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“Necessity is the mother of Invention.”--Plato, philosopher
“When Necessity rapidly consumes the globe in a pandemic, Invention calls its brother Fulfillment.”--ShipHero, fulfill-osopher
While our shipping quotes may be better than our written quotes, the principle holds true: a good product is only as good as its ability to reach customers. A bird in the hand is worth two in the bush… okay, no more proverbs.At its onset, the global pandemic caused a shortage of goods that people relied on with no way of receiving them. But then came the shift to digital, and the ecommerce industry saw tremendous growth. When more people started sending more things, we in the ecommerce fulfillment industry experienced growth of our own.Fulfillment as a Service (FaaS) companies like ShipHero began partnering with online brands to provide fast and reliable fulfillment services powered by SaaS-based fulfillment software. In under a year, ShipHero became trusted by over 4,000 ecommerce brands and 3PLs every day to get their products in the hands of their customers, on time and on budget with their Warehouse Management Software (WMS).How did we obtain and manage such high-speed growth? The answer lies in our steadfast set of criteria that we developed to know when the time has come to expand our operations, and through what means. Let’s dive into this Warehouse Buying 101 guide, so you can understand when and how to grow your own network of warehouses.
We’ve found that taking a data-driven approach is essential to know when to expand your operations. Through real-time data monitoring and executive oversight, we get the right data to the right people to make the best possible decisions. We know it is time to expand our operations when one of the following occurs:
We let our business tell us when it is time to expand, not the other way around. Make sure you are tracking the right data, like ‘Miles Travelled per Order’ or ‘Time to Fulfill’ in order to assess the state of your operations before expanding. Because adding new warehouses to your network can be expensive and very difficult to undo, you need to ensure that there are no simple fixes for your current fulfillment woes.
Once you are certain that it is time for 3PL to grow its network of warehouses, the next step is to analyze your options and choose the strategy that best satisfies your needs. It is through in-depth research and quality information that allows ShipHero to make smart decisions.
Location, location, location (technically not a proverb).For ecommerce fulfillment, choosing the right location for your warehouses makes all the difference. Having a widespread network of warehouses improves the cost-efficiency and speed of your order fulfillment, but having multiple operations in one area provides resiliency.Understand where your brand and your brands’ customers are located. What is the competition in that area? Is there an airport nearby and how are the road conditions for trucks? Does the area have an adequate talent pool to employ and run your operations smoothly?By determining your location, this allows you to set a more defined area to search for expansion opportunities.
Are you looking for immediate expansion to solve an urgent need, or is this a long-term decision to ensure future success? Why are you expanding now? What are the underlying forces that are driving your growth, and will they still be there in the future?By understanding your timing, this helps you align to your long-term business goals and mitigate risks caused from short-term thinking.
How much are you willing to invest? How much free capital can you afford to spend? Think in terms of proportions of your current and projected orders.Knowing where you want to expand, how quickly, and how much you are hoping to spend will give you all the information for the final step.
With the above considerations in mind, the final step is to execute your desired expansion method. ShipHero has employed a blend of the following strategies to successfully and quickly grow their network of warehouses:Build from ScratchThe first strategy is to set up a brand new warehouse. As the most time consuming option, ShipHero is able to spin up a brand new warehouse in 30 days, which we did recently in our Pennsylvania warehouse (now hiring). It is also the most costly option, but allows for the greatest level of autonomy in running your operations.Partnership with Existing 3PLExisting 3PL companies that have additional capacity to spare may contractually agree to fulfill your customers’ orders for a percentage of the profits. Partnering with an existing 3PL is the fastest way to add capacity to a certain region, so if you are in a time crunch to start getting orders out the door, this is a smart way to go. Keep in mind, with regards to quality of service, your company will wholly rely on the existing 3PL to deliver, so make sure you partner with the 3PL that matches your standards of excellence.Buyout an Existing OperationIf there’s a suitable candidate, buying an existing operation is a great way to expand your network. For example, ShipHero recently purchased Radio Shack's DFW Fulfillment Center, and because they already used our software, we began fulfilling ShipHero orders practically overnight. Transitioning an existing operation to suit yours is less costly and time-intensive than building a warehouse from scratch, and it allows more autonomy and capacity than a partnership. So keep an eye out on your existing partners or your clients, as they may become a good target for acquisition.This concludes our Warehouse Buying 101 tutorial, and we hope that you can use it to expand your operations and effectively fulfill on behalf of your online brands and retailers. And if you’re looking to unlock your ecommerce fulfillment superpowers, ShipHero is a leading provider of SaaS 3PL software for ecommerce fulfillment. We give you the tools to quickly master your ecommerce operations with a cloud-based software solution trusted by ecommerce and retail brands of all shapes and sizes.Learn more about ShipHero's industry-leading warehouse management software.
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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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