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September 9, 2025

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

Imagine running a warehouse where orders are picked quickly, inventory is accurate, and all operations run smoothly without any errors or delays. Thanks to Artificial Intelligence, this can now become a reality with ease.

AI is transforming warehouse management by enhancing efficiency, intelligence, and the ability to meet the rapid demands of today’s eCommerce-driven market.

ShipHero is pioneering this revolution with its AI-powered warehouse solutions, setting new industry benchmarks. This article explores ShipHero’s AI Picking feature, highlighting how it’s transforming warehouse management and enhancing operational efficiency.

Benefits of AI in Warehouse Management

The integration of AI technologies, including machine learning, robotics, and predictive analytics, is revolutionizing warehouse operations, driving significant improvements in efficiency, accuracy, and overall performance. These innovations are optimizing processes across various areas, from inventory management to order fulfillment. Below are the key benefits of AI in warehouse management.

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

Key Components of AI-Driven Warehouse Systems

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

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

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

ShipHero has taken AI integration to the next level with its AI Picking feature, designed to significantly improve warehouse efficiency. This feature automates the picking process, reducing the reliance on manual labor and enhancing productivity in ways that were once thought impossible.

Let’s dive deeper into how ShipHero’s AI Picking works and the advantages it offers.

How AI Picking Works

AI Picking optimizes warehouse operations in two key ways:

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

Benefits of AI Picking

The AI Picking feature delivers a wide range of benefits:

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

Broader Impacts of AI in Warehouse Management

The transformative power of AI extends far beyond just picking. AI is also revolutionizing other aspects of warehouse management, driving improvements in operational efficiency, inventory management, and safety.

Operational Efficiency

AI automates tasks, reducing errors and increasing speed. Automated sorting and real-time inventory tracking ensure accuracy, while real-time monitoring helps managers adapt and ensure timely deliveries.

Inventory Management

AI plays a vital role in maintaining accurate inventory levels. By leveraging predictive analytics, AI can forecast demand and optimize stock levels, helping warehouses avoid both stockouts and overstock situations. This leads to better inventory management and fewer disruptions in supply chains.

Safety and Compliance

AI-driven systems can monitor warehouse conditions to ensure safety and compliance with industry regulations. These systems can analyze warehouse data and predict potential hazards before they occur, proactively reducing risks and ensuring a safer working environment.

Applications of AI in Supply Chain and Logistics

AI technologies are playing a transformative role in the supply chain and logistics sectors by improving efficiency, reducing costs, and enhancing decision-making.

These intelligent systems effortlessly manage supply chain processes by using data to optimize operations, predict trends, and automate routine tasks. This ultimately reshapes everything, from how goods are moved to stored and delivered.

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

The Future of AI in Warehouse Management

The future of warehouse management looks promising with greater automation and efficiency, but future warehouse digitization brings challenges, such as high upfront costs and the need for skilled personnel.

Emerging Trends and Innovations

AI-powered drones, autonomous robots, and IoT integration are smart warehouse technologies that are revolutionizing warehouse operations. Drones will deliver goods quickly, while robots automate sorting and transportation, thereby reducing the need for manual labor.

IoT and AI integration will enable real-time monitoring and optimization of operations. Smart technology in warehouses is leading to fully automated systems that are faster, scalable, and need minimal human input.

Challenges and Considerations

While AI offers immense benefits, businesses must also consider certain challenges. High initial investments in AI technology, data security concerns, and the need for skilled personnel are just a few of the hurdles that must be addressed.

However, with a strategic approach, companies can eliminate the challenges and embrace AI’s full potential to boost accuracy in picking and improve overall warehouse operations.

Key Takeaways

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

Frequently Asked Questions

How can AI help in reducing warehouse errors?

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

Can AI be used for predictive analytics in warehouse management?

Yes, AI-driven predictive analytics can predict demand, track inventory levels, and improve supply chain efficiency by forecasting needs with greater accuracy to help businesses stay ahead of trends and market fluctuations.

Is AI in warehouse management affordable for small businesses?

AI solutions are becoming more cost-effective thanks to cloud-based services and subscription pricing models. These options make AI technology more accessible to small businesses, allowing them to take advantage of its benefits without large upfront costs.

September 9, 2025

Warehouse Receiving Process Checklist: Definition and Template

When pallets roll in and loading docks buzz, your warehouse’s receiving process becomes the gatekeeper of inventory accuracy. And if that gate isn’t well-guarded with structure, speed, and oversight, errors slip in.

A mislabeled item here, a damaged shipment there, and suddenly your warehouse faces stock discrepancies, late order fulfillment, or even lost customers.

A warehouse receiving process checklist streamlines receiving operations and ensures compliance across teams, regardless of who’s on shift.

What is a Warehouse Receiving Process Checklist?

A warehouse receiving process checklist ensures every shipment that enters your facility is properly documented, inspected, and integrated into your inventory system.

Unlike ad hoc or verbal processes, this structured document verifies product condition upon arrival, checks against purchase orders to confirm accuracy, and documents all inspections for future reference.

However, ShipHero’s digital platform already seamlessly integrates this checklist into your system, automating the tracking of goods from the moment they arrive.

Because it captures critical shipment details, a receiving checklist can double as a warehouse audit checklist sample, especially when preparing for performance reviews or inventory audits.

If you’re looking for ways to improve accuracy and accountability, learning how to audit your warehouse with a structured receiving checklist is a great place to start.

What to Include on a Warehouse Receiving Process Checklist

Receiving Checklist Sample 1          

                       

Receiving Checklist Sample 2

A well-structured warehouse receiving process checklist is crucial for ensuring accurate and efficient inventory management. Including the mentioned key components helps streamline the process, reduces errors, and enhances overall warehouse performance.

Here’s what you must include in your checklist to maintain control and accountability:

Purchase Order Number

This anchors the entire inspection. By referencing the purchase order (PO) number, warehouse teams can verify the received goods against the original order, ensuring the correct items and quantities are delivered.

Supplier Name & Address

Having the supplier’s full details improves accountability. If there’s a delivery issue, this info helps your team evaluate supplier performance and speed up resolution.

Date & Time of Delivery

Timestamping each delivery helps you review delivery schedules, track shipment delays, and identify potential gaps in receiving coverage.

Receiving Inspection

Here, staff will assess damage or discrepancies, confirm specifications (e.g., size, color), take photos if needed, and record all inspections in case of claims or audits. An effective inventory audit checklist incorporates these inspection protocols to ensure accuracy from the moment goods arrive.

Material Name

Listing the material name (e.g., product name, SKU, or description) prevents mix-ups during inventory allocation and ensures all items are accounted for. This also helps your Warehouse Management System (WMS) update stock records correctly.

Information Like “Delivered By” and “Received By”

Identifying who delivered and who received the shipment establishes accountability, helps resolve disputes over damaged or missing items, and ensures proper handoff records.

Documentation

Maintaining proper documentation, such as packing slips, invoices, and bills of lading, facilitates order reconciliation and supports formal audits and record keeping.

Why is a Warehouse Receiving Process Checklist Important?

A single receiving error often ripples through the entire warehouse. A structured receiving checklist breaks this cycle by establishing clear protocols that coordinate with supply chain operations and create accountability at every step. It drives big improvements in:

  • Faster receiving times: Teams know exactly what to do, in what order, and what to record.
  • Error reduction: Prevents items from being missed, mislabeled, or stored incorrectly.
  • Better supplier relationships: Helps track trends in late shipments, missing items, or recurring damage.
  • Improved stock accuracy: A clear receiving trail makes it easier to spot when something goes wrong.

This plays out in real operations. A mid-sized clothing retailer had ongoing issues with stock discrepancies during receipt. However, implementing a standardized receiving checklist significantly reduced the number of missing items and stock inaccuracies.

Employees also appreciated having clear instructions to follow, which reduced confusion and helped maintain a smoother workflow during peak delivery periods.

How to Create a Warehouse Receiving Process Checklist

Before drafting your checklist, take a closer look at your existing receiving workflow. Next, identify any inefficiencies and pinpoint areas that could benefit from more structure and consistency.

Decide on Information to Include in the Checklist

Choose the data points you’ll need based on your warehouse flow, system integration, and team size. Include only what’s necessary to document key handoff moments.

Choose a Proper Checklist Format

You can go with paper, but digital formats (via tablets or mobile apps) are easier to scale. Software-based checklists can instantly update records and integrate with your WMS.

Create the Checklist Using a Software Template

Use inventory management platforms or cloud-based tools to build your checklist. For example, ShipHero’s template system allows you to configure fields, set mandatory requirements, and establish workflow rules that guide staff through the receiving process. This makes sure every receiving action is consistent and auditable.

Train Employees

Train staff to make sure every team member follows standardized procedures. This minimizes human error, especially for new or seasonal workers.

Implement the Checklist

Roll out the checklist during a test period. Assign clear roles (e.g., receiver, inspector), gather feedback, and then launch warehouse-wide. Revisit and refine it quarterly to keep up with operational changes.

Warehouse Receiving Best Practices

Your warehouse receiving checklist works even better when paired with these best practices:

Building a Proper Receiving Schedule

Spacing out deliveries helps reduce bottlenecks and allows teams sufficient time to track inventory levels accurately. It also allows for more accurate inspections.

Optimizing the Warehouse Space

Keep receiving areas clutter-free and near the entrance. This shortens the time it takes to organize storage locations after goods are received.

Upgrading Warehouse Receiving Equipment

Invest in equipment such as barcode scanners, conveyors, or forklifts to speed up receiving operations, especially during peak seasons.

Separating Damaged Goods

Don’t let broken items enter inventory. Flag them, document the issue, and notify procurement so the issue can be escalated quickly.

Simplify Warehouse Receiving with ShipHero’s Automated Solutions

By leveraging real-time inventory tracking and barcode scanning, you can eliminate the need for manual checklists, ensuring that every received item is accurately logged. ShipHero automates the entire receiving workflow, reducing human errors and speeding up the process.

Customizable receiving workflows allow you to tailor the system to your warehouse’s specific needs, eliminating the need for paper-based checklists. Improve efficiency, accuracy, and consistency, all with ShipHero’s advanced automation tools.

Key Takeaways

  • A warehouse receiving checklist provides structured workflows that ensure accurate, efficient processing of incoming shipments
  • For operational transparency, checklists should include critical information, such as PO number, supplier information, inspection results, and timestamps.
  • For best results, use tools like ShipHero to digitize checklists, train your team properly, and regularly review performance.

Frequently Asked Questions

How Often Should You Update the Warehouse Receiving Procedures?

At least annually, or anytime your business introduces a new product line, supplier, or technology upgrades.

Is It Beneficial to Cross-Train Staff on Receiving Processes?

Absolutely. Cross-training builds flexibility, enabling teams to cover for absences and maintain efficiency even during peak periods or periods of high turnover.

What Should You Do If the Item Received Is Damaged?

  1. Document the damage with photos and notes.
  2. Isolate the damaged item to prevent it from entering inventory.
  3. Notify the supplier immediately with details and evidence.
  4. Update your stock count to reflect the issue.
  5. Follow supplier protocols for returns or replacements.

September 9, 2025

Warehouse Daily Checklist: Guide and Free Template

One missed check can cost you thousands of dollars. You may have a damaged pallet, a missing fire extinguisher, or a skipped safety step that can put your team at risk.

Warehouse daily checklists serve as a pilot’s pre-flight checklist. Before takeoff, every switch, lever, and system is checked. Why? Because skipping one step can lead to serious problems. The same goes for your warehouse.

Without a solid checklist, you risk delays, missed shipments, or worse, accidents and safety violations. A checklist ensures your team follows the right procedures and nothing falls through the cracks.

Here’s everything you need to include in a warehouse daily checklist, its definition, and templates you could use to get started fast.

What is a Warehouse Daily Checklist?

A warehouse daily checklist is a structured form that helps warehouse staff systematically inspect, verify, and record essential tasks on a daily basis. It covers all the daily to-dos that keep your warehouse operations running smoothly and safely, such as inventory tracking and forklift inspections.

The warehousing and storage industry reported an injury rate of 4.8 per 100 full-time workers, nearly double the national average of 2.7. Following a daily warehouse checklist ensures the right procedures and safety protocols are followed and nothing important gets missed.

Creating an Effective Warehouse Daily Checklist Template

A great warehouse daily checklist supports the safety of your warehouse, reduces errors, and keeps your workflow on point. Here’s how to make a checklist that your warehouse workers will actually use and benefit from.

Components of a Warehouse Daily Checklist

Every component of your checklist ensures your facility, staff, and inventory remain safe, compliant, and productive.

Common components include:

  1. Inventory Checks: Your team should do an inventory audit. Monitor current stock levels, confirm the accuracy of quantities, check the condition of stored items, and inspect the labeling and bin organization to prevent errors, shortages, or misplaced goods. Real-time inventory visibility and predictive restocking tools, such as ShipHero, make this process seamless. Make sure that the receiving process is airtight as well.
  2. Equipment Inspections: Your checklist should ensure that all tools, forklifts, devices, and fire extinguishers are operating safely and efficiently. Inspect the equipment for wear and damage, document the condition, and update the maintenance schedule when necessary.
  3. Safety Protocols: Safety and security checks minimize accidents. Inspect the visibility of signage and emergency exits, and oversee the handling of known hazards.
  4. Cleanliness & Housekeeping: A clean and organized warehouse is a safer and more efficient one. Monitor the cleaning of floors, the clearing of walkways, and the organization of storage zones to support optimal workflow and reduce risk.
  5. End-of-Day Tasks: To properly close operations, include tasks that secure the workplace and prepare for the next shift. Record the completion of final duties, document the status of unresolved issues, confirm system backup, and update the daily reports for supervisor review.

Instructions should be clear and structured to help your team move through inspections efficiently and consistently.

Step-by-Step Guide

Your daily warehouse checklist doesn’t have to be very detailed and complicated. It needs to be thorough, practical, and easy to follow.

Here’s how to build a great one:

  1. Identify Daily Tasks: List out everything that needs to happen each day. Walk through the warehouse and discuss routine procedures with your supervisors and warehouse staff to capture all relevant information.
  2. Assign Responsibilities: For each task, decide who’s in charge. Is it a shift supervisor, floor staff, or a designated inspector? Make responsibilities clear so no task is missed or assumed to be “someone else’s job.”
  3. Format It Clearly: Use a structured, easy-to-use layout with checkboxes, concise instructions, and well-defined sections, such as safety and cleanliness. Keep it readable because you want quick glances, not long paragraphs.
  4. Incorporate Timing & Schedules: Some tasks should be completed in the morning, others throughout the shift, and some before closing. Schedule them accordingly, and use timestamps if needed (e.g., “Check emergency exits before 10 AM”).
  5. Include a Sign-Off or Signature Field: Have the assigned employee or team member document their name and time completed. This builds accountability and provides a record for inspections, audits, or compliance tracking.
  6. Involve Your Team in the Design: Ask your warehouse workers what works and what doesn’t. They know the real flow better than anyone. Involving them boosts buy-in, reduces resistance, and ensures the checklist actually helps them.

When your checklist comprehensively details the tasks in a concise manner, it becomes a tool that delivers massive impact. This ensures your warehouse operations run smoothly, safely, and efficiently.

Free Warehouse Daily Checklist Template

Ready to skip the setup and just get started? Feel free to copy our Warehouse Daily Checklist Template to your Google Docs or Microsoft Word document. It’s accessible, user-friendly, and 100% customizable to your needs.

Section Task Completed Person in Charge Time Signature
Inventory Checks Verify current stock levels
Check the condition of stored items
Confirm the accuracy of item labels
Inspect the bin and shelf organization
Equipment Inspections Inspect forklifts (damage, fluid levels, battery charge)
Ensure tools are returned to proper storage
Test barcode scanners and mobile devices
Safety Protocols Check fire extinguishers (placement, charge, expiration date)
Ensure emergency exits are accessible and clearly marked
Confirm that safety signage is visible and undamaged
Inspect for any spills or hazards in work zones
Cleanliness & Housekeeping Sweep and clean floors
Clear walkways and aisles
Organize storage zones
Dispose of waste and recycling properly
End-of-Day Tasks Secure all warehouse entrances and exits
Backup system data
Document unresolved issues
Submit daily report to supervisor
Remarks:


Employee Name: Date:
Supervisor Signature:

Simply plug in your specific details, and you’re set. It’s built to save time, support compliance, and help you manage your daily workflow like a pro.

How ShipHero’s Warehouse Management System Improves Warehouse Efficiency

ShipHero’s Warehouse Management System (WMS) boosts warehouse efficiency by automating key processes like inventory tracking, order picking, and shipping. By streamlining these workflows, it reduces manual labor, minimizing errors and delays.

The system’s real-time data updates allow staff to make quick, informed decisions, improving overall productivity. Customizable features enable businesses to adapt ShipHero to their specific operational needs, further enhancing efficiency. With ShipHero, warehouses can achieve faster turnaround times, reduced costs, and improved accuracy.

Key Takeaways

  • A daily warehouse checklist boosts safety, reduces errors, and supports smooth warehouse operations.
  • Include sections for inventory, equipment, safety, cleaning, and end-of-day procedures.
  • Download our free, customizable template to save time and increase productivity from day one.

Frequently Asked Questions

How Often Should a Warehouse Daily Checklist Be Reviewed?

Review a warehouse daily checklist, weekly, or monthly to maintain accuracy and relevance. Frequent reviews help align the checklist with workflow changes, new safety protocols, or operational updates.

Can You Customize a Warehouse Daily Checklist Template?

Yes, you can customize a warehouse daily checklist template. Most templates are designed to be modified based on team size, warehouse layout, and operational goals. Customization improves relevance and usability across different warehouse environments.

Is Training Required to Use a Warehouse Daily Checklist?

Yes, basic instruction and simple training on how to use the checklist ensure employees understand how to follow the checklist, report issues, and meet safety or performance standards. Training improves consistency and accountability across shifts.

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January 27, 2021

Shipping Methods Explained: Dropshipping Made Simple

Welcome to our Shipping Methods Explained blog series. In this series, we will deep dive into fulfillment methods - that is, how businesses fulfill their online orders and get products to their customers. Sounds simple right? Well, in theory it is. You could hop on your itty-witty bicycle and hand-deliver your product, mission accomplished. But consider the complexity when your company fulfills hundreds to thousands of orders daily, not to mention the skyrocketing shipping costs that could price you out of the market. Managing inventory, navigating each carriers’ specific requirements, calculating the lowest cost from thousands of shipping options… it’s a daunting task. That’s why more and more businesses are outsourcing their fulfillment methods. Are you ready to outsource your fulfillment? Let’s analyze your options to help you decide the best method for your business. In this article, we’ll discuss Dropshipping. What is dropshipping? What are the pros/cons? When is it right for my business? Let’s dive in.(And be sure to check back for future articles where we’ll cover even more fulfillment methods)

What is Dropshipping?

Dropshipping is the term used when a product is shipped directly from a manufacturer, supplier, or wholesaler, bypassing the retailer that made the sale entirely.

SOURCE: https://www.shopify.com/blog/what-is-dropshipping

  1. A customer visits your company’s website and purchases an item.
  2. Your website automatically notifies the dropshipping supplier
  3. The dropshipping supplier receives the order info and customer’s shipping information
  4. Your dropshipping supplier fulfills the order directly

How to Start a Dropshipping Business

Dropshipping businesses are extremely common nowadays, due to the allure of making a passive income matched with the simplicity of setting up a dropshipping business. All it takes is 3 easy steps to get you on your way.Step 1: Choose a Product/NicheThe first step you take in starting a dropshipping business is to choose what you are going to sell. Your product could be a brand new gadget, or a low-cost version of a luxury item, or a luxury version of a low-cost item. As long as there is a market for it, there are no wrong choices here. So do your due diligence and find a product that you think you could sell. ABC… Always be closing.Step 2: Find a Dropshipping SupplierOnce you choose your product, find a dropshipping supplier. You can search a supplier database like Dropship Direct, Alibaba, or AliExpress. (Although be sure to stay up-to-date on news concerning Chinese dropshipping providers)Alternatively, you can use an integrated supplier directory. This means that when you build your online store, say in Shopify (see Step 3), the dropshipper will be linked directly to your online store. Shopify recommends the easiest integration is with the Oberlo marketplace. From here, choose from millions of products and upload them directly to your store. Step 3: Build Your Online StoreAfter you have your product and supplier, have some fun building your online store! This will serve as the grand entrance to your brand. Websites like Shopify, Wix and 3DCart allow you to build your online store from scratch, or select from pre-made templates. When choosing between your options, make sure your choice gives you the ability to easily integrate with your dropshipping supplier.When designing your store, keep in mind who your target audience is, and build your website to reflect their wants and needs. Not just in appearance, but in website functionality. You can turn customers into repeat shoppers through a convenient and fluid shopping experience.

Dropshipping Pros and Cons

Is dropshipping right for your business? Or would you benefit from a third-party logistics provider or another fulfillment method? Let’s look at the pros and cons of dropshipping so you can decide for yourself.

Dropshipping Advantages

Dropshipping is the perfect business model for those that want to earn a passive income. It’s simple to start, with little to no cash investment. You can quickly test your ideas with limited risk to you. The three main advantages to dropshipping are:Less Capital is RequiredDropshipping eliminates the need to invest heavily in inventory, warehouse fees, transportation fees, etc. so anybody with a laptop and a dream can start an online business.Able to Offer Wider Range of ProductsWith dropshipping, you don’t have to purchase inventory until the sale is made, which significantly reduces the risk to you. So this gives you freedom to offer a large array of products on your site.Simple to StartWith companies like Shopify that basically make the entire process a drag-and-drop activity, starting an online business has never been easier.

Dropshipping Disadvantages

The pros listed above explain why so many people have started an online dropshipping store, and why they use dropshipping to expand their product lines. But for the very same simplicity and low costs that attract these entrepreneurs, dropshipping also presents a set of challenges.Low Profit MarginBecause the barriers to enter the dropshipping market are very low, the competition is fierce. Having many sellers in the market pushes down the cost as they compete with each other. Sure, you can differentiate based on branding, customer service, etc. but at the end of the day, $$$ talks.Little to No CustomizationBecause you are at the will of your supplier, they rarely offer any customization to your products, your packaging, or your unboxing experience. Say you want to make the slightest tweak to the look of your item, or you want to pack it a certain way or in a bundle, this will most likely not be possible. Some Alibaba dropshipping suppliers will accommodate and customize, but even then, they fully control the product and could even turn around and sell your customized goods to the next retailer.Little to No ControlYou entrust the entire fulfillment process to the supplier, and accept the quality of service that they provide. If there are errors or mistakes, you cannot blame your supplier and it will be your brand that pays the price. Maybe not in dollars, but certainly in reputation.So, is dropshipping right for your business? If you’re not sure, stay tuned for our next article as we dive into third-party logistics (3PL) and fulfillment providers like ShipHero.Learn more about ShipHero's industry-leading warehouse management software.

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January 26, 2021

We're Just Human! Podcast: Agencies and Marketing

Welcome to Episode 8 of We're Just Human. Think of Marc Kravets as the Liam Neeson of marketing and DTC brand building. An agency CMO industry veteran at companies in New York City & Los Angeles. We discuss the focus on the consumer, building marketing strategies, and how DTC brands are building for the new consumer. Oh and running, lot's of running.

Marc currently mentors teams through @amplify.la

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If you enjoyed this episode subscribe to our IGTV or YouTube channel to catch the next one.

If you’re interested in being a guest on our new podcast, Objects!, please contact John Wakim at pitch@shiphero.com.

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January 25, 2021

The Fulfillment Innovation Wheel: Designed for Returns

ShipHero recently launched The Fulfillment Innovation Wheel to help 3PLs understand what capabilities and service offerings they need to implement in order to be successful and to help online retailers and brands choose which 3PL is right for them by allowing them to ‘check the boxes’.

The Fulfillment Innovation Wheel listed a set of twelve (12) capabilities that fulfillment providers and logistics companies should implement to continually delight their customers and push themselves towards greater success and innovation.

The twelve capabilities are:

  1. 2-Day Delivery
  2. Same Day Shipping
  3. At the Box Personalization
  4. Designed for Returns
  5. Sustainable Fulfillment
  6. Resilient Shipping
  7. Distributed Fulfillment
  8. Data Now
  9. Automation
  10. Scale Up and Out
  11. Integration Stack
  12. Professional Services

In this article, we will be diving into the Capability #4: Designed for Returns.

And be sure to stay tuned for future articles as we deep-dive into each capability.

Capability #4: Designed for Returns

Brands and retailers today focus a majority of their efforts on capturing the attention of their customers and closing the sale, collectively spending millions on advertising, social media campaigns, and a sleek, sexy website custom-fitted with a smooth online checkout process. But, what about after the sale?

If that hard-earned customer decides to return your product, which happens about 30% of the time on average, then faces a subpar return experience… well, that customer loyalty goes down the drain right alongside all those advertising dollars burned to get their business.

Plain and simple, customers have come to expect a quick and easy return process. Can’t you just hear them shout “It’s 2021! why can’t this be easier?!” into the ear of your poor customer service rep? That’s why a growing number of businesses, led by Amazon and Walmart eCommerce, have taken the customer-centric approach by offering generous return policies and a frictionless return process.

While this may leave your customers happy, product returns can have an immense impact on conversion rates, on increasing costs, and on complications to your inventory management… without the right returns strategy in place, that is. So how can you offer the return experience your customers have come to expect, without causing serious damage to your margins?

Frictionless Returns

Retailers and brands that outsource their fulfillment need to choose a third-party logistics (3PL) provider that is fully-equipped and ready to offer frictionless returns. So, what does that look like?

The key to frictionless exchanges and returns is automation, paired with generous return policies and clear-cut rules for restocking and inventory management. At ShipHero specifically, we paired with Returnly so that our brands and retailers can offer a seamless, self-service online return experience, complete with a Returns Center and Returnly Credit. Here’s how we make it happen.

Automation

Returnly helps Shiphero users create a fully branded, self-serve return center, complete with all the necessary automation and policy controls to reduce operating costs and give customers all the options they want upfront.

Returnly Credit

Slow refunds make online returns stressful, but online retailers certainly aren’t willing to take the risk of the returned item being unsellable before issuing refunds. So while customers wait, a lengthy refund process with a lack of visibility over refund status could make your customers lose trust in your business. That’s why we offer Returnly Credit.

If a shopper opts for a refund, Returnly offers an instant credit to shop your site while the return is processed. And when you save the sale, Returnly pays for the order so your customer gets the right item before returning the wrong one, completely risk free. This decreases your shipping time and increases the return experience for the customer.

Convert Returns to Repurchases

ShipHero and Returnly seamlessly transfer data to manage and track the return process within ShipHero’s platform. This improved data integration with Returnly makes returns seamless for you and the customer, better positions you to convert returns into repurchases, and saves time and revenue for your business.

Designed for Returns is the capability that can truly make the difference when it comes to customer loyalty and repeat business. So if you are a brand or retailer outsourcing to a 3PL, ensure that they offer a frictionless return process to delight your customers. And if you are a 3PL, having a well-executed return strategy is the best way to handle the ever-growing number of product returns.

Learn more about ShipHero's industry-leading warehouse management software.

 

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January 22, 2021

Walmartville USA, Historic Inauguration, Employees Paid for Vaccine...

Front and Center

Walmartville, USA

Games like Tycoon City, MineCraft and SimCity just don't cut it for this guy… Marc Lore, the head of Walmart eCommerce US, has announced that he is leaving Walmart at the end of January to start a “city of the future” built on a "reformed version of capitalism."

The vision statement for the project reads: “Imagine a city with the vibrancy, diversity and culture of New York City combined with the efficiency, safety and innovation of Tokyo and the sustainability, governance, and social services of Sweden. This will be our New City.” Nobody tell this guy about Disney world...

So what will it look like?

For starters, each road leading into the city will be stationed with a senior citizen in a blue vest greeting you as you drive in… kidding. Details about the city have not yet been released, but Marc has promised that more information will be released over the coming months.“

This is going to be a lifelong project,” Marc says. “It’s the thing I’m most passionate about.” He plans to write a book and create a TV show to cover his city-building escapades. You can watch him describe his vision in the full interview here.

Who is future mayor Marc Lore?

Marc Lore is a serial entrepreneur that most famously founded Jet.com, a major competitor to Amazon, who then sold it to Walmart for $3 billion USD cash in 2016. He and his executive team arrived at Walmart with inside knowledge of Amazon, having previously sold his company Quidsi, a collection of online shopping sites best known for Diapers.com, to Amazon for around $550 million in 2011.

Since joining, Walmart eCommerce has seen tremendous growth, and Walmart.com became the second biggest ecomm site after Amazon in the US, quickly shedding its past reputation as an ancient relic in the new digital age of commerce.

Is this bad news for Walmart?

No. Walmart president and CEO Doug McMillon announced to the company that Marc will remain a partner and advisor for the company.

Back of the Packet

Inauguration

Aaaaaand they’re off! Our 46th President Joe Biden and our 49th VP Kamala Harris didn’t waste any time on their first day in office. President Biden signed at least 17 executive directives on things like COVID-19, the economy, climate change, and racial inequality.

Notably, Biden rejoined the Paris climate deal, while disallowing the permit for the Keystone XL pipeline. He also placed a mask mandate on all federal property, and issued to Americans a challenge… not to dump ice water on your heads or inhale a spoonful of cinnamon, but instead to mask up for 100 days. Sounds do-able.

As for the inauguration ceremony, Lada Gaga with such beauty and grace kicked off the 2021 Hunger Games.

At the same time, Bernie kicked off a global fashion craze. Our professional advice for the fashion and accessory industry is that people will be going gaga over giant brooches and earth-tone plaid print gloves.

Vaccine Stipend

A growing number of grocers are offering their employees paid incentives to get vaccinated against COVID-19.

This week, Aldi announced to employees that they would receive compensation for getting vaccinated, two hours of pay for each of the two vaccine doses and that they would be paid their hourly wage on top of that. Not a bad deal.

Aldi joins the ranks of Trader Joe’s, Dollar General, Instacart, and others that are incentivizing their employees to get the vaccine.

"Providing accommodations so employees can receive this critical vaccine is one more way we can support them and eliminate the need to choose between earning their wages and protecting their well-being," said Jason Hart, CEO of Aldi U.S.

ShipHero News

We’ve Invented the Wheel

It’s no secret that today’s world of ecommerce is changing rapidly. Third party logistics (3PL) and fulfillment providers that don’t find a way to keep up with, if not surpass, the pace of growth during this ecommerce boom is at serious risk of getting left behind.

That’s why we invented The Fulfillment Innovation Wheel: a list of twelve capabilities and service offerings that 3PLs need to implement in order to be successful, as well as the capabilities and service offerings that retailers and brands should look for when partnering with a 3PL.

Stay tuned as we break down each of the twelve capabilities, starting with Designed for Returns.

Get Featured

We are reaching out to our Packet community. Would you like to share with us stories about your ecommerce experiences, whether it’s how you started your business, what opinions you have on the stories we share, or if you just feel like venting… we’re here for you.

Email us at thepacket@shiphero.com and you could be featured on an upcoming edition of The Packet, or if you’re lucky, you could be invited to join one of our many Podcast episodes or featured on our Blog!

Check out the packets you missed here and Subscribe below so you don't miss the next one!

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January 22, 2021

We're Just Human! Podcast: Quality Assurance

Welcome to another episode of We're Just Human! Podcast (late night!), we discuss quality assurance science (yes, Robert is our first scientist, no biggie), skydiving with grandma (as you do) and working with local and national foundations coaching baseball to kids and helping those in your community.

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If you enjoyed this episode subscribe to our IGTV or YouTube channel to catch the next one.

If you’re interested in being a guest on our new podcast, Objects!, please contact John Wakim at pitch@shiphero.com.

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January 20, 2021

We're Just Human! Podcast: Integrations With VL Omni

Welcome to episode 6 (my lucky number), where I, Nicholas, convince interesting people to answer a bunch of somewhat random questions in ecommerce, business and life.

Episode 6 features Jessica Thiele Johnson, Marketing Director for VL Omni (we were scheduled to talk with Torrey Lapenskie, however, he had beard problems). We talk about a few nerdy data topics including the common platform integration issues that VL Omni has set out to solve with a dedicated team of specialists and technology platform built for multichannel merchants in retail and digital.

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If you’re interested in being a guest on our new podcast, Objects!, please contact John Wakim at pitch@shiphero.com.

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January 19, 2021

The Fulfillment Innovation Wheel

It’s no secret that today’s world of ecommerce is changing rapidly. Third party logistics (3PL) and fulfillment providers that don’t find a way to keep up with, if not surpass, the pace of growth during this ecommerce boom is at serious risk of getting left behind.

That’s why we invented The Fulfillment Innovation Wheel: to help 3PLs understand what capabilities and service offerings they need to implement in order to be successful, and to help online retailers and brands choose which 3PL is right for them by allowing them to ‘check the boxes’.

We studied the most successful 3PLs and fulfillment providers in the industry to understand what sets them apart. The answer was that they understood their mission, and they used this set of 12 capabilities as a flywheel to continually delight their customers and push themselves towards greater success and innovation.

Each and every 3PL we observed invested heavily in certain capabilities like personalization, delivery speed or frictionless returns, but always satisfied their client’s basic requirements for every capability on the flywheel. And always, the main focus was on Customer Experience, Growth and Scalability, and Operational Excellence.

Without further ado, we present The Fulfillment Innovation Wheel!

To view all blogs in this series, click the links below:

  1. 2-Day Delivery
  2. Same Day Shipping
  3. At the Box Personalization
  4. Designed for Returns
  5. Sustainable Fulfillment
  6. Resilient Shipping
  7. Distributed Fulfillment
  8. Data Now
  9. Automation
  10. Scale Up and Out
  11. Integration Stack
  12. Professional Services

Learn more about ShipHero's industry-leading warehouse management software.

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January 15, 2021

We're Just Human! Podcast: Christmas Edition with Amber Nore

Welcome to our fourth episode of We're Just Human, a short format sort of show that features mostly sane people talking about mostly interesting things and the things we're all dealing with in this thing called life.

Episode 4 features Amber Nore of snapchat fame, who covers many projects, works in retail, hosts several shows including Tea & Tomes as well as sings with a band. The more of these episodes we do, the more I realize just how boring I am!

In this episode we cover more random topics centered around social media, working in retail, raising your fam while working in retail, and living to learn, grow and enjoy your passions while helping others in this big wide world.

You can connect with and learn more about Amber on twitter, Instagram, and of course, snapchat @ambercamille76

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If you’re interested in being a guest on our new podcast, Objects!, please contact John Wakim at pitch@shiphero.com.

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January 14, 2021

We're Just Human! Podcast: Entrepreneurship and more with Nourish + Bloom

Welcome to our third episode of We're Just Human, a short format sort of show that features mostly sane people talking about mostly interesting things and the things we're all dealing with in this thing called life.

Episode 3 features Jilea Hemmings, who, amongst many other accomplishments is a podcaster, magazine contributor and founder of several startups focusing on health, commerce and career development including Leaf Tyme a cannabis health tech startup, Greenie Tots - meatless meals for kids, Stretchy Hair Care, Green Nyle and is also co-founder of Nourish + Bloom Market which is re-envisioning the traditional corner store and retail experience for small business.

In this episode we cover more random topics centered around entrepreneurship, managing multiple priorities, learning as you build, and all about building out a new kind of retail experience in the wake of the changes in how people shop and buy.

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If you’re interested in being a guest on our new podcast, Objects!, please contact John Wakim at pitch@shiphero.com.

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January 13, 2021

Warehouse Buying 101: A Guide to Scalability

“Necessity is the mother of Invention.”--Plato, philosopher

“When Necessity rapidly consumes the globe in a pandemic, Invention calls its brother Fulfillment.”--ShipHero, fulfill-osopher

While our shipping quotes may be better than our written quotes, the principle holds true: a good product is only as good as its ability to reach customers. A bird in the hand is worth two in the bush… okay, no more proverbs.At its onset, the global pandemic caused a shortage of goods that people relied on with no way of receiving them. But then came the shift to digital, and the ecommerce industry saw tremendous growth. When more people started sending more things, we in the ecommerce fulfillment industry experienced growth of our own.Fulfillment as a Service (FaaS) companies like ShipHero began partnering with online brands to provide fast and reliable fulfillment services powered by SaaS-based fulfillment software. In under a year, ShipHero became trusted by over 4,000 ecommerce brands and 3PLs every day to get their products in the hands of their customers, on time and on budget with their Warehouse Management Software (WMS).How did we obtain and manage such high-speed growth? The answer lies in our steadfast set of criteria that we developed to know when the time has come to expand our operations, and through what means. Let’s dive into this Warehouse Buying 101 guide, so you can understand when and how to grow your own network of warehouses.

Know When To Expand

We’ve found that taking a data-driven approach is essential to know when to expand your operations. Through real-time data monitoring and executive oversight, we get the right data to the right people to make the best possible decisions. We know it is time to expand our operations when one of the following occurs:

  • We reach physical storage limits for inventory
  • We reach shipping capacity, in terms of the number of orders that can be shipped in a day
  • We recognize regional bottleneck trends, e.g., a distribution center on the East Coast is frequently shipping to the West Coast

We let our business tell us when it is time to expand, not the other way around. Make sure you are tracking the right data, like ‘Miles Travelled per Order’ or ‘Time to Fulfill’ in order to assess the state of your operations before expanding. Because adding new warehouses to your network can be expensive and very difficult to undo, you need to ensure that there are no simple fixes for your current fulfillment woes.

Expansion Strategy

Once you are certain that it is time for 3PL to grow its network of warehouses, the next step is to analyze your options and choose the strategy that best satisfies your needs. It is through in-depth research and quality information that allows ShipHero to make smart decisions.

Step 1: Determine Location

Location, location, location (technically not a proverb).For ecommerce fulfillment, choosing the right location for your warehouses makes all the difference. Having a widespread network of warehouses improves the cost-efficiency and speed of your order fulfillment, but having multiple operations in one area provides resiliency.Understand where your brand and your brands’ customers are located. What is the competition in that area? Is there an airport nearby and how are the road conditions for trucks? Does the area have an adequate talent pool to employ and run your operations smoothly?By determining your location, this allows you to set a more defined area to search for expansion opportunities.

Step 2: Understand Timing

Are you looking for immediate expansion to solve an urgent need, or is this a long-term decision to ensure future success? Why are you expanding now? What are the underlying forces that are driving your growth, and will they still be there in the future?By understanding your timing, this helps you align to your long-term business goals and mitigate risks caused from short-term thinking.

Step 3: Set Expectations for Cost

How much are you willing to invest? How much free capital can you afford to spend? Think in terms of proportions of your current and projected orders.Knowing where you want to expand, how quickly, and how much you are hoping to spend will give you all the information for the final step.

Step 4: Execute Expansion Method

With the above considerations in mind, the final step is to execute your desired expansion method. ShipHero has employed a blend of the following strategies to successfully and quickly grow their network of warehouses:Build from ScratchThe first strategy is to set up a brand new warehouse. As the most time consuming option, ShipHero is able to spin up a brand new warehouse in 30 days, which we did recently in our Pennsylvania warehouse (now hiring). It is also the most costly option, but allows for the greatest level of autonomy in running your operations.Partnership with Existing 3PLExisting 3PL companies that have additional capacity to spare may contractually agree to fulfill your customers’ orders for a percentage of the profits. Partnering with an existing 3PL is the fastest way to add capacity to a certain region, so if you are in a time crunch to start getting orders out the door, this is a smart way to go. Keep in mind, with regards to quality of service, your company will wholly rely on the existing 3PL to deliver, so make sure you partner with the 3PL that matches your standards of excellence.Buyout an Existing OperationIf there’s a suitable candidate, buying an existing operation is a great way to expand your network. For example, ShipHero recently purchased Radio Shack's DFW Fulfillment Center, and because they already used our software, we began fulfilling ShipHero orders practically overnight. Transitioning an existing operation to suit yours is less costly and time-intensive than building a warehouse from scratch, and it allows more autonomy and capacity than a partnership. So keep an eye out on your existing partners or your clients, as they may become a good target for acquisition.This concludes our Warehouse Buying 101 tutorial, and we hope that you can use it to expand your operations and effectively fulfill on behalf of your online brands and retailers. And if you’re looking to unlock your ecommerce fulfillment superpowers, ShipHero is a leading provider of SaaS 3PL software for ecommerce fulfillment. We give you the tools to quickly master your ecommerce operations with a cloud-based software solution trusted by ecommerce and retail brands of all shapes and sizes.Learn more about ShipHero's industry-leading warehouse management software.

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