transportation inventory movement of goods or materials within warehouses. WMS handles numerous functions for this movement such as an inventory management system to pick up, receive and put the shipment away.

What is the difference between SAP and WMS?

Inventory Management allows and enables you to control stocks in different warehouses using SAP Inventory Management. It can be easily adapted to any warehouse to track inventory in store bins. Contact ShipHero today for a demo today.

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January 22, 2026

Is Your 3PL Prepared For Tiktok’s New Shipping Requirements?

Executive Summary: Secure your revenue and protect your clients

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.

What changed for your clients?

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.

Your current WMS is a bottleneck

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.

Don’t leave your operations at risk

TikTok's latest policy creates a massive bottleneck for 3PLs using legacy technology.

  • Client Churn: If your WMS is not integrated, your clients will be forced to move to a 3PL that can support their growth.

  • Account Health Stakes: Failure to adapt risks shipping delays that kill customer loyalty and lead to client account suspensions.

  • Critical Action: If you currently funnel your clients' TikTok orders into Shopify and then to your WMS, that workflow will break.

Join us before the deadline and save

To help 3PLs transition quickly and stay compliant, we are waiving all onboarding fees for new customers who join ShipHero before February 25.

Frequently Asked Questions

I am a 3PL owner. How do I know if my WMS is compliant?

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.

Can my clients still use their own carrier accounts?

No. Starting February 25, TikTok will discontinue seller shipping. All shipping must go through TikTok Shop Logistics Services.

Do I have to send my clients' inventory to TikTok warehouses?

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.

What happens if we don't switch by February 25?

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.

Is ShipHero ready for this change right now?

Yes. ShipHero is the only U.S. based WMS currently supporting these requirements, allowing 3PLs to continue shipping without interruption.

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January 22, 2026

How Brands Can Avoid a TikTok Shop Blackout: Stay Shipping After February 25

Executive Summary

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.

The end of seller shipping

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. 

The Solution: Integrated TikTok Shop logistics

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.

  • Integrated label generation: ShipHero is one of only two WMS platforms globally and the only one in the U.S. integrated to handle the new TikTok logistics flow.
  • Direct store connections: Our software provides a direct TikTok Shop connection to automate the transition and remove manual workarounds.
  • Automated Rate Shopping: We compare carrier rates for every package to find the optimal route, protecting your profit margins even under the new policy.

Join us before the deadline and save

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.

Frequently Asked Questions

I use a WMS, how do I know if I can continue to fulfill TikTok orders? 

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.

Can I still use my own carrier accounts for TikTok Shop?

No. Starting February 25, TikTok will discontinue seller shipping. You must use TikTok Shop Logistics Services.

What are my main options for TikTok Shop fulfillment? 

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.

Do I have to use Fulfilled by TikTok (FBT)?

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.

What happens if I keep using my Shopify-to-TikTok connection?

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.

Is ShipHero ready for this change right now?

Yes. ShipHero is currently the only U.S. based WMS that supports these requirements, allowing our customers to continue shipping without interruption.

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September 9, 2025

How AI is Transforming Warehouse Management: Impact, Benefits, and Use Cases

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.

Benefits of AI in Warehouse Management

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.

  • Improves efficiency: By automating routine tasks, AI speeds up warehouse operations and streamlines workflows.
  • Reduces operational costs: With AI automating repetitive tasks, businesses can save on labor costs and minimize errors.
  • Enhances inventory management: AI ensures that inventory is always accurate, with real-time updates and better control over stock levels.
  • Predicts demand: AI accurately predicts demand, enabling businesses to manage inventory effectively and avoid stockouts or excess stock.

Key Components of AI-Driven Warehouse Systems

A combination of AI technologies is shaping smarter warehouse systems to help revolutionize warehouse management.

  • Inventory Management Systems – AI-powered inventory management systems ensure that stock levels are continuously updated and accurately tracked to improve operational efficiency and minimize errors in inventory counts.
  • Automated Guided Vehicles (AGVs) – Automated vehicles (AGVs) optimize routing by quickly transporting goods, speeding up processing times, and improving throughput.
  • Robotic Process Automation (RPA) – RPA automates repetitive tasks like picking, sorting, and shipping to allow 24/7 warehouse operations with minimal human intervention.
  • Predictive Analytics and Demand Forecasting – AI tools predict demand accurately, ensuring optimal inventory levels and reducing stockouts or overstocking.

ShipHero’s AI Picking: A Game Changer in Warehouse Efficiency

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.

How AI Picking Works

AI Picking optimizes warehouse operations in two key ways:

  • AI Path Optimization: By calculating the most efficient routes, walking time is reduced by up to 30%, allowing pickers to spend more time fulfilling orders.
  • Smart Batching: Orders are intelligently grouped to maximize pick density, minimizing trips while speeding up processing times.

Benefits of AI Picking

The AI Picking feature delivers a wide range of benefits:

    Increased Productivity: With optimized paths and smart batching, pickers can fulfill more orders in less time, dramatically increasing throughput.Lower Labor Costs: AI Picking reduces the need for human labor, cutting operational costs.Improved Warehouse Efficiency: Path optimization and smart batching maximize space and resources, streamlining operations.

Broader Impacts of AI in Warehouse Management

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.

Operational Efficiency

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.

Inventory Management

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.

Safety and Compliance

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.

Applications of AI in Supply Chain and Logistics

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.

  • Inventory Optimization: AI analyzes sales data, trends, and external factors to optimize stock levels. This reduces stockouts, overstocking, and excess inventory, ensuring more accurate and cost-effective inventory management.
  • Demand Forecasting: AI helps predict future demand by analyzing historical data and market conditions. This allows businesses to plan inventory, production, and procurement more efficiently, reducing waste and ensuring product availability.
  • Route Planning and Optimization: AI also optimizes delivery routes by considering real-time factors, including traffic and weather conditions. This helps businesses reduce fuel costs, improve delivery times, and enhance overall logistics efficiency.
  • Warehouse Automation: AI-powered robots can automate picking, sorting, and packing in warehouses. This increases accuracy, reduces labor costs, and enhances order fulfillment speed, eventually improving overall warehouse efficiency.

The Future of AI in Warehouse Management

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.

Emerging Trends and Innovations

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.

Challenges and Considerations

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.

Key Takeaways

  • AI is transforming warehouse management by making operations faster, more accurate, and cost-effective.
  • ShipHero’s AI Picking system demonstrates how AI can help warehouses handle more orders, cut down on labor costs, and streamline their processes.
  • AI improves routing, aids decision-making, and ensures timely stock replenishment, helping businesses stay competitive in eCommerce.

Frequently Asked Questions

How can AI help in reducing warehouse errors?

AI minimizes error by automating tasks like inventory tracking, order picking, and sorting, ensuring greater accuracy and efficiency.

Can AI be used for predictive analytics in warehouse management?

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.

Is AI in warehouse management affordable for small businesses?

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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