Nov 2, 2022 | Blog
Becoming an eBay Seller
eBay is a great place to sell if you want to clear out the clutter in your house or start a business. Becoming a seller on eBay is fairly easy, registration requires you share your address so eBay can verify you live in a country they are registered to operate within. You can find the eBay country list here. If you live in one of these places, congratulations! You qualify to sell on eBay. Once you register you can complete email verification and begin listing items! When you are ready to start listing, there are a few ways to do so. You can either list an item at a specific price, or you can put the item in an auction where people can bid on the price. The highest bidder wins! Either way you list your merchandise it’s important to know eBay does not stock and ship these products, instead you will need to work with a fulfillment partner (or complete fulfillment yourself) to get products shipped to their new owner.
Benefits of eBay Third-Party Fulfillment Outsourcing
While eBay has hinted at the possibility of a dedicated eBay order fulfillment service, they do not have one available yet. Which means sellers must decide between fulfilling orders themselves or using another means of fulfillment. Third-party fulfillment solutions are often the answer here, and there are many benefits to using them.
Lower Fees
Outsourced fulfillment solutions are dedicated to logistics. They know the nuances of the industry, and they have purchased equipment, space, and staff to dedicate their time to managing the entire order processing procedure. This typically results in lower fees for you. Because they have streamlined the process and do it at a much larger volume, by many other sellers including yourself, they can get better shipping carrier rates then what you would get on your own. And as they continually streamline their technology and processes as the logistics space continually sees improvement, you benefit from those improvements and can often get access to top rated technology in the business.
Improved Seller Ratings
Seller rating is a big deal on eBay. It helps eBay buyers understand who they can trust to get a product to them on time and as expected. The shipping experience is a huge part of how a seller will get rated. As an outsourced fulfillment solution gets your products to your clients quickly, efficiently, and without hassle, and keeps them informed every step of the way, client ratings will go up, improving your seller rating. On top of that, your seller rating can be influenced by things like shipping times. In fact, your seller rating will actually go up when you update your shipping policy to include free shipping or express shipping.
Hands Off Logistics
These fulfillment providers can help you come up with efficient strategies for your order and inventory management. They know the market, they have seen what works and what hasn’t, and might even have experience streamlining logistics for others in your industry. With their help you take a giant step back and trust these processes are flowing correctly. They will keep you continually informed on the efficiency and success of the process so you have peace of mind. And if any issues arise from a strategy, or perhaps you’ve outgrown your strategy, you can meet with them and adjust as needed. Which means you as an owner will have more time to market your product and expand your business.
eBay Fulfillment Options
We all know having an excellent fulfillment strategy is key to running a profitable business. Choosing a trusted fulfillment partner to represent your company well and get your products shipped on time can be tricky. You have to find someone you trust to represent your company’s standards. It’s hard enough that many prefer to do all the fulfillment on their own for a while. But packing and shipping orders take up a huge amount of time and the cost savings of getting this time back should be considered when sourcing a fulfillment solution. Especially because if you get this set up right, you could walk away from your business for a week on vacation and everything would be taken care of for you!
We understand fulfillment centers are highly front facing and one of the biggest reasons why clients will give you their repeat business. And there are many options available to choose from. To help navigate this, we’ve curated a list of fulfillment partners who work well with eBay and you can depend on them to help you put your best foot forward.
ShipHero
With this option you can let go of running your own warehouse. ShipHero can take over your fulfillment processes and help you streamline them to get your product to your clients faster. And they have software which can help you get rid of manual processes, lost paperwork, and confusing fees. With their open source API they can integrate directly into your eBay store to better track and fulfill orders. Their dedicated account team will help you every step of the way and help you generate an overall logistics strategy to take your company to the next level.
But don’t take our word for it, check out this case study!
FirstMile
With domestic and international shipping rates, First Mile can get your products wherever they need to go. Their goal is to give business owners a leg up when it comes to the global economy so you can serve more across the world. They help you get quotes for the shipping situations you most commonly encounter because they understand how messy it can be to navigate the labyrinth of eCommerce. And will dedicate a customer service representative to help you with your inventory and order management, and shipping levels across multiple locations.
eFulfillment
This service can help eBay sellers reduce several tedious tasks including receiving, product inspection, inventory storage, and order fulfillment. They are fulfillment partners with several years of experience who help over 700 online sellers worldwide. Once inventory is in the eFulfillment warehouse they give you access to a web based fulfillment software which shows you inventory levels, orders, and shipment status. And they can help you optimize return processing as this is often a tricky part of online sales. If an order gets returned, eFulfillment alerts you of the situation so you can determine what you want to do next, whether it be restocking the order or not. They will also handle getting the corrective order to your clients. Plus they offer no minimums, no setup fees, and no long term contracts!
Deliverr
The goal of this fulfillment solution is to give businesses a competitive advantage. They offer Amazon-like pricing and don’t require any long term contracts. With their price calculator directly on their website they are highly transparent with costs. Account creation is fast and can be done in under two minutes. And because of the speed at which Deliverr can help you ship items, your listings may qualify for eBays Fast ‘N Free tags! This tag means your product listing becomes more prominent in search results and your product listing is included when buyers set filters for faster shipping times.
Red Stag
With this fulfillment service, you can address your end to end logistic needs. With same-day shipping and fulfillment, inventory and order monitoring, eCommerce returns processing, and same-day fulfillment service guarantees, you are in good hands. Red Stag understands today’s eCommerce client wants their order quickly and in the best possible condition. They strive to make sure their systems are fast and efficient with delicate handling so your clients are impressed with the delivery experience. They also have a warehouse management software (WMS) which gives complete visibility and can help with reporting on what products move and what don’t so you can adjust your inventory accordingly.
APS Fulfillment
With their warehouse management software (WMS) you can connect your eBay store directly in with your warehouse so you can automate the order handling process. With APS there are no monthly order minimum requirements. And they don’t limit the size, weight, or shape of the products you ship through them. They receive your inventory, do a quality control inspection, then shelve your product. Once an order is processed they pick, pack, and ship the order as well as assign it a tracking number so you and your client will have the ability to track it. And you gain 24-hour access to submit support tickets for any questions about the WMS or fulfillment process.
Cahoot
With Cahoot you gain access to a quick setup to connect your eBay store and delineate your inventory to different Cahoot fulfillment warehouse locations. Once connected your company will receive automatic order routing and fulfillment, free and fast shipping options, a nationwide shipping network, and visibility into each delivery. Order volume is flexible so you can start small with Cahoot and grow with them as your products rise in popularity. And as your client base grows they can help you put your product in fulfillment warehouse locations nearest to them. They want to help you level the playing field against marketplaces like Amazon and Walmart who create high shipping expectations with fast and free shipping options for their clients.
Amazon Multi-Channel Fulfillment
With the power of Amazon behind you, this solution will keep up with the rise and fall of your business orders. They can scale up for you without increasing your fixed costs. And you get the benefit of Amazon’s delivery speeds so you can get their product out in as little as one day. You don’t even need to list your product on Amazon to gain these benefits, they will work with several different eCommerce stores and channels, including eBay. As a part of the check out process your client will see reliable delivery dates and email insights on when they should expect their order. Plus, Amazon MFC will automate the inventory placement for your products so they are placed closer to your client locations.
Ecomdash
With Ecomdash you gain access to an inventory management platform which helps you fulfill orders and manage your online sales together in one application. This is a good solution if you are a small to mid-sized multi-channel retailer and Ecomdash proudly supports eCommerce sellers. They can also help you with both dropshipping and distribution management of your product. Plus they give you a complete view of your inventory, sales, and back stock so you can make highly informed logistical decisions. And they are ready to support you in a moment’s notice with live chat, phone, email, and community boards.
Thill Inc
With Thill, you get order, inventory, and shipment services integrated directly into your eBay store. They offer a “plug and play” fulfillment solution for eBay sellers so you can experience the expertise of a company who has provided fulfillment to companies for 50 years! They make sure you have order tracking capabilities so your clients know exactly when orders will arrive and can give you email confirmations when an order is delivered. They understand order fulfillment is an art and want to provide business owners with a highly tailored service offering with flexible solutions. And their 24/7 support center makes sure any issue is addressed in a timely and helpful manner.
Conclusion
No matter how you start on eBay, as your products grow in popularity you will likely need a third-party fulfillment solution to help you handle the volume. Especially as your business grows and will require more of your attention. The above options are dedicated to helping their clients provide a high quality experience and allow you as a business owner to take more time back in your day. What’s especially helpful is they have high class experience in the logistics industry so you can lean on them for expertise in how best to situate your fulfillment network to better serve your clients. And together, you can take your business to new heights!
To find out how ShipHero can bring your eBay fulfillment to the next level, contact our sales team today.
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Dec 1, 2022 | Blog
With today’s customers demanding fast fulfillment times and one or two-day shipping, manual warehouse operations just won’t cut it anymore. These days, you need to automate warehouse operations if you want to satisfy customers and grow your eCommerce business.
What is warehouse automation and what do you need to implement it in your business? Read on to learn more.
What is Warehouse Automation?
Warehouse automation is the process of automating your daily warehouse processes with minimal human involvement. Businesses generally implement warehouse automation to eliminate labor-intensive work that requires a lot of time and effort. It also minimizes the number of manual tasks required, reducing the chance of human error.
When you hear “automation,” you may think of workers loading products into robots and drones. However, warehouse automation doesn’t necessarily need robots or other physical hardware. Sometimes, warehouse automation starts with implementing a warehouse management system or similar software.
What is Warehouse Automation Software?
Warehouse automation software is a tool used to automate modern warehouse operations. These tools reduce the manual tasks necessary in daily warehouse operations, increasing efficiency and reducing human error.
Warehouse automation software and tools include, but aren’t limited to:
- Automated data entry software
- Warehouse management systems
- Inventory management software
- Robotic solutions
- Warehouse management mobile apps
How Does Warehouse Automation Work?
Warehouse automation works differently depending on which software or tool you implement. Here’s a quick look at some example warehouse automation tools and how they work:
Warehouse Management System
A warehouse management system (WMS) provides tools to help you manage all aspects of day-to-day warehouse operations. It especially assists in the main warehousing flow of:
- Stock receiving
- Stock arranging
- Picking and packing products
- Shipping products to customers
- Tracking shipping progress
- Handling product returns
Warehouse management software also provides regular reports on your warehouse’s key metrics. This helps you identify improvement areas and make informed decisions on what to do next.
Automated Data Entry Software
Manual data entry is one of the most common work processes to automate because they’re often highly repetitive tasks.
Employees will enter information into the spreadsheet, highlight another cell, enter more information and repeat the process until everything is filled. It’s boring work and distracted workers often lose focus and enter the wrong thing in the wrong spots.
Automated data entry software helps you reduce the workload by automatically extracting data from documents and digitizing paperwork. In addition to preventing human error and saving time, you can assign your warehouse team to work on other important tasks that need a human touch.
Inventory Management Software
Inventory management software gives you real-time visibility into your entire stock, meaning you don’t have to do physical inventory checks as often. It also monitors your stock levels to notify you when you’re running out of a certain product, keeping your products from running out of stock.
In more advanced cases, inventory management software can forecast consumer demand based on historical sales and notify you to order more products in preparation for high-demand seasons.
Benefits of Using Warehouse Automation Software
When implemented right, warehouse automation software can improve your warehousing operations in many ways. Here are several examples of warehouse automation software’s benefits:
Reduce Human Error
There’s always the potential for human error in manual processes. Depending on the significance of the mistake, human error can lead to costly item replacement or significant shipping delays that reduce customer satisfaction.
Automated warehouse solutions reduce the chances of human error by automating certain warehousing tasks. For instance, pallet dimensioning systems help your warehouse crew accurately measure a pallet’s dimensions without using manual methods like tape measures.
Drive Operational Costs Down
Warehouse automation systems aren’t cheap but usually have a fast return on investment. Warehouse automation reduces your operational costs by minimizing:
- Manual labor costs
- Inventory and stocking errors
- The risk of product mishandling
- The cost of product handling
Increase Productivity and Lighten Workload
In addition to reducing human error, automated warehouse solutions reduce the time necessary to do key warehousing tasks. Using the pallet dimensioning system example above, warehouse workers can measure the dimension of a pallet and plug it into the system in minutes or even seconds instead of spending time measuring the pallet manually.
Automating warehousing tasks also reduces your employees’ workload, allowing them to skip over parts of the job they may find boring or frustrating. This improves staff satisfaction and can even increase retention rates.
Improve Safety
Warehousing operations are often high-risk because there are lots of people moving lots of goods from here to there at any given time. If an accident happens, people may get injured and hundreds of dollars worth of merchandise may be damaged.
Warehouse automation through automatic guided vehicles (AGVs) or autonomous mobile robots (AMRs) helps your staff move products safely. These autonomous vehicles and robots reduce human traffic throughout your warehouses, reducing the chance of accidents and ensuring your workers are safe.
Optimize Warehouse Space
Warehouse space isn’t cheap and you need to use every cubic foot of it to get your money’s worth. However, you can only stack products so tight and high before it becomes dangerous for people to grab them.
This is where warehouse automation comes in. Automated storage and retrieval systems (AS/RS) and drones take care of the picking process for your team, so they don’t even have to leave the ground – no matter how high and tightly packed your products are.
Using every cubic foot of your warehouse available also means you won’t have to purchase or lease extra storage space as often.
Increase Customer Experience and Satisfaction
Customer satisfaction is the goal of every business, and yours is no exception. Warehousing might not have a direct link to customers, but they can feel it when your warehouse operations are subpar. If your staff are slow to process products, customers won’t receive their goods on time, leading to lost sales and complaints.
The main goal of warehouse automation is to ensure products are fulfilled and shipped on time, increasing your daily operation’s efficiency. When you deliver everything punctually, your business reputation and customer retention will improve, giving you an edge over the competition.
Why Should You Automate Your Warehouse?
You should automate your warehouse to ensure your business can keep up with customer expectations while keeping costs down. Here are some reasons why you should automate warehousing operations:
Customizable Solutions
There’s no one-size-fits-all warehouse automation solution. Every solution is customized to your warehousing operations, meaning everything you implement is created to address your issues and requirements.
Cost-Effectiveness
Implementing warehouse automation is usually a large financial commitment, but you’ll immediately feel the effects. With warehouse automation solutions, you can save a lot of money on labor, equipment and maintenance costs.
Demand Forecasting
You don’t want to run out of your most popular product in high-demand seasons because that means giving up lots of sales.
Inventory management software helps you predict customer demand based on past sales so you can order more of a product. This ensures you won’t run out before the high-demand season rolls around.
Product Safety
Human error can result in damaged products or inventory loss, hurting your bottom line. Automating key warehouse processes means:
- Reducing human contact with your goods
- Lowering the likelihood of accidents that cause damaged products and inventory loss
Order Fulfillment Optimization
Warehouse automation tools show you the best way to fulfill customer orders. This means you can promise accurate fulfillment and fast delivery times to customers and deliver on it. You’ll build brand loyalty and gain an edge over your competitors by combining great products and punctual delivery.
When to Automate Your Warehouse
You should automate your warehouse after a thorough study of your warehouse operations. Implementing these tools is costly, so blindly following warehouse automation trends and current technologies without knowing what you really need will just waste your money.
If you can’t determine what aspects of your warehouse operations you should automate, hire a consultant to examine your business and identify what areas can be improved.
Types of Warehouse Automation Tools
There’s a wide variety of warehouse automation tools available for businesses to implement. Here’s an overview of the four most popular options in the warehouse automation market:
Inventory Management Software
Inventory management software is a tool that grants real-time visibility of your entire warehouse stock. This means you can stock enough goods to keep selling without holding too much of a certain product type.
This warehouse automation tool gives you greater inventory control and notifies you whenever something is about to run out, ensuring you’re always well-stocked.
Warehouse Robotic Solutions
Warehouse robotic solutions like AMRs and AGVs do various tasks around the warehouse. For instance, AGVs replace manual forklifts, collaborative robots (cobots) follow workers around as mobile storage bins and AS/RS systems pick items from high shelves.
In addition to increasing efficiency and reducing human error, warehouse robots reduce workplace accidents by removing the human element from often dangerous tasks.
Warehouse Management System
A warehouse management system is a holistic solution that offers inventory visibility and control over the entire supply chain fulfillment operations. A WMS helps you through the entire warehousing process, from when products enter the warehouse until they arrive at the customer’s doorstep.
Your WMS also lets you handle returns, generate performance reports and make informed warehousing decisions.
Warehouse Management Mobile Apps
Warehouse management mobile apps are like tiny warehouse management systems you can carry around. These apps help you through most of the warehousing workflow, from scanning products to labeling goods for shipment. Some of these tools are standalone, but others may require a WMS subscription.
How to Choose the Best Warehouse Automation Software
Implementing warehouse automation isn’t cheap, so you must ensure you implement the perfect solution for your company’s warehousing issues. Here’s a guide to choosing the best warehouse automation technology:
- Analyze your current warehousing situation to determine if you need to implement automation.
- Identify what you need out of the warehouse automation software.
- Examine your current business and determine whether you must connect other software or tools to your automation software.
- Define a budget and ideal ROI.
- Shop around for vendors that fulfill your business requirements.
- Negotiate for the best deal.
- Implement the automation software.
- Review and identify areas of improvement after implementation.
Key Takeaways
Warehouse automation software can be costly, but it’s a great way to improve your warehousing operations and meet increasing customer demands. Different warehouse automation solutions (e.g., WMS, inventory management systems and robotics solutions) fulfill different needs.
Before implementing warehouse automation software, you should identify your warehousing needs and find the automation tool or software that fulfills your needs at a reasonable cost.
Warehouse Automation Software FAQs
How is automation used in warehouses?
Automation is used in warehouses to reduce human error and prevent costly mistakes. Some examples of automation in a warehouse are using mobile robots to pick and pack goods, measuring pallet sizes automatically and forecasting customer demand.
What is a fully automated warehouse?
A fully automated warehouse is a logistic facility that primarily uses automatic cranes and other handling equipment in its day-to-day operations. A fully automated warehouse typically doesn’t use standard forklifts and has a minimal human presence.
What is smart warehousing?
Smart warehousing is the pinnacle of warehouse automation, where most of its operations are done automatically through robots and automated cranes. The main benefit of smart warehousing is that it prevents human error that may cause costly accidents.
Mar 29, 2023 | Blog
Managing warehouse and store inventory is a balancing act that impacts everything from labor costs to customer service. Companies need to navigate a variety of challenges to maintain optimal inventory levels and meet demand.
What is inventory management in a warehouse?
How do you manage warehouse inventory for your stocks and e-stores? Warehouse inventory management is the process by which inventory is collected and stored in a warehouse, managed by personnel in storage warehouses and optimized storage capacity and prices; the entire process directly affecting fulfillment, shipping, and customer experiences.
How do warehouses keep track of inventory?
A Bar Code System allows the product label for information like description, location, prices. The label is automatically updated by scanning the barcode scanner device.
Understanding the Importance of Warehouse Inventory Management
Effective inventory management is crucial for companies to ensure they meet customer demand, reduce costs, and increase profits. It involves a multitude of tasks, such as forecasting demand, tracking stock movements, using warehouse inventory systems and auditing physical inventory. The right software solutions can make these activities more efficient and reduce the risk of errors and bottlenecks.
Techniques for Better Inventory Management
There are many techniques companies can use to manage their warehouse space and inventory more effectively. For example, ABC analysis is a method of categorizing and storing inventory based on its importance. Another technique is cycle counting, which involves regularly counting a subset of inventory to identify discrepancies. Both techniques can help prevent mistakes and improve accuracy.
Utilizing Technology in Inventory Management
The use of technology is becoming more common in real time inventory tracking and warehouse management software. Real-time data collection and optimization software can provide valuable insights into stock quantities, storage space capacity, and shifts in demand. These technologies can improve accuracy, minimize labor costs, and improve customer service by ensuring the right products are available when needed.
Efficient Storage and Retrieval Systems
How inventory is stored in a warehouse can significantly impact the picking and packing process and overall efficiency of warehouse workers. Organizing storage space with clearly marked bins, labels, and racks can help pickers locate items quickly and reduce mistakes. In addition, technologies like automated storage and retrieval systems can enhance these benefits.
Demand Forecasting: A Proactive Approach
Demand forecasting uses data to predict future sales trends. This can help companies manage their inventory more effectively, reducing the risk of overstocking or understocking items. For instance, by using good inventory management and accurately forecasting demand, companies can better plan their orders from suppliers, improving customer service and the bottom line.
Training and Incentive Programs: Empowering Your Staff
Training programs for warehouse staff can equip them with the skills they need to handle equipment safely and follow proper procedures. Furthermore, incentive pay programs can motivate staff to achieve goals and make continuous improvements. Both measures can reduce downtime, prevent accidents, and increase warehouse productivity further.
Inventory Auditing: Ensuring Accuracy
Regular inventory counts and auditing is an essential part of any warehouse inventory management system. Auditing involves physically counting inventory and comparing it to recorded quantities. This helps identify any discrepancies and opportunities for improvement.
Safety Measures in Inventory Management
Ensuring the safety of both the warehouse manager, staff and inventory is paramount to maintain smooth operations and prevent accidents. Implementing effective safety measures can protect warehouse employees and preserve inventory integrity:
- Proper Training: Provide comprehensive training to warehouse staff on the safe operation of equipment, handling hazardous materials, and following safety protocols.
- Safety Equipment: Supply personal protective equipment (PPE) such as gloves, helmets, and safety goggles to ensure workers are adequately protected.
- Clear Signage: Use clear and visible signage to indicate hazardous areas, emergency exits, and the location of safety equipment.
- Regular Inspections: Conduct regular safety inspections to identify potential hazards, faulty equipment, or unsafe practices.
- Emergency Preparedness: Establish emergency response plans, including evacuation procedures and first aid protocols, to ensure quick and effective responses in case of accidents.
Reverse Logistics and Returns Management
Efficiently managing returns tracking inventory and reverse logistics is crucial to maintain customer satisfaction and recover value from returned items. Here’s how to optimize returns using warehouse management systems:
- Streamlined Process: Design a clear and efficient returns process that includes easy-to-follow steps for customers and staff.
- Inspection and Classification: Implement a thorough inspection process to assess the condition of returned items. Classify them as resalable, refurbishable, or unusable.
- Automated System: Utilize inventory management software with integrated returns management features to track returned items, update inventory levels, and facilitate refunds.
- Restocking and Reselling: Quickly restock resalable items to minimize holding costs and potentially resell refurbished items at a reduced price.
- Customer Communication: Maintain transparent and timely communication with customers about their returns, refund status, and any applicable fees.
Inventory Turnover Ratio and its Implications
The inventory turnover ratio is a key performance metric for every type of warehouse that reflects how efficiently inventory is being managed. Here’s how to calculate the inventory software, and interpret it:
- Calculation: Calculate the inventory turnover ratio by dividing the cost of goods sold (COGS) by the average inventory value [(Beginning Inventory + Ending Inventory) / 2].
- Interpretation: A high turnover ratio indicates efficient inventory management, while a low ratio may signify overstocking or slow sales.
- Impact: A high ratio implies that inventory is being sold quickly, reducing holding costs and improving cash flow. A low ratio may lead to higher holding costs and potential obsolescence.
- Optimization: Balance inventory levels to align with demand, prevent stockouts, and avoid excessive holding costs. Adjust purchasing strategies based on the turnover ratio to optimize profitability.
Multi-Location Inventory Management
Managing inventory across multiple locations requires strategic coordination to ensure more efficient warehouse operations and minimize excess stock. Here’s how to optimize multi-location inventory with warehouse management solutions:
- Centralized Visibility: Implement inventory management software that offers real-time visibility into stock levels across all locations.
- Demand Forecasting: Analyze demand patterns at each location to allocate inventory according to demand fluctuations.
- Inventory Transfer: Set up a streamlined process for transferring excess stock from one location to another to prevent stockouts or overstocking.
- Optimal Distribution: Determine the optimal distribution strategy based on factors like transportation costs, demand proximity, and order fulfillment speed.
- Performance Metrics: Monitor performance metrics for each location, such as turnover ratios and holding costs, to identify areas for improvement and standardize best practices.
By addressing safety, returns, warehouse management system, turnover ratio, and multi-location challenges, companies can enhance their inventory management practices, reduce costs, and ensure smooth and efficient operations across the warehouse network.
Demand Forecasting for Effective Inventory Management
Accurate demand forecasting is the cornerstone of successful inventory and supply chain management. Follow these steps to make inventory control and forecast demand effectively:
- Historical Data Analysis: Study past sales to identify patterns and trends.
- Market Research: Gather insights on market trends, customer preferences, and external factors.
- Statistical Models: Use forecasting methods like moving averages and exponential smoothing.
- Collaboration: Involve sales, marketing, and production teams for well-rounded insights.
- Software Tools: Leverage inventory management software with forecasting capabilities.
Using Data Analytics in Inventory Management
Data analytics can revolutionize your inventory management system. Here’s how to harness its power:
- Data Collection: Gather data on sales, inventory levels, lead times, and customer behavior.
- Identify Trends: Use analytics tools to uncover patterns and trends in the data.
- Demand Patterns: Understand peak seasons, product lifecycles, and demand fluctuations.
- Optimize Reordering: Set automated reorder points and quantities based on analytics.
- Real-time Updates: Utilize real-time data for agile decision-making.
Just-in-Time (JIT) Inventory Management
JIT is a strategy to manage inventory and minimize holding costs while meeting demand. Implement JIT with these steps:
- Demand Forecasting: Accurate demand prediction is crucial for JIT success.
- Supplier Relationships: Build strong relationships to ensure timely deliveries.
- Reduced Lead Time: Minimize lead time between order placement and delivery.
- Lean Inventory: Maintain only the necessary inventory levels to meet immediate demand.
- Continuous Improvement: Monitor and adjust processes for optimal JIT implementation.
The Role of Technology in Inventory Management
Technology empowers efficient and inventory management systems. Leverage technology to automate inventory tracking with these strategies:
- Inventory Management Software: Choose software for real-time tracking and accurate stock control.
- Barcode Scanning: Use barcodes for error-free inventory tracking and quick data entry.
- RFID Technology: Implement RFID tags for automated and detailed inventory tracking.
- Automation Solutions: Integrate automated systems for order fulfillment and tracking.
- Cloud-based Systems: Utilize cloud technology for remote access and scalability.
Sustainability in Inventory Management
Sustainable inventory management best practices contribute to efficient warehouse inventory management processes and environmental responsibility. Adopt sustainable approaches:
- Eco-friendly Packaging: Opt for biodegradable or recyclable packaging materials.
- Energy-efficient Warehousing: Implement energy-saving solutions like solar power and LED lighting.
- Reducing Waste: Minimize excess inventory to reduce waste and storage costs.
- Reverse Logistics: Establish processes for recycling and reusing returned products.
- Supplier Selection: Choose suppliers with sustainable practices for a greener supply chain.
By applying demand forecasting, data analytics, JIT strategies, technology integration, and sustainability principles, businesses can optimize warehouse management focuses and inventory management systems, streamline operations, and achieve greater profitability.
Conclusion: Achieving Balance in Warehouse Inventory Management
Effective, warehouse management and other inventory management solutions is a complex process that requires a blend of techniques, technologies, and training. By striking the right balance, companies can improve their warehouse operations, enhance customer service, and ultimately increase their bottom line. It’s a challenging endeavor, but with the right investment in solutions and continuous improvement, it’s an advantage that can lead to significant benefits.
Aug 2, 2023 | Blog
In the fast-paced realm of eCommerce, competition is fierce and there’s little room for error. Ensuring customer satisfaction and efficiently managing operations are crucial for the success of any eCommerce business. While often overlooked, one key factor that significantly impacts success is having a reliable and effective Warehouse Management System (WMS).
What is a Warehouse Management System?
A Warehouse Management System (WMS) specifically tailored for eCommerce is a specialized software platform that handles all aspects of warehousing operations. Think of it as the conductor behind the scenes, skillfully managing inventory movements to ensure that each product or SKU reaches customers promptly and smoothly. The WMS software provides a comprehensive framework to oversee various stages, starting from receiving goods into the warehouse all the way to order dispatch. This includes tasks such as product storage, order processing and even tracking orders throughout their journey.
Why are Warehouse Management Systems Important?
Understanding how WMS empowers eCommerce businesses is essential for navigating this competitive landscape successfully. Warehouse Management Systems (WMS) play a crucial role in the world of eCommerce, acting as a control tower for every movement within the warehouse. They offer:
- Inventory Management: A WMS allows you to monitor and control your inventory levels in real-time, preventing overstocking and understocking scenarios. This translates to cost savings and improved order efficiency.
- Efficiency and Accuracy: Warehouse management systems enhance the efficiency and accuracy of warehouse operations, reducing errors in order fulfillment and, in turn, reducing inventory shrinkage.
- Customer Satisfaction: An efficient WMS ensures that products are readily available and orders are processed promptly, leading to quicker deliveries and higher customer satisfaction.
- Order Management: With a WMS, order management becomes seamless. It provides real-time order tracking, streamlining order processing, and ensuring that your goods reach your clients swiftly and accurately.
- Data-Driven Decision Making: WMS software offers comprehensive data about your inventory and order management. This information empowers eCommerce retailers to make data-driven decisions to further streamline their operations and services.
- Scalability: As your eCommerce business grows, the complexity of your warehouse operations will increase. A WMS system can scale along with your business, making it easier to manage larger inventories, more customers, and an increased flow of orders.
A robust WMS is more than just a tool to manage your eCommerce warehouse or distribution center. It’s an essential system that helps improve service to your customers, providing you with a competitive edge in the highly competitive marketplace.
Key Components of a Good Warehouse Management System
A well-functioning WMS should have several key components to streamline your warehouse operations and support your eCommerce business needs:
- Integration Capabilities: The WMS should integrate seamlessly with your eCommerce platform, whether it’s Shopify, WooCommerce, or any other. Moreover, it should also integrate with other essential systems such as ERP (Enterprise Resource Planning), EDI (Electronic Data Interchange), and shipping carriers to streamline the supply chain operations.
- Inventory Control: An effective WMS provides complete visibility into your inventory, enabling real-time tracking of stock levels at different locations. It helps in maintaining accurate inventory data, avoiding overstocking or stockout situations, and ultimately reducing storage space and costs.
- Order Management: A comprehensive WMS aids in efficient order fulfillment, from picking, packing, to delivery. Some systems offer batch-picking functionality, further improving order processing speed and efficiency.
- Analytics and Reporting: Your WMS should provide insightful reports and analytics, giving you crucial information about your operations, such as performance metrics, shipping costs, and other essential data. These insights can guide your decision-making process, helping to optimize processes and increase profits.
- Scalability: The WMS should be scalable to accommodate your business’s growth and evolving demands. Whether you’re expanding your product range or increasing the number of orders, the system should seamlessly scale with your needs.
- Ease of Use: The user interface should be intuitive, ensuring your warehouse staff can easily navigate the system. The easier the system is to use, the less time your staff will spend on training and the more time they can dedicate to core tasks.
Types of Warehouse Management Systems
Standalone WMS
A standalone WMS is a traditional form of warehouse management software that operates independently from other systems in your business. It is often a cost-effective option and can be tailored to meet the specific needs of your warehouse operations. However, integration with other systems like ERP or eCommerce platforms might require additional investments.
Integrated WMS
An integrated WMS is typically part of a larger software suite, like an ERP system. It is designed to work seamlessly with other business processes, from order management to transportation and logistics. While an integrated WMS might require a larger upfront investment, it often leads to increased efficiency and accuracy by unifying all operations under a single platform.
Cloud-based WMS
Cloud-based WMS systems have gained popularity in recent years due to their scalability and flexibility. They are hosted on the vendor’s server and accessed via the internet, often through a browser or an Android app. This model reduces the need for a large upfront hardware investment and offers the flexibility to access the system from anywhere. Additionally, updates and maintenance are typically handled by the provider, making it an attractive option for many eCommerce businesses.
On-site WMS
An on-site or ‘on-premise’ WMS is a system installed directly on the company’s servers and managed by the company’s IT staff. It often requires purchasing hardware such as servers and barcode scanners and a significant upfront investment. However, it offers complete control over the system, which can be beneficial for companies with specific security or customization requirements.
Benefits of a Warehouse Management System For eCommerce
More Accurate Inventory Counts
A robust WMS equips you with advanced features and functionalities to maintain accurate inventory counts. Automation plays a pivotal part in this process, reducing the risk of human error and ensuring that you always have an accurate view of your stock levels. For instance, suppose a customer adds an item to their shopping cart on your eCommerce platform. In that case, the WMS automatically updates the inventory count, ensuring that your stock levels are accurate in real-time.
Better Order Efficiency
WMS enhances your order efficiency, offering methods and techniques that streamline every step of your order fulfillment process. From the moment a customer submits a request form or adds an item to their shopping cart, to the point where the order is packed and shipped, the WMS is there to ensure the process runs smoothly.
More Productive Warehouses
By automating numerous tasks within the warehouse, WMS frees up time for your warehouse staff to focus on other essential operations. For example, with a WMS, users no longer need to spend hours manually counting stock. Instead, the system does it for them, allowing them to allocate their time to more value-adding activities, thus making your warehouses more productive.
Less Cost
Investing in a WMS may seem like a significant upfront cost. However, it’s important to look at this as a long-term investment. By improving order efficiency and reducing errors, WMS can save you a considerable amount of money in the long run. Plus, by providing accurate inventory data, a WMS helps prevent overstocking and understocking situations, further reducing your costs.
Enables Faster Shipping
Speedy delivery times are a crucial part of a positive customer experience, and a WMS helps by streamlining your order fulfillment processes and enabling faster shipping. And, many WMS solutions can integrate with various shipping carriers, allowing you to choose the most efficient shipping method for each order.
How to Choose the Ideal Warehouse Management System for Your eCommerce Business
Accuracy of Information
A good WMS should provide accurate and real-time data about your inventory, supply chain, and order status. This visibility into your operations is vital for making informed decisions and optimizing your workflows. Look for a system that minimizes errors and offers features like barcode scanning for accurate data entry and tracking.
Training
Implementing a new WMS will involve a learning curve for your staff. Consider the training support provided by the WMS vendors. Will they assist with onboarding? Do they offer comprehensive training resources? Remember, the easier the system is for your team to use, the quicker you’ll see a return on your investment.
Scalability
As your eCommerce business grows, your WMS should be able to scale with it. This means being able to handle increasing inventory levels, more complex fulfillment operations, and integration with additional tools or services. Evaluate your potential WMS options for their scalability to ensure they can support your growth.
Return on Investment
While it’s essential to consider the upfront costs of a WMS, don’t lose sight of the long-term value it brings. Features like improved inventory control, increased order accuracy, and better warehouse efficiency can lead to significant cost savings over time. Analyze your options for their potential return on investment, including cost savings and improvements in customer satisfaction.
On-site vs Cloud-based
On-site and cloud-based WMS options each have their pros and cons. On-site systems may offer more control and customization options but require a larger upfront investment and ongoing maintenance. On the other hand, cloud-based systems are typically more scalable and have lower upfront costs but depend on a reliable internet connection. Consider your business’s specific needs, budget, and IT resources when deciding which option is best.
Integration
Integration with your existing systems, such as your eCommerce platform, shipping services, and 3PL providers, is a critical factor to consider. An integrated WMS can streamline your operations by allowing data to flow seamlessly between different parts of your supply chain. Check what integrations each WMS option offers and how easy it is to set them up.
Implementing WMS for eCommerce Fulfillment
Evaluating Your Current System
Before choosing a new WMS software, you must first assess your current system. Are there any shortcomings that need to be addressed? Do you need better visibility into your orders, inventory, and shipments? This initial evaluation should also include an analysis of your current order processing, order tracking, and order fulfillment systems.
Collecting Team Needs
Involving your team in the decision-making process is a key part of implementing a new WMS. Collect input from different areas of your operations, including order management, shipping, and customer service. By understanding their needs and challenges, you can find a WMS that not only improves operational efficiency but also enhances customer satisfaction and makes life easier for your employees.
Finding and Evaluating Vendors
There are various WMS providers to choose from, each offering different features, functionalities, and pricing models. When evaluating vendors, it’s important to consider how well their platform integrates with your existing systems, including your eCommerce platform, whether it’s Shopify, WooCommerce, or another service. Look for a WMS that can handle your business’s unique needs, from managing individual SKUs to tracking complex shipments.
Best Warehouse Management Software for eCommerce
When searching for an eCommerce-tailored Warehouse Management System (WMS), ShipHero stands in a league of its own. ShipHero is more than just a WMS; it’s a comprehensive solution designed to drive growth for eCommerce businesses. With a powerful suite that manages every detail from tracking individual SKUs to overseeing complex shipments, ShipHero is a game-changer in inventory control and order fulfillment.
What sets ShipHero apart is its seamless integration with a multitude of eCommerce platforms, including Shopify and WooCommerce. This means businesses can streamline operations without changing their existing eCommerce setup. This, and it’s the focus on customer service that truly distinguishes ShipHero. From the initial setup to continuous support, ShipHero walks alongside businesses, ensuring that every question is answered and every need met.
Choosing ShipHero is choosing more than a WMS platform. It’s choosing a partner committed to maximizing operational efficiency and enhancing customer satisfaction.
Key Takeaways
In the rapidly evolving landscape of eCommerce, having a robust and efficient Warehouse Management System is not just an option; it’s a necessity. Implementing a platform like ShipHero can make the difference between simply keeping up with the competition and leading the pack. With its broad feature set tailored to the unique needs of eCommerce businesses, seamless integration capabilities, and unparalleled customer service, ShipHero is the operating system designed to navigate the complexities of warehouse management with ease. Elevate your eCommerce operations and reap the benefits of enhanced efficiency, accuracy, and customer satisfaction. You worry about expanding the business, your WMS will handle the rest.
FAQs
How Many Types of Vendors Are Available in the WMS Market?
The WMS market is diverse, with a variety of vendors catering to different needs. Vendors often differ based on the scale, complexity, and industry focus of their solutions. There are vendors who specialize in solutions for small businesses, while others are more suitable for large enterprises. Some cater specifically to eCommerce, and others focus on industries like manufacturing or distribution. Additionally, some vendors provide standalone WMS solutions, while others offer integrated systems as part of a broader suite of supply chain or enterprise resource planning (ERP) tools.
What are Some Benefits of a Warehouse Management System not covered in the article?
Beyond the benefits discussed in the article, a WMS can offer numerous other advantages. For instance, it can improve workplace safety by better organizing warehouse activities and minimizing the risks of accidents. It can enhance supplier and partner relationships through better coordination and communication. And, a WMS can support your business’s sustainability efforts by optimizing processes to reduce waste and enhance energy efficiency.
What are Warehouse Management Activities Not covered in the article?
While the article covers many key warehouse management activities, there are additional tasks that a WMS can help manage. These can include labor management to ensure optimal staffing and productivity, cross-docking to streamline the transfer of goods from incoming to outgoing trucks, and yard management to control the movement of vehicles in the warehouse yard. Every WMS varies in its capabilities, and it’s important to choose one that aligns with your specific warehouse operations.
Mar 28, 2023 | Blog
If you’re new to the world of eCommerce or shipping, you might be wondering what shipping labels are and how they work. Shipping labels are an essential component of any shipping process, whether you’re shipping items to customers or sending packages to family and friends. They provide critical information to carriers and allow your package to be routed to its destination accurately. Without them, your packages could get lost!
What Is a Shipping Label?
A shipping label is a sticker or tag you attach to a package or envelope you are sending to someone. It includes important information like the recipient’s address, the sender’s address, and the weight of the package. These addresses and packing information help the shipping carriers know where to send the package and how much it weighs so they can charge you the correct shipping rates. Shipping labels can come in many different shapes and sizes, and they can be printed on a variety of materials. Some common types of shipping labels include peel-and-stick labels, integrated labels, and label sheets that you can print on using a regular printer.
What Is the Purpose of a Shipping Label?
The purpose of a shipping label is pretty straightforward – it’s basically a way to make sure your package gets to where it needs to go! Think of a shipping label as a sort of “travel guide” for your package. It includes all the important information that the carrier needs to know in order to get your package to its final destination. This might include the recipient’s name and address, the weight of the package, and any special handling instructions that need to be followed.
Why are they Important for eCommerce?
Shipping labels are essential for eCommerce businesses because they provide a quick and efficient way to manage the shipping process. By using shipping labels, eCommerce businesses can streamline their shipping operations, and project a professional image to customers. We all know how important customer satisfaction is when it comes to an eCommerce business, and having a streamlined delivery process with clear packing slips helps the process. Shipping labels can help speed up white glove fulfillment so packages are delivered to the correct address, reducing the risk of misdelivery or lost packages. Additionally, shipping labels can help eCommerce businesses save money on shipping costs by accurately calculating the weight and dimensions of the contents within the package, which helps carriers charge the correct shipping fees.
How Do Shipping Labels Work
Shipping labels work by providing critical information about a package or shipment to carriers, including its origin, destination, weight, and any special handling instructions. Once the package is in transit, carriers use the information on the shipping label to quickly route the package to its intended destination. This might be done through shipping software where the carrier uses barcode technology to scan the labels at various checkpoints along the way to verify the package is moving in the right direction. Once the package reaches its destination, the shipping label and the barcodes included on it are used to identify the recipient and ensure the package is delivered to the correct address. This might involve the carrier companies obtaining a signature from the recipient to confirm delivery, depending on the type of shipping service that was used.
How to Create a Shipping Label
Here are some necessary steps to take when creating your own shipping label:
- Gather the necessary information: To create a shipping label, you’ll need to gather information about the recipient’s address, the weight and dimensions of the package, and any special handling instructions. There are many shipping label templates available online to help you get started.
- Choose a shipping carrier: Decide which shipping carrier you’ll be using to ship your package. You can choose from a variety of carriers, including USPS, FedEx, and UPS, depending on your preferences and shipping needs. This could include overnight shipping, or options such as 2-day or 3-day shipping.
- Create the label: There are several ways to create a shipping label, including using a carrier’s online shipping tool, a third-party shipping platform, or machine such as a label printer in your own office. Follow the instructions for the method you’ve chosen to input the necessary information, such as the recipient’s address, the weight and dimensions of the package, and any special handling instructions.
- Print the label: Once you’ve created the label with the customer information and shipping information, you’ll need to print it out. If you’re using a carrier’s online shipping tool, you can usually print the label directly from the website. If you’re using a third-party platform, you may need to download and print the label separately.
- Affix the label: Once you’ve printed the label, you’ll need to affix it to the outside of the package. Make sure the label is securely attached and the information is legible and easy to read.
- Hand off the package: Once the label is attached, you can hand off the package to your chosen carrier for delivery.
What Info goes on a Shipping Label?
A shipping label typically includes the following information:
- Recipient’s name and address: This is the person or organization the package is being shipped to.
- Sender’s name and address: This is the person or organization who is sending the package and helps the carrier identify who the package is coming from.
- Shipping service and tracking number: This information tells the carrier which shipping service was used (e.gUSPS Priority Mail, FedEx Ground, etc.) and provides a tracking number to be used to track the package’s progress during transit.
- Package weight and dimensions: This information is used to calculate the shipping cost and helps the carrier determine how to handle the package during transit.
- Special handling instructions: This might include information about how the package should be handled (e.g., “Fragile” or “Do Not Bend”), or any other special instructions the carrier company needs to know about.
How To Print Shipping Labels
Printing a shipping label is a relatively simple process that can be done using a few different methods. One common way to print a shipping label is to use an online shipping tool provided by the carrier you’re using. To do this, simply navigate to the carrier’s website, log in to your account, and follow the instructions for creating a new shipment. Once you’ve inputted all the necessary information, you should be able to preview and print the label directly from the website. Another option is to use a third-party shipping platform, such as ShipHero or Shippo, which can help simplify the shipping process and allow you to print labels for multiple carriers from a single dashboard. Whichever method you choose, make sure the label is printed clearly and legibly, and all necessary information is included.
Where To Put Shipping Labels On The Box
The best place to put a shipping label on a box is on the largest, flattest surface of the package, ideally the top or one of the sides. Make sure the label is affixed securely and all of the information is legible and easy to read. Avoid placing the label on a seam or a corner, as this can make it difficult for people to scan the label or for the information to be easily read.
Shipping Label Best Practices
Here are some best practices to keep in mind when creating and using shipping labels:
- Use legible and accurate information: Make sure all of the information on the label is easy to read and accurate, including the recipient’s address, the weight and dimensions of the package, and any special handling instructions.
- Use a high-quality printer: This way the label is clear and easy to read, use a high-quality printer with good ink or toner.
- Affix the label securely: Make sure the label is affixed securely to the package and it won’t fall off during transit. Use adhesive tape or label protectors to help keep the label in place.
- Avoid covering up or obscuring the label: Make sure there are no other labels or markings on the package which might obscure the shipping label or cause confusion for the carrier.
- Check carrier requirements: Each carrier may have specific requirements for shipping labels, such as minimum font size or placement on the package. Check the carrier’s guidelines to ensure you’re following their requirements.
- Consider using a label printer: Using a label printer can help ensure your ink won’t smear, and your labels are consistently high-quality and can save time compared to printing labels on a regular printer.
Key Takeaways
Shipping labels are a crucial part of any shipping process, and they provide critical information to carriers and by allowing packages to be routed to their intended destination accurately. eCommerce businesses, in particular, rely on shipping labels to streamline their supply chain and shipping operations and provide a positive customer experience through the logistics process. And, by following best practices, you can ensure your shipping labels are accurate, legible, and easy to read so they arrive at their destination smoothly.
Shipping Labels FAQs
Is Shipping Cheaper if You Print Your Own Labels
Printing your own shipping labels can often be cheaper because carriers offer discounted rates for online shipping tools or third-party shipping platforms. This saves you money on shipping costs and avoids additional fees for manually processing shipments or printing labels at retail locations. However, savings will depend on factors like package size, weight, shipping service, and location. Compare rates and options from different carriers to find the most cost-effective solution.
Can I Just Tape a Shipping Label?
It is not recommended to just tape a shipping label onto a package. Shipping labels should be affixed securely to the package using adhesive that is appropriate for the surface of the package. This ensures the label stays in place during transit and can be easily read by the carrier. If a label is only taped to a package, it can easily become detached or damaged, which can cause delays or result in the package being lost.
Is It Free to Create a Shipping Label?
Creating a shipping label may or may not be free depending on the carrier you’re using and the method you choose. Some carriers offer free online shipping tools that allow you to create and print shipping labels from your computer, while others may charge a fee for this service. Additionally, some carriers may offer free shipping labels as part of a promotion or discount program, while others may charge a fee for each label printed.
Apr 21, 2023 | Blog
Order Fulfillment: The Backbone of eCommerce Success
The efficiency of order fulfillment is the cornerstone of success for any eCommerce business. Whether venturing into Direct-to-consumer (DTC) sales or exploring diverse channels like dropshipping, prompt and accurate product delivery is paramount.
Choices related to eCommerce fulfillment services, encompassing shipping costs, logistics, and carriers, hold immense importance in the online sales arena. These decisions impact customer trust, brand loyalty, and profitability.
Understanding eCommerce Fulfillment
Defining the Process
At its core, eCommerce fulfillment involves storing goods from suppliers in a warehouse, processing orders, and delivering products to customers. This journey encompasses stages after production and quality control.
However, effective eCommerce fulfillment extends beyond storage to utilizing tools, technologies, and the best fulfillment systems for efficient stock management and seamless returns handling. Informed decisions about warehousing, carriers, and shipments are vital for maximizing operational efficiency and customer satisfaction.
The Five Pillars of eCommerce Fulfillment
Every online purchase hinges on five crucial warehouse processes that define the best eCommerce fulfillment is:
1. Receiving
Goods arrive at the warehouse, awaiting storage until orders are placed. Seamlessly integrating the entire fulfillment process at this step ensures accurate and prompt deliveries. Efficient warehouse layout and management software enhance this process.
2. Inventory Storage
Optimal inventory storage location and duration significantly impact both fulfillment cost and efficiency. Maintaining appropriate inventory levels and accessible item positioning are vital. Businesses using third-party fulfillment or dropshipping must be mindful of storage fees.
3. Order Processing
This phase involves picking and packaging customer orders. Efficient order processing is a hallmark of well-organized warehouses. Software aids workers in locating items swiftly, redirecting resources to critical areas like customer support and marketing.
4. Shipping
Shipping decisions are data-driven, considering customer demands, shipping rates, and logistics. Strategically located warehouses minimize shipping distances, enhancing the customer experience.
5. Returns Processing
The fulfillment journey extends beyond order dispatch. A robust customer support system, efficient order tracking, and hassle-free return policies are pivotal for customer satisfaction.
Diverse eCommerce Fulfillment Service Models
No universal fulfillment model exists. Brands may excel with drop shipping, print on demand, or other traditional methods. The rise of 3PL and logistics solutions provides various options. Making the right choice for outsourcing fulfillment often requires asking pertinent questions and gathering information, emphasizing collaborative partnerships between businesses and chosen fulfillment services.
Selecting the Right eCommerce Fulfillment Provider
While industry giants like Amazon and Rakuten are notable, surveying multiple fulfillment centers is crucial. Consider network size, manufacturer partnerships, and platform reputation. Every decision influences the customer experience.
Top 3 Order Fulfillment Centers
- ShipHero: A comprehensive solution offering software and warehouse management services.
- Fulfillment by Amazon: Collaborating with Amazon provides access to a vast seller network.
- Shopify Fulfillment Network: Established in 2006, Shopify rivals global powerhouses with its fulfillment offerings.
Strategies for Effective eCommerce Fulfillment
When formulating a fulfillment strategy, evaluate shipping and warehouse expenses. Use data to identify cost-saving opportunities and enhance accuracy. Employ appropriate tools, practices, platforms, and systems for tracking shipments and managing inventory. Business growth, operational scale, and available networks factor into decision-making.
Understanding eCommerce Fulfillment
Defining the Process
At its core, eCommerce fulfillment involves storing goods in a warehouse, processing orders, and delivering products to customers. This includes stages after production and quality control. Effective eCommerce fulfillment goes beyond storage, using tools for efficient stock management and returns handling. Decisions on warehousing, carriers, and shipments are vital for efficiency and customer satisfaction.
The Five Stages of eCommerce Fulfillment
1. Receiving
Goods arrive at the warehouse, awaiting storage until orders are placed. This step, when integrated properly, ensures accurate and prompt deliveries. Warehouse layout and management software are crucial.
2. Inventory Storage
Optimal storage location and duration significantly affect efficiency. Maintaining inventory levels and accessible item positioning is essential. For businesses using third-party fulfillment or dropshipping, storage fees must be considered.
3. Order Processing
This phase involves picking and packaging customer orders. Efficient order processing is a hallmark of well-organized warehouses. Software helps workers locate items swiftly, reallocating resources to critical areas like customer support and marketing.
4. Shipping
Shipping decisions are data-driven, considering customer demands, shipping rates, and logistics. Strategically located warehouses minimize shipping distances, enhancing the customer experience.
5. Returns Processing
The fulfillment of the customer demand journey extends beyond order dispatch. Robust customer support, efficient order tracking, and hassle-free return policies are pivotal for customer satisfaction.
Diverse eCommerce Fulfillment Models
eCommerce businesses can excel with various models such as dropshipping, traditional methods, and third-party logistics (3PL). The right choice requires pertinent questions, information gathering, and fostering collaborative partnerships.
Selecting the Right eCommerce Fulfillment Provider
While Amazon and Rakuten are giants, surveying multiple fulfillment centers is crucial. Consider network size, manufacturer partnerships, and platform reputation. Each decision influences the customer experience.
Top 3 Order Fulfillment Centers
1. ShipHero
A comprehensive solution offering software and warehouse management services.
2. Fulfillment by Amazon
Collaborating with Amazon provides access to a vast seller network.
3. Shopify Fulfillment Network
Established in 2006, Shopify rivals global powerhouses with its online store and fulfillment offerings.
Strategies for Effective eCommerce Fulfillment
Formulating a strategy involves evaluating shipping and warehouse expenses. Use data to identify cost-saving opportunities and enhance accuracy. Employ tools, platforms, and systems for tracking shipments and managing inventory. Business growth, operational scale, and available networks factor into decision-making.
Key Takeaways
Efficient eCommerce fulfillment enhances customer experience and cost savings. The ecommerce order fulfillment process involves various post-production activities. Effective fulfillment fosters brand loyalty and supports business expansion.
eCommerce Fulfillment FAQs
What is Amazon Fulfillment?
Amazon enables businesses to market products on its platform while storing them in warehouses.
What are Fulfillment Centers?
These warehouses store merchandise for various eCommerce businesses, facilitating cost-effective storage and dispatch.
Which is the best Order Fulfillment Center?
ShipHero stands out based on popularity and trust.
Apr 21, 2023 | Blog
Lot tracking is a pivotal component of warehouse inventory management process and plays a significant role in the distribution, storage space logistics, and movement of goods within a company. It involves assigning lot numbers to batches of specific inventory items that enter your warehouse. This system is crucial for food and beverage products, as well as other items with a defined shelf life. Adhering to this method simplifies adherence to FDA regulations, minimizes waste, and shields companies from potential legal repercussions during product recalls. An effective lot tracking system allows for efficient product movement and management of recalls, ensuring products past their expiration aren’t unnecessarily occupying warehouse space.
What is Lot Tracking?
Lot tracking entails giving a unique batch number to every consignment of perishable goods that reaches your warehouse from vendors. This ensures that even if inventory is spread across multiple warehouses overseen by various distributors, the origin and details of each batch remain clear through the lot numbers. The purchase order system can further streamline this by ensuring that each order is correctly matched with its respective lot number.
Lot management is indispensable in several industries, including aviation, electronics, and pharmaceuticals. For warehouses storing food, beverages, medicines, or cosmetics, lot control is mandated for regulatory compliance. The FDA mandates the tracking of these goods to ensure that, in the event of contamination, affected products can be swiftly identified and prevented from reaching customers. Learn more about inventory position here.
How Does Lot Tracking Work?
The process involves attaching identical barcodes to all packages of a product from the same shipment. This is applicable to both raw materials and finished food items destined for retail or direct customer delivery. For example, bags of flour arriving from Kansas on April 1 would share a lot number, distinct from the lot number assigned to frozen french fries from Idaho delivered on April 2. This system ensures that items with the same lot number are recognized as being from the same batch, distinct from those with different lot numbers. Processes in place ensure that each step, from receiving to shipping, is meticulously tracked. Discover more about inventory tracking here.
Why Is Lot Tracking Important to Inventory Management?
The primary significance of lot and batch tracking lies in quality control. If a batch faces contamination or defects, all items with the corresponding lot number can be isolated or inspected meticulously. This not only safeguards product quality but also enhances customer satisfaction and safety. Moreover, businesses can promptly inform the supplier about any issues with the batch tracking their products, facilitating timely resolutions and identifying the root cause.
The Mechanics of Lot Tracking
The process of lot tracking involves attaching identical barcodes to packages of a particular product from the same shipment. This practice applies to both raw materials and finished goods, ensuring items with the same lot number are recognized as part of the same batch. Comprehensive processes track each step, from receiving to shipping.
Quality Control Anchored in Lot Tracking
Lot tracking’s core significance lies in maintaining product quality and safety. In cases of contamination or defects, isolating or inspecting the entire supply chain inventory with the corresponding lot number prevents distribution of subpar products. Swift communication with suppliers fosters timely resolutions and issue identification.
Benefits of Lot Tracking
Lot tracking provides insights into sales patterns, procurement, and transportation logistics. It aids employees in locating necessary raw materials for production. The transparency of lot numbers expedites the production process, reduces costs, and ensures timely identification of contaminated batches. Services offered by third-party logistics providers can further enhance the efficiency of this system. Learn about critical KPIs in inventory management here.
Eliminate Human Error
Leveraging inventory management software for lot reports offers significant business advantages. Employees and customers can trust software-generated reports, fostering seamless communication between teams, warehouse managers, and manufacturers regarding inventory data and potential defects or contamination. This system is especially crucial for items like food ingredients or cleaning supplies but is equally beneficial for other products.
Have a Full Supply Chain Overview
Lot tracking provides a comprehensive view of the entire supply chain. Given the intricate requirements and dynamics of supply chain logistics, lot tracking ensures highest quality in both inventory control and timely identification and resolution of issues, preventing widespread distribution of defective products and averting substantial financial setbacks for companies.
Get Specific Data of Product Lots
FDA-regulated products, including foods, beverages, cosmetics, pharmaceuticals, and household cleaners, necessitate lot tracking system. Certain electronics, particularly those with components bearing expiration dates, also require this system.
Which Products Need Lot Tracking?
FDA-regulated products, including foods, beverages, cosmetics, pharmaceuticals, and household cleaners, necessitate lot tracking. Certain electronics, particularly those with components bearing expiration dates, also require this system.
Streamlined Lot Tracking with Software
Utilizing an inventory management system and software generates reliable reports, fostering seamless communication among teams, warehouse managers, and manufacturers. This proves vital for industries handling sensitive products such as food ingredients or cleaning supplies.
Convergence of Lot Tracking and Emerging Tech
Lot tracking merges with emerging technologies like blockchain and IoT. Blockchain ensures security and transparency of lot tracking data, while IoT devices enable real-time lot tracking process, and monitoring, enhancing efficiency and visibility.
Lot Tracking Best Practices
- Use Barcode Scanning: Speed up the process and minimize errors by scanning barcodes instead of manual entry.
- Lot Adhering: Streamlines the tracking process and optimizes warehouse space utilization.
- Store Your Lots Wisely: Use ERP or inventory management software to strategize lot storage.
- Fulfillment by Lot: Enhances the accuracy and speed of the fulfillment process.
- Use Lot Tracking Software: Facilitates intra and inter-warehouse communication.
- Strategy for Short-Dated Items: Prioritize items with shorter shelf lives when implementing a lot tracking system.
Key Takeaways
- Lot tracking is vital for FDA compliance, waste reduction, and efficient warehouse operations.
- It’s essential for perishable items and those under FDA regulations.
Lot Tracking FAQs
What Is Lot Tracking in Manufacturing?
It’s the assignment of a unique code or lot number to batches of items produced on a specific date, ensuring traceability in case of defects or recalls.
What Are the Benefits of Lot Traceability in Manufacturing?
It ensures compliance with safety recalls, minimizes legal risks, and helps in efficient product distribution.
What Is the Purpose of Lot Number?
It provides information about the product type, production details, and expiration date.
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Aug 2, 2023 | Blog
Every client has different logistics needs. If your third-party logistics (3PL) company offers custom pricing, you need to analyze what clients need and offer prices that satisfy their requirements while still being reasonable. However, calculating 3PL service prices individually each time you get a new client takes a lot of time and effort.
3PL pricing templates are here to help you streamline that process. With a template, you can come up with quick cost estimates to show prospective clients to ensure you reach an agreement faster.
Keep reading for a complete rundown of 3PL pricing templates and what components you should include in them. You’ll also find a link to download our free 3PL pricing template!
What is a 3PL Pricing Template?
A 3PL pricing template is a document that helps you determine 3PL service costs. It usually comes in the form of a document or sheet where you can insert various cost items and find the total regular cost of your whole 3PL service.
This template generally includes essential cost items like inbound handling, receiving, storage and order fulfillment. Once you’ve plugged in the per unit price of each cost item, you can check with the prospective client how much of each service they need every month and the sheet will calculate the total costs for you. With a template, you can come up with a quote within minutes.
How is 3PL Pricing Calculated?
3PL pricing is calculated by summing up all the relevant cost components. Whatever the total of the inbound handling, receiving, storage and order fulfillment is your monthly 3PL cost for that client. This is the most common way to calculate 3PL pricing, but every logistics provider is unique. You might have extra cost items or considerations that may change how you calculate 3PL pricing.
As a 3PL company, you calculate 3PL pricing for clients. Accurately calculating 3PL pricing means understanding how many products they sell each month, so you can estimate the labor needed to handle their orders.
If you can’t correctly estimate the labor needed to handle your client’s logistics operations, you may overcharge or undercharge on service costs.
Components of a 3PL Pricing Template
What do you put in your 3PL pricing template? The answer differs for every logistics company, but there are common items you’ll find in just about all 3PL pricing templates. Here’s a look at each of them:
3PL Warehousing/Storage Fees
Warehousing and storage fees generally make up most of your 3PL pricing structure. This component encompasses receiving, unloading and storage costs for your client’s items.
Many 3PL companies have a tiered price structure for inventory unloading. Generally, unloading larger containers are more expensive than unloading pallets or cartons. This is because containers usually contain multiple pallets or cartons, which means more work to unload.
In addition to unloading, 3PL companies also charge receiving costs. This part of warehousing costs covers the work of inputting the items into the warehouse management system and moving them into the storage space. You can also charge extra for applying shrink wrap to keep the items safe.
The last part of storage fees is the storage charge itself. You can charge by space or by item stored. This cost is usually a recurring fee charged weekly. Some third-party logistics providers also rent pallets if the client ships items in cartons.
3PL Pick & Pack Fees
As the name implies, picking and packing fees cover the labor when you pick and pack the client’s products. 3PLs usually charge pick and pack fees per item or container, depending on the client’s needs. They also charge a processing fee for every order to be fulfilled.
In some larger orders, fulfillment companies can add shrink wrap as an extra expense for more protection when shipping packages. You can also apply bulk order discounts to improve client satisfaction.
3PL Shipping Fees
Shipping and transportation fees cover the cost of delivering your client’s products to customers. Your shipping rate can be based on volume, weight, or both combined. You may also offer different shipping rates for various delivery speeds, like two-day and regular deliveries.
If you work with multiple shipping carriers, you can include their names in the template so the client can choose whichever shipping partner works best for their needs and budget.
Setup and Account Management Fees
Before starting to work with a client, you need to set up a WMS and prepare everything for proper logistics management. This is where setup fees come in. It’s a one-time fee you charge when starting work with a new client and it’s usually based on the size of the client’s company and what kind of fulfillment services they need.
Account management fees include document storage, inventory reporting, shipping label printing and other costs required to keep your 3PL operations running. Account management fees are generally small and charged every month.
Additional Charges
In addition to all the aforementioned cost items, you can include any additional charges in the pricing template. Additional costs include things like safety charges for storing hazardous materials and refrigeration expenses for perishable goods.
Some 3PL companies may charge seasonal adjustment costs. This cost compensates for the extra labor their team may need to handle the increased order volume during high-demand seasons.
Click to Download Our Free 3PL Pricing Template
Importance of a 3PL Pricing Template in Business
A 3PL pricing template is important in business because it helps you come up with price quotes faster. Instead of spending time calculating each cost item manually, you can input the price and quantity into the available slots and get an instant cost estimate. You may still need to adjust the final quote to fit the client’s needs, but it provides a great starting point when discussing a 3PL service offering.
Having all the cost items listed on the template also minimizes human error. If you accidentally skip a cost item in your 3PL service rate calculations, you may end up with an inaccurate quote for the prospective client
Transparency is also a good reason to use 3PL pricing templates. With a fixed template, the prospective client knows how much they have to pay for receiving, shipping and other expenses. This way, they’re more likely to trust your company since they know what they’ll pay for when using your services.
3PL Pricing Models
Every client has their preference for 3PL pricing models. Some prefer fixed-price 3PL services, while others think variable pricing is better for their finances. Plus, there’s the Amazon FBA model that has fixed pricing and profit sharing.
How does each pricing model work and what are its benefits and caveats? Let’s take a look:
Fixed Pricing Model
A fixed pricing model is just as the name implies. Clients pay a set cost to get all your 3PL services. Businesses usually prefer a fixed pricing model if they want to eliminate uncertainty about their 3PL costs. The pricing model’s predictability also helps small businesses and companies with thin profit margins stay within budget.
On your side of the deal, using a fixed pricing model fosters a partnership between your company and the client. If you provide excellent 3PL service, your client may see they’re getting more bang for their buck. Additionally, a fixed-price model ensures you get the same amount of money each month regardless of how well the client’s products sell.
However, there is a downside to fixed pricing models. Applying a fixed pricing model means you might take on more work than what the income is worth if the partner company keeps growing. In these cases, you may need to renegotiate the monthly cost with the client to ensure the 3PL company and the client get the most out of this partnership.
Variable Pricing Model
A variable pricing model is more commonly used by 3PL companies. Clients often prefer variable rates because they know what they’ll be paying for and can adjust their business operations accordingly. For instance, your client can reduce items shipped to your warehouse if they don’t have enough money to store all of them.
A 3PL pricing template works best when you use variable pricing because you can adjust cost items according to the client’s needs. Using a 3PL pricing template to outline your variable pricing also builds trust since the document covers everything the client is about to pay, ensuring hidden costs won’t blindside them.
The downside to variable pricing models for the client is that it adds a level of unpredictability since how much they pay is determined by their sales. This unpredictability might be a dealbreaker for small businesses wanting to make every dollar count.
Variable pricing models also add a layer of unpredictability on your end since how much you make depends on the client’s sales. You might receive less money during low-demand periods since the client isn’t selling as many goods as they do regularly.
Amazon FBA “Fixed-Pricing-Profit Sharing” Pricing Model
Another pricing model that’s worth noting is the Fulfillment by Amazon (FBA) pricing model. This pricing model works somewhat like a fixed-price model. Sellers pay a regular 3PL services fee, but they also pay a “selling on Amazon fee,” that’s around 15% of the profit margin.
15% of the seller’s profit on top of the fixed fulfillment fees sounds pretty steep. However, sellers sometimes prefer to fulfill orders through Amazon because they can reach a larger audience, use Amazon’s ready-made storefront and potentially gain more sales.
Plus, Amazon is known for its vast fulfillment network. There are over 170 Amazon fulfillment centers and warehouses worldwide, so sellers can sell internationally rather than just domestically. With a large enough customer base, they can offset the increased fulfillment costs of using Amazon FBA.
Another thing sellers need to know about Amazon FBA is its no-questions return policy. Once they sign up for Amazon FBA, they may see an increase in returns.
Key Takeaways
A 3PL pricing template is a document that assists in calculating 3PL service costs. It contains fillable cost items that you can modify according to the client’s needs, making it much easier to determine how much you’ll charge them.
Your pricing template does more than just help you determine service costs. It also promotes transparency and builds client trust because everything they’ll be paying for is listed on the template, meaning everything is above the board and hidden costs won’t blindside them.
As a 3PL company, you need a robust warehouse management system to ensure you provide the best services to clients. ShipHero’s WMS improves order accuracy, reduces warehouse costs and much more. Contact us today to learn how our WMS can help you succeed.
Frequently Asked Questions (FAQs)
What are the Advantages of Using a 3PL Pricing Template?
The advantages of using a 3PL pricing template include increased transparency, reduced human error and faster cost calculations. All three things build client trust because everything is on the table and clients can trust that there won’t be any hidden costs that surprise them once they start working with you.
How Can I Choose the Right Pricing Model for My Business?
You can choose the right pricing model for your business by examining your client base first. Small businesses and companies with thin profit margins usually prefer flat-rate pricing because there are fewer surprises. Meanwhile, companies selling products with fluctuating demand might fare better with variable-rate pricing.
Each pricing model has its own pros and cons, so research your clients well and choose the most cost-effective pricing model that suits your capabilities.
What is the Impact of a 3PL Pricing Template on Cost Efficiency?
A 3PL pricing template helps you improve cost efficiency because it’s easier to review the client’s entire cost structure once the template’s been filled out. You can examine potential overspending and give the client suggestions on how to increase your 3PL services’ cost efficiency.
Nov 2, 2022 | Blog
Whether you’re a fledgling micro-enterprise or an established brick-and-mortar store, eCommerce platforms like WooCommerce are becoming more of a necessity in today’s “always online” world. And one essential component of running a successful eCommerce platform is order fulfillment. After all, order fulfillment is what allows your products to get to your customers.
Here, we look at one of the best order fulfillment partners for one of the most popular eCommerce platforms out there, WooCommerce.
What is WooCommerce?
WooCommerce is a free, open-source eCommerce plugin for WordPress. It allows anyone with a WordPress account to set up and manage an online business. As a flexible eCommerce platform, WooCommerce can be customized in a myriad of ways with its built-in features, including inventory management, order tracking, customer engagement, secure payments and delivery status – and with various integrations as well.
What is Order Fulfillment?
Order fulfillment refers to the process of receiving, assembling, packing and shipping orders to their respective buyers and other related tasks such as:
- Inventory management
- Supply chain management
- Quality control
- Customer service
- Returns and refunds
- Warehouse management
Order fulfillment is a necessary component of running a WooCommerce Shop, as it is what brings orders to customers and keeps them satisfied.
How Does the WooCommerce Fulfillment Process Work?
Because WooCommerce is primarily focused on providing small businesses with an online platform, it doesn’t have a robust order fulfillment system.
WooCommerce Shipping is a built-in fulfillment system that is accessible via the main dashboard. From the WooCommerce dashboard, store managers can manage inventory, prepare orders, automate tax calculations and live shipping rates, and print and manage DHL and USPS labels.
What Does A WooCommerce Order Fulfillment Provider Do?
Essentially, a WooCommerce order fulfillment provider would take the whole fulfillment process out of your hands and allow you to focus on the other facets of running your online business.
Order fulfillment partners take over tasks like inventory management, order picking and packing, shipping, delivery tracking, and sometimes even storage. A reputable fulfillment service will have the necessary infrastructure in place to pick, pack and ship your orders quickly and efficiently.
What Are the Benefits of Using an eCommerce Order Fulfillment Service?
By outsourcing your WooCommerce order fulfillment to a third-party provider, you free up valuable time and resources that can be better spent on other areas of your business. But the benefits don’t stop there.
Here are a few more reasons to outsource your order fulfillment:
Extra Storage Space
Renting and operating a warehouse can take a sizable chunk out of your overhead costs. And if you’re building a business from the ground up, you may not even have the money to cover warehousing in the first place. The last thing you’ll want is to have to store your products at home.
This is where an eCommerce fulfillment center can help. A lot of fulfillment service providers now offer warehouses to store their clients’ products for a minimal fee. This fee often covers storage, maintenance and manpower.
A More Affordable Shipping Solution
Many order fulfillment providers partner up with shipping carriers to send orders out in bulk and cut costs on deliveries. As bulk shipments are cheaper than single orders, fulfillment providers can offer cheaper rates for the same or even faster delivery times.
Improved Scalability
As your business grows, you’ll either have to expand your workforce or increase your current employees’ workload. The former can take a lot of time (and money), while the latter can take a toll on your employees’ productivity and overall happiness. With an outsourced fulfillment service provider, however, you can simply request a plan upgrade and boost your fulfillment capacity to handle increased demand.
Expert Service
Forget about having to train and monitor your order fulfillment team’s performance. Fulfillment services hire, train and supervise their crew members so that they can deliver the best service to their clients. And should you experience any issues with your supply chain, you can fall back on the opinions of experts who are equipped to handle these kinds of things.
ShipHero is here to fulfill all your eCommerce shipping needs. Take a look at our order fulfillment services.
Factors to Consider While Selecting an Order Fulfillment Partner for WooCommerce
There are dozens of order fulfillment service providers out there. How do you decide which one is right for you? Before you settle on a partner, make sure to consider the following factors first:
Order Fulfillment Speed
Due in part to Amazon’s 2-day shipping offer, eCommerce customers have grown to expect their online orders to arrive at lightning speed. When screening fulfillment providers, prioritize ones with decent track records in terms of delivery times.
And if a business can’t promise fast order turnaround times, they should at least try to stick to their delivery estimates. Look for a fulfillment provider that can at least hit their delivery range consistently.
Storage and Fulfillment Fees
Looking for a long-term commitment? A good fulfillment provider will offer better rates for businesses that are looking for long-term partnerships and that have massive inventories.
Pricing
When screening fulfillment providers, watch out for hidden fees like monthly minimum fees, warehouse fees, fees for storing, handling, and restocking returned items, and assembly fees. Some service providers may issue penalties for items that are not labeled correctly, exceed weight limits, or use incorrect packaging materials.
Other special services that you may have to pay for (depending on your business) include cold storage and special handling.
Returns Management
Order fulfillment services must be able to handle product returns and exchanges without putting customers under any undue stress. A good return process makes customers feel valued and improves their satisfaction with your business even if they were initially dissatisfied with their initial delivery.
What To Look For in a WooCommerce Fulfillment Partner
Here are three things to ask about when shopping around for a long-term order fulfillment partner:
eCommerce Platform Integration
You have to make sure that your chosen partner uses software that can be integrated with your WooCommerce platform. This eliminates manual data entry, data silos, miscommunications and issues due to human error. It’d be best to find a fulfillment partner that can integrate with several different platforms. That way, if you decide to switch platforms down the line, you won’t have to let go of your current fulfillment service provider.
If you’re looking to switch your eCommerce platform, look for a fulfillment partner that integrates with one of the following options: Squarespace, BigCommerce, Wix, ChannelAdvisor and Square.
Multichannel Integration
Multichannel order fulfillment allows merchants to send out their products from one warehouse to multiple storefronts. This eliminates the need to establish warehouses for each location, saving businesses money in the process.
Ease of Use
You’ll want an order fulfillment system that is intuitive and user-friendly for all kinds of users, whether they’re tech-savvy or not. Today, most order fulfillment systems allow store managers to monitor and manage everything from inventory to shipping from one centralized dashboard.
How We Chose the Best WooCommerce Fulfillment Companies
Before we get to our list of the best WooCommerce fulfillment companies on the market, take a look at the criteria we used to narrow down our options:
- Shipping speed
- Fulfillment software features and integrations
- Returns management
- Pricing
- User-friendliness
- Best WooCommerce Fulfillment Companies
These are our top picks for the best WooCommerce fulfillment partners today:
1. ShipHero
ShipHero is an order fulfillment partner and warehouse management software that promises high-speed delivery (3.5 days on average) and end-to-end order fulfillment at lower-than-average costs.
ShipHero has eight warehouses located across the US and Canada, meaning that even small businesses can reach a larger volume of customers faster through the service.
ShipHero also offers PostHero integration, which allows shop owners to track packages to their destinations. This lets them provide more accurate delivery dates to their customers.
Pros
- Two-in-one fulfillment service and warehouse management software provider
- Access to PostHero shipment tracking and estimation
- Eight warehouses spread across the US and Canada
Cons
- Occasional software issues
- Not enough options for shipping label customization
Pricing
ShipHero offers no zone pricing and a flat rate that includes pick, pack, postage, materials and shipping. Contact them for a customer quote.
2. Ordoro
Ordoro is an all-in-one multichannel fulfillment platform that offers shipping management, order management and inventory management for complex fulfillment workflows.
Pros
- Supports advanced pick and pack workflows
- Provides barcode scanning and tracking number writebacks
- Supports dropshipping and automated order routing
Cons
- Does not provide inventory management features on the introductory plan
- Does not provide forecasting features
- Not accessible via mobile app
Pricing
The Ordoro Starter plan is free of charge. The Express plan starts at $59/month and can accommodate unlimited users.
3. Dropified
Dropified is a web-based dropshipping software that supports the eCommerce platforms Shopify, gearbubblePRO, CommerceHQ, and WooCommerce. Unlike the other fulfillment providers on this list, Dropified focuses on dropshipping and comes with several dropshipping-specific features. For example, it provides users with direct access to wholesalers who can dropship for your business.
Pros
- Sources top-selling products from real marketplace sales data
- Allows shop owners to add products to their online store in an instant
- Lets users place multiple orders to AliExpress and Alibaba in one click
Cons
- Exclusive to dropshipping businesses
- Limited automation tools
Pricing
Dropified offers a 14-day free trial to all first-time users. Plans start at $39.17/month billed annually.
4. Red Stag Fulfillment
Red Stag Fulfillment offers cloud-based order fulfillment for both B2C and B2B online retailers. This fulfillment service provider offers picking, packing, kitting and returns.
Pros
- Same-day fulfillment guarantee
- Provides affordable shipping for larger items
Cons
- Only has two warehouses in the US
- Dashboard and user interface leaves much to be desired
Pricing
Red Stag does not provide pricing information on its website. You’ll have to request a quote to learn more.
5. Byrd
Byrd offers “scalable and digital” eCommerce fulfillment and aims to support the growth of online shops through its international logistics network.
Byrd offers a wide range of services, from warehousing and real-time inventory to efficient picking and packing to shipping and return management.
Pros
- Over 25 fulfillment centers in Europe
- Live inventory management
- Stores and ships organic products
Cons
- No free trial version
- Difficult onboarding process
Pricing
Byrd does not provide pricing information on its website. You’ll have to request a quote to learn more
6. ShipBob
ShipBob touts itself as a “global omnifulfillment solution”. It boasts over 30 distribution centers across six countries and a 99.96% on-time delivery rate.
Pros
- Two-day shipping
- Custom-branded packaging
- Easy onboarding process
Cons
- Slow response time for the app
- Limited integration options
Pricing
ShipBob’s website has a calculator to help you estimate order fulfillment prices. For more detailed pricing breakdowns, request a quote.
Final Thoughts
WooCommerce is a great platform for small business owners and entrepreneurs, but it’s just one part of running a successful online business. You need a great platform that can handle order fulfillment and get your products out the door and into the hands of your customers as efficiently as possible.
That’s why we put together this list of the best WooCommerce fulfillment providers. We hope it will help you choose the right partner to take care of your order fulfillment needs.
Don’t work with WooCommerce? Find the best carriers for many of the highest profile marketplaces on the web.
Top 10 Best Order Fulfillment for Amazon
Top 10 Best Order Fulfillment Partners for Walmart
Top 10 Order Fulfillment for eBay
Top 10 Best Order Fulfillment Options for Wix
Top 6 Best Order Fulfillment Options for Square
Top 10 Best Order Fulfillment Partners for ChannelAdvisor
Top 10 Best Order Fulfillment Options for BigCommerce
Top 10 Best Order Fulfillment Options for Squarespace
Top 10 Best Order Fulfillment Options for eCommerce Sellers
Order Fulfillment for WooCommerce FAQs
How do you fulfill orders in WooCommerce?
To fulfill orders in WooCommerce, you must first check to make sure you have the items in stock. Next, you’ve got to package your items, add labels, ship them out and send a tracking number to your customers.
Does WooCommerce have inventory management?
Yes, WooCommerce has built-in inventory management capabilities.
How do I fulfill a dropship order?
WooCommerce Dropshipping helps users send automated order notification emails to wholesale dropshippers when new orders come in. This automates order fulfillment of dropship orders.
Jul 3, 2023 | Blog
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.
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.
The Top 10 Best WMS for Shopify
The top 10 best WMS for Shopify include ShipHero, Megaventory, Veeqo, SwiftCount, Logiwa, Veracore, Craftybase, PowerHouse, ShippingEasy, and ShipBob. ShipHero stands out as user-friendly with automation features to streamline processes. It also helps in managing returns and offers tools for better functionality, including software solutions, and collects reviews from users.
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.
