Overcoming Inventory Woes When Peak is Here

May 6, 2022 | Blog

The holidays are right around the corner, which means online shopping is once again set to spike, reminding eCommerce brands of the importance of inventory management. 

Keeping customers happy during peak season is essential for long term success, and inventory management has quickly become a major hurdle standing in the way of that goal. Over-stocking unsold items, unexpected supply shortages and surging online orders can easily set you back and leave potential customers with no choice but to shop elsewhere. 

Let’s take a look at some of the most common causes of inventory frustration during peak season and what strategies can help make Q4 a little easier to navigate. 

Limited Warehouse Space

One of the root causes of inventory shortage is the scarcity of actual shelving space. Before peak season comes around, it’s important to understand your existing warehouse capacity and how an increase in orders could impact your product’s availability. Warehouse space is in high demand. Even during the slower shipping season, eCommerce brands have struggled to find adequate storage space for their products. 

As this demand increases, so will the cost of reserving space. Even if you end up selling more during peak season, those gains could be offset by rising operational costs. 

Difficulty Forecasting Orders

One of the toughest challenges of peak season is the ability to accurately forecast the amount of stock you’ll need to keep orders flowing. Due to the recent spike in online shopping, brands can generally anticipate an increase in warehouse output. Predicting exactly how much additional stock will be needed, however, can be much more difficult. 

Accurate demand forecasting can be a major advantage during peak season. When it comes to inventory management, a clear idea of storage needs can help avoid problems like overstock and depletion. Before this year’s peak shipping season arrives, it’s a good idea to have a system in place that leverages data from previous years and gauges the amount of stock you’ll need to keep customers satisfied. 

On-Demand Warehousing 

One solution that has worked for some brands with inventory management issues has been on-demand warehousing. On-demand warehousing allows companies to temporarily rent excess inventory space to store products as needed. 

While this strategy can help secure additional storage space, you might sacrifice some degree of visibility and control over how your products are shipped. The companies that provide the additional inventory space usually don’t complete the fulfillment process themselves. That step is outsourced to a 3PL, which could potentially leave you in the dark about the status of your orders. 

On-demand warehousing 3PLs negotiate on your behalf with warehouses in their network to find the most efficient and cost effective storage solution for your brand. With the supply chain continuing to cause unexpected shipping interruptions, this gives you a flexible and customized inventory management strategy.

Just In Time Inventory Management 

Rather than expand their inventory storage space, some brands have opted to leverage their existing warehouse by employing just in time inventory management. 

Just in time inventory management, or JIT, is a strategy that involves importing goods to the warehouse as they are needed, minimizing some of the constraints of limited storage space. If an order is canceled, or certain products don’t meet the expected demand, those unwanted products won’t sit around the warehouse taking up valuable shelf space.

JIT can help make shipping more efficient, but it does open you up to some amount of risk if the day-to-day fulfillment process runs off track. A successful JIT strategy relies on accurate order forecasting, reliable suppliers and adequate staff training to keep the fulfillment cycle running smoothly. If a supplier falls behind and can’t get your products to the warehouse on time, you’ll be out of stock and unable to fulfill orders. 

Real-Time Reporting 

One of the most important tools to have on hand when peak season rolls around is data. Finding new efficiency opportunities and storage solutions is much easier with the ability to track all the facets of how your warehouse operates. The right warehouse management software can recommend slotting strategies and anticipate inventory shortages long before they impact the customer.

If you’re outsourcing your fulfillment with a 3PL, visibility is key. Traditional warehouses might not be equipped to provide real-time updates on inventory levels, so you’ll need a fulfillment partner that’s up to the task. 

With the assurance of automatic updates from your fulfillment service provider, you can head into Q4 with full knowledge of when to replenish your stock. 

Conclusion

Inventory management might be a challenge, but that doesn’t mean it has to hold back your eCommerce brand. With the right strategy, warehouse tools and 3PLs on your side, peak shipping season can be a profitable success. 

If you’re looking for a shipping partner to help optimize your approach to inventory management, contact the Fulfillment Experts at ShipHero today.

Click HERE to Schedule a Meeting Today

Warehouse Parcel Lockers: ShipHero in Canada

Jun 3, 2022 | Blog

As the average person’s shopping habits continue to evolve, so do the ways brands get products in their customers’ hands. The eCommerce industry has exploded in recent years, with companies constantly seeking out affordable, creative and effective ways to stand out from the competition while offering a convenient buying option. 

The option to buy online and pick up instore, known as “BOPIS,” has allowed brands with brick-and-mortar locations to bridge the gap between their online and real-world storefronts. As BOPIS becomes more commonplace, online retailers are feeling the pressure to offer a pickup option as well. 

Parcel lockers, a major feature of ShipHero Fulfillment Canada, are one method of expanding delivery options and allowing customers to get their orders in the way that best suits their lives. eCommerce shippers without the advantage of a brick-and-mortar storefront can have orders placed in these easy-to-access units, making life easier on the customer while saving on last-mile shipping.

What Are The Advantages of Parcel Lockers? 

The growing popularity of in-person pickup is obvious when you consider the benefits. Let’s take a look at some of the advantages parcel lockers provide and what benefits they might have in store for your brand. 

Customer Convenience

One of the major advantages of parcel lockers is the added customer convenience they provide. While in-store pickup only allows customers to collect their orders during regular business hours, parcel lockers can be accessed 24/7, allowing buyers to retrieve a package at a time that suits them best. 

Allowing customers to arrive at the warehouses themselves also eliminates the need for last mile shipping, one of the more expensive steps in the fulfillment process. Avoiding the cost of postage, labeling and carrier fees can mean major savings for customers, encouraging them to continue using your brand as an affordable and convenient buying option.

Parcel Security 

Outdoor storage lockers are exposed to the elements, but their contents won’t be. ShipHero Fulfillment Canada’s weatherproof outdoor locker system is designed to withstand the climate extremes of Canada, ensuring your items remain undamaged and shielded from the elements. 

If you’re shipping perishable items, the inside of storage lockers are temperature controlled. This provides an ideal storage solution for eGrocers that need their fulfillment partners to make sure their products are kept fresh. 

Visibility 

One of the key expectations for customers and shippers alike is visibility. Partnering with a fulfillment 3PL that offers top-tier reporting and visibility gives you a better grasp on the progress of your shipments. That information can also be pushed to your customers, keeping them up to date on when to expect the item’s arrival. 

B2B Distribution

Not only do parcel lockers make receiving orders easier for customers, but partnering businesses can also benefit from this feature. If you’re shipping component parts across Canada, for example, ShipHero Fulfillment Canada can facilitate those customers picking up the item at the time and location that works best for them. 

With parcel lockers as one of your brand’s delivery options, business customers can place an order online, select the dropbox nearest to them, and be automatically notified when the package is ready for pickup. Once it’s ready, those lockers are accessible 24/7. 

How Do Parcel Lockers Work? 

For any eCommerce delivery strategy, visibility is key. Clear and consistent communication with the customer can minimize the risk of misships and costly returns, while supporting your buyers and giving them a reason to return in the future. 

When an order is placed and pushed to ShipHero, buyers and sellers are provided with a comprehensive report of the package and can track its progress as it moves throughout the fulfillment process. When a customer opts for a parcel locker pickup, they are sent a barcode and pin code that grants them access to the locker at the specified location. 

Conclusion

Big brands aren’t the only ones that can offer a pickup delivery option. Now, thanks to parcel lockers throughout Canada, exclusively online stores can give their customers the convenience of a 24/7 pickup option. 

If you’re looking for a fulfillment partner to help optimize your delivery process, contact the Fulfillment Experts at ShipHero today.

Click HERE to Schedule a Meeting Today

Section 321: What it is and How eCommerce Brands Can Use it to Save Money

Aug 5, 2022 | Blog

As the cost of shipping continues to rise and supply chain issues persist, brands are hungry for ways to minimize expenses and offer a competitive edge that keeps customers happy. 

For brands importing goods to the United States, the cost of shipping can be especially expensive. Different duties and taxes placed on products that cross international borders can quickly put a huge burden on small to medium sized eCommerce brands that are already struggling to keep prices low.

That’s why so many brands are taking advantage of a new law that cuts these costs entirely, while opening up new delivery strategies. That law is known as Section 321.

What is Section 321? 

Section 321 is a law enacted by the US Customs and Border Protection that allows some products to be shipped from Canada to the U.S. duty free. For eCommerce brands, this offers a clear cost-cutting advantage, making it much more affordable to import goods to the U.S., even if those products originate from overseas markets like China. 

What are the limits of Section 321?

Tax and duty free shipments sound appealing, but that special pricing won’t apply to every shipment across the board. Section 321 comes with a few parameters that brands need to meet in order to qualify. 

Retail Value Threshold 

While Section 321 sounds like a great opportunity to save major bucks on shipping, high-volume or high-value products likely won’t get the discount. The duty deferral only applies to products for $800 or less. Any more than that, and regular duties and taxes kick back in. 

In addition to the price restrictions, some products are exempt from the advantages of Section 321. Certain chemicals that require a customs inspection, like cleaning supplies, are regulated differently. The same exemptions apply to products that fall under Countervailing or Anti-Dumping Duty laws. 

Alcohol and tobacco products also won’t be able to apply for Section 321 declaration. In fact, any product regulated by certain government agencies, such as the FDA, USDA, or CPSA, are also outside the scope of Section 321. 

Before you plan to cut costs under this regulation, be sure you have a clear understanding of your product’s retail price and whether they’re restricted by other laws. 

Limited Shipment Amount

If your products are free and clear of additional restrictions, you still won’t be able to ship an unlimited amount of deliveries with duty deferrals. Section 321 caps the amount of shipments at one per day. 

It’s important to maintain communication with your carrier or shipping partner to make sure they understand this limit. You could face substantial penalties if you or your carrier files multiple Section 321 claims on a single day. 

How Section 321 Benefits Your eCommerce Brand 

A brand that imports products from overseas and has them sent directly to the U.S. faces the typical hurdles of expensive duties and taxes. Canada, on the other hand, has more favorable trade relations with countries overseas, especially concerning imports from China, allowing their country to incentivize eCommerce shipping via Section 321. 

It might seem like going through another international border would add time and expenses to an already overburdened supply chain. However, this regulation offers significant advantages for eCommerce brands that go beyond just the cost of shipping. 

Quicker Deliveries

If you’re working with a fulfillment service provider in the U.S., coordinating your shipments so they go through Canada could actually result in faster delivery times. 

Section 321 greatly reduces the amount of bureaucracy and paperwork required to transport items over the border. While you will still need to provide proof of value, the potential for delays is greatly reduced without the need to file taxes on every product you ship.  

Minimizing Shipping Costs

The main reason so many brands are taking advantage of Section 321 is because of its potential to minimize the cost of shipping from Asian countries. For example, an item shipped from China to the U.S. might carry a substantial import tax, with that cost priced into what the customer pays when they make an order.

Under Section 321, as long as the shipment meets the regulated standards, that expense is 100% eliminated, resulting in a lower price tag and higher profit margins for your brand. 

Competitive Advantage

The combination of the two advantages listed above result in a more satisfying customer experience overall. Online shoppers have come to expect quicker delivery times for a lower cost, and Section 321 can help your brand provide that level of quality. 

If you’re launching a new product in the U.S., or looking to expand your customer base, leveraging the benefits of this regulation can give you a significant advantage over your competitors. 

Conclusion 

In the modern supply chain environment, with congested ports during a surge of online shopping, Section 321 offers a way to take some of the pressure off your brand. With this regulation working to your advantage, you could cut the cost of deliveries while guaranteeing your customers a shorter wait for their orders. 

To find out more about Section 321, click HERE. To find out more about ShipHero’s fully outsourced fulfillment solution, talk to one of our Fulfillment Experts today.

How ShipHero & Section 321 are Innovating Fulfillment from Canada

Apr 15, 2022 | Blog

By:  Maggie M. Barnett, Esq., COO at ShipHero

Landed cost is perhaps the most immovable of all eCommerce prices. Expenses like shipping, taxes, duty/import fees all must be paid and all impact brands’ bottom line. It all adds up to make a $5 pair of shoes $70 in the store. 

Any chance eCommerce brands shipping from Canada have to move the needle on landed cost has to be considered. That’s where Section 321 comes in. While it’s not a new law to U.S. Customs and Border Protection, a recent increase from $200 USD per person per day to $800 USD per person per day has completely changed the equation for ShipHero’s Fulfillment clients and other eCommerce brands shipping from Canada.

Section 321 Explained

Let’s start with a quick explanation. Section 321 allows individual consumers to buy and ship up to $800 USD/per day from Canada to the United States. And it allows the items to be imported and shipped with NO duty fees (taxes). 

What this means for eCommerce brands is that their goods ship – duty-free – to U.S. consumers as long as individual orders total $800 USD/day or less. 

Section 321 works if importing goods from Canada into the United States. Because of ShipHero’s late-2021 acquisition of warehouses in Canada, ShipHero Fulfillment is now offering Section 321 from Canada.

How Section 321 Works

Section 321 has allowed ShipHero Fulfillment to leverage our newly expanded presence in Canada. With new options like zone skipping, we’re further exploring how to get products across the border and to consumers quickly.

One concern of brands is that importing goods to Canada will lead to shipping delays and poor customer service. However, there is almost no lag time between receiving goods in Canada versus receiving them in the United States.

Here’s why:

• Goods are imported to Canada.
• These goods are then sent to one or both of ShipHero’s Canadian warehouses in Toronto or Vancouver.
• Goods are received and checked into inventory so that customers can order.
• A customer places an order and ShipHero picks, packs and labels the package with  a domestic shipping label same day. 
• The same day, that package is placed on a truck and sent across the border into the U.S.
• The packages are delivered to the domestic carrier network of choice (i.e. UPS, USPS, FedEx).
• The package continues its journey through the U.S. and to the customer’s door.

There’s no room for delay. Whether your products are accepted into the U.S. or Canada, the time to receive them and put them away in the warehouse is the same. Why not send your goods just a little bit further north and go duty free?

How eCommerce Brands Can Save Money

The real cost savings for brands doesn’t actually come from Section 321, but as a benefit from importing goods to Canada. Canada has generous Free Trade Agreements and offers all brands that import foreign products to Canada the ability to enroll in duty deferral or duty drawback programs.

These programs either waive or reimburse the duty fee a brand has to pay to import their goods.

What kind of money are we really talking about? Here’s an example:

Import to Canada

• • One pair of shoes imported from China to Canada
  • Value for Duty: $12.00
  • Duty Rate 18%: $2.16
  • $2.16 Savings (for just 1 pair of shoes!) Using Duty Drawback or Duty Deferral

Imagine how the savings add up once you start importing 100 pairs of shoes or 500. While the duty rate for shoes is 18%, rates on other products can range as high as 20-25%. This type of savings is almost unheard of and it directly impacts your brand’s bottom line. 

How ShipHero Fulfillment Makes Section 321 Possible

So, here’s the best part for eCommerce brands, large and small, that want to adopt the Section 321 model – ShipHero Fulfillment does all the work. Our team works with clients to establish the best duty elimination or duty drawback program for them and that’s it. We make the process simple to set up.

We also work with brands to get their products from Canadian ports to our warehouses in Toronto and Vancouver.

Not only do brands get the outstanding client service they’re used to, but now, ShipHero Fulfillment is helping to directly impact their revenue by making it easier to import and ship products duty free.

Global shipping options and dependency will continue to evolve as brands look for cheaper and more efficient ways to do business. Section 321 with ShipHero Fulfillment Canada is the first step in this new global shipping chain. 

If you’re new to ShipHero Fulfillment, please schedule a meeting today with our experts to learn more about how we can help you get your orders picked, packed and delivered with our fulfillment service. No setup fees, simply pay as you go. ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue and success.

Click HERE to Schedule a Meeting Today

Maggie M. Barnett, Esq., COO

About the author:  Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. 

She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.

Follow Maggie on Twitter & LinkedIn.

Disclaimer: This post is solely for informational purposes and does not constitute legal advice. Programs are regulated and approved by the Canada Border Services Agency (CBSA) and U.S. Customs and Border Protection (CBP) and are subject to change.

2024 ShipHero Holiday Gift Guide

Nov 12, 2024 | Blog

The holiday season is here, and finding gifts that match the drive and creativity of clients, business partners, and teams can feel like a tall order. At ShipHero, we know quality and innovation are key, especially for the leaders and pioneers we’re privileged to work with. That’s why we’ve handpicked a selection of standout items from our trusted partners. Whether you’re looking to surprise someone with a touch of luxury or make their life a little healthier, our guide is here to help you find the perfect match.

Campfire Cycling – Surly Preamble Flat Bar

Adventure Awaits with This Versatile Bike

The Surly Preamble Flat Bar is a must-have for the adventurer at heart. This steel-framed marvel offers quality and affordability, ideal for smooth rides and not-so-smooth roads. Designed with durability in mind, it’s perfect for regular commuters or those embarking on their first backpacking trip. Gift the freedom of the open road this holiday season.

Discover the Surly Preamble Flat Bar

Hush – Iced Bamboo Cooling Sheet and Pillowcase Set

Reclaim Rest with the Ultimate Cooling Sheets

Help someone you care about beat insomnia and anxiety with Hush’s Iced Bamboo Cooling Sheets. Made from sustainably sourced bamboo, these sheets are soft, anti-bacterial, and perfect for hot sleepers. They wick away heat and sweat, ensuring a clean and comfortable night’s sleep. Give the gift of serene slumber with Hush’s innovative bedding.

Check out Hush Sheets

Natura Market – Holiday Gift Shop

Healthy, Thoughtful Gifts for Every Diet

Natura Market’s Holiday Gift Shop takes the guesswork out of finding unique, diet-friendly treats and thoughtful gifts for health-conscious friends, clients, and colleagues. With carefully curated options that suit any lifestyle, their selection of nutritious, on-trend products ensures that each gift feels special and intentional—perfect for spreading holiday cheer without compromising quality.

Visit Natura Market’s Gift Shop

Red Land Cotton – Basic Sheet Set

Elevate Any Bedroom with Timeless Elegance

Red Land Cotton brings you heirloom-quality bedding crafted from 100% cotton grown on their family farm in Alabama. These sheets offer a crisp, cool, percale experience that promises a heavenly sleep night after night. Proudly made in the USA, they are perfect for those who appreciate craftsmanship and sustainability. Treat someone to this luxurious bedding set—they’ll thank you every morning!

Explore the Basic Sheet Set

This holiday season, make your gifts as memorable as the relationships you’ve built. At ShipHero, we’re here to help you thrive during peak season with a WMS solution designed to keep everything running like clockwork—so you can focus on what truly matters. Let’s set your business up for an extraordinary 2025 filled with growth, success, and seamless logistics.

Make this your most rewarding holiday season yet.

Schedule a Call Today