Dec 1, 2022 | Blog
What is Big Cartel?
Are you an independent artist? If so, have you ever thought about using Big Cartel? On their website, they promote themselves as “Easy online stores for artists & makers.” This is an eCommerce platform where you can create an online store, add product catalogs, list different product options, develop product descriptions, display art, accept credit card payments, and run promotions. They have helped artists since 2005 sell art, clothing, prints, jewelry, clothing, and more. It is a website built “for artists, by artists” according to Big Cartel with the goal to make Big Cartel empowering for anyone who uses it. And when it comes to site design, you can customize your eCommerce store using several free themes with the simple and user friendly website builder!
What is Order Fulfillment?
Order fulfillment is the process which gets your product from your warehouse, to your customer. The process includes inventory receiving, storing, processing, picking and packing, and transporting the items to the shipping address of the customer. The efficiency of this is measured in the time it takes for an order to get to the customer’s porch once processed. While some large retail companies can afford to build out their logistical processes including purchasing a warehouse, buying equipment and trucks, and hiring a team to manage their fulfillment process, many smaller companies prefer to use a third-party order fulfillment provider instead who has already created this logistical structure.
How Does the Big Cartel Fulfillment Process Work?
When handling your shipping through Big Cartel, you will need to work with a fulfillment provider as Big Cartel does not currently have warehouse operations available to its users. Once you have identified a fulfillment provider, you will need to send your order from Big Cartel to the fulfilling warehouse. This happens after the payment process is completed by the customer and an order generated. If you work with companies who directly integrate into Big Cartel, this process is highly streamlined. You can simply send your order to a fulfillment provider with a click of a button instead of using a more manual process outside of your eCommerce store.
What Does A Big Cartel Order Fulfillment Provider Do?
A fulfillment provider for Big Cartel will help you enhance the customer experience. They make it so you can get your orders shipped to the right place, on time, with a high quality of packaging and handling. Which means your products get to your customers safely and they have a great experience with your store.
What Are the Benefits of Using a Big Cartel Order Fulfillment Service?
If you use Big Cartel as your website, you’ll likely want to use a fulfillment service who can integrate directly into your program. This means a higher rate of tracking for order shipping, more shipping options, and less manual processes which can lead to lost orders. When you use a fulfillment service your company puts its best foot forward for the customer, and often generates recurring business. Because if someone has a great experience with you, they are highly likely to purchase from you again.
Need a fulfillment provider? Check out ShipHero!
Factors to Consider While Selecting an Order Fulfillment Partner for Big Cartel
There are several factors to consider when searching for the right order fulfillment partner for your eCommerce business. Below are the top seven factors we recommend you consider.
eCommerce Platform Integration
Fulfillment for your business works best when your fulfillment provider integrates directly into your online store. This integration is important, it connects your business systems together so you can handle order processing in one place. It gives you the advantage by allowing your brand to keep up when many customers convert on multiple channels at once. Which means you can see your customers orders, inventory, sales, marketing, and accounting in one place, and helps you eliminate manual data entry.
Order Fulfillment Speed
In a world of single day and two day shipping, waiting any longer can stop your customers from completing orders, and send them looking elsewhere. The speed of your fulfillment is a huge factor when customers make the decision to return to your store. While on the search for order fulfillment providers, the speed at which they deliver your product should be a considerable factor in the partner you choose.
Storage and Fulfillment Fees
When you work with a fulfillment provider, you purchase space within their warehouse. Some fulfillment services charge for storage, by the item when shipped, or by monthly average order volume. You can count on your fees being roughly $3 to $5 per item on average. Though this tends to get higher when demand for fulfillment providers is at its peak. When you store inventory with a fulfillment partner, they will likely utilize different fees for different aspects of your inventory.
Pricing
As you hunt for the perfect fulfillment partner, you can ask for a breakdown of costs to understand exactly what you’ll be paying and why. The best fulfillment partners will look at your current fulfillment spend, compare it to your needs, and help you find a process which saves you money and returns more margin to your pocket. Additional costs for fulfillment providers may include storage costs, inventory levels, distribution costs, bin occupation, palletizing costs, and much more. Though many companies find these fees preferred to the cost of setting up their own logistical operation.
Returns Management
A good fulfillment provider can help you navigate the road to returns with return automation, warranties, and exchanges. The hassle of returns can quickly turn off a customer. If they have a bad experience with your product, then have a bad return experience, you can almost guarantee they won’t purchase from you again. A fulfillment provider who can help you with returns management in your eCommerce business can make all the difference.
Multichannel Integration
With a multichannel integration you can sell online, instore, on Amazon, on Etsy, and many other locations. Marketplaces like Amazon, eBay, Google, and Walmart are key places to sell and a prime example of multichannel retailers. Which means you need to have the ability to connect different systems or platforms involved in your eCommerce business together so you can streamline between them and create a consistent shopping experience.
Ease of Use
Using your fulfillment providers platform shouldn’t be hard. You should never be confused about where orders go or struggle to set up your logistical processes. Keep ease of use in mind when searching for a fulfillment provider. The goal of this solution is to take work off your plate and give you back time, and a complicated fulfillment solution, likely won’t give you that relief.
How We Chose the Best Big Cartel Fulfillment Companies
As we looked at fulfillment provider options for Big Cartel, we looked at several factors. The above seven to be specific with an emphasis on the ability to integrate into your store. Based on our findings, below are the three best Big Cartel fulfillment providers for your store.
Best Big Cartel Fulfillment Companies
If you want to dump the headache of running your own warehouse, or if you want to run your warehouse more efficiently, ShipHero has a solution. With both a steller warehouse management system (WMS) and a fully outsourced fulfillment option their clients have peace of mind. The warehouse management system (WMS) streamlines your warehouse’s entire processes and procedures to increase efficiency and cut costs.
Pros
With ShipHero you get a fully outsourced fulfillment solution with a user-friendly software interface. Plus, they focus on giving you 30% faster shipping times and can integrate directly into your Big Cartel store. And on top of all that, they have a highly rated client response team which provides you with a fulfillment expert to help with any questions or concerns in your supply chain.
Cons
There are no costs listed on the website, and if you’d like to get a cost you need to go through their quote process. This can be confusing for users who want to see pricing listed on the site but isn’t listed because ShipHero would prefer to customize your pricing to your needs.
Pricing
With ShipHero you can request pricing directly on the site and receive a demo and a customized quote to your needs. Plus your quote will have pick, pack, box & postage fees built into the fees so you don’t have to worry about the separate cost of those items.
Find out more about ShipHero’s Fulfillment Solution!
2. Fulfyld
This fulfillment provider has a direct BigCartel integration. They are an eCommerce service focused on helping eCommerce businesses handle everything from storage selection, to picking, packing, and fulfilling. They can help with your subscription box fulfillment and simplify your fulfillment processes by distributing inventory to the most effective location based on your client order history.
Pros
With Fulfyld, you will experience seamless integration into your Big Cartel store. This platform is easy to use, offers you simple, transparent pricing, and free shopping cart and marketplace integrations. They are focused on helping you succeed and have a highly effective support team.
Cons
According to reviews, tracking numbers are said to be slower to update, and if lost inventory does occur, claims tracking can be tricky to work through as well.
Pricing
With Fulfyld you get flat-rate pricing with no hidden fees. Though they don’t have pricing listed on their website, you can request a free quote. They will give you a clear list of what is included in your pricing as well as detail out each part of the fees you’ll be paying.
3. Printful
For those of you looking for a dropshipping, print-on-demand model for your store, Printful is a great solution. Because of their print-on-demand model, Printful will manage your inventory counts and shipping rates and various shipping options with no upfront costs, you only pay when you make a sale. Plus, they help you make personalized products to list in your store!
Pros
With Printful, you can list your product options and fulfill them through their print-on-demand model, or you can use Printful to make your products. Their website can help you design, print, or embroider any logo or picture you sell. Plus they have several print centers globally so they can support your business worldwide.
Cons
Printful does not hold any inventory, which can present a problem if your customer needs something right away but the materials are scarce.
Pricing
Printful has highly transparent pricing. It’s free to sign up then as you add products to your store you will see the pricing to make and ship those products to your customer. If you approve, you can get that product listed with your markup added!
Check out ShipHero’s Fulfillment Solution!
Final Thoughts
Your fulfillment provider matters. You need to choose the right provider to fit your business, and the marketplace you plan to utilize. eCommerce is a continually challenging field which ebbs and flows continually. Picking the right fulfillment partner will allow you to survive those waves!
Order Fulfillment for Big Cartel FAQs
How Long Does Big Cartel Take to Ship?
This is depending on the fulfillment provider you choose to work with. When you receive an order in Big Cartel you have the power to mark the order as “shipped” almost immediately, which, with the email address they entered at checkout, will trigger a tracking email to your client, but this is why it’s key to have your fulfillment provider integrated directly into your store. Because your clients may not get accurate shipping information if this is a manual process.
Does Big Cartel Provide Shipping Labels?
Yes, you can do this. Once your shop is connected you can print a packing slip from the Orders tab in Big Cartel. Here is the help article on how to do so.
Can I Link Printful to Big Cartel?
Yes! Printful has a direct integration into Big Cartel so you can start selling clothing, accessories, art, and other merchandise through your eCommerce store with no order minimums. You can connect Printful to Big Cartel by going to your Printful Dashboard and navigating to the Stores menu where you select and add your Big Cartel store.
Aug 2, 2023 | Blog
Outsourcing some of your operations to other organizations is a necessary part of the growth of eCommerce companies. Engaging the services of third-party logistics (3PL) solutions providers is supposed to help you save time and money, but it has its challenges, especially in the beginning. Fortunately, technology can make the process easier. Your 3PL company should choose a WMS (Warehouse Management System) platform that meets your requirements and those of your team and clients. There are plenty of 3PL WMS systems out there, but they differ in their efficiencies, integrations, and implementations. Choosing the best WMS software platforms can help you achieve success with your current clients and even attract a new, lucrative project.
What is WMS?
A WMS (Warehouse Management System) is a software solution that manages and implements warehouse processes in real-time. It is more comprehensive than just using fulfillment software. Warehouse management systems provide you with many different warehouse operations, such as order fulfillment, storage of goods, the printing of shipping labels, and managing workflows such as FIFO. Choosing the right warehouse management software suite can help warehouses operate more efficiently so that they can serve their customers more effectively.
What are 3PLs?
3PL stands for third-party logistics, and it is a common way of doing business in the eCommerce industry. In a 3PL setup, the company makes and ships the products at a warehouse that the eCommerce retailer company does not own. The company that owns the warehouse (the “third party” in third-party logistics) is in charge of fulfilling the orders and other warehouse functions. All WMS systems collect a lot of data regarding tracking, distribution, and other aspects of the supply chain. They also automate tasks to reduce labor costs and prevent miscommunications among workers. Some of them even have features that enable the software to make planning decisions, such as when to reorder certain products. Warehouses that engage in third-party logistics functionalities need WMS to serve their clients and their client’s customers efficiently so that they can stay competitive in the market.
Why is WMS Important for 3PLs?
WMS is important for 3PLs because a machine can keep track of more information at one time than a human being can, even a human being with a prodigious mind. When a warehouse implements WMS software, the WMS sends the relevant information to each employee’s mobile device. If your task today is order fulfillment in the shoe aisle, then your dashboard only shows you which shoeboxes you are responsible for picking, where to find them, and which truck to put them on so that the appropriate person can pack them. 3PL companies are also often in charge of ordering supplies, shipping orders to customers, and processing customer returns. Therefore, accuracy and traceability are of paramount importance for 3PL WMS.
How to Choose the Right WMS for Your 3PL
Choosing a WMS for your 3PL company is not something that you should do on a whim. You should research several 3PL WMS products from various companies before you make a decision. To do this, first, read some blog posts or a user guide or watch a demo video of the software’s features on the website of the WMS company. Write down the questions that come to your mind after your preliminary search for information about WMS products. Then call some WMS companies and ask your questions to someone in the sales or customer service department. Interacting with the company that makes the WMS is an important step because you want to make sure that the people who will help you set up and troubleshoot the WMS are helpful.
Scalability and Flexibility
WMS helps you be more accurate and efficient in the execution of your warehouse processes, even if you operate multiple 3PL warehouses in different parts of the country. You can use data to ensure that customers are receiving the package in record time. The WMS is always collecting and analyzing data about transportation costs and times so that the packages can reach the customers after the fewest number of steps and with the fewest errors. A WMS can do this as easily for just a few types of products as for a whole warehouse, and it can do it as seamlessly for multiple shipments of varying sizes as it can for a single order. Best of all, when there are glitches in the supply chain, the WMS can offer quick fixes, so you can easily work with the materials you have to meet the demands of the market.
Integration Capability
The best WMS for 3PLs integrates easily with a variety of business software platforms. You don’t have to buy the rights to access multiple new applications just to add WMS to your 3PL operation. If you use different software for invoices, charges, billing, reports, or other aspects of your business, WMS for 3PLs will integrate smoothly with your other software. WMS for 3PL plays well with others. When you implement WMS for 3PL, your warehouse employees will not notice any difference in their work device usage except that they will see the WMS logo on their portals and a longer list of options when they look at their dashboards.
Multi-Client Support
Your mission as a 3PL service provider is to partner with different companies in different areas of the country that use your warehouse location as a piece of their supply chain. Your clients have the goal of providing customer satisfaction and affordable prices for their customers, and your warehouse operations are tools that enable them to achieve that goal. Most 3PL providers store products belonging to a range of different companies in the same warehouse. Therefore, you must meet the needs of multiple clients simultaneously and ensure the timely delivery of all of their products. WMS for 3PL can help you fulfill that mission.
Real-time Visibility
The most significant relief that WMS brings to 3PL providers is that it enables warehouse managers to see what is going on in multiple areas of multiple warehouses all at the same time. WMS for 3PL gives you a bird’s eye view of the entire supply chain. You can see what is going on in different marketplaces, and you can use these insights to make wise decisions that benefit you and your clients. The real-time visibility that you get with WMS and transportation management systems (TMS) for 3PL can help you reduce errors and save on costs.
Automation Capabilities
Warehouse jobs have a reputation for being boring, monotonous, and dangerous, but automating some of your warehouse processes can help keep workers away from safety hazards and reorient their work toward tasks that require human judgment and communication while leaving the truly monotonous tasks to the robots. With WMS for 3PL, workers can enter input on devices, or simply watch the robots do their work as the machines do predictable tasks such as counting and stacking items or kitting products that customers frequently order together.
Advanced Inventory Management
Frequently reevaluating and modifying your warehouse workflows can help your warehouse stay efficient and competitive. For example, you can pick nonperishable products on a first in first out (FIFO) basis, while picking and shipping perishable food items, including those with a fairly long shelf life, on a first-expire-first-out (FEFO) basis. WMS can easily keep track of the complex organization of your warehouse and clearly and efficiently communicate it to workers on their devices.
Reporting and Analytics
Even the simplest WMS suites have robust reporting and analytics features. You can generate reports on demand or at regular intervals, and you can even watch the data update itself in real-time. You can use the reports generated by your WMS to make decisions about warehouse layout, reordering, pricing, and transportation routes, among other matters. You can even authorize the software to make certain decisions on its own based on the data. For example, you can rely on it to reorder a certain item whenever the stock level gets below a certain point.
Customer Portal
The most complete WMS for 3PL has a web portal not only for managers and employees but also for customers. Consumers who order products stored at your warehouse can track their orders in real-time. The customer portal can also help customers navigate the return process and provide necessary feedback.
Ease of Use
Business owners are familiar with the ups and downs of implementing new software or installing new devices at work. With the best WMS for 3PL, getting started working with the new WMS is as easy as downloading a game on your mobile phone and playing it. The user experience of WMS for 3PL is intuitive for employees and customers alike.
Vendor Support and Training
Even though it is easy to get used to the new WMS, many employees find it beneficial to have someone explain to them live how to use the features of the WMS. In addition to online training videos, we offer in-person training to help the employees in your warehouse and your company get used to using the WMS features that they will be using in their work on a regular basis.
WMS for Different Industries in 3PL
Different industries have different warehouse management needs. WMS suites are available that are suited to different industries, such as raw materials, wholesale goods, and retail distribution centers. If your 3PL company is in charge of various parts of the supply chain, then you should choose a WMS that is equipped to manage the processes of various kinds of warehouses.
Best Integration of WMS in 3PL
Most companies that seek to implement WMS are not small startups that have just recently gotten the idea that they want to store and distribute products. Rather, they are established 3PL service providers that have been in the supply chain logistics industry for years. They already use business software that works for them, so they need a WMS that integrates well with it.
Cost of Implementing WMS in 3PL
The days of installing software onto each individual device in your network from a CD-ROM are long gone. Not only is implementing business software, including WMS for 3PL, much faster than it used to be, but it is also less expensive. WMS for 3PL is available for a monthly subscription fee, with different packages available at different price points.
Pros of WMS for 3PLs
WMS can help 3PLs save on labor costs and shipping times because they enable warehouse managers to see what is going on at all parts of the supply chain. They reduce human error and lack of efficiency by tracking the progress of the work in real-time and updating the information on workers’ devices on an ongoing basis.
Cons of WMS for 3PLs
Once you get started with WMS, you will wonder how your warehouses ever managed to operate without it. All new software programs involve a learning curve, but it should not take long before the employees of your warehouse get used to using the new WMS.
Key Takeaways
Automation and analytics are key to operating a warehouse efficiently and ensuring that the supply chain operates in a streamlined manner. WMS can help your warehouse or 3PL operation reduce labor costs and increase the speed and accuracy of work.
FAQs
These are some common questions that 3PL service providers ask about warehouse management systems.
What is the Difference Between ERP and WMS?
ERP stands for enterprise resource planning. Warehouse management systems (WMS) are only one aspect of ERP.
What is the Pricing for an Extensive 3PL Warehouse Manager?
An extensive 3PL warehouse manager costs a monthly subscription fee that is higher than the subscription fee that you would pay for a simpler one.
Is There a Suitable 3PL Software for Small Businesses?
3PL software packages are available for businesses of all sizes. You can choose a 3PL WMS suite that fits the needs and size of your business.
Contact ShipHero today for a demo.
Aug 2, 2023 | Blog
Imagine a colossal warehouse bustling with activity, full of synchronized movement, where goods arrive from various vendors, are stored efficiently, picked accurately, and shipped on time. Amidst the ceaseless flux of goods, from exotic spices to the latest tech gadgets, lies the beating heart of this operation—a Warehouse Management System (WMS). This digital maestro, unseen yet instrumental, ensures everything runs like clockwork. Particularly for Third-Party Logistics (3PL) providers and operations managing multi-client fulfillment, a WMS is a strategic linchpin that turns chaos into order.
What is WMS for 3PLs and Multi-Client Fulfillment?
A Warehouse Management System (WMS) for Third-Party Logistics (3PLs) and multi-client fulfillment is a powerful software solution that optimizes warehouse operations by offering detailed visibility and control over inventory, labor and space utilization. Think of it as a control tower for your warehouse operations, allowing you to track inventory in real-time, automate complex processes, and manage tasks effectively. In the context of 3PLs and multi-client fulfillment, WMS goes a step further, handling the unique demands and logistical complexity of managing numerous clients with diverse requirements simultaneously.
Need a Warehouse Management System ASAP? Let’s chat!
The Need for a WMS in 3PL Operations
Managing a 3PL operation without a robust WMS is like navigating an ocean without a compass—nearly impossible. WMS is vital for 3PL operations because it brings a method to the madness of managing varied inventory for multiple clients. It enhances inventory accuracy, reduces order fulfillment errors, and expedites delivery times, all crucial for maintaining client satisfaction and competitiveness in the logistics industry.
The Move to ‘Hybrid’ Warehousing
The logistics landscape is undergoing a transformative shift towards ‘hybrid’ warehousing, a blend of traditional warehousing practices with more flexible, on-demand models. The driving force behind this change is the evolving consumer demand and the surge in eCommerce. To thrive in this new era, 3PLs must offer flexible, efficient, and cost-effective solutions to their clients. This is where a WMS shines. By integrating advanced functionalities like artificial intelligence and machine learning, a WMS for hybrid warehousing can streamline operations, forecast demand, optimize labor, and manage complex inventory requirements, enabling 3PLs to stay agile and responsive.
How Does a WMS Help a 3PL Business Win New Clients?
A robust WMS is a game-changer. It can help 3PL businesses attract new clients by showcasing operational efficiency, transparency, and superior service delivery. An advanced WMS demonstrates to potential clients that your business can manage inventory accurately, fulfill orders efficiently, and adapt to sudden demand changes swiftly. And, a WMS provides real-time data, analytics, and reports that enhance visibility into operations, a feature that’s highly appealing to clients who want complete control and insight into their supply chain.
Key Features of a Good WMS for 3PLs and Multi-Client Fulfillment
Inventory Visibility
A quality WMS system offers comprehensive inventory management. This is particularly crucial for 3PLs and multi-client fulfillment businesses, where managing goods from different clients, products ranging from regular items to hazmat and cold storage, require meticulous control. High inventory visibility in WMS software enables easy tracking of products, whether it’s a pallet of apples in cold storage or a container of electronics. The system should support the FEFO (First Expired, First Out) method, allowing businesses to manage perishable goods effectively.
Efficient Order Management
The ideal Warehouse Management System will integrate seamlessly with marketplaces and shopping carts, facilitating omnichannel order fulfillment. The system should support a seamless returns process, handle multiple orders simultaneously, and provide real-time updates on order status. The aim is to bolster customer service by ensuring timely, accurate order fulfillment, which in turn drives customer satisfaction and repeat business.
Real-Time Data and Transparency
In the world of 3PLs and multi-client fulfillment, data is king. A powerful WMS software will provide real-time data, offering invaluable insights into warehouse operations. This transparency extends to everything from inventory levels, staff productivity, order status, and returns. Logistics providers can use these insights to fine-tune processes, identify bottlenecks, and ensure maximum operational efficiency.
Scalability and Customization
Every warehouse, whether in the heart of a bustling city or the country’s outskirts, has unique needs. The best WMS solutions offer scalability and customization options to match the unique requirements of different businesses. Whether you’re a 3PL catering to varied industries or a business managing multiple warehouses, your WMS should scale with your needs. It should also offer customization options, whether it’s workflows, reporting, or user interface, ensuring the system aligns with your operational processes and the market dynamics.
Notable WMS Solutions for 3PLs
ShipHero: A High Performing WMS Which Simplifies eCommerce
ShipHero is revolutionizing the world of 3PL logistics with its powerful and highly efficient warehouse management system (WMS). As a leading provider in the industry, ShipHero boasts features designed to optimize your supply chain operations, from real-time inventory management, advanced order routing, automation rules, to omnichannel support. The user-friendly interface and integrations with popular eCommerce platforms are a testament to ShipHero’s dedication to making logistics more manageable for businesses of all sizes. Whether you’re a small startup or a large corporation, ShipHero’s scalable solution is tailor-made to meet the diverse needs of 3PLs.
OrderFlow: A Cloud-Based Platform for High-Volume Fulfillment Operations
OrderFlow is a cloud-based WMS software solution designed to enhance productivity and efficiency in high-volume fulfillment operations. One of the platform’s key strengths is its robust integration functionality, allowing seamless access to data from various touchpoints in real-time. Its reporting tools offer actionable insights and transparency to aid in decision-making. A notable feature is the detailed invoicing module, providing accuracy in billing, crucial for the financial health of any business. Interested parties can request a demo to experience its functionality firsthand.
Extensiv: Enabling Omnichannel Fulfillment for 3PLs & Brands
Extensiv is a software platform that addresses the needs of 3PLs and brands for omnichannel fulfillment. Its technology provides comprehensive reporting and data integration options, which ensure transparency and accuracy. The platform is known for its easy-to-use nature, even as it provides extensive functionality. Prospective users can take advantage of a demo to experience the efficiency and productivity that Extensiv can bring to their operations.
HighJump: A Premier 3PL Software Solution
HighJump (now Korber) is a well-established player in the 3PL software solutions arena. This platform boasts a variety of modules and tools designed to address the specific challenges faced by 3PLs. From billing and invoicing modules to comprehensive reporting tools, HighJump provides all the necessary elements for success. The platform focuses on ROI, offering cost-efficient solutions designed to boost the bottom line. HighJump’s logo is a familiar one in the industry, symbolizing its long-standing reputation for quality service.
Logiwa: Transforming Logistics Operations with Advanced Analytics
Logiwa is a WMS platform that differentiates itself through its advanced analytics and reporting tools. Designed for high-volume D2C and B2C fulfillment 3PLs, the software offers a host of modules that cater to the needs of such operations. The Logiwa experience includes options for customizing functionality based on individual business requirements. Its robust integration capabilities make it a top choice for businesses seeking a solution that can adapt to their workflows. Logiwa also provides periodic updates, ensuring its users always have the most up-to-date tools at their fingertips.
Overcoming Challenges of Multi-Client Fulfillment for eCommerce
Customized Operations for Each Client
Each client brings a unique set of requirements, and the one-size-fits-all approach doesn’t work in multi-client fulfillment. A 3PL WMS offers functionalities that allow operations to be customized for each client, ensuring accuracy and customer satisfaction. It’s all about having options and the flexibility to adapt to client needs.
Efficient Inventory Management
Inventory management can be a tricky area in multi-client fulfillment. Efficient handling of storage locations and ensuring optimal use of resources are paramount. A 3PL software offers sophisticated inventory management capabilities, providing visibility and traceability for everything from high-demand items to slow movers.
Accurate Order Fulfillment
In the world of eCommerce, errors in order fulfillment can cost not just money, but customer loyalty. A good 3PL WMS will reduce such errors, streamline order fulfillment, and integrate with shopping carts to ensure accurate, efficient fulfillment for all clients, regardless of the volume or complexity of orders.
Streamlining Warehouse Operations
Streamlining warehouse operations is another significant advantage of implementing a 3PL WMS. From labor allocation to real-time updates, a WMS brings a level of efficiency and transparency that boosts productivity and cost-effectiveness.
Integration with eCommerce Platforms
Integration with various eCommerce platforms is a key functionality of good 3PL software. This allows for real-time information exchange, ensuring inventory levels are accurate across all sales channels and order fulfillment is efficient.
Dealing with High-Volume Returns
Handling high-volume returns is a part of the eCommerce reality. A 3PL WMS can automate and streamline this process, minimizing costs and improving customer service levels.
Real-Time Visibility and Reporting
3PL WMS offers real-time visibility and comprehensive reporting capabilities, providing critical insights for decision making. This level of transparency is vital for maintaining trust with clients and ensuring operations run smoothly.
Exception Management
Exception management is another area where 3PL software shines. It can quickly identify and address anomalies, preventing minor issues from escalating into major problems.
Implementing Advanced Technologies
Implementing advanced technologies like AI and machine learning is made easier with a 3PL WMS. These technologies can optimize various aspects of multi-client fulfillment, from demand forecasting to labor allocation.
Ensuring Scalability and Flexibility
Scalability and flexibility are crucial in the ever-evolving eCommerce landscape. A 3PL WMS can scale to meet the growth of your business and offers the flexibility to adapt to changing market dynamics, ensuring you’re always one step ahead.
Things to Consider When Choosing a 3PL Warehouse Management System
Customization
Every business is unique, and your WMS should reflect that. Look for a system that offers customizable functionalities to meet your specific requirements. This might include personalized workflows, adjustable interfaces, or tailored reporting tools.
Scalability
Your 3PL software should be able to accommodate your business’s growth. Scalability ensures that as your operations expand — whether in terms of volume, locations, or complexity — your WMS can easily adapt to the increasing demand.
Integration Capabilities
A WMS that can seamlessly integrate with other systems is a major advantage. This includes your eCommerce platforms, shopping carts, and other logistical or financial software. This not only enhances accuracy but also optimizes overall efficiency.
Real-time Inventory Visibility
In the dynamic world of eCommerce, real-time inventory visibility is critical. A quality WMS will provide a real-time view of your inventory across all storage areas, ensuring efficient management and transparency
Advanced Analytics and Reporting
Data-driven decisions are key to success in today’s business landscape. Look for a WMS with advanced analytics and comprehensive reporting capabilities, providing insights to improve operations, forecast demand, and reduce errors.
Ease of Use
A user-friendly WMS can significantly reduce training time and increase productivity. Make sure the system is intuitive and easy to use, with a user experience design that is approachable for all levels of users.
Client Portals
Client portals are an excellent way to provide your customers with real-time visibility into their inventory and orders. This transparency boosts customer satisfaction and trust in your services.
Billing Capabilities
Efficient and accurate billing is critical for any business. Choose a WMS with comprehensive billing capabilities to ensure accurate invoicing and improved cost control.
Support and Service
Ensure the software provider offers robust support and service. From initial implementation to ongoing updates and troubleshooting, having a reliable support team can make all the difference.
Cost
Finally, consider the cost of the WMS. While it’s an investment, you need to ensure that the cost aligns with your budget and the ROI justifies the expense.
How WMS Impacts Your Warehouse Operations
Implementing a WMS can have a profound impact on your warehouse operations. It optimizes various processes, from order fulfillment to inventory management, enhancing overall productivity. Real-time inventory visibility reduces the chances of stockouts or overstocking, while advanced analytics help in informed decision-making. The integration capabilities allow for seamless data exchange, reducing errors and ensuring accuracy. With the support of a WMS, your warehouse can work like a well-oiled machine, ready to meet the ever-evolving demands of the eCommerce landscape.
Key Takeaways
A robust Warehouse Management System (WMS) tailored for 3PL and multi-client fulfillment is no longer a luxury—it’s a necessity. This technology, with its ability to offer real-time inventory visibility, seamless integration, scalability, and customized functionalities, provides businesses with the tools they need to exceed customer expectations and stay competitive. In the end, the choice of a WMS could be the catalyst that propels a business to new heights, just as the right technology choice enabled the transformation of warehouses from simple storage spaces to complex, multi-faceted operations centers that we see today.
Frequently Asked Questions
What is the Fulfillment Process of 3PL?
3PL fulfillment involves storing products, processing orders, packaging goods, and shipping them to customers on behalf of another business. It includes receiving goods at the warehouse, storing them efficiently, managing inventory, picking and packing orders when a customer makes a purchase, and ensuring the product reaches the customer in a timely manner. Some 3PLs also manage returns and handle customer service related to delivery.
What are the Four Types of 3PL?
The four types of 3PL providers are:
- Standard 3PL Provider
- Service Developer
- The Customer Adapter
- The Customer Developer
What is the Difference Between Fulfillment and 3PL?
Fulfillment generally refers to the process of receiving, processing, and delivering orders to customers. It’s one part of the broader supply chain process. 3PL, on the other hand, refers to third-party logistics providers who can handle multiple aspects of the supply chain process, which can include fulfillment, but also encompasses other services such as warehousing, transportation, and inventory management. In other words, fulfillment is a subset of what a 3PL provider can offer.
Aug 2, 2023 | Blog
A business often works with third-party logistics (3PL) companies to handle logistics operations. Like other business partnerships, you need documents to solidify the working relationship to protect both parties and resolve future disputes. That’s where a 3PL agreement comes in. It outlines essential details about the partnership like the 3PL’s services, the price it charges and the length of their working relationship.
However, it takes a lot of time to draft agreement documents for every logistics partnership from scratch. That’s where 3PL agreement templates come in. Instead of rewriting everything each time you’re about to make a deal with a company, you can reuse the template and finish a draft ready to review.
A good understanding of 3PL agreement templates helps you make one that fits your business needs. Read on to learn more about 3PL agreements, and download our 3PL agreement samples for inspiration!
What Is a 3PL Agreement Template?
A 3PL agreement template is a prewritten document containing all the essential parts of a third-party logistics agreement. It includes things like a statement of work, performance standards, price quotes, payment terms and more.
Generally, the template has all the standard clauses written in, so you don’t have to rewrite them before sending an agreement draft to the other party. The template also has fillable blank spaces that you can use to input variables like company details, pricing information and other things that can change with every new agreement.
A 3PL agreement template makes drafting documents more straightforward. It also reduces human error because there’s a diminished chance of your team accidentally leaving out an essential part of the agreement.
Basics of a Third-Party Logistics Services Agreement
At its core, a third-party logistics services agreement is a deal between a 3PL company and its client. It’s a document that outlines each party’s rights and responsibilities as part of the logistics service.
Your 3PL services agreement may contain details about the services the 3PL provides, like:
- Warehousing
- Inventory management
- Picking and packing
- Distribution management
- Freight management
A 3PL services agreement may also contain clauses and points that protect all parties in the deal and help resolve disputes if any arise in the future.
These agreements are often complex and have many parts that need detailed examination, so it’s a good idea to bring your legal team into the loop. They can review the agreement and provide advice on things that you might have missed.
It’s also important to sign an agreement before starting a partnership. Otherwise, one or both parties may need to stop their operations to negotiate a deal, which may hurt their business as a whole.
Drafting a Third-Party Logistics Agreement
Before you create a template, you need to draft your first third-party logistics agreement. As a general rule, your typical 3PL agreement must include:
- Statement of work: This point outlines the third-party logistics provider’s responsibilities. Depending on the client, the 3PL may be asked to take over their company’s entire logistics operations or just parts of it.
- Performance standards: Performance standards or service level agreements (SLAs) govern the 3PL’s work performance. An example SLA would be “Orders received before 2 p.m. will be shipped out on the same business day”. The 3PL company needs to uphold these standards or potentially face penalties.
- Price quotes: The 3PL’s price quotes should include all requested services, so the prospective client can review and approve the total 3PL service cost.
- Payment terms: The agreement should clearly outline the 3PL’s payment terms to prevent pay disputes.
- Legal clauses: Legal clauses like guarantees, liability limitations and termination conditions should be added by a legal advisor to ensure both parties are well-protected after signing the agreement.
Another important thing to remember: 3PL agreements need to be fair and benefit the logistics provider and the shipper. Always seek to strike a balance and a win-win deal to ensure neither side feels like they’re getting into a bad deal.
Effective 3PL Logistics Agreement Templates
Every 3PL partnership is different, so there’s probably no 3PL logistics agreement template you can use right out of the box. However, you can use templates available on the Internet as jumping on points to create your own 3PL logistics agreement template.
Here are two sample third-party logistics agreement templates you can refer to when creating your own document:
Click to download a logistics agreement sample.
Click to download a logistics contract sample.
Essential Components of 3PL Logistics Agreement Template
Drafting the right template means eliminating a lot of work in the future since you don’t need to rewrite the agreement document with each partner. However, that also means you must make more effort upfront to create a complete, well-written 3PL logistics agreement template you can use with all prospective logistics partners.
Here, we’ll outline the steps to creating a great 3PL logistics agreement template. Remember that having an attorney or your legal team preside over the template creation is a good idea to ensure everything is legally sound.
1. Introduce the Parties involved and the Agreement’s Purpose
The first thing to do when creating a 3PL agreement template is to clearly define the parties involved. To prevent confusion, you should include spaces to write each party’s name, license or identification number and address.
From there, you should further define the parties more than just “Party A” and “Party B.” For instance, you can use the designations “Service Provider” and “Client” so anybody reading knows who’s who at all times.
You should also state the purpose of the agreement document early on. It helps anybody reading the document learn its purpose at a glance without having to read further.
Both logistics providers and clients may also use certain business jargon that the other party may not understand. If the jargon is essential to understanding the document, include a section for term definitions early in the document.
2. Describe the Agreed 3PL Services
A good 3PL agreement needs to be detailed, so the next thing to do is outline the services provided. This part includes the statement of work, which lists the 3PL’s responsibilities to the client.
The 3PL’s statement of work may vary depending on what services the client wants. Some of the more common 3PL services a client might purchase include:
- Inventory management
- Warehousing
- Picking and packing
- Freight forwarding
- Returns management
3. Outline Expected Performance Standards
This part is where you include the SLAs of the 3PL services. Well-defined working standards help clients know what to expect from the 3PL company’s services. Because these standards are made with mutual agreement, the client won’t impose overly high standards that may make the 3PL’s work harder.
Example standards to outline in this section include:
- Order processing and shipping cutoff times
- Package shipping speed
- Order fulfillment and inventory picking error rates
- Inventory shrinkage allowance
- Returns processing rules
It’s also a good idea to schedule regular standards review calls to check whether the SLAs need updating.
4. Define the Pricing and Payment Terms of the Agreement
Naturally, outlining service pricing is an essential part of an agreement. There should be a space to write down an itemized list of the 3PL’s offered services alongside their individual costs and charges as well as a space to put down the total cost. This helps the prospective client review the services they’re paying for.
Note that service pricing may not be static because your 3PL operational costs may increase as time passes. To prevent future disputes about pay increases, include a clause about 3PL price increases that details when the 3PL company’s service costs might go up.
Most 3PL companies give clients a service price guarantee for one year after they sign a contract. After the first year, they usually readjust the service costs and raise them based on a fixed percent increase or other methods.
In addition to service pricing and potential changes, including the payment terms for logistics services. This section usually defines the payment frequency, deadline, who to pay to and other related information.
5. Explain the Agreed Term and Termination
3PL agreements usually have a set term. Most clients contract a 3PL for one year, but you may find clients wanting monthly or multi-year deals. However long the service deal is expected to last, outline the term clearly in your agreement.
Most agreements have a termination clause that says the deal will end once the contract is over. However, you can place additional termination clauses if necessary. For instance, you can allow either partner to terminate the agreement before the contract ends by submitting a termination notice three months in advance.
6. Define the Agreed Liability and Insurance
The next thing to outline in the agreement is liability and insurance. This section covers what insurance policies each party needs to have during the agreement as well as their coverage amounts. In a 3PL partnership, insurance is usually used to insure products, equipment and warehouse employees from damages or losses.
Common insurance policies stipulated in 3PL agreements include:
- Warehouse liability insurance
- Business interruptions insurance
- Transportation insurance
- Employee dishonesty insurance
- Worker’s compensation
7. Outline the Confidentiality of the Service or Agreement
Both the 3PL and its client often share internal information during a logistics partnership, so strong confidentiality protection is necessary. The confidentiality clause should cover things like:
- Product specifications and confidential materials
- Customer contact information and order history
- Business demand forecasts
- Unreleased promotional materials
If there are too many items to cover individually, you can apply a blanket non-disclosure clause to all copyrighted and confidential materials.
8. Choose a Dispute Resolution Method for the Agreement
Even if you work with someone you trust, disputes may still occur. Defining how you’ll resolve disputes helps things get resolved quicker. Generally, companies have the choice of settling legal disputes through arbitration or court. Most companies prefer to settle disputes through arbitration because it’s less expensive than going to court but still has the full force of the law behind it.
9. Include Any Miscellaneous Information
Lastly, you can include any additional information not covered in the previous points. For example, you can include provisions that cover what happens in case of things outside your control, like acts of God and government action.
Key Takeaways
A 3PL agreement forms the basis of your logistics partnership with a logistics company or client. It documents both parties’ obligations, rights, payment terms and other essential information related to the deal. However, these legal documents take time and effort to get right, so you need a template to expedite the process.
A 3PL agreement template includes all the consistent, static information that’s available in all your agreement documents. All you need to do to finish the draft is fill out the agreement-specific information. In addition to making the process faster, it reduces human error because you won’t accidentally leave out an important clause. This way, you can send the draft to potential partners and close the deal sooner.
3PL companies want to provide the best service to their clients. ShipHero’s warehouse management system helps them achieve that through increased shipping accuracy, warehouse cost reduction and more. Contact us today for more information!
Frequently Asked Questions
How do you Effectively Draft a 3PL Agreement?
You can effectively draft a 3PL agreement by including all the necessary details like the statement of work, payment terms, SLAs and more. Make sure all the essential information is included in the 3PL agreement draft, then send it to your legal team for double-checking.
Once it’s approved by legal, your 3PL agreement draft is ready to show to the prospective partner.
What are the Key Considerations While Negotiating a 3PL Contract?
When negotiating a 3PL contract, the key considerations are:
- Get everything in writing to prevent misunderstandings
- Create clear, well-defined project timelines
- Agree on reasonable service-level agreements
- Settle on a method to resolve disputes
How do you Choose the Right 3PL Provider?
You choose the right 3PL provider by first learning what your company’s logistics needs are. Then, you can research the 3PL providers on the market and choose the one that can address those needs at a reasonable budget.
Nov 2, 2022 | Blog
As one of the largest retailers in the world, Walmart provides a great online marketplace platform for eCommerce business owners. Walmart Marketplace lets you sell products to an audience of millions – no setup or monthly fees necessary.
That said, you still need a good fulfillment partner to unlock the true potential of your business. Read on to learn more about the best order fulfillment partners for Walmart.
What is Walmart?
Walmart is a United States retail company that runs hypermarkets, department stores and grocery stores. It boasts over 10,000 stores in 24 countries and is the world’s largest company by revenue according to 2022’s Fortune Global 500 list.
Walmart sells just about anything you can imagine, such as groceries, food items, electronics, apparel, toys and so much more. It also provides an online platform for eCommerce businesses called Walmart Marketplace. Like eBay and Amazon, Walmart Marketplace allows third-party sellers to offer their items on the retail giant’s website to reach millions of people.
What is Order Fulfillment?
Order fulfillment is a process where an eCommerce seller receives a customer order, processes it according to the customer’s wishes and delivers the product to the customer. Order fulfillment is the most basic process in eCommerce because it’s how you get products to customers.
While it seems simple, you shouldn’t underestimate the importance of order fulfillment. If your order fulfillment process is slow and inaccurate, customer satisfaction and sales will drop.
Generally, order fulfillment is a five-step process:
- Inventory receiving: You receive products from production facilities or distributors at the warehouse.
- Inventory storing: Your warehouse crew stores the products in the appropriate spots.
- Order processing: After receiving a customer order, your warehouse crew picks and packs the products to prepare them for shipping.
- Order shipping: Once the products are picked and packed, your warehouse crew passes them to shipping carriers for delivery to the customer.
- Return handling: If the item is damaged or doesn’t fulfill customer expectations, they may return it. Your warehouse is responsible for receiving the items, assessing the issue and returning the replacement item.
How Does the Walmart Fulfillment Process Work?
Walmart’s in-house fulfillment process through Walmart Fulfillment Service (WFS) works like most 3PL companies. Here’s how you can fulfill customer orders through WFS as a third-party seller:
- Create an account in the WFS portal.
- Mark your items for fulfillment by Walmart.
- Send your products to the designated Walmart fulfillment center.
- Let the Walmart Fulfillment Service crew pick, pack and send the items to delivery drivers according to shipment requests.
- Leave Walmart’s team to manage returns and provide customer service.
Based on the process flow above, you don’t have to do much beyond sending your products to the fulfillment center. Once your items are there, the WFS crew takes over everything until the products arrive at the customer’s door and all complaints are resolved.
What Does a Walmart Order Fulfillment Provider Do?
A Walmart order fulfillment provider takes control of the entire process on your behalf. eCommerce businesses usually work with third-party order fulfillment providers when they can’t handle orders in-house or want to scale their companies beyond current capabilities.
What Are the Benefits of Using a Walmart Order Fulfillment Service?
The benefits of using a Walmart order fulfillment service include cost savings, extra storage space and expert insight. Here’s a detailed look at the benefits of working with 3PL companies:
Warehousing Support
eCommerce third-party logistics companies operate warehouses and fulfillment centers for their clients. Because you’re using the 3PL company’s warehouse, you don’t have to worry about running out of space.
Lower Carrier Shipping Charges
Order fulfillment services get lower carrier shipping charges because they ship large volumes of items daily. When 3PLs get lower carrier fees, they often pass the savings to clients, reducing your overall shipping costs.
Expert Support
Most 3PL companies have years, if not decades, of experience in order fulfillment. Working with them means they can help you identify and solve any fulfillment issues.
Time and Labor Savings
In-house order fulfillment takes a lot of time and effort. Outsourcing fulfillment lets you reassign warehouse staff to other tasks that directly contribute to eCommerce business growth.
Take a look at ShipHero’s order fulfillment services today and see if we can fulfill your eCommerce shipping needs.
Factors to Consider While Selecting an Order Fulfillment Partner for Walmart
Choosing the right order fulfillment partner is essential to getting the most out of their expertise. Here are four things to consider when choosing your next 3PL partner:
Order Fulfillment Speed
Speed is one of the most essential factors in choosing the best order fulfillment partner. Customers and clients want faster fulfillment times and won’t settle for anything less. Ensure the 3PL company you choose supports two-day and same-day shipping to most, if not all, of your customer base.
Storage and Fulfillment Fees
Storage and fulfillment fees are important for any business, but they become even more essential when you sell in large volumes. Pick a fulfillment company offering lower storage and fulfillment fees if you’re planning to sell many products.
Pricing
Fulfillment companies charge monthly subscriptions and annual fees, but sometimes you must pay other costs as well. Ask about extra fees and ensure there are no hidden expenses before you start working with them.
The cheapest fulfillment companies aren’t necessarily the best option because they may cut corners or provide subpar service. Instead, choose a company with reasonable prices and services that fit your needs without sacrificing quality.
Returns Management
Easy and convenient product returns are essential to retaining customers. Choose a fulfillment company that knows how to handle returns and communicates with customers professionally.
What to Look For in a Walmart Fulfillment Partner
The best Walmart fulfillment partner should cater to all your order processing needs. Here are three things that a good Walmart fulfillment partner should have:
eCommerce Platform Integration
If you don’t sell exclusively on Walmart Marketplace, eCommerce platform integration is essential to capturing orders from multiple places.
Some major eCommerce platforms that fulfillment partners should cover include eBay, Amazon, Squarespace, BigCommerce, Wix and Square.
Multichannel Integration
Multichannel integration is when your fulfillment partner uses one warehouse to process orders from multiple storefronts or sales channels. A fulfillment company that receives orders from multiple storefronts saves both time and money while ensuring that you don’t miss any orders.
Ease of Use
Most order fulfillment companies grant you access to software to help you manage inventory and warehousing. Find a fulfillment company with simple and easy-to-learn software so your team can understand it quickly and minimize downtime.
How We Chose the Best Walmart Fulfillment Companies
There are many companies offering order fulfillment, so choosing one is challenging. Luckily, we’re here to help you do just that. Here are five criteria we used to create this list of best Walmart fulfillment companies:
- Shipping speed
- Fulfillment network
- Software features
- Returns management and customer service
- Subscription, storage and carrier charges
Best Walmart Fulfillment Companies
With the criteria above in mind, here are the best Walmart fulfillment companies today:
1. ShipHero
ShipHero boasts high-accuracy order fulfillment and lightning-fast shipping at affordable costs. We offer flat-rate fees for all our clients without any hidden costs. You don’t have to worry about distributing your inventory either because ShipHero distributes your products to eight fulfillment centers across North America.
Pros
- Eight fulfillment centers across the United States and Canada
- Integration with major eCommerce and marketplace platforms
- Real-time inventory and warehouse management systems
Cons
- Limited shipping label customization
- Additional costs for international shipping
- Minimum 500 orders per month threshold
Pricing
ShipHero offers single-rate prices for clients across the lower 48 states with no hidden fees. Check our pricing page to get your custom order fulfillment pricing.
Get your custom order fulfillment quote from ShipHero today!
2. ShipBob
ShipBob boasts over 30 fulfillment centers across six countries to ensure your products get to customers on time, no matter where they are. It also provides a free analytic tool to monitor your supply chain efficiency.
Pros
- Affordable two-day shipping rates
- Web-based fulfillment dashboard
- Multichannel support
Cons
- Complicated online store integration
- Occasionally slow customer support
Pricing
ShipBob has an online calculator to estimate order fulfillment prices. Request a quote for more detailed pricing information.
3. ShipHype
One of ShipHype’s greatest advantages is its same-day shipping services to select locations. For everywhere else, it offers two-day and next-day shipping from its five regional distribution centers.
Pros
- 99% order accuracy
- High SKU (stock-keeping unit) limits
- Dedicated account manager per client
Cons
- Occasional invoice discrepancies
- Prices may fluctuate
Pricing
ShipHype offers no-contract fulfillment service pricing, and you can get a quote on its website.
4. Rakuten Super Logistics
Rakuten Super Logistics (now ShipNetwork) promises fast delivery with 100% accuracy. With fulfillment centers across the United States, it promises to deliver your products within two days via ground shipping.
Pros
- Simple fulfillment application process
- eCommerce platform integrations
- Efficient returns management
Cons
- Requires minimum orders
- Lost inventory issues
Pricing
Rakuten/ShipNetwork offers customized pricing. Contact a representative to get a quote.
5. Simpl Fulfillment
Simpl Fulfillment is a 3PL company that offers weight-based flat-fee fulfillment, ensuring cost transparency. It can also integrate with over 50 marketplaces, shopping carts and other platforms.
Pros
- 24/7 client support
- Free 3PL consultations
Cons
Pricing
Simpl Fulfillment’s services start at $6/order. For detailed pricing, request a quote.
Outsource order fulfillment to ShipHero today!
6. ShipMonk
ShipMonk is an all-in 3PL company offering order management, warehouse management, purchase tracking and other services to make the fulfillment process easier.
Pros
- Real-time inventory tracking
- Fulfillment centers in North America and Europe
- Multi-channel client support
Cons
- Hidden fees in the fine print
- No temperature control for frozen items
Pricing
ShipMonk offers an online calculator to determine your fulfillment pricing. For detailed quotes, contact a sales representative.
7. Easyship
Easyship works with numerous international carriers to help you sell worldwide. Easyship can offer up to 91% off on carrier charges thanks to its many working relationships.
Pros
- No-code eCommerce integrations
- Global fulfillment center network
- Branded tracking pages and shipping labels
Cons
- Spotty client support
- Complicated refunding flow
Pricing
Easyship offers a free fulfillment plan for up to 50 shipments monthly. Paid plans start at $29/month.
8. Shipwire
Boasting over 30 warehouses worldwide, Shipwire helps your company sell and deliver products to millions of people.
Pros
- Numerous eCommerce integrations
- B2B and B2C eCommerce support
- Shipping rate optimization
Cons
- Inconsistent client service quality
- High rates
Pricing
Shipwire doesn’t list its pricing information publicly. Contact a sales representative to ask for quotes.
9. Red Stag Fulfillment
Red Stag takes a cloud-based approach to fulfillment in helping B2C and B2B eCommerce businesses deliver their products.
Pros
- 100% inventory and order accuracy guarantees
- Guaranteed same-day fulfillments
- No-commitment services
Cons
- Limited fulfillment center presence
- Relatively high pick-and-pack costs
Pricing
Red Stag offers a 30-day free trial. After the trial, you can contact a Red Stag representative to get a quote.
10. Fulfillify
Fulfillify handles order fulfillment for eCommerce businesses of all sizes to ensure they can deliver products on time. With its four warehouses, Fulfillify can deliver products to almost the entire United States within one or two days.
Pros
- Multiple eCommerce integrations
- Real-time inventory tracking
- Mobile-focused fulfillment platform
Cons
- No global fulfillment center presence
- Pricing
Fulfillify doesn’t list its prices publicly. You can complete the contact form on its website to request a quote.
Final Thoughts
Choosing the right order fulfillment partner for Walmart Marketplace lets you deliver all customer orders without delay. With a great third-party logistics partner and Walmart Marketplace’s huge audience, you can potentially sell products to millions of people and grow your eCommerce business.
Don’t work with Walmart? Find the best carriers for many of the highest profile marketplaces on the web.
Top 10 Best Order Fulfillment for Amazon
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 6 Best Order Fulfillment Partners for WooCommerce
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 Walmart FAQs
What is order fulfillment at Walmart?
Order fulfillment at Walmart is a service provided by WFS for eCommerce sellers on the Walmart Marketplace platform. WFS works like many other third-party logistics services, where Walmart’s team takes charge of your entire order fulfillment process.
How does Walmart Fulfillment Services work?
Walmart Fulfillment Services works by taking care of your entire order process, from receiving items at the warehouse to delivering them to customers. Here’s a step-by-step guide to the WFS process:
- Create an account on the WFS website.
- Mark your marketplace products as Fulfilled by Walmart.
- Send your products to a Walmart warehouse.
- The WFS crew picks, packs and delivers customer orders.
- The WFS crew handles returns and provides customer service.
How much are Walmart’s fulfillment fees?
Walmart’s fulfillment fees start from $0.75/month for each cubic foot of storage. Carrier shipping charges start from $3.45 for a 1-lb. product.
Dec 9, 2022 | Blog
Backorder Meaning in eCommerce
To stay competitive in the world of eCommerce, businesses have to find ways to satisfy the demand of consumers for almost instant gratification. When consumers shop, they expect to be able to purchase the products they want and receive them promptly. While items online may not always be available right away, clients expect to receive them as quickly as possible.
When clients find out they can’t have what they want when they want it, they are faced with deciding whether to wait for the product to become available or look for another company that may have it in stock. If products aren’t available because they’re out of stock or backordered, there’s a risk clients will take their business elsewhere.
What Does Available on Backorder Mean?
A backordered item is a product that isn’t present in your physical inventory, but it’s expected to be replenished. This means that although you’re unable to fulfill orders to clients immediately, you expect to have the product back in stock by a certain date. The fact that you have an expected shipping date means that you may be able to keep a client’s interest in a product since you can let them know it’s available on warehouse backorder.
When items are backordered, it indicates that demand is outpacing supply. Too many items on backorder may be a sign that inventory isn’t being managed effectively. Long wait times are likely to be frustrating to clients who may take their business elsewhere.
Does Available on Backorder Mean the Same as Out of Stock?
The meaning of the term backorder isn’t exactly the same as out of stock. Items on warehouse backorder aren’t currently in your warehouse but are available from suppliers. Items that are out of stock may or may not become available again in the future. eCommerce businesses may accept orders for items on backorder since they’re expected to be ready to ship in the future. Orders aren’t usually accepted for items that are out of stock.
Common Causes of Backorders
There are several different things that may cause an increase in backorders. Some examples include:
- Unexpected demand. More orders are placed than anticipated sometimes because of marketing or seasonal trends.
- Weather delays. Bad weather or natural disasters may slow transportation and prevent items from being shipped right away.
- Supplier problems. Products may be delayed because of miscommunication or the manufacturer or supplier’s inability to meet production goals.
Businesses often keep extra stock on hand to try to prevent items from ending up backordered or out of stock. This is known as safety stock. If there’s insufficient safety stock because of counting errors, your company may not be prepared to handle normal demand, let alone higher-than-usual demand.
Disadvantages of Backorders
As your eCommerce business grows, you’re likely to receive an increasing number of orders. Backorders can lead to increased customer service headaches because sometimes people call repeatedly to find out when their order is being shipped. If people have to wait too long for an order, they may change their minds and decide to cancel.
If demand for your products increases more quickly than supplies are replenished, you may face shortages or a large number of backordered items. To keep clients satisfied, stock shortages or backorders shouldn’t be something that occurs regularly. When products are out of stock or back ordered too often, it can damage the reputation of your company.
Keeping Clients with Backorders Happy
Clients with backorders often start looking at other companies when they find out the items that they want aren’t available right away. Consider what actions you can take to keep your clients happy. Offering a coupon for a discount on their next purchase lets them know you’re concerned the order couldn’t be fulfilled promptly and that you value their business. If they’ve ordered multiple items, ship what’s available without charging extra to ship the backordered item separately.
Communication is Key
Providing good client service includes keeping clients informed so that they know right away when a product they’re interested in is backordered as well as when it’s back in stock. If backordered items only happen occasionally, it may stimulate demand for items that aren’t immediately available. You can help to create excitement for the product by sending emails counting down the number of days until it’s in stock again. Another advantage to backorders is that they give you some insights into what products are in the highest demand.
How Can You Reduce the Number of Warehouse Backorders You Have?
Advanced technology makes it possible to monitor inventory automatically and to receive up-to-date information such as alerts when stock is low. Using warehouse management software is a good way to be proactive about inventory management and obtain better forecasting.
Effective inventory management means using methods such as real-time inventory tracking to make sure there’s sufficient safety stock on hand. This can help ensure that fulfilling orders won’t be delayed because of supply chain issues, which can help reduce the number of warehouse backorders you experience.
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For More Information About ShipHero
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Dec 9, 2022 | Blog
Product bundling is one of the oldest retail tricks in the book, and for a good reason. Why go a long way around when you can get multiple products in one easy package? Companies have realized bundling is a great way to offer customers more value for their money and drive up their average order value. Just look at the success of the Happy Meal! The classic combination of a burger, soda, and french fries has been popularized by bundling them together, making it easier than ever to enjoy a complete meal. It may be an old trick, but bundling remains one that businesses everywhere swear by to this day. So what is the meaning of bundling, and how does it benefit business? Well, stay right here and “bundle” up for this blog.
What is Product Bundling?
Product bundling is bundling multiple items to get customers to buy them together for one price instead of individually. This bundling gives customers an incentive to purchase more than they normally would at one time, resulting in an extra benefit for businesses. It’s also a great way to encourage items that might be overlooked if purchased on their own, boost sales, and combat price-gouging. Bundling can be done through various mediums depending on the industry and the target audience.
Get More for Your Money With Upsells and Cross-sells
Businesses can leverage upsells and cross-sells to move more products while simultaneously providing customers with added value.
- The purpose of an upsell is to convince the customer to upgrade or purchase a slightly more expensive version of what they originally intended to purchase.
- Similarly, cross-sells promote similar products within the same group; “would you like fries with that?”
Benefits of Product Bundling
Bundling helps you do much more with your existing stock. Let’s look at the advantages of product bundling and how it can benefit your business.
- Increase Sales and AOV
A bundling strategy can be a great way for businesses to increase their profits and the amount sold over time. As demonstrated by studies from Harvard Business School, bundling products can help businesses get customers to buy more than one item during a single purchase while still offering them discounts. This means they’ll get more value for each order while you keep your average order value high.
For example, an electronics store might offer discounts when customers bundle televisions and soundbars together – a win-win situation! Not only do customers enjoy the convenience of making fewer purchases, but they end up with the best deal possible.
- Decreases Marketing and Distribution Costs
Not only do bundling strategies enable you to sell more of your products together and get more bang for your buck, but it also leads to decreased costs in marketing and distributing. Instead of promoting each product separately, bundling multiple items together removes the need to market each item individually. And with only one warehouse bin taking up less storage space, distribution costs are also lowered.
- Reduce Inventory Waste
Inventory waste can be a major problem for businesses, causing money to be spent on holding costs without receiving any return. But with a bit of bundling magic, you can help reduce it! By bundling slow-moving or stagnant items with popular ones, customers will see the bundle as an amazing bargain and snatch it up. This helps clear out your dead stock before it becomes a problem, frees up your warehouse space, and decreases the amount of money you would have to spend on inventory holding costs. Bundling isn’t just an opportunity for thrifty shoppers; it’s also an important tool for reducing surplus inventory and keeping your business running smoothly. So if your shelves are cluttered with products that won’t move, bundling is the solution you’ve been looking for.
- Increase Product Awareness
Product bundling is one of the best strategies for increasing product awareness. By bundling items together, you are giving customers more value with every purchase and encouraging them to become familiar with additional products they wouldn’t have otherwise considered. For example, bundling items in themed sets or offering discounts on popular pairs makes it easier for customers to try something new while recognizing a good deal.
Furthermore, bundling introduces customers to different product lines they might not have been aware of and encourages them to try items outside their comfort zone, potentially leading to higher sales returns in the long run. In short, bundling can be a great way to increase product exposure for both businesses and consumers alike.
- Boost Customer Loyalty
Offering bundles is a great way to increase customer loyalty, as bundling creates more opportunities for shoppers to find something they love (and then return for more). As a bonus, bundling helps ensure that customers get their money’s worth – by bundling multiple items together, buyers can save money and still receive high-quality goods and services. So why not bundle up your bestsellers into one convenient package and reap the rewards with increased customer loyalty?
Types and Examples of Product Bundles
Several different bundling techniques are used to group products:
A mixed bundling strategy involves offering customers the option of buying a bundle as well as the option of buying individual items. Offering mixed bundling at a lower price than if the items were sold separately will incentivize users to purchase the bundle.
Fast food combos are examples of mixed bundling – you can purchase each item individually or as part of the combo for a single price.
Pure bundling refers to grouping products that are only available when sold together.
For example, whenever you purchase cough syrup, you also get a small plastic cup, which you would never buy separately.
When a customer orders multiple of the same product, bundling is a smart way to offer a discount. Customers are encouraged to buy in bulk upfront by same-product bundling, similar to a subscription model.
For example, many direct-to-consumer (DTC) brands that sell essential or personal care products (e.g., toothpaste, paper towels, or hand soap) do well with this bundling strategy.
In addition to being an effective marketing strategy, product bundling is a convenient way to eliminate old, unwanted inventory and make room for new items. Your bottom line can be negatively affected by slow-moving products. So pairing a popular item with a product that isn’t performing as well can entice customers with the prospect of a good deal.
For example, bundling a last-season computer mouse with brand-new keyboard is easy because customers need both to use a computer.
Popular Examples of Product Bundling
- Gifting product bundles: Gift bundles are aimed at shoppers who want to give a bundle of complementary products together to a loved one.
- Subscription boxes: Subscription bundles provide complementary value by adding products or services that enhance an existing subscription.
- Build your own bundles: With custom bundles, you can choose from a wide range of products, as well as single items.
Product Bundling Best Practices
- Offer a discount on the bundle so that customers can see the value.
- Show the cost of a bundle side-by-side with the cost of individual products.
- Analyze where bundles fall within the customer journey.
- Use holiday emails to highlight bundles.
- Observe vertical industries – how are they priced and what’s included?
- Examine other websites’ upselling tactics.
Get the Most out of Bundling with ShipHero’s WMS
When it comes to bundling meaningfully in your eCommerce business, understanding what bundling is and how to integrate bundling into your warehouse management system is key. With bundling strategies like pick kit and build-kit, you can customize how you store and manage the pieces of your bundles or kits.
ShipHero’s warehouse management system provides a comprehensive solution for integrating bundling goals into your inventory management strategy, giving you powerful automation tools with one-click integrations and dedicated client support. Put simply, ShipHero is here to make sure that your kits and bundles add up!
Product Bundling: Your Secret to a Better Bottom Line
Product bundling is one of the oldest and simplest tricks in retail, yet so often overlooked by customers. However, bundling your products can be a powerful way to boost sales, increase customer loyalty, and earn extra revenue – if done right. With bundling, you can create custom product packages tailored to individual customers’ needs and promotions that reward shoppers for bundling multiple items together. In addition, bundling can help draw attention to slow-moving stock or be used for product awareness initiatives.
All these strategies can help to make your store stand out from the crowd and give you an edge in today’s competitive market. So why not put bundling at the center of your selling strategy? With these tips in hand, you can create custom bundles that will increase sales, loyalty, and awareness for your store – and, who knows, maybe even earn you an extra buck. Thanks for reading!
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Feb 16, 2023 | Blog
As a business owner, you are faced with many challenging growth stages. But when using a 3PL with an inventory management system, logistics doesn’t have to be one of them. Streamline your supply chain and boost your business success with inventory optimization through a 3PL provider. As customer demands and expectations skyrocket, it is costly to be left with long stockouts or delays in shipping. Say goodbye to stock shortages and forecast errors, and hello to real-time visibility, cost savings, and expert support when partnering with an expert 3PL. In this article, we will cover the power of a 3PL inventory system and how it can take your business to the next level!
What is Third-Party Logistics (3PL)?
Third-party logistics (3PL) is an outsourcing solution for companies to handle their supply chain and logistics operations. Instead of managing storage, transportation, and delivery in-house, a company can work with a 3PL provider to handle these tasks for them. And because providers offer logistical infrastructure as a product, you can utilize their expertise, technology, and resources to handle any logistical needs you might have. This means you save money, improve your supply chain efficiency, and have more time to focus on core business activities!
What is a 3PL Inventory Management System?
Inventory management software is a solution used by third-party logistics providers to manage the storage, movement, and tracking of inventory across fulfillment centers for their clients. The system helps 3PLs to efficiently track inventory levels, manage stock movements, generate reports, improve forecast accuracy, and provide real-time data to clients. With this software, you gain inventory management visibility and get your logistics operational challenges streamlined. You’ll also likely see a reduction in manual errors, and improved accuracy of inventory data.
How Does 3PL Software Help eCommerce Businesses?
Cost Reduction
3PL software can help eCommerce businesses to reduce costs by streamlining operations, reducing forecast errors, and improving efficiency. By outsourcing logistics operations to a 3PL provider, eCommerce businesses can also reduce the need for in-house logistics staff and infrastructure. An example of this would be an eCommerce business that can use 3PL software to automate order fulfillment processes, reducing manual labor and the risk of errors. Plus, because they ship in bulk 3PLs can get negotiated pricing and reduce your shipping costs as well!
Increased Transparency
Real-time data from 3PL software provides visibility into inventory tracking, delivery status, and other logistics operations. This increased transparency helps eCommerce businesses make informed decisions and avoid stockouts or overstocking. As an example, an eCommerce business could access real-time data on their inventory across fulfillment centers and delivery status through 3PL software, enabling them to make informed decisions and provide better service to eCommerce customers.
Customer Experience
By outsourcing logistics operations to a 3PL provider, eCommerce businesses can focus on improving their customer experience. This software can help to streamline delivery processes, reduce shipping times, and provide accurate tracking information to customers. Meaning, an eCommerce business could use 3PL software to track delivery times, monitor shipping, provide more shipping options, and provide eCommerce customers with real-time updates on their orders.
Real-Time Visibility
3PL software provides real-time data on inventory levels, shipping status, and other key metrics. This way an eCommerce business can use 3PL software to track inventory optimization and inventory needs in real-time, enabling them to quickly respond to changes in demand and avoid stockouts.
Scalability
Software that offers the above benefits also allows for scalability because of the additional technological resources which speed up workflows. Then if a company also outsources logistics operations to a 3PL provider, eCommerce businesses can focus on their core business activities, while their 3PL handles the logistics. This way they have access to additional inventory storage space, delivery vehicles, and shipping options, which are all assets that the business itself didn’t need to purchase.
3PL Inventory Management Services and Benefits
Third-party logistics (3PL) inventory management services offer several key benefits for both off and online businesses. One of the main benefits is cost savings, as outsourcing logistics operations to a 3PL provider can reduce the need for in-house logistics staff and infrastructure. Another benefit is improved efficiency, as 3PLs use specialized software and technology to streamline operations, reduce manual errors, and improve forecast accuracy. With real-time data and visibility into inventory levels, delivery status, and other logistics operations, 3PL inventory management services can also increase transparency and help businesses make informed decisions. By outsourcing logistics operations, businesses can also focus on their core activities and improve their customer experience by providing faster and more accurate shipping information. Additionally, 3PLs can help online businesses to scale their business operations by providing access to additional resources and technology.
What are the Core Competencies 3PLs Provide?
3PLs provide a range of core competencies to their clients, including:
- Storage and warehousing: A 3PL warehouse offers inventory storage solutions for inventory and raw materials, handling the management and organization of these items.
- Transportation and delivery: 3PLs handle the transportation of goods, including pick-up, delivery, more shipping options, and tracking of shipments.
- Order fulfillment: 3PLs manage the process of picking, packing, and shipping orders to customers.
- Supply chain management: 3PLs help to optimize supply chain operations by providing real-time data and visibility into inventory levels, delivery status, and other logistics operations.
- Technology and innovation: 3PLs use specialized software and technology to streamline operations, reduce forecast errors, and improve accuracy.
- Cost optimization: 3PLs help to reduce costs by optimizing logistics operations and providing access to additional resources and technology.
- Customer service: 3PLs provide support to customers by handling inquiries, tracking shipments, and providing real-time updates on orders.
What is the Difference Between a 1PL, 3PL, and 4PL?
A 1PL refers to a company that handles its own logistics operations in-house. This includes storage, transportation, and order fulfillment processes. An example of a 1PL is a retail store that manages its own shipping and delivery operations. Think of Walmart which manages its own storage, transportation, and order fulfillment, or Apple, which manages its own shipping and delivery operations. The primary benefit of a 1PL is that the company has complete control over its logistics operations and can ensure that its processes align with its business objectives.
A 3PL refers to a logistics company that provides logistics services to other businesses. This includes storage space, transportation, and order fulfillment processes. The primary benefits of a 3PL warehouse are cost savings and increased efficiency. By outsourcing logistics operations to a 3PL, businesses can reduce the need for in-house logistics staff and infrastructure, and benefit from the 3PL’s specialized software and technology.
A 4PL refers to a logistics company that acts as a logistics integrator, coordinating and managing the logistics operations of multiple 3PLs. An example of a 4PL is Accenture, which provides logistics management services and integrates the operations of multiple 3PLs. As an example look to DHL supply chain who provides logistics management services and integrates the operations of multiple 3PLs for their clients. The primary benefits of a 4PL are improved supply chain visibility and coordination. By integrating multiple 3PLs, a 4PL can provide inventory optimization, delivery status, and other logistics operations, helping businesses to make informed decisions and optimize their supply chain operations.
Other Than Order Fulfillment, How Else Can a 3PL Help My Business?
3PLs aren’t just there to help you store and ship your inventory. They offer a wide range of other benefits as well. Let’s review a few.
Professional Services and Knowledge
3PLs bring a wealth of professional services and knowledge to the table, including expertise in transportation, storage, and supply chain management. By outsourcing to a 3PL, businesses can benefit from their experience and expertise, ensuring that their logistics operations are handled efficiently and effectively.
Cost Savings for Sellers
When you reduce the need for logistics staff and infrastructure, you save money. Logistical infrastructure is expensive, constantly changing, hard to maintain, and there is continually new technology available to utilize. If you let a 3PL take on that cost and pay them a flat monthly fee instead, you can then reinvest that money back into your own business.
Inventory Management
With the software a 3PL warehouse provides, this will likely include advanced inventory management services, including real-time visibility into inventory levels, demand forecasting, and safety stock management. Through software and dedicated staff, you can be sure their inventory is in safe hands and know they won’t overstock or understock.
Expertise
3PLs bring specialized expertise to the table, including knowledge of transportation and delivery, customs regulations, and compliance requirements. By outsourcing to a 3PL, businesses can benefit from their expertise, ensuring that their logistics operations are handled efficiently and effectively.
Business-to-Consumer Fulfillment (B2C)
When working with a B2C business, 3PL companies offer several services which are key to their success. This includes end-to-end fulfillment services, including order management, picking, packing, and shipping. This means a business-to-customer company knows its product will reach their customer quickly and intact.
Business-to-Business Fulfillment (B2B)
3PLs provide fulfillment services for B2B businesses, including order management, improving logistics efficiency, picking, packing, and shipping. B2B businesses can then ensure that they can rent more or less warehouse space as needed so their products can be found in stores across the nation.
How to Find the Best 3PL for Your Business
All this is good, but as a business owner how do I find the best 3PL for my business anyways? There are so many options. How do I know which is the best one?
Research the different 3PL warehouse providers and their offerings, and ask for recommendations from other businesses in your industry. Attend trade shows and conferences to network with 3PL providers and gain a deeper understanding of their services. Reach out to industry associations and trade organizations, such as the National Retail Federation or the Council of Supply Chain Management Professionals.
Develop a detailed RFP and send it to several 3PL providers, asking for proposals and pricing quotes. This will allow you to compare the services and costs of different providers and make an informed decision. Send out an RFP to a select group of 3PLs, such as UPS Supply Chain Solutions, ShipHero, FedEx Supply Chain, or DHL Supply Chain.
Schedule on-site visits to the 3PL facilities you are considering. This will allow you to assess the provider’s operations and processes firsthand and ensure that they have the capacity and capabilities to meet your needs. Schedule visits to 3PL facilities, such as the Amazon Supply Chain fulfillment centers or a ShipHero warehouse. That way you can see the warehouse space and understand exactly how your inventory will be managed.
Contact references provided by the 3PL provider and ask about their experience working with the provider. This will give you valuable insight into the provider’s performance and reliability. Reach out to companies that have used the services of the 3PL you are considering, such as companies that have used the fulfillment services of ShipHero or Flexe.
Want to chat with an expert? ShipHero to the rescue!
Key Takeaways
Inventory management visibility is a huge key to your success as an eCommerce business. You can maximize your profitability and customer satisfaction with a 3PL and its inventory system software! Not only are they an expert in their industry, but when peak season comes around, they’ve got you covered. When you partner with a reliable 3PL provider to streamline your inventory management, and increase transparency, you’ll take your business operations to new heights.
Inventory Management + 3PL FAQs
What Is the Biggest 3PL Company?
The biggest third-party logistics company is DHL Supply Chain, a subsidiary of the German multinational courier delivery services company Deutsche Post DHL Group.
What Is Meant by Inventory Management?
Inventory management refers to the process of overseeing and controlling the movement of goods, including their storage, stock levels, and delivery to customers. The goal of inventory management is to ensure that a business has the right amount of inventory in the right place at the right time, while minimizing the costs associated with storage space and carrying excess inventory. The goal of these common strategies is to help both off and online businesses reduce stock shortages, lower carrying costs, improve customer satisfaction, and increase profitability.
What Is Logistics Inventory Management?
Logistics inventory management is a subset of inventory management that focuses on the coordination of the physical flow of goods, information, and financial transactions within a supply chain. This involves overseeing the storage, handling, and transportation of goods from the manufacturer to the end customer, ensuring that the right amount of inventory is available at the right time and place. The goal of logistics inventory management is to optimize the efficiency and cost-effectiveness of the supply chain while meeting customer demands and improving overall business performance.
Feb 16, 2023 | Blog
Running an e-commerce business or a retail operation is no easy feat.
From managing inventory to fulfilling orders, the logistics involved can be overwhelming and time-consuming. But what if we told you that there’s a way to streamline your logistics operations and take back control?
With third-party order management, you can do just that. It’s the ultimate solution for businesses looking to improve their logistics efficiency and customer satisfaction. But what exactly is 3PL order management and how does it work?
What is 3PL Order Management?
3PL Order Management is a game-changer for businesses looking to level up their logistics. It is the process of managing customer orders from the point of sale to delivery and involves a wide range of tasks, including receiving orders, processing them, picking and packing products, and shipping them to customers. It’s a powerful solution that streamlines and automates order fulfillment and removes many manual processes other companies can be stuck in today. This means while your 3PL partner handles order management, you can focus on growing your business. With 3PL order management, you can kiss logistics stress goodbye and say hello to streamlined, efficient, and profitable operations.
How Does 3PL Order Management Work?
Let’s say that John runs an eCommerce business that sells outdoor gear. His business has been growing rapidly, and he’s finding it difficult to keep up with the logistics and distribution side of things. So, he decides to work with a 3PL provider to handle his order management. Once John’s 3PL provider receives an order from his online store, the order is automatically imported into the provider’s order management system. The system checks the inventory levels to make sure that the items are available, and then assigns the order to a picker.
The picker goes to the warehouse and uses a barcode scanner to locate and pick the items specified in the order. Once the items are picked, they are taken to the packing station, where they are packaged and prepared for shipment. The 3PL provider then creates a shipping label and invoice for the order, and ships the package to the customer. Along with that, the provider notifies the customer of their order status and tracking information so they can follow the package on its way to them.
In the meantime, the 3PL provider also updates John’s inventory levels in real-time, so he can see exactly how many products he has in stock. They reorder items as needed to ensure that John’s inventory doesn’t empty. And they give him reports on which products sell and which products are stagnant.
This is the beauty of order management. Thanks to 3PL’s expertise and technology, the provider handled the order process efficiently, making sure that the customer received their package on time and that John looked like a rockstar!
Features of 3PL Order Management
Third-party logistics order management systems offer a plethora of features that make them a popular choice for businesses looking to streamline their logistics and supply chain operations.
- Real-time inventory management, businesses to have clear visibility into inventory levels, allowing them to make informed decisions.
- Automated order processing, multi-channel integration, and customizable workflows enable businesses to optimize their logistics processes, improving efficiency and reducing costs.
- Reporting and analytics tools are included to provide businesses with insights into their logistics operations, helping them identify areas for improvement.
3PL order management systems are also scalable, adapting to the changing needs of the business, making them an ideal choice for businesses looking to scale up or down.
Order Management Services Provided by a 3PL
Now that you understand how order management works, let’s dive into the specific order management services which are offered by many 3PLs.
Warehouse Storage
Warehouse storage services are typically a key offering from your potential 3Pl provider. This means they own and operate a warehouse where they store and manage their clients’ inventory. They handle all the receiving, storing, maintaining accurate inventory counts, and organization within this warehouse.
Inventory Distribution
For a 3PL it is key to manage the flow of products from the warehouse to your customers. They will often distribute your inventory between multiple warehouses so they offer faster delivery no matter where your customer is located. This includes managing the shipping and handling of products, as well as providing tracking information and delivery updates to customers.
Inventory Management
Whether it is something you can integrate with or not, most providers use inventory management software to track stock levels. This ensures that the necessary items are available to fulfill orders. If this software can integrate into your online store, it will likely automatically update stock levels as orders are placed. This benefit is a large reason why you want to find a 3PL partner who also has a software offering.
Picking and Packing
Once an order is placed, the 3PL provider’s team will pick the items from the warehouse shelves, using barcode scanning or other identification methods to ensure that they are picking the correct items and quantities. Once the items are picked, they are packed and prepared for shipment. Many top-tier 3PL use robots and automated conveyor belts to reduce human error and speed up the efficiency of this process.
Shipment Tracing and Tracking
Most 3PL providers also handle the shipping and tracking of orders. They create shipping labels, track packages and provide tracking information to the customer so they can follow the package on its way to them. This level of tracking and visibility often offers a large boost to customer satisfaction.
Reverse Logistics
When a customer initiates a return, the 3PL provider will typically receive the returned product and inspect it to make sure it is in good condition. If there is an issue with the product, the 3PL provider will contact the customer to resolve it. Once the return is approved, the 3PL provider will then process the return by updating the inventory, and if necessary, restocking the product. They will also refund the customer or issue a store credit, depending on the customer’s preference and the store’s return policy. If needed, they can often handle the process of disposing or refurbishing the products that can’t be sold again within the compliance of any relevant regulations.
Need the services of a 3PL? ShipHero to the rescue!
Benefits of Letting a 3PL Manage Orders
With an understanding of exactly what is available, you are now armed and dangerous when it comes to sourcing and picking out a 3PL that enhances your business. Here are a few benefits you’ll experience with a strategic 3PL provider in your corner.
Integration Throughout the Supply Chain
By letting a 3PL provider manage orders, businesses can integrate their logistics operations with the rest of their supply chain, which can improve efficiency and reduce costs. This integration can also help to improve inventory management and forecasting, allowing businesses to make better decisions about their supply chain.
Cross Platform Fulfillment
3PL providers can handle orders from multiple sales channels such as e-commerce platforms, marketplaces, and brick-and-mortar stores, allowing businesses to manage orders from multiple sources in one place. This means anywhere you sell from, your orders will be processed in one place so now you have visibility into your entire inventory and orders within one location.
Greater Customer Experiences
In today’s world, the customer experience is key. That’s because a happy customer is a returning customer. When it comes to shipping a customer favorite is the ability for the customer to track their order as it works its way through your 3PL provider’s processes. Plus, you know the 3PL is motivated to get their order to their doorstep quickly and efficiently because they likely have contracted KPIs to do so.
Fast and Efficient Pick and Pack
When advanced automation and robotics are put in place within the picking and packing process, the error becomes greatly reduced. This means that not only do your customers get their orders faster, but you also pay less for it to be shipped out. Especially if your 3PL provider is continually enhancing their warehouse operations with the newest technology.
Enhanced Inventory Visibility
With real-time inventory management, businesses have clear visibility into inventory levels, allowing them to make informed decisions. This can help to reduce stockouts and improve inventory forecasting.
Reliable Order Fulfillment
We’ve already talked about a reduction of human error. When 3PL providers have the resources, technology, and expertise to handle the logistics and distribution side of things, it means you and your customer experience more reliable order fulfillment.
Key Takeaways
Third-party logistics order management is an efficient and cost-effective solution for businesses looking to streamline their logistics operations, manage inventory, and fulfill orders. Their strategic knowledge gives you a competitive advantage and amplifies your business. It is a comprehensive service that covers all aspects of logistics management, including receiving orders, processing them, picking and packing products, and shipping them to customers. Plus with real-time inventory management, automated order processing, multi-channel integration, and reporting and analytics tools, businesses now have the knowledge to make more informed decisions more quickly. This allows businesses to focus on growth while leaving the logistical order management process to the experts.
3PL Order Management FAQs
What Are the Three Types of 3PL Providers?
Third-party logistics (3PL) providers come in three main types:
- Traditional 3PL: These providers offer a wide range of services, including transportation, warehousing, and distribution. They typically handle the entire logistics process, from receiving products at the warehouse to delivering them to customers.
- Asset-Based 3PL: These providers own and operate their own transportation assets such as trucks, ships and planes. They are specialized in the transportation and logistics of goods and usually handle the delivery and transportation process of the products.
- Niche 3PL: These providers specialize in a specific aspect of logistics, such as hazardous materials handling or temperature-controlled transportation. They are experts in their specific field and provide specialized services to businesses that require it.
What Is the Difference Between 3PL & 4PL?
Third-Party Logistics (3PL) and Fourth-Party Logistics (4PL) are both service providers that assist businesses with logistics and supply chain operations, but they differ in their scope and level of services provided.
3PL providers are responsible for handling specific logistics functions, such as transportation, warehousing, and distribution. They typically handle the entire logistics process, from receiving products at the warehouse to delivering them to customers. They own the resources, technology and expertise to manage the logistics process.
4PL providers act as an integrator that assembles and manages the resources, capabilities, and technology of multiple 3PLs, transportation companies, and other service providers to create a comprehensive logistics solution for the customer. They are often referred to as “logistics integrators” or “lead logistics providers” and they act as the single point of contact for their clients, coordinating all logistics activities and managing all the other service providers involved. They don’t own resources but have the capability to manage them.
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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