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One person can only fulfill so many orders in one day. You can hire additional employees to help with packaging shipments for delivery, but the more people are involved in the fulfillment process, the more order management and planning you must do. Adding more people to the operation means that you must spend more time on inventory management. At some point, eCommerce shipping work starts to take up all of your time, and you are always busy with shipping labels and shipping slips.

What is Automated Shipping?

Automated shipping is when you use software solutions to provide fulfillment services. It often involves tracking the items that customers have ordered during shipping. Shipping automation is a necessary step when companies want to scale their operations. You can choose different shipping automation systems, depending on the size of your company. If your business is big enough that you use an external warehouse, then you need to automate your shipping operations.

Why Should You Automate Shipping?

You should automate your shipping processes because it will help you reduce the cost of picking, packing, and shipping your product and it will save you time. Some eCommerce platforms include features that enable businesses to automate their shipping across multiple warehouses. When you use automated shipping technology, every member of your team can work more efficiently. You can increase the number of orders that your company can fulfill in one day, while also improving the accuracy rates of your orders.

What Are The Advantages of Automated Shipping?

Time is money, and eCommerce business owners only have 24 hours in a day, just like everyone else. You are losing money when you personally spend time packing and tracking orders, since entry-level employees can do these tasks, and artificial intelligence can also do some of them. Your time is better spent writing a blog for your company, and gathering information for market research. If a task is something that does not require long-term planning, you can automate it. Automating your shipping processes will help you increase your sales and save time, money, and stress.

Improve Efficiency

Automated shipping relies on software that can instantly analyze data. Your shipping automation software knows which items are where and when you need to reorder them to avoid stockouts and also create a situation where you store only as much merchandise as you need. It enables you to track the status of inbound and outbound orders. By accessing the online portal of your shipping automation software, you can see whether everything is in its place and view options for correcting errors in real-time.

Optimize Your Supply Chain

One of the benefits of shipping automation is that it enables you to manage both the incoming and outgoing categories of your supply chain. Software is much better at analyzing large volumes of data to see how long it takes your orders to reach their destination through USPS, for example, and at ensuring that each box leaving your warehouse falls within appropriate weight limits.

Provides Real-Time Analytics

Not only does automated shipping software analyze data from other sources, but it also gathers and analyzes new data. You can use this information to make decisions about reorder points or about transportation and freight carriers. You can print reports from the software’s analytics or share them online with other decision-makers in your organization. Instead of paying extra for analytics, you should just invest in an automated shipping software package that already includes analytics features.

Spend Less Money

Shipping automation software offers various packages with varying numbers of features. You should only pay for the smallest number of features you need. If you have chosen the appropriate package, it will enable you to save on costs while still letting you grow your business. Automated software can do in seconds what it takes a team of employees an entire workday to do.

Reduces Human Error

Machines can make mistakes, as everyone who has ever operated a computer or smartphone knows. In addition to making far fewer mistakes than humans, though, the software can correct its mistakes much more quickly. If something goes wrong with an order, you can search the data and history in your automated shipping app to diagnose the problem. You can then correct the problem in only a few clicks.

Repurpose Resources

The purpose of automation in eCommerce is not to replace human employees with machines; creating jobs is probably one of the goals of your eCommerce business. Rather, you can give your employees tasks that only humans can do; these tasks are usually more interesting and enjoyable than the tasks you entrust to your shipping automation software. Instead of downsizing your workforce, you can accomplish much more work with the same number of employees.

How to Successfully Start Automating eCommerce

The first step to automating your eCommerce business is to automate your shipping processes. You should choose a software suite that includes an automated shipping feature. As you continue to scale your business to an even bigger size, you should upgrade your eCommerce software to include even more features of inventory management. Remember, the more your software does, the more your employees can do.

Ways to Automate Your eCommerce Shipping

You can automate your eCommerce shipping by entrusting the shipping aspect of your operations to a warehouse management company. You can get a comprehensive package of services where a management company will handle automated shipping, setting reorder points and other elements of supply chain logistics. If your company has its own warehouse, then you should choose a software package that works with your existing warehousing system.

What Are Automation Rules?

Automation rules are tasks that you entrust to an automated program. Examples of automation rules include adding prospects to a list or assigning prospects to a specific user. Every automation task includes three components, namely triggers, conditions, and actions. In other words, you program the software to know what to do and in what circumstances to do it.

Challenges of The eCommerce Shipping Process

Without automation, eCommerce shipping is labor-intensive. Even when your products are in high demand, you can only fulfill as many orders per day as you and other employees of your company can fulfill. This leads to long wait times, dampening the growth of demand for your products. You can solve this problem by automating your shipping process, which makes your company more efficient.

Best Practices For Utilizing Automated Shipping

To ensure that shipping automation technology saves on costs and increases worker productivity and customer satisfaction, you should be clear about your long-term goals. Your decisions about the future of your business should determine the commands and features you select in your shipping automation software app.

Key Takeaways

Automated shipping is a necessity for all except the smallest eCommerce businesses. It reduces errors and supply chain disruptions. It also makes interactions with your company stress-free for customers and employees, while helping you keep overhead costs low and production more efficient.

Automatic Shipping FAQs

You should ask a lot of questions about shipping automation software before you choose the right software suite for you. These are some common questions that eCommerce business owners ask before implementing shipping automation software:

What Is Automated Order Fulfillment?

Automated order fulfillment is when you rely on data and technology to manage most elements of the order fulfillment process. Artificial intelligence can handle warehouse picking, packing, and labeling. It can also know when to reorder stock and when to restock each item. Automation can also help you track packages.

How Do I Start Automated Shipping?

The best way to get started with automated shipping is to contact ShipHero and discuss your shipping automation options with a ShipHero representative. By choosing the proper shipping automation package, you will get the best possible return on your investment.

Can Shipping Be Fully Automated?

The automated warehouse equivalent of a driverless car is still in the future, but it is possible to automate many aspects of the shipping process.

You’re probably familiar with the term third-party logistics (3PL). But did you know there are other logistics services like second-party logistics (2PL) and fourth-party logistics (4PL)?

So, what are the differences, and which one is the best? Read on to find out.

Successful eCommerce Needs Strong Logistics

An eCommerce business lives or dies at the hands of its logistics. Smaller local businesses can operate fine with first-party logistics, handling deliveries in-house. However, many eCommerce businesses get customers from all over the world, making in-house deliveries nearly impossible.

If you can’t get products to customers safely and punctually, customer satisfaction will drop and you’ll likely lose sales. To ensure that doesn’t happen, you must partner with great logistics solutions providers.

What's The Difference Between 2PL vs 3PL vs 4PL?

The main differences between 2PL, 3PL and 4PL are the complexity and parties involved. Here’s a quick breakdown of each logistics operator type and how many parties are involved:

• A 2PL involves your company and the freight forwarding or transportation service. This means you handle receiving and order processing yourself, only working with the shipper when you’re sending things out to customers.
• A 3PL is more hands-on in that the third-party logistics provider takes over most, if not all, of your order fulfillment process. The 3PL company will receive, store, pick, pack and send items out to customers through shipping companies. 3PL companies are the most popular logistics operator with eCommerce businesses because companies can be hands-off with their logistics and inventory management operations.
• A 4PL expands the scope of 3PLs by managing your company’s entire supply chain management. This means offering a wide range of services, including finance, procurement, IT and logistics assistance.

2PL - Second-Party Logistics

Second-party logistics are mostly responsible for transporting your items from the warehouse to customers. As far as logistics go, second-party logistics operators have the simplest task since they only do one thing – get your products to customers.

2PL Pros

The advantages of working with 2PL companies are:

• You can reduce your business workload.
• You can minimize risk of product loss or damage.
• You can offer multiple methods of transportation you couldn’t offer in-house.

2PL Cons

Meanwhile, the disadvantages of working with 2PL companies are:

• Your shipping performance is entirely dependent on the shipping carrier
• 2PL companies don’t support other aspects of your logistics operations, like warehousing.

3PL - Third-Party Logistics

Third-party logistics are much more involved with your operations since they’re responsible for receiving, storing, picking, packing and sending your products. Some of them even handle customer returns and complaints.

Lots of companies work with third-party logistics companies since they don’t have the space or budget to run their own warehousing operations. Instead, they send their products to 3PL fulfillment centers where the logistics operator will take care of everything.

Some of the best print-on-demand companies also offer 3PL-like services where they take customer orders, print the items and send them out without the client’s intervention.

3PL Pros

Here’s what you get by working with 3PL companies:

• You can outsource an entire section of your business to experts with years of experience.
• You get timely shipping and professional warehouse management.
• You can focus on other aspects of your business.

3PL Cons

On the other hand, 3PL also has some drawbacks, like:

• Your business will be dependent on a vendor to ship items out.
• It can be tough to change the way your vendor works if you receive complaints.

4PL - Fourth-Party Logistics

A fourth-party logistics provider is even more hands-on in managing your supply chain operations. They offer integrated logistics solutions – they don’t just work with what’s there but also come up with new ideas and offer additional services to address possible issues to achieve efficient supply chains.

Essentially, fourth-party logistics companies are supply chain operators and consultants. They’ll advise you on whether you need discreet shipping and packaging for products, what kind of shipping you should offer and many other aspects of logistical operations.

4PL Pros

Working with a 4PL service provider gives you most benefits offered by a 3PL, in addition to these perks:

• You get the best shipping rates without negotiating with carriers yourself.
• You can receive advice on how to manage a comprehensive supply chain solution.
• You can take advantage of their professional project management services.

4PL Cons

Meanwhile, the disadvantages of working with 4PLs are:

• 4PLs have higher costs, which makes them prohibitively expensive for smaller companies.
• You have less say in your supply chain operations since 4PL companies are more like strategic partners than vendors.

Examples and Practical Applications

How these logistics providers work might seem a bit abstract, especially if you’ve just now heard about them. Here, we cover simple examples of how 2PL, 3PL and 4PL companies work.

How 2PL Works

If Company X works with a second-party logistics provider, how it gets goods to customers would go something like this:

1. Company X receives its products from the vendor or manufacturer.
2. The company’s warehouse team stores products in the warehouse.
3. When an order comes, Company X’s warehouse team picks and packs the items in preparation for shipping.
4. The warehouse team takes the products to a shipper for delivery.
5. The shipping company sends the items to customers.

How 3PL Works

If Company X works with a third-party logistics company instead, you’d see a process like this:

1. Company X sends its products to the 3PL company’s fulfillment center.
2. The 3PL provider’s warehouse crew stores the product.
3. Company X’s online storefront forwards orders to the fulfillment center, where the warehouse crew picks and packs items for shipping.
4. The 3PL company’s warehouse team passes the items to a shipping company.
5. The shipping company takes the items to customers.

How 4PL Works

If Company X works with a fourth-party logistics company, the workflow will look a lot like the 3PL version. However, the 4PL partner will find the most affordable shipping companies and may communicate with Company X’s vendor to increase or decrease production, depending on how many products are in the warehouse.

2PL, 3PL and 4PL By the Numbers

Costs matter in choosing a logistics strategy, especially when it comes to prices. 2PLs are usually the cheapest because they only ship your items. Depending on the company, you might pay for every shipment individually or get subscriptions for discounted shipping costs.

3PLs usually work on a monthly or yearly subscription model, but some may charge per item delivered. Costs vary depending on the size of your business and can be as low as a few cents per item to thousands of dollars per month.4PLs are the most expensive of the three options since they offer consultancy services and logistics assistance.

4PL companies usually offer custom pricing, so each partner will charge you differently.

What Software Does Your Business Need?

Your business needs different types of logistics providers and software, depending on your business goals and needs. A 3PL is the most common option, but you can opt for a 2PL if you’re already doing in-house logistics management or a 4PL if you want to outsource your entire supply chain and logistics process.

If you don’t know which one to pick, meet with 3PL consultants and ask them about which option is best for your company.

Key Takeaways

The main difference between 2PL, 3PL and 4PL companies is their scope of work. 2PL providers are essentially shipping carriers, 3PL companies take over your inventory and warehousing operations while 4PL companies control almost your entire supply chain network.

All three logistics company types offer different things, so talk to consultants and do some research before choosing which type of logistics provider is the best for you.

2PL vs 3PL vs 4PL FAQs

What are the 3 Types of Logistics?

The three main types of logistics are:

• Inbound logistics, which involves moving goods from suppliers to producers. An example of this is sending car parts to car manufacturers.
• Outbound logistics, which involves moving finished products to customers. For instance, sending a handbag from the warehouse to the person who ordered it.
• Reverse logistics, which involves moving products from the customers back through the supply chain. This usually happens when the customer returns their product due to defects or other reasons.

What is the Difference Between 3PL and 4PL?

The main difference between 3PL and 4PL is its scope. 3PL companies take over your supply chain and logistics operations but don’t have the power to make decisions on their client’s behalf. Meanwhile, 4PL companies are more like partners in that they can negotiate with shipping carriers and influence production for the client’s benefit.

Is a Freight Forwarder a 2PL?

Freight forwarders are a 2PL because their main business activity is sending products from a company to the customer.

As shopping behaviors continue to develop, businesses must find ways to stay ahead. Discreet shipping has gained traction in the last decade, offering customers greater privacy and peace of mind when their goods are delivered. What is discreet shipping? We'll explore what it entails, its practical applications for eCommerce, and how you can leverage these benefits for your business.

What is Discreet Shipping?

Discreet shipping refers to packaging and shipping items that don't reveal their contents or identity. The packaging may be plain or unmarked, and the sender's name or return address may be omitted. The goal is to protect the privacy of the person receiving the package, even during shipping.

Why Use Discreet Shipping in eCommerce Fulfillment?

There are several reasons why eCommerce businesses might choose to use discreet shipping:

1. Privacy: When ordering sensitive or personal items, some customers may wish to keep the contents of their packages private. Shipping discreetly allows them to do so without worrying about others discovering what's inside.
2. Branding: Discreet shipping may enable some businesses to avoid any potential negative association between their brand and specific products.
3. Security: Discreet shipping helps protect the contents of the package from theft or damage.
4. Avoidance of Embarrassment: A package with an explicit label may embarrass some customers.

Discreet shipping can help eCommerce businesses cater to a broad range of customers, protect their brand, and ensure the security of the package.

How Does Discreet Shipping Work?

Discreet shipping works by ensuring that a package is sent in packaging that hides its contents and sender information. Instead of using branded boxes or envelopes, discreet shipping uses plain, unmarked packaging such as brown boxes, white envelopes, or generic mailers.

The goal is to maintain customer privacy by eliminating any identifying labels or logos. This can include omitting the sender’s name, using a generic return address (such as a P.O. box), and avoiding any external markings that could reveal the contents.

Once an order is placed, the eCommerce business prepares the shipment by selecting the appropriate discreet packaging and processing it for shipment. The contents are protected in a manner that minimizes the risk of theft or unwanted attention while ensuring the package arrives safely.

Many companies also allow customers to select this option during checkout, providing flexibility to those who prioritize privacy.

Why Do People Prefer Discreet Shipping?

Discreet shipping has become increasingly popular with customers in recent years, providing a higher level of privacy when purchasing certain items. Rather than having the store or sender's name printed on the outside of the box or mailer, discreet packaging is designed to be more generic and concealed, often using plain brown boxes and tape with no identifiable features.

This reassures customers that their personal choices are kept private while ensuring they can trust their items will be adequately protected during transit. On top of preserving customer privacy, discreet shipping also helps maintain consumer loyalty and trust in a brand. Customers are more likely to return to a store if they know that their items will arrive securely without jeopardizing their safety or exposing them to unwanted attention.

How to Prepare Your Store for Discreet Shipping

Preparing for discreet shipping can be accomplished in a few steps:

• Create an option for discreet shipping at checkout: Make sure customers can choose discreet shipping. This could be a simple checkbox or a drop-down menu where customers can select the type of shipping they prefer.
• Use plain packaging: Use simple, unmarked packaging for discreet shipping orders. Avoid company branding or logos; consider using plain brown or white boxes or envelopes.
• Remove identifying information: Remove any identifying information from the packaging, such as the company name or return address.
• Train employees: Train employees on the importance of discreet shipping and how to handle and package these orders properly.
• Communicate with customers: Communicate with customers about your discreet shipping policy and how you will handle their orders. This will help them understand what to expect and feel more confident in their purchase.
• Be aware of legal requirements: Be mindful of any legal requirements for shipping certain products, and make sure that your discreet shipping practices comply with these laws.
• Track and Monitor: Keep track and monitor the process of discreet shipping orders to ensure that everything is going well and to be able to resolve any issues that may arise.

Where Can You Buy Discreet Shipping Boxes?

With a range of options from packaging suppliers, online marketplaces, specialized shipping supply stores, and custom packaging companies available - there's no excuse not to go discreet when mailing out your items.

• Packaging suppliers: Packaging suppliers often offer plain, unmarked boxes that can be used for discreet shipping. Your packaging can also be custom printed without branding.
• Online marketplaces: Online marketplaces such as Amazon and Alibaba sell plain, unmarked boxes that can be used to ship discreetly.
• Shipping Supply Stores: A shipping supplies store like Uline or Packaging Supplies By Mail typically stocks plain, unmarked boxes that can be used for discreet shipping.
• Custom Packaging companies: A custom packaging company can also create plain packaging tailored to the specific size and shape needed without branding.

Many eCommerce platforms, such as Shopify, BigCommerce, and WooCommerce, offer discreet shipping add-ons, which you can integrate into your store's checkout process. The add-ons also allow you to choose plain packaging from the options available.

Benefits & Barriers Of Being Subtle

The subtlety of discreet shipping has the following benefits:

Discreet shipping provides an invaluable service, benefiting both customers and businesses alike. It ensures privacy when ordering sensitive items and avoids potential embarrassment for consumers; all while protecting companies' branding assets. Furthermore, proactive security measures are implemented to ensure packages arrive safely at their destinations - making discreet shipping a win-win solution in many situations.

Some barriers to discreet shipping include the following:

However, for some products and services, opting for discreet shipping may not be the right choice. Extra charges such as packaging costs, labor fees, and additional shipping expenses are to be taken into account before settling on this mode of delivery.

Businesses must abide by all legal policies associated with their package contents in order to avoid any serious repercussions that could arise from improper compliance. With these various considerations at play when considering discreet shipment methods it behooves organizations to assess them thoroughly prior to making a decision about how they ship out goods

What Discreet Packaging Looks Like

Discreet packaging is outer packaging that typically looks plain and simple, often with no branding or identifying information on the outside. It may be a plain brown or white box or a plain envelope. The packaging may also be unmarked or have minimal labeling that does not reveal the contents of the package. It's also important to note that the package may not have any indication of the store or the sender. Instead, the return address may be a PO Box or a fake address. It might also have a generic label such as "shipping department" or "fulfillment center" instead of the company name.

Some examples of discreet packaging include:

• A plain brown box with no branding or identifying information on the outside.
• A plain white envelope with minimal labeling and no indication of the sender or contents.
• A plain box or envelope with a generic label such as "Shipping Department" or "Fulfillment Center" instead of the company name.
• A plain box or envelope with a return address that is a PO box or a fake address.

It's important to note that while discreet packaging may be plain and simple, it should still be sturdy and protect the package's contents during transit.

Discreet Packaging and the Unboxing Experience

Unboxing experiences can be influenced in several ways by discreet packaging. Certain brands can use minimalist packaging to create a clean aesthetic and create a sense of luxury as well as privacy and surprise once the package is opened.

At the same time, branding your outer packaging with logos or slogans can also enhance the unboxing experience for customers who recognize and associate with that brand. However, some customers may find that discreet packaging does not create an exciting unboxing experience if they are unaware of its purpose.

In general, discreet forms of packaging can have a positive or negative impact on the unboxing experience, depending on the customer's expectations and preferences. The seller needs to communicate their policy clearly and professionally so that customers know what to expect from their purchase.

Discreet Packaging Examples

Protect yourself from prying eyes with discreet shipping solutions! This secure system ensures sensitive goods such as medical supplies and lingerie are delivered to your doorstep without risk of judgment or embarrassing exposure. Some examples of items that are often sent discreetly are below.

1. Adult products: It is common for companies that sell adult products to use discreet shipping to protect their client's privacy.
2. CBD products: CBD companies often use discreet shipping to protect their products from theft and damage and comply with legal requirements.
3. Medical products: For patients' privacy and to prevent customs seizures, some medical devices require discreet shipping.
4. Beauty products: Some beauty companies use discrete shipping to protect their branding from being associated with certain products.
5. Pharmaceuticals: Pharmaceutical products are generally shipped discreetly to protect the privacy of their customers.
6. Vape products: In some instances, vaping companies use discreet shipping to prevent theft or damage to the package contents and to satisfy legal shipping requirements.
7. Luxury items: Shipping discreetly is a tool luxury brands use to protect high-value products by preventing theft and enhancing their customer experience.
8. Subscription boxes: In addition to protecting the contents of subscription boxes from theft or damage, some subscription box companies use discreet shipping to comply with shipping laws.

Discreet Packaging and Everyday Products

Traditional Discreet Shipping

Traditional discreet shipping means packaging and materials that don't explicitly show the inside contents, such as cardboard boxes, single-color paper, and generic labels. Businesses can take advantage of their local postal service's flat-rate unmarked boxes that provide quick shipment while keeping the package hidden.

To further conceal what is inside the box or for international shipments, companies might utilize a third-party logistics system (3PL) and list them as the sender and their return address if a customer isn’t satisfied. Adopting these traditional discreet shipping methods will help ensure confidential products stay private.

Hiding in Plain Sight

It may seem counterintuitive, but an essential aspect of discreet shipping is actually ensuring that your package doesn't stand out from the others. This has become easier with the rise of eCommerce and its plentiful packages sent out daily; if you're able to blend in with other parcels using similar materials, no one will be any wiser.

For instance, Amazon's particular box shapes and sizes can be replicated without their company logo, while mirroring the same type of broad tape they use will also help keep it under wraps. With a little effort and intelligent shopping, everyone can ship their goods anonymously without drawing attention to them.

USPS Discreet Shipping

USPS Discreet Mail Service provides a secure shipping and delivery policy to ensure customer satisfaction. They track the order from start to finish, and customers can have their package delivered to a USPS PO Box for an added level of security.

Customers can place an order with their local USPS Discreet Mail Service office to request discreet service and choose from three available shipping services - USPS Priority Mail, Retail Ground, or Priority Mail Express. This reliable mail service is dedicated to providing customers with fast, secure, and discreet delivery of their packages.

FedEx Discreet Shipping

FedEx offers discreet shipping services at no additional cost to ship to their customers, delivering packages in plain boxes with only the company logo. The delivery person follows a strict courier policy, assessing overall environmental conditions and re-attempting delivery if they deem it unsafe.

Whether you need your package overnight or two days later, FedEx provides three services: Ground, First Overnight, and 2 Day. These options guarantee secure and timely delivery while keeping privacy at its core.

Amazon Discreet Shipping

Amazon understands the value of protecting customers' privacy and has created a discreet shipping policy that ensures all items are shipped with only their brand name on the box. The policy guarantees that all packages will be contained in unmarked boxes, with no indication of what is inside. Perfect for occasions when someone is sending or receiving gifts such as toys and musical instruments, sensitive electronics, and accessories, or expensive gadgets and laptops.

Discreet International Shipping

When shipping goods internationally, it's important to ensure that the correct paperwork is in place and all relevant information has been provided. Failure to do so can result in expensive customs fees or even the seizure of shipped items. Using generic packaging materials for international orders should be sufficient; however, attempting to hide contents from authorities can lead to serious consequences. Additionally, if customers request you mark a package as a "gift" or something else in an attempt to avoid taxation concerns - this too needs special consideration on the part of sellers before agreeing which could potentially put their business at risk!

Key Takeaways

1. Discreet shipping is used to protect customers' privacy by not revealing the contents of the package. It is typically used for sensitive or personal items such as adult products, CBD products, medical products, beauty products, pharmaceuticals, vape products, high-value items, and subscription boxes.
2. Discreet packaging typically looks plain and simple, often with no branding or identifying information on the outside. It may be a plain brown or white box or a plain envelope. The packaging may also be unmarked or have minimal labeling that does not reveal the contents of the package.
3. Discreet packaging can affect the unboxing experience in several ways. It can make customers less excited to receive the package. However, brands can take the opportunity to spend money on the branding of the box’s contents instead of the packaging itself.
4. Businesses may choose to use discreet shipping for various reasons, such as protecting their brand, protecting the privacy of their customers, and complying with legal requirements.
5. The seller needs to communicate clearly and honestly with the customers about the discreet packaging policy and how it will affect the unboxing experience.
6. Different types of discreet packaging are available, such as plain brown boxes, plain white boxes, plain mailing envelopes, Jiffy bags, bubble wrap envelopes, and custom-made plain packaging.
7. The specific packaging used may vary depending on the item being shipped and the needs of the business or customer.
8. It's important to note that while the external packaging design may be plain and simple, it should still be sturdy and able to protect the contents of the package during transit.

Discreet Shipping FAQs

Is Amazon Discreet With Shipping?

The company ensures that no one can see what's inside the package or even know to whom it's addressed before it gets delivered. No labels on the outside of the box give away its contents. However, some items sold and shipped through third-party sellers may not be as well-packaged, so if you're concerned about your privacy, check this before making a purchase.

How Do I Discreetly Receive a Package?

Most retailers and online stores offer discreet shipping during the checkout process. It is common for courier companies to provide this type of confidential shipping service at no extra charge to their customers. As a result, porch theft can be prevented, and customers' privacy can be protected.

Customers who want their orders delivered to a PO Box rather than a residence can request that service. A return address must be provided by the customer for this method. However, customers can request in-house delivery while still maintaining anonymity.

How to Ship Anonymously

Companies looking to provide a secure and confidential shipment of their products can take advantage of traditional discreet shipping methods. This includes using packaging materials such as cardboard boxes, single-color paper, generic packaging, and labels or utilizing the local postal service's flat-rate unmarked boxes for quick delivery that keep the contents hidden. Companies may also wish to employ third-party logistics systems with return addresses if customers are not satisfied - all helping ensure confidentiality is maintained throughout transit and arrival.

Is Discreet Shipping Legal?

Discreet shipping is generally legal, as it simply refers to packaging items in a way that hides their contents from view. However, it's important that the contents comply with all applicable laws. Shipping prohibited or illegal items under the guise of discretion would still be against the law, regardless of the packaging.

How 2-Day Shipping Works and Why You Should Offer It

Today’s shoppers want the convenience of buying online with the gratification of getting their orders ASAP. And you can’t blame them. Giants like Amazon and Walmart have set the norm for the eCommerce industry by offering their customers two-day and even same-day shipping options.

As a small retailer, you risk losing your customers if you can’t guarantee their ‘inalienable right’ to expedited delivery. Studies have shown that 26% of online shoppers abandon their carts due to slow shipping, and 53% consider delivery time an essential factor when evaluating their orders.

The most intriguing part of the puzzle is that customers expect expedited shipping but still crave free deliveries, with 75% of U.S. shoppers expecting free shipping. Considering their lower order volume and lack of fulfillment infrastructure, the big question is, can small businesses compete with the giants?

Well, the answer isn’t straightforward. But we can tell you it’s not impossible. In this article, we let you in on the most important things you need to know about two-day shipping and how you can offer it to your customers.

What Does 2-Day Shipping Mean?

When you offer two-day shipping, you deliver consumer purchases within two days of the order. Today’s online consumers tend to be impatient, so two-day shipping is essential to your eCommerce strategy.

The Benefits of 2-Day Delivery

How can you benefit from two-day deliveries? Here are some ways two-day delivery can provide a business advantage:

Meet Customer Expectations and Boost Loyalty

Many customers expect two-day shipping ability from all online businesses thanks to Amazon. Whether you like it or not, two-day shipping is a must. If customers don’t receive their items within two days, they may not return to your business again.

On the flip side, consistently delivering within two days shows that you’re a reliable online business. If you keep fulfilling your two-day delivery promises, customers are more likely to continue shopping at your business.

Reduce Lost Sales and Cart Abandonment

There's something undeniably thrilling about waiting for a package to arrive in the mail, especially when it comes to last-minute holiday gifts or items that just can't wait. We've all experienced that sense of urgency, and it's no wonder that slow delivery speeds can be a deal breaker for many eCommerce platform users.

In fact, a snail-paced shipping process can lead to customers abandoning their carts, causing businesses to lose out on potential sales. However, the simple solution of offering two-day delivery can work wonders. This speedy promise not only eases the minds of those eager customers but also makes them much more likely to hit that "purchase" button, knowing that their precious items will be in their hands in just a few days.

Gain Another Selling Point

Fast shipping speed is marketable. If you promise two-day delivery and consistently fulfill it, you can make it a selling point. Writing something like “free two-day delivery” on your marketing materials can attract attention and increase clicks. More clicks mean more people visit your online store, potentially increasing your sales.

How Does 2-Day Shipping Work?

Depending on the seller, two-day delivery can be two business days or two full days. And the time can start counting from either the order cutoff time or the checkout time.

For example, Walmart uses two business days and an order cutoff time model. So, if a buyer places an order after the cutoff time on Friday, they can expect to receive it on or before Tuesday since Saturday and Sunday are not business days. On the other hand, some other companies start counting the days once the order is packed, not minding whether it’s a business day.

Whichever the model, deliveries eligible for two-day shipping usually vary between two shipping methods: air and ground. Each shipping method has different advantages and disadvantages, so let’s dive in:

Air Shipping

Air shipping entails using an airplane or jet to transport packages from the warehouse or fulfillment center to the customer. It’s mainly used for international shipping or shipping to customers far from fulfillment centers. Of course, airborne shipping costs can be pretty steep, making it almost impossible to offer free two-day shipping to customers.

Ground Shipping

Ground shipping uses vans, trucks, or cars to move orders from the fulfillment center to the customer’s doorstep. You may use your delivery vehicles or rely on an external shipping carrier, depending on your logistics approach. Ground shipping is easily the cheapest delivery model, and you can offer free two-day delivery without hurting your bottom line.

It's a harsh reality for many businesses that ground shipping isn't suitable for delivering orders to remote areas far from fulfillment hubs. If you don’t have fulfillment centers spread across many regions, offering 2-day delivery via ground shipping can be next to impossible.

How 2-Day Shipping Grows eCommerce Businesses

A report from EtailInsights revealed that there are 2.1 million online retailers in the United States alone, and this number is expected to grow in the coming years. If anything, this stat tells you that eCommerce businesses have become just as competitive as brick-and-mortar retail, if not more. You’ll need to stay on top of your game to thrive in the space as a business owner. Here are a few ways two-day shipping can boost your eCommerce business:

Keep up With Shoppers’ Expectations

On average, online customers feel three days is an acceptable waiting time for an order. Once your delivery time exceeds three days, your customers will likely leave you for businesses that offer faster delivery. However, you’ll have a better chance of retaining your customers and expanding your customer base if you offer two-day shipping.

Improve Conversion Rates and Make More Sales

Your ads become more attention-grabbing if you include a promise of expedited shipping. Add tags and banners to all your ad copy, including emails, paid ads, and social media posts. When you do this, get ready for a considerably improved conversion rate and more sales.

Get Better Retention Rates

Customers who get their orders on time will likely make a repeat purchase. Moreover, you can offer 2-day shipping as part of a paid membership program like Amazon Prime to offset the costs of faster deliveries.

Stop Losing Sales to Amazon

Many online shoppers now regard Amazon’s free two-day shipping as standard. According to Metapack’s report, 27% of shoppers will choose the retailer with the best delivery option. Unless you sell an exclusive product, you’ll likely lose customers to the eCommerce giants.

Should You Offer 2-Day Shipping?

Yes, offering two-day shipping to as many customers as possible would be best. It’s the easiest way to reduce cart abandonment and order cancellation rates. However, two-day shipping for all orders can be detrimental to business, especially if you plan to keep the shipping costs low.

If expedited delivery costs are too high, you can offer two-day shipping alongside other options and leave the decision to the customer. Another helpful strategy is restricting the service to a select group of customers like Amazon Prime.

Typically, How Much Is 2-Day Shipping?

The cost of shipping within two days depends on several factors. Here are some things that affect the price of a 2-day shipping program.

• Type and amount of mailable items you are shipping
• Peak period on the delivery calendar
• Time and day delivery shipments are scheduled
• Delivery carrier and service used
• Zip code for the location of origin
• Zip code and destination addresses
• Dimensional weight
• Package characteristics (e.g., hazardous materials, fragile items)

Also, note that the cost that a seller charges customers for two-day shipping can vary because of factors like fulfillment fees and channel costs.

Fulfillment fees are the cost that a company or individual seller may incur for packing, processing orders, stocking inventory, and shipping. These fulfillment fees, in turn, can also vary based on pricing models, orders placed, and additional services like individual packaging.

This explains why when you order an item for two-day shipping from an online marketplace, the cost may be more or less than ordering the same item directly from the item manufacturer’s site.

How to Keep 2-Day Shipping Costs Low

Two-day shipping doesn’t come without extra costs. If you’re not careful, you could lose all the gains you’ll make from offering two-day shipping if the costs eat too deep into your bottom line. And transferring the total cost to customers isn’t a viable option. As mentioned earlier, your customers want their delivery fast and free! The best you can do is to keep the shipping cost as low as possible. Here are some tips that can help:

Use Ground Shipping

Ground shipping is the easiest way to keep shipping costs low while delivering fast. However, it can only work if the fulfillment center is close to the customer. It's essential to know your customers well. That way, choosing locations near them will be a breeze and save you money in the long run. You could even offer one-day or overnight shipping to customers living closer to your fulfillment center.

Offer 2-day Shipping to Customers on a Membership Plan

Even with Amazon’s logistics prowess, only Amazon Prime members enjoy guaranteed two-day shipping. You can also work on a similar model for your eCommerce business. When you offer this perk to customers on a membership plan, more customers are likely to join, and the subscription cost may offset some shipping costs.

Leverage Distributed Warehouses

Operating from just one warehouse or fulfillment center will severely restrict your two-day delivery capabilities. If you cannot manage multiple fulfillment centers, you should consider partnering with a 3PL company. You’ll be reducing the transit time of customers’ orders and ensuring faster delivery.

Examples of 2-Day Shipping Options

Below are a few shipping methods you can use if you’re planning to start two-day shipping:

DIY: Negotiate Shipping Discounts With Carriers

If you handle fulfillment in-house, you’ll have to take the goods to your preferred carrier. The top carriers, such as FedEx and USPS, have two-day shipping plans you can subscribe to. If your business is big enough, you could even get them to pick the packages up from your warehouse with shipping discounts.

Outsourced: Partnering With a 3PL

Online sellers that choose this option store their inventory at the third-party logistics company’s fulfillment center, and the company ensures it’s shipped on time. This arrangement allows sellers to leverage distributed warehouses and reduce shipping costs. You get to retain customer information since all orders will pass through.

Best Shipping Options for Small Businesses

If you’re a small business looking for affordable, fast shipping providers, these are some of the best options you can choose from.

USPS

If you’re considering going for flat-rate shipping, USPS has pre-made boxes in sizes ranging from small to large, each with a different price. If your items fit the pre-made boxes, you may consider offering them as a parcel service option.

Because of its pre-made box fees, flat-rate shipping through USPS will also help you accurately estimate your shipping prices ahead of time. This means you won’t be surprised by extra fees and end up losing money.

USPS is also a top choice for those doing in-house fulfillment for their orders. If you have small order volumes, USPS offers the best value for money as a shipping option. Some services like Priority Mail Express have a money-back guarantee if your products don’t arrive on time.

USPS offers free pickup services from your home or office, with tracking services and up to $50 insurance for most parcels. There are also no surcharges for Saturday deliveries, rural or resident deliveries, or fuel.

UPS

For small businesses sending large packages that weigh 70 pounds or more, UPS is the most cost-effective option. Unlike USPS, this is because it doesn’t have a size limit for its services.

UPS can pick up your package from your office or warehouse for an additional fee. It also has two-day and three-day delivery shipments, guaranteed day ground delivery, and international shipping services to over 220 countries and territories.

DHL

While DHL is smaller than UPS, FedEx, and USPS, it’s one of the best options for international shipping. DHL can ship your customers’ orders to 220 countries and territories. It also has an easy-to-use quote calculator that can help you choose the best shipping rate and delivery times for orders, depending on your chosen service.

DHL typically estimates costs based on the destination country and your items’ dimensional weight. Fragile or costly items can get either cargo or freight shipping insurance, depending on which applies to the order. For those needing help with customs clearance, DHL also has brokerage offices worldwide.

FedEx

Do your customers need 1-3 delivery speeds? FedEx is one of the most reliable choices for businesses where prime delivery speeds are the highest priority. FedEx has overnight shipping, same-day shipping for cross-country deliveries, and two to three-day shipping.

FedEx Express may have fewer locations than UPS, but it’s still reasonably easy to find a location for dropping off shipments. FedEx Express also offers priority international deliveries, tracking, and insurance for shipments up to $100. This gives international customers the peace of mind to place orders from your small business.

2-Day Shipping FAQs

Below are answers to some frequently asked questions about two-day shipping:

What is second-day shipping?

Second-day shipping is when a company or seller ships the order within two days of it being placed. It is different from second-day delivery, which means that the order must reach the customer within two days of being placed.

Note that this should also be distinct from 2-day shipping, which typically means the order should reach the customer within two business days of shipment out of the fulfillment center.

Is 2-day shipping actually two days?

2-day shipping doesn’t mean the customer will receive the package within 48 hours of placing the order – instead, it means they’ll receive it within two business days once the item is shipped to them.

For instance, fulfillment center workers must pick, pack and label an order before it’s ready for shipping. So, if the customer places the order late, it may not be possible to ship the order on that day. In such cases, the two days will start counting the next day. For companies that work only on weekdays, the two days will not begin counting until Monday if the order is placed on Friday evening.

If the seller drops off the package at the post office, two-day shipping will mean two days after the seller drops off the package. In some contexts, two-day shipping may suggest that the seller will get the order in the mail within two days. If you’re ever in doubt, you should ask your seller or service provider to explain their interpretation of two-day shipping.

What is the Amazon Prime Effect?

The Amazon Prime Effect refers to the two-day shipping service that most online customers now expect. Amazon set the expedited delivery standard via its Amazon Prime service. Prime customers typically get their goods within two days of placing the order.

Is 2-day shipping guaranteed?

Two-day shipping isn’t always guaranteed because it hinges on many factors, including the shipping carrier, days of operation, cutoff time, weather, and additional factors. Many online sellers only use two days as a delivery estimate. However, some sellers are bold enough to provide a money-back guarantee if your order does not arrive within two days.

Even in cases where the seller provides a money-back guarantee, they still leave room for mishaps such as missing or stolen packages or lousy weather. You shouldn’t hastily provide guarantees around two-day shipping as an online seller. However, you should try to uphold your promises as much as possible.

What is the benefit of offering free 2-day shipping?

The main benefit of offering free two-day shipping is attracting many customers. However, you should know someone will have to pay for the free shipping and supplies, and that person is you.

If it doesn’t make sense for your margins, you could be better off dropping the idea. Or, better still, offer it to a small subset of customers that may exceed a minimum purchase threshold or have subscribed to a particular service.

How to Offer 2-Day Shipping

Most small businesses need help handling the complexities of order fulfillment and expedited shipping. Thus, outsourcing your fulfillment services to a specialist company or another company with great logistics prowess makes excellent sense. Below are a few outsourcing options you can consider.

Fulfillment by Amazon (FBA)

Fulfillment By Amazon is available to a select group of Amazon sellers. To become FBA-eligible, you have to meet some preset criteria. Once you meet the requirements, your customers can expect guaranteed two-day shipping and could even upgrade to one-day shipping for a small fee.

The downside to Amazon FBA is that the service is only available for orders placed on the Amazon marketplace. Unfortunately, you won’t have the contact information to remarket to your customers. Amazon could even use your order information to build competing products; there’s nothing you can do about it.

Furthermore, you’ll incur considerable seller fees, despite Amazon using its branded packages for shipping. In essence, you have little control over the customer experience, and shoppers are likely to remember that they bought the item from Amazon than from you. In summary, it’s not a great option to boost brand visibility.

ShipHero

ShipHero is a third-party logistics (3PL) company with fulfillment centers nationwide, lowering last-mile delivery costs. We help sellers fulfill orders from business websites, third-party marketplaces, and other sales channels.

When you partner with ShipHero, you’ll get guaranteed two-day shipping that doesn’t come with all the negatives of FBA. You’re also likely to pay less on deliveries, and you can distribute your inventory across the numerous fulfillment centers in the country to save on shipping costs. If you want to scale your fulfillment operations and gain access to powerful 3PL software without breaking the bank, there’s hardly any better option than partnering with ShipHero.

Stay Competitive

Offering fast and cheap delivery options is now central to attracting and retaining online customers. Unfortunately, many small businesses don’t have the logistics capabilities necessary to match the expedited delivery services provided by eCommerce giants like Amazon, Walmart, and eBay.

Outsourcing your fulfillment needs to a 3PL company is the best way to remain competitive. If you can partner with the right logistics company, you can offer guaranteed two-day shipping and enjoy all the benefits of it.

Maximizing the efficiency of your warehouse processes is good for business on so many levels. It helps warehouse workers fulfill more customer orders successfully during a single shift. It also enables inventory control which leads to fewer product losses through damages or expiration. Proper inventory management enables you to be on time with replenishment, reducing customer wait times and improving customer satisfaction.

What Is Warehouse Inventory Management?

Warehouse inventory management is an important part of warehouse operations. It is the process by which you keep track of the inflow, outflow, storage, condition, and location of goods in warehouses. Sophisticated warehouse management software enables you to manage inventory tracking in large warehouses, or even to manage two or more warehouses in which your company stores its stock.

How Do Warehouse Inventory Management Systems Work?

Warehouse management systems respond when you scan the SKUs on individual products during warehouse picking. They also keep track of the items you are adding to your stock with each new delivery that the warehouse receives. The employees must simply scan an item, and the system will tell them where to put it. When they pick an item for delivery, the software will also alert them of diminishing stock levels and let them know when it is time to contact the supplier to restock that item.

Why Is Warehouse Inventory Management Important?

Warehouse management increases the velocity of the supply chain, helping all the businesses involved in the sales and delivery of the goods to profit. It is an essential component of supply chain logistics. By relying on automation technology, warehouse management software reduces the risk of human error, as well as health hazards in the workplace. Warehouse management efficiency enables goods of any size, shape, or seasonality to get from the vendor to the customer without expiring or getting damaged.

Boosts Warehouse Productivity

Any warehouse has only a limited amount of space, and each employee only has so much time in one workday. Organization and efficiency make all the difference in how much productivity you can get from your warehouse and your workers. The dashboard on an employee’s handheld device will give the employee clear instructions about what to do next with each article he or she picks and give an idea of the big picture about the article’s journey to the customer. The various tools and functions of the software will help employees troubleshoot issues quickly so that they can fulfill their orders quickly.

Improves Order Fulfillment Accuracy

It takes a long time for an employee to look at every item on a shelf until he or she finds the right one, or for an employee to scan the barcode of every identical box on the shelf until the correct item is located. Warehouse management software includes instant reporting methods that show the employee where to go and which items to pick. The employees do not have to verify each serial number by hand. With automated guidance, it is easy for employees to find the correct items, even if the items do not have high visibility.

Increases Customer Satisfaction

Not only does efficient warehouse management make the jobs of warehouse employees easier, but it also improves customer satisfaction. Warehouse management software provides insights about where to store the most sought-after items for easy access and when stock levels are getting low enough for a restock. It also allows you to keep tabs on new deliveries as they approach your warehouse, so you can give customers a realistic estimate of when their orders will arrive. Therefore, customers do not have to worry about their items arriving late because the requested item was out of stock.

Faster Shipping and Deliveries

Without warehouse inventory management software, it is very difficult to manage a large number of items and process them quickly. Warehouses that deal in a high volume of goods need automation to enable them to receive goods and ship orders without delays, to keep the supply chain moving efficiently.

Saves You Money

Warehouse management software can do in minutes what it would take an entire team of warehouse managers and employees several days to do. Inventory management technology enables you to free up time for your employees to do the things that only humans can do. It also enables them to have accurate and up-to-date information at their fingertips. By reducing delays and mixups, warehouse inventory management helps businesses of all sizes save time and money.

Warehouse Inventory Management Best Practices

Even with the world’s greatest warehouse inventory management software, you still need a trustworthy warehouse manager to make executive decisions about the warehouse and its inventory. Likewise, a warehouse is only as efficient as its layout, so you should carefully plan the layout of your warehouse before making decisions about inventory management. After that, you should decide how the workflow should go and then engage your warehouse management software to implement it.

How to Implement Warehouse Inventory Management?

Warehouse inventory management is a multi-step process. Once the workflow gets going, your automated warehouse management technology can make it go smoothly and efficiently, but first, you need to do some preliminary planning and setup.

Determine the Warehouse Layout

No two warehouses are alike, so you should choose the warehouse layout that works best for your company. Think about which items need the most visibility and about how much your stock changes based on seasonality. Also, think about how easy it should be for people or vehicles to access the various areas of the warehouse.

Establish a Workflow

Just as every warehouse has its own ideal layout, every warehouse has its own ideal workflow. You can rely on data to inform your decisions about workflow, but human warehouse managers should have the final decision about how the workflow in the warehouse should go.

Appoint a Warehouse Manager

Even if your warehouse management software can keep track of the workflow at multiple warehouses at the same time, you should still appoint a warehouse manager for each warehouse. A human manager can detect issues that software cannot, and only a human being can manage interpersonal conflict among warehouse employees and other stakeholders.

Implement Warehouse Inventory Management Software

Once you choose a warehouse management software to implement your inventory management system, everyone’s work at the warehouse will get easier. Getting used to any new software is a learning process, though. Build time into your schedule to train the warehouse employees on how to use the new warehouse inventory management software.

Key Takeaways

Your e-commerce business can thrive with the help of automated warehouse management. The right layout and the right warehouse management software can help your company be more productive and operate more efficiently.

Warehouse Inventory Management FAQs

These are some frequently asked questions about warehouse inventory management:

What Are the Types of Inventory?

Across industries, inventory tends to fall into four categories, namely raw materials, work in progress (WIP), finished products, and maintenance, repair, and overhaul (MRO). Each type of inventory requires a different warehouse layout. Warehouse management software can help you manage all four types of inventory in different warehouses.

What Are the Main Steps in Inventory Management?

The first step in inventory management is to appoint a warehouse manager. Next, you must determine the appropriate layout for your warehouse, as well as its appropriate workflow. Then you are ready to choose a warehouse management software to automate the process. Once your workflow has started, you can replenish the inventory according to a schedule or on an as-needed basis.

What Is the Inventory Formula?

The inventory formula is (cost of goods sold plus ending inventory) minus purchases. It may seem like a simple mathematical formula since it only requires addition and subtraction, but it is much easier to do with the help of inventory management software.

Periodically conducting an inventory audit is an important part of effectively managing an eCommerce business. During an inventory audit, financial records are double-checked against inventory records which is a good way to make sure records are accurate. This may uncover possible issues such as damaged or missing items.

An eCommerce business may perform an inventory audit at any time to check inventory on hand in order to get a better idea of where things stand. Businesses may choose to audit all or part of their inventory periodically. Regular inventory audits can help prevent inventory shrinkage and can identify issues such as SKUs that are consistently off.

How Often Does an Inventory Audit Need to Be Done?

An inventory audit should be done at least annually. An inventory auditor may engage in a variety of inventory audit procedures to confirm that the amount stated as inventory is accurate. An annual audit may be done each year for tax purposes or it may be done to get a clear idea of what products are on hand and when they need to be restocked. An inventory auditor may be someone on staff or a third party from an outside auditing company.

What Methods are Used to Verify Inventory?

To describe methods used to verify inventory, it’s a good idea to start with your inventory audit objectives. Every inventory audit includes counts of inventory and data analysis and is a way to check inventory to ensure it matches the information within your automation system. Examples of methods that may be used to verify inventory include:

Full Audit

This method involves counting all items in stock, which may be time-consuming. To obtain accurate results from this method, you’ll need to pause the actions of your business while the count takes place. Cutoff testing ensures that nothing goes in or out of the storage areas while the inventory audit is done. This means operations such as shipping and receiving are paused.

Cycle Count

Using this method, you cycle through part of your inventory based on SKU. Selected products are audited each cycle rather than auditing the entire inventory at once. One way to divide inventory for partial auditing is by using ABC analysis. This means grouping items by value such as “A” products are high-value items, “B” products are mid-tier and category “C” consists of the lowest value products.

ShipHero has a cycle count feature that makes it super easy to execute this inventory method. Check out this video to find out more.

Spot Check Inventory

Another approach is to periodically do a physical inventory of just a few items. Regular spot checks may make it unnecessary to do an audit of your entire inventory very often which may be the best option for large companies with a large number of items in stock.

A partial inventory count may be done periodically to make sure items counted match inventory records, and if they don’t match, a full audit may be done. An eCommerce business must consider not only stock that’s on shelves but also stock that’s in transit to and from the fulfillment center.

Inventory Auditing Best Practices

Accurately tracking the value of your inventory helps you to budget for future inventory decisions. Auditing inventory can be time-consuming but devices like barcode scanners can help track inventory electronically. Point-of-sale tracking using SKUs allows for real-time tracking of inventory balances keeping inventory counts up to date and providing important information on what stock needs to be replenished.

Warehouse audit best practices include auditing items in the warehouse and reviewing the effectiveness of warehouse processes. This includes determining whether warehouse operations are complying with safety standards and policies. Having two people count each item and checking that their numbers match is a good way to improve accuracy.

What is an Inventory Findings Report?

Once an inventory audit is completed, an inventory findings report is done to provide detailed information on the value of your inventory which offers clarity on inventory accounting. This report can identify operational errors, help identify any inefficiencies in current inventory procedures and provides information needed to make budgeting decisions such as deciding whether to discontinue certain items that may have a surplus or it can provide insights into where funds could be redirected. Routine inventory audits provide one of the best ways to optimize inventory control.

Does Your eCommerce Business Need to do an Inventory Audit?

If your eCommerce business is small, you may think inventory audits aren’t yet needed, but audits can be beneficial whether your business is large or small. Performing regular inventory checks helps you implement good inventory management practices that will continue to benefit your company as it grows.

When you’re running an eCommerce business, effective inventory management helps you to have a handle on the size and condition of your inventory. Regular audits enable you to make sure that you have what you think you have in stock, and that you have enough inventory without having too much. When you know exactly what’s in stock and where it is, your business will run more smoothly and efficiently for your staff so that they can better serve your clients.

If you’re lucky enough to build out a successful and enduring SaaS product, chances are you’ll have to deal with technical scaling issues.  

An advantage of being in the eCommerce fulfillment space is that large spikes in usage are usually predictable and can be planned for (with a notable exception: pandemics!), so while there are a few spikes throughout the year, there’s one everyone in the space is well aware of: Black Friday & Cyber Monday (Peak Season). From late November up until a day or two before Christmas, usage of our systems spikes by 2-5x.

For ShipHero’s use case, the real-time pressure on our systems is applied from people working at the warehouses and not end-users shopping from their homes (we get hit with that as well, but it comes in at different times so that we can control the flow). We have an advantage over most systems: physical space limits how much can be done simultaneously. You can only fit so many more people in the same warehouse during peak season.

So, how do we avoid having your systems break when they get several times more than their regular traffic? Well, there are a few things we do:

We Break it Ourselves Ahead of Time

We look at spikes in usage throughout the year, use our peakiest days as a reference, and target to comfortably do 2-3x that amount of traffic comfortably. We do that by artificially sending traffic to a non-production set of services, applying pressure to them, and tracking key performance metrics for the service (primarily, ensuring the servers remain healthy and response times don’t suffer).

If something breaks, we know where we have some work to do, and if it works, we go back and apply more pressure until it fails. We want to know when it’s likely to break and how. This is a relatively common practice known as “load testing.”

We also do something often overlooked but have caught issues more than load testing: we scale up our existing production infrastructure beyond what we think we’ll need. So, for example, if we’re usually running 100 AWS EC2 instances for a service at peak hours of the day, we slowly spin up more until we get 500 EC2 instances, all of which process real production customer requests.

If it goes well, customers get a slight performance improvement that day, and we burn through some money. However, when you add capacity, you start to hit service limits that aren’t related to load, the most common ones being the number of concurrent connections to databases and AWS default limits. So what we’d sometimes find is we need to request more IP addresses or a higher quota of elastic load balancer, both specific things to do ahead of time but very stressful and disruptive when in the middle of heavy usage.

We’ve also found that we can continue adding servers, but there are too many concurrent connections to a database at some point, and adding more just flat-out breaks everything.

No Big Changes leading up to Peak Season

What use is stress-testing a system if you make significant changes afterward? Because most of the stress during the busy system is with the humans at the warehouses, we ensure we don’t make any substantial changes to our system after we try to break it. This means no database version upgrades, performance improvements, or new features. With complex systems, it gets tough to predict how even small changes might affect other parts, so we carefully consider any changes in the 6-8 weeks ahead of Black Friday.

We change as little as possible during Peak Season

We make very few meaningful changes ahead of the busy season. We make fewer changes during the most active month. We froze our codebase for a few years and didn’t allow deployments to production. It was a great way to ensure no unexpected changes, but it had the side-effect of accumulating bug fixes and minor improvements for a month or two, which isn’t ideal.

So in 2022 and again this year, we’ve switched to setting an exceptionally high bar to land and roll out any code, but not a complete freeze. That means we expect every single code being produced to have an exhaustive amount of automated tests, manual QA, and a code review by at least two people where one of them is the domain expert, and make all the people involved in the process co-responsible for how it affects production. In practice, it can take a week to roll out something that usually takes hours, but we’re ok with that for a month out of the year. Productivity goes down by a ridiculous amount, but in return, we get productive customers at a time of the year when everyone’s heads down trying to get packages out the door.

We do other things at the organizational level, like having engineers on-call 24/7 to respond to incidents within minutes and hopefully get ahead of any issues before anyone notices.

It’s something we’re constantly improving, we’ve had years of exceptional reliability during peak season, and the only way to keep it that way is to keep making internal processes better all the time.

Martin Albisetti, ShipHero Vice President of Engineering

Are your outbound shipping costs eating your 3PL’s profits? Today, we will cover five critical factors affecting your shipping costs and provide actionable tips to help you reduce them. We'll give insights on everything from delivery speed to special handling fees to ensure you make operational decisions that save time and money.

Factor 1 | Weight and Zone

For products shipped domestically within the US, two key factors come into play: the destination zone and the package's weight.

Zone

Carriers have established nine zones across the US, with the origin address as Zone 1. Your shipping fees increase as your package moves further from its origin. Here are the current zones with their mileage differences from the source.

• Zone 1: 1-50 miles
• Zone 2: 51-150 miles
• Zone 3: 151-300 miles
• Zone 4: 301-600 miles
• Zone 5: 601-1000 miles
• Zone 6: 1001-1400 miles
• Zone 7: 1401-1800 miles
• Zone 8: 1801 miles or greater
• Zone 9: US territories & APO or FPO addresses

Weight

When it comes to shipping packages, weight matters, it's a simple concept: the heavier the package, the more you'll have to pay to get it where it needs to go. But it's not just about weight; the package's dimensions also play a significant role.

It’s a tricky balance - you want your package to be the right size to hold your products but not so large that it triggers DIM weight surcharges. Investing in a packaging design strategy is worth the time to determine the optimal package size and weight to avoid unnecessary expenses. It's a small step that can significantly impact your bottom line.

Shipping Calculators by Carrier:

• USPS: Shipping Calculator
• Canada Post: Shipping Calculator
• FedEx: Shipping Calculator
• UPS: Shipping Calculator

International

If you're not taking advantage of duty relief programs for international shipping, you're leaving money on the table. The numbers don't lie - Section 321 alone can save you up to 20% on duty fees, and that's a significant amount. So, what exactly is Section 321 all about?

Section 321 of the Trade Facilitation and Trade Enforcement Act has revolutionized the eCommerce shipping costs for shippers from Canada or Mexico sending goods into the U.S. to individual customers. With tax and duty exemptions, faster clearance, and reduced paperwork, shippers have remarkable advantages at their fingertips.

Section 321's duty-free entry for goods valued at $800 USD per person per day is a smart way for businesses to grow, as it offers savings for brands looking to get their items to American consumers. While certain products are restricted, these regulations should not deter businesses from enjoying the benefits Section 321 can bring.

Factor 2 | Delivery Speed

The persistent and aggressive growth in eCommerce demands a seamless process to satisfy customers’ needs, and delivery speed is an essential aspect of any business that hopes to keep up with customer demands in today's marketplace.

‍Margin integrity is crucial if you want to stay profitable. At ShipHero, we understand that maintaining a delicate balance between cost and delivery speed is essential for our margins to remain healthy. It hasn't been an easy process, and we've made our fair share of mistakes.

Nevertheless, we've learned that customers expect two-day delivery from Amazon but are generally willing to wait three to four days for other businesses. However, specific expectations, such as real-time tracking, still need to be met.‍

90% of customers want immediate updates and real-time order visibility. Adopting technological solutions can improve delivery experiences and lower consumer inquiries.

‍32% of global shoppers will abandon their carts if an estimated shipping time is too long. Rising standards are forcing 3PLs and carriers to reevaluate traditional distribution models.

Fulfillment Trends

Get ahead of the trend by utilizing micro-fulfillment centers (MCFs) to cut delivery times. MCFs are strategically placed in urban areas and stocked with popular products, making it easy for customers to pick up their online orders. This gives shippers the flexibility to meet rising consumer expectations promptly.

Although setting up these local centers can be challenging and pricey, it pays off in the long run by reducing shipping costs and providing an efficient and cost-effective service. Leading 3PL companies are already reaping the benefits of this strategy and improving their overall performance.

Last Mile Delivery

Last-mile delivery accounts for 53% of the total shipping cost, and 3PLs simply can't afford to miss the mark here. The final stage of the delivery process is where customer satisfaction and profitability are either made or broken. Unfortunately, too many managers responsible for supply chain and digital functions face significant challenges in this crucial area.

But fear not; there are solutions. By partnering with the right players, businesses can meet and exceed their customers' expectations while boosting their bottom line. That's why we offer Veho's efficient and cost-effective last-mile delivery solutions.

By prioritizing necessary orders and reducing failed deliveries, Veho can make money while delivering the high level of service customers deserve while saving your 3PL money on last-mile delivery.

Factor 3 | Warehouse Teams and the Packing Process

When it comes to the efficiency of a warehouse, it's essential to have a well-oiled team handling the packing process. After all, warehouse teams can make or break the whole operation. Here are some questions to ask yourself regarding your teams.

Are you investing in training your team?

Training is crucial for a proficient team, minimizing staff turnover, and boosting profits. It should cover SOPs, equipment handling, inventory management, customer order systems, and obtaining certification for specific tasks.

How efficient is your packing station?

Regularly assess your packing station's efficiency to identify areas for improvement and reduce labor costs. Implement one-touch stations and focus on ergonomic design and workflow to optimize productivity and reduce errors.

Are you optimizing your picking paths?

Optimizing your picking paths might be the key to unlocking higher profit margins for your business. It's simple – a slower picking process leads to increased picking costs, inevitably leading to higher product prices for your customers.

Are you using automation?

While a 95% to 98% order accuracy rate may seem reasonable, it still allows for a 2% margin of error or potentially even worse outcomes. These errors can result in significant financial losses for your warehouse.

Fortunately, implementing warehouse automation can reduce human error and improve inventory control. This will significantly enhance picking accuracy, bringing it closer to 100% and ultimately saving you money by reducing mistakes and mispicks.

Are you analyzing the correct data?

Measuring data is crucial to improve business operations. Knowing your warehouse's key performance indicators (KPIs) is essential. Collecting and analyzing the correct data identifies inefficiencies and avoidable expenses. You'll need to track everything from receiving through shipping to get a complete picture of your operations.

Here are a few KPIs to consider:

1. Inventory Days of Supply: The day's sales of inventory (DSI) is a financial ratio that indicates the average time, in days, that a company takes to turn its inventory, including goods that are a work in progress, into sales.

1. Parcel Bill Accuracy: Review your parcel bill charges regularly to avoid overcharging. Request detailed bills from carriers if you spot any errors. This information can be helpful when renewing shipping contracts.
2. Receiving Efficiency: This metric determines how well the receiving area performs overall. It is determined by the volume of inventory received/ number of hours worked. So, for example, you may receive 2000 goods per week and only have two employees at 40 hours each. So in this example, it would be 2000/80 = 25 goods per hour being processed.

1. Order Picking Accuracy: Accuracy in order picking is vital to ensure that orders are shipped correctly. Mistakes can be costly and time-consuming, so tracking this metric is crucial to keep customers happy and avoid the hassle of correcting errors.

1. Warehouse Capacity Utilization: Warehouse capacity means the space available to store things. Businesses need to use the area efficiently and save money on warehouse operations.To understand your warehouse capacity utilization, you can calculate it in a few easy steps. Ideal utilization is 80%, which is average to maximize your warehouse space. To calculate your warehouse's usable space:

• • Measure the total square footage, clearance height, and unusable areas (offices, bathrooms, break rooms).
  • Subtract the unusable square footage from the total to get the usable square footage.
  • Multiply it by the clearance height to obtain the usable volume in cubic feet.

Factor 4 | Special Handling Fees

As a shipper, you're no stranger to handling fees for hazardous materials and fragile items. But did you know that these fees can have both advantages and disadvantages? Let's take a closer look at how they can impact your bottom line.

Hazmat

• Revenue Generation: Shippers can generate extra revenue through Special Handling fees, which help cover the expenses of safely transporting fragile or hazardous items. These fees contribute to the overall profitability of the shipping industry.
• Risk Management: To transport hazardous and delicate items safely, shippers should charge special handling fees, conduct inspections, and employ trained personnel. Risk management practices are essential to ensure secure transportation.
• Competitive Advantage: Shipping companies specializing in hazardous and delicate items can become industry leaders by charging extra for their expertise. This draws customers seeking experienced shippers with a deep understanding of complex shipments.

Shipping hazmat and fragile items can be profitable, but shippers must address customer concerns and competition while complying with regulations.

Fragile

When it comes to shipping fragile items, there's no room for error. After all, damaged items don't just impact your bottom line - they can also significantly affect your reputation. That's why taking proactive steps is essential to ensure your items arrive at their destination in one piece. One way to do this is by enlisting the help of your special projects team to assemble kits or pre-assemble your items.

Factor 5 | Surcharges

Surcharges are a necessary evil in shipping and logistics, so they can be the bane of your bottom line if you're not careful. That's why it's essential to be informed and proactive about the different types of surcharges your product lines may encounter.

‍Navigating outbound shipping can be a complex and costly process for 3PL operators. Negotiating base rates with carriers is just the beginning; understanding accessorial charges and selecting the best base rate based on package specifications is key to mitigating costs. The challenge lies in the surcharges associated with specialized services, which can drive up costs and make it challenging to predict expenditures.

Additionally, general rate increases can significantly impact carrier base rates for 3PLs. However, the right approach and tools can reduce shipping expenses. By utilizing shipping cost strategies, analyzing costs, and planning, surcharges can be minimized.

How to Reduce Shipping Charges

Size and Weight

It is important to be mindful of shipping charges, as they can quickly add up and cut into your profits. One way to reduce these costs is by considering the size and weight of your parcels. Oversized boxes or improper packaging can result in higher fees. Look for carriers that offer the correct type of flat-rate shipping or the fees that make the most sense for you and your products.

Additionally, be aware of dim weight pricing (as we discussed at the top of this article), which considers the box's length, height, and weight. This can sometimes result in extra fees for light packages that take up a significant amount of truck space.

Team Training

Reducing shipping charges is crucial for businesses of all sizes, and optimizing warehouse operations can help achieve this goal. Proper software training is essential to maintain consistency with the packing team and reduce unnecessary costs.

‍A warehouse management system (WMS) like ShipHero can provide automation that streamlines business operations, but it needs to be used accurately. Your WMS training program should cover all aspects of the hardware and software and the different methods used to manage goods efficiently within the warehouse. By emphasizing the importance of WMS training and implementing consistent warehouse practices, your business can reduce shipping costs and improve overall efficiency.

Equipment

Troubleshooting internal errors such as incorrect scales and improperly stocked packing stations can also enable you to minimize touchpoints and increase automation. With automation rules, packers can always use the appropriate box when shipping specific products. These steps allow you to confidently assert control over your shipping process and save valuable business resources.

Automation

We offer a variety of automation rules to help businesses save money on shipping charges. Our VIP customer treatment rule ensures that your most valuable customers receive a gift SKU or marketing insert with their orders, express shipping, and prioritized order processing. Our pre-sale item rule helps businesses save by setting a partial shipping flag for orders that exceed a specific dollar amount.

Additionally, SKU-specific notes can be assigned to certain items, which is handy for fragile items that require special handling. Finally, we automate box type selections, streamlining the packing process and saving businesses time and money on shipping. With the proper automation rules, businesses can significantly reduce shipping charges and improve their bottom line.    

3PL Profitability

To summarize, consider all five critical factors mentioned in this post to reduce your outbound shipping costs: destination and origin, delivery speed, warehouse team processes, special handling fees, and surcharges.

With the right tools and expertise, you can ensure that your 3PL profitability remains reliably on track. And with hard work and dedication to intelligent decisions about outbound shipping strategies—increasing or decreasing delivery speeds or minimizing surcharge risks— you should be more than capable of achieving your goals.

It takes a lot of work, but investing time now to craft an efficient system for managing outbound shipments will pay off down the line. To start managing your outbound shipments efficiently today, try a ShipHero demo and get a jump start on reducing those shipping costs!

Key Takeaways

• Five critical factors affecting shipping costs include weight and zone, delivery speed, warehouse team processes, special handling fees, and surcharges.
• Shipping fees increase as packages move further from their origin, and weight and package dimensions also significantly affect shipping costs.
• Duty relief programs for international shipping, such as Section 321, can save up to 20% on duty fees.
• Last-mile delivery challenges can be solved with partnerships like Veho, which can save money and streamline the process.
• Delivery speed is important for eCommerce businesses, but faster delivery times come with higher costs. Local fulfillment centers and efficient processes can help reduce costs.
• Investing in team training, efficient packing procedures, optimizing picking paths, using automation, and analyzing the correct data can improve warehouse efficiency and reduce costs.
• Hazmat and fragile handling fees can protect businesses from fines and reputation damage, but choosing the proper packaging and labeling is vital.
• Understanding surcharges and negotiating base rates can help mitigate shipping costs for 3PL operators. Planning and analyzing costs can also minimize surcharges.

About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With thousands of brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.

Let us know how we can help you today by scheduling a call HERE.

In today's fast-paced, digital world, businesses across Europe and other countries require robust and efficient logistics services to thrive. From ecommerce companies with small Shopify shops to global e-commerce empires, the right 3PL fulfillment company can revolutionize your operations, driving sales and elevating customer satisfaction. But, in a sea of options, how can you find the right fit for your business? Never fear! We can help.

What Is A Fulfillment Company?

A fulfillment company plays a pivotal role in e-commerce businesses. It manages inventory, packs orders, and handles shipping so that businesses can focus on their core operations. These companies utilize a network of warehouses around the world to store goods, ensuring speedy delivery to customers, wherever they may be located. They also provide support services to enhance the customer experience.

What Is 3PL?

3PL, or Third-Party Logistics, refers to companies that provide a variety of logistics services to businesses. These services range from warehousing, transportation, freight forwarding, to order management, tracking, automation, and much more. Essentially, a 3PL logistics company handles everything related to the supply chain, freeing up valuable resources for businesses.

What Is Outsourced Fulfillment?

Outsourced fulfillment refers to the process where businesses entrust their inventory management, order processing, and order fulfillment services to external companies, or 3PLs. This approach provides an effective solution for businesses to meet customer demands without the burden of managing warehousing, packing, shipping, and delivery. It also includes additional services such as kitting and technology integration.

Understanding Fulfillment Centers

What Is A Fulfillment Center And How Can It Help Your E-Commerce Sales?

A fulfillment center is a warehouse facility equipped to handle all stages of an ecommerce merchants' order fulfillment – from receiving and storing inventory to picking, packing, and shipping orders. For e-commerce businesses, these centers enable efficient delivery, thus boosting sales by enhancing customer satisfaction. They also manage products, goods, and provide cost-effective shipping solutions through partners like FedEx.

How Does A Fulfillment Center Operate?

A fulfillment center operates on a simple, yet efficient process. It starts when the inventory arrives at the facility. The items are then stored until an order comes in from an associated e-commerce platform, such as Shopify or eBay. The order is then picked, packed, and shipped to the customer, considering shipping costs and storage requirements.

What Is A Fulfillment Center, And How Is It Different From A Warehouse?

While both fulfill the function of storing goods, a fulfillment center and a warehouse serve distinct roles in the supply chain. Warehouses primarily serve as storage locations, often for a longer duration. Fulfillment centers, on the other hand, are bustling hubs of activity with multiple warehouses, where goods constantly move in and out to meet customer orders.

The 3PL Fulfillment Process

The 3PL fulfillment process is a sequence of actions that starts when a product arrives at a 3PL company’s fulfillment center and ends when the product reaches the customer. It’s a vital part of e-commerce operations and covers several steps, including receiving, inventory management, order processing, order fulfillment, shipping, returns management, and reporting and analysis.

Request Fulfillment Pricing

To engage a 3PL company, businesses first request fulfillment pricing. This includes cost estimates for warehousing, inventory management, order packing and shipping, and returns handling. The pricing often varies depending on the volume, weight, and nature of the goods. If you would like to get a fulfillment pricing quote from third party logistics company, we can help you here!

The Role Of A 3PL Company

What Do 3PL Companies Do?

From storing goods in warehouse locations, managing inventory, handling order fulfillment, providing freight forwarding services, to arranging customs clearance in various countries—a 3PL company does it all. They integrate with multiple e-commerce platforms and manage the logistics operations so businesses can focus on product development, marketing, and sales. They have excellent customer service and also work with providers and partners to ensure seamless service.

How Is a 3PL Different From A Fulfillment Company?

While these terms are often used interchangeably, there’s a subtle difference. A fulfillment company typically handles specific tasks such as warehousing, order packing, and shipping. A 3PL or logistics partner, on the other hand, provides a wider range of logistics services, including freight forwarding, customs clearance, supply chain management, and even technology integration.

What Are Third Party Logistics Or 3PL Fulfillment Companies?

3PL fulfillment companies are providers that offer comprehensive logistics services. They have freight solutions that are essentially a one-stop solution for e-commerce businesses, offering everything from inventory management, packing and shipping orders, to even handling returns. They provide businesses with the capabilities to scale operations, expand into new markets, and enhance customer service.

The Top 10 Best 3pl Fulfillment Companies

1. ShipHero

A leader in the 3PL landscape, ShipHero is renowned for its comprehensive suite of services tailored for e-commerce businesses. Boasting cutting-edge technology, ShipHero integrates seamlessly with popular e-commerce platforms and marketplaces. Their services extend beyond just pick, pack, and ship, offering top-notch inventory management, returns handling, and even kitting services. Their commitment to operational excellence and customer satisfaction sets them apart in the industry.

2. Red Stag Fulfillment

Known for their reliable order fulfillment, Red Stag offers high-quality services, including high-value and heavy goods handling. They ensure fast and accurate deliveries, strengthening your relationship with your customers.

3. eFulfillment Service

This company is well-regarded for its flexible pricing and commitment to serving small to mid-sized businesses. They offer storage, order processing, shipping, and returns handling.

4. Whiplash

Known for its scalability and API capabilities, Whiplash provides flexible logistics solutions, from warehousing to shipping. They handle everything in-house, ensuring quality control at every step of the process.

5. ShipNetwork

ShipNetwork is celebrated for its national and international freight services. Their robust infrastructure supports e-commerce businesses with scalable and reliable order fulfillment solutions.

6. Whitebox

Whitebox provides a unique blend of logistics and sales services. In addition to managing inventory and fulfillment, they also offer services like listing optimization and customer service.

7. Fulfillify

Renowned for its user-friendly software, Fulfillify provides real-time inventory tracking and rapid order processing. They also offer custom packing solutions for a personalized unboxing experience.

8. Fulfillment.com

This global company is known for its wide range of services, including pick and pack, shipping, returns management, and kitting. They also provide advanced reporting and analytics.

9. Easyship

Easyship stands out for its wide array of shipping solutions and transparent pricing. They integrate with popular e-commerce platforms and provide access to 250+ shipping solutions.

10. EasyPost

This company provides a straightforward and flexible API for businesses, making it easier to streamline and manage their shipping and logistics processes.

The Benefits Of Using 3PL Fulfillment Companies

Fulfillment centers run by 3PL companies offer businesses the advantage of expert logistics and supply chain solutions, without having to manage everything in-house. These centers provide ample space for storage, reducing warehousing costs for businesses. Additionally, they handle all aspects of order fulfillment, including pick, pack, and ship, returns management, and even kitting and assembly.

How Can 3PL Fulfillment Companies Help With Logistics Management For Ecommerce Businesses?

For eCommerce businesses, 3PL fulfillment companies can be instrumental in managing the entire order fulfillment process. From warehousing and inventory management to shipping and handling returns, 3PLs offer a one-stop solution for all eCommerce fulfillment logistics. Their integration with eCommerce platforms simplifies order management, while their advanced reporting tools provide valuable insights into inventory levels, warehouse performance, and more.

How To Choose A 3PL Fulfillment Company?

Choosing a 3PL fulfillment company is a critical decision that can significantly impact your business’s operations and customer experience. Consider factors like range, option, and everything that aligns the best 3pl companies with your business needs.

Addressing Misconceptions About 3PL Fulfillment Companies

Many businesses harbor misconceptions about 3PL fulfillment companies, thinking they’re only for large businesses or that they lack flexibility. In reality, 3PLs cater to businesses of all sizes and can offer customized solutions based on individual business needs. They can provide a wide range of services beyond order fulfillment, with value added services such as freight forwarding and reverse logistics, making them a versatile partner for managing your supply chain.

Key Takeaways

Partnering with a 3PL fulfillment company can provide eCommerce businesses with distinct competitive advantages. The benefits extend far beyond just cost savings and money management. Choosing the right 3PL, however, is not a decision to be taken lightly. Every eCommerce business has unique needs, and the best 3PL partners are those that understand these needs and can offer customized solutions. With their help, you can focus on what you do best—building and marketing your brand—while they take care of the rest.

Frequently Asked Questions

Is A Fulfillment Center A 3PL?

A fulfillment center can be part of a 3PL’s operations. It’s a warehouse space where a 3PL stores inventory, picks and packs orders, and handles returns.

What Does Fulfillment Mean In Logistics?

Fulfillment in logistics refers to the process of storing inventory, processing orders, packing items, and shipping them to the customer. It may also include shipping services handling returns.

Is 3PL The Same As A Fulfillment Center?

While a fulfillment center is part of a 3PL’s operations, 3PL companies offer a wider range of services, including transportation, warehousing, inventory management, international shipping, and more. So, while all fulfillment centers can be part of 3PL operations, not all 3PL services are limited to fulfillment centers.

For more insights on choosing the right 3PL software, check out this guide on choosing 3PL software.

The Warehouse Management System (WMS) for Shopify is a software tool that coordinates various warehouse tasks like restocking shelves, scanning products for receiving, and packing items for shipping. Installed on computers and handheld devices, it enables warehouse employees to work in harmony, organizing warehouse processes efficiently. It also helps businesses in tracking, reporting, and managing different types of goods, including all things related to the fulfillment center. Learn more about warehouse management processes here.

Best Warehouse Management Systems for Shopify

While there are many warehouse management solutions available, some work exceptionally well with Shopify, with features specifically designed for online retailers. To ensure you choose the best WMS for your Shopify store, always consider your business size, budget, and operational complexity.

Here are the top WMS solutions to consider this year:

1. ShipHero

ShipHero remains the top choice for merchants seeking robust, scalable, and Shopify-native warehouse management solutions. It is packed with smart features purpose-built for e-Commerce and 3PLs like AI-powered picking optimization, real-time rate shopping, and multi-warehouse analytics. Not to mention, its seamless integration with Shopify enables real-time syncing and automated order processing.

• Pros: Best-in-class automation, mobile-friendly, strong analytics, trusted by small and mid-sized brands alike.
• Cons: Initial setup requires comprehensive onboarding support (learning curve), and pricing can be high for small businesses.

2. PULPO WMS

PULPO is a great option for small to mid-sized businesses. It emphasizes real-time inventory tracking, easy onboarding, and responsive customer support.

• Pros: Fast setup, user-friendly, great support, and multi-platform compatibility.
• Cons: Less scalable, no on-premise option, pricing may rise with volume.

3. SkuVault

SkuVault is built for complexity, with detailed analytics and multi-warehouse tracking. This platform shines when you're selling across multiple channels, such as Shopify, Amazon, and eBay.

• Pros: Great for multi-channel sellers, accurate tracking, scalable.
• Cons: Higher cost, steeper learning curve.

4. Cin7 Core (Dear Inventory)

Cin7 Core integrates inventory, orders, and even light manufacturing into a single system. It’s a good fit for growing businesses that need more control over workflows.

• Pros: Feature-rich, scalable, strong automation.
• Cons: Interface is less intuitive, and shipping tools are limited.

The Benefits of a Warehouse Management System for Shopify Stores

A WMS can enhance the operation of your Shopify retail business, saving costs and optimizing space and work time. If you're scaling your business, a WMS can handle vast amounts of information related to tracking, order management, warehousing, and customer fulfillment. It's a vital part of modern inventory and warehouse management software and warehousing for companies of all sizes, including small businesses.

Real-Time Stock Levels and Availability

WMS offers real-time tracking of warehouse inventory levels and stock information. It integrates with Shopify for data exchange and manages inventory allocation and optimization. This functionality ensures that customers receive their orders promptly, and you can find more about warehouse bin storage system best practices here. It also helps in managing stock levels and offers visibility to users, all in one place, and allows merchants to plan effectively.

Automated Inventory Replenishment

For Shopify, WMS replenishes stock to maintain optimal store inventory levels, updating inventory information and stock availability in real time. It streamlines the flow of inventory in and out of warehouses, ensuring timely order fulfillment. Automation plays a key role in this process, reducing errors and enhancing efficiency, thus improving sales for retail businesses.

Functionalities Across Channels

WMS puts everything in the right place at the right time, benefiting retailers and companies selling products through the online store, Shopify. It coordinates logistics for timely order fulfillment, streamlines workflows, and generates comprehensive reports on warehouse operations for Shopify. It also helps in managing returns and offers tools for better functionality, including trial options for sellers and services for various retail sectors.

Keeping Inventory Accurate Across Sales Channels

WMS ensures accurate inventory tracking within Shopify, reducing errors and returns. It offers visibility to customers' favorite brands and helps in managing sales channels efficiently. It also helps in tracking orders and managing suppliers, offering a number of solutions for different types of retailers, and collecting reviews from customers.

Understanding Shopify Inventory Management Challenges

Companies using Shopify face challenges in inventory and supply chain management, such as getting the right amount of products from suppliers. WMS offers warehouse automation solutions to these challenges, streamlining warehouse processes and ensuring efficient order management. It also helps in managing manufacturing resources and offers solutions for different types of retailers, including e-commerce businesses, and helps in planning the right amount of stock.

Products That Don’t Integrate Into Shopify

When products don’t integrate into Shopify, WMS synchronizes data between the Warehouse Management System and Shopify, facilitating efficient warehouse management. It also helps in managing different types of integrations and offers support for various apps, including warehouse management software itself, and helps merchants in their daily tasks.

Phantom Inventory

Phantom inventory, a record-keeping error, can cause delays in order fulfillment. WMS manages the receiving and inspection of goods to prevent such discrepancies. It also helps in managing returns and offers tools for better functionality, including software solutions, and the solution ensures that people receive their orders without any issues.

Managing Multiple Warehouses in Different Locations

WMS for Shopify scales operations to accommodate business growth and increased demand. It enhances customer satisfaction through efficient order processing, delivered regardless of the number of warehouses. It also helps in managing stock levels and offers visibility to users, all in one place, and ensures that a lot of effort is saved in managing multiple locations.

Choosing the Right Warehouse Management System for Your Business

Choosing the right Warehouse Management System impacts the success of entire supply chain of your Shopify business. The ideal WMS organizes warehouse layout, allocates resources efficiently, and ships orders promptly to customers. Consideration of warehouse automation cost is also vital. It also helps in managing returns and offers tools for better functionality, including software solutions, and helps in planning for future growth.

Key Takeaways

If you operate a Shopify business without WMS, you're working harder than necessary. WMS optimizes your shopify warehouse management, processes and scales your business. It also helps in managing returns and offers tools for better functionality, including software solutions, and ensures that all aspects of the business are covered.

Frequently Asked Questions

How Can Warehouse Management Systems Enhance Customer Satisfaction?

WMS enhances customer satisfaction by tracking inventory and replenishing it before running out, avoiding delays. It also helps in managing returns and fulfillment operations offers tools for better functionality, including software solutions, and ensures that people receive their orders on time.

How Do Warehouse Management Systems Aid in Getting Full Use of Resources?

Warehouse management systems maximize warehouse space and time and manage financial resources. It also helps in managing returns and offers tools for better functionality, including software solutions, and helps businesses in planning and execution.

What are the Potential Issues with Products that Don’t Integrate into Shopify?

Some WMS platforms can be customized to integrate with the Shopify store, while others automatically do so. It also helps in managing returns and offers tools for better functionality, including software solutions, and ensures that merchants have a smooth experience.

Contact ShipHero today for a demo.