Sep 3, 2021 | 3PL Warehouse Management, Blog, Fulfillment, Warehouse Operations
By: Aaron Rubin, CEO and Founder of ShipHero
It can seem that managing a warehouse is a full-time job for at least 100 people. For many smaller eCommerce businesses, devoting that type of people power and resources to one aspect of their operation just isn’t feasible. That’s why it’s so important to implement a strong, robust and fully functional Warehouse Management System (WMS). And it will also save you money, time and frustration.
Warehouse Management System Explained
First, let’s talk about what a WMS can do. Primarily, it manages every aspect of your warehouse operation. This includes receiving inventory, counting and storing inventory, laying out the warehouse and picking and packing. It manages everything that happens from the time a customer places an order to the time the order is placed on a truck for shipping.
That is a big lift, which means the software needs to not only work flawlessly, but people in the warehouse must be willing to learn the system and capitalize on all that functionality.
Managing so many things also means that having WMS will close the gaps in your processes. Gaps where errors, revenue or wasted effort might escape. And this is the real beauty of WMS – it saves you time and money and makes the entire customer experience just that much better.
Ways WMS Reduces Errors
So, what is that magic that WMS performs? How is it possible for a software system to address physical and logistical problems, like mis-picks and inventory errors? Let’s find out.
- Provides Inventory Management: If you’ve ever worked at a brick and mortar retail store for a large company, there are the two dreaded times a year when inventory must be counted. It’s a nightmare, have no doubt. Tracking down barcodes for the smallest tchotkes, scrambling to find the last piece of clothing to make sure it’s all counted. And it all happens while the store is closed, meaning you were probably pulling an all-nighter. With a warehouse management system your inventory is tracked daily, down to the last barcode and managed as shipments are received. Because inventories and manifests are reconciled on an ongoing basis, it is easy to keep track of all of your product and even easier to keep inventory levels up-to-date in your point-of-sale system. This enables you to sell the products you have (earning revenue), to not sell the products you don’t have (losing revenue), and re-order the products you need to as soon as they run low. The less down time between replenishments, the quicker you can make a sale and make money. To be clear, you will still need to run inventory counts, but it will be so much easier.
- Provides Fail Safes and Backups: Inventory managed with barcodes makes it easier to pick, pack and prep for shipment. It also means that there are fail safes built into the system to reduce errors. With ShipHero, our pick and pack functionality is mobile. Warehouse employees take their order (on a mobile device) to the bin that has been identified (via the mobile device) and pick the product, scanning it before preparing it for shipment. It is then scanned again before it is packed, ensuring that the right order was picked. This reduces a multitude of errors. In fact, some of our clients see a 99% reduction in mis-picks and mis-ships. This is a huge cost savings and also helps to build customer loyalty. Customers aren’t happy when they’re anticipating a delivery and open the package to receive the wrong item. Accuracy is key and warehouse management software can help you meet that challenge.
- Provides Storage Optimization: The data gathered by a warehouse management system is invaluable to not only your warehouse team, but the entire organization. One of the most overlooked opportunities is warehouse layout. By analyzing your pick, pack and ship data you’ll quickly be able to see what products are the most popular, which products are most often shipped with others and the length of time it takes to pick orders. This gives you the chance to completely rearrange how the warehouse is laid out, bringing popular items closer, group like items together and in general, making it easier for your pickers and packers to do their jobs efficiently.
- Provides Better Forecasting: Managing your warehouse efficiently means that you have a much better picture, all the time, of what is needed, what’s working and what needs improvement. Knowing this information is already a huge step toward reducing errors. It’s also a big step towards enhancing other areas. One such benefit from this organization is your relationship with suppliers. Ordering and restocking will no longer be “hair on fire” scenarios – you’ll now be able to communicate your needs to your suppliers far in advance of when you actually need the product, meaning you won’t need to lean on this 3rd party for favors or miracles because you were unable to accurately forecast. It will make your business life much more smooth and enable you to forge lasting supplier relationships.
- Provides Peace of Mind: Maybe this isn’t the biggest error reducer, but knowing that you have a well-run warehouse filled with employees who know how to manage it will save you time and anxiety, especially when busy seasons or holidays roll around. You’ll no longer have to cross your fingers and hope that everything runs smoothly; now you’ll know with confidence that you have the systems and tools in place for your team and your business to succeed.
Major Benefits, Major Commitment
It’s true that Warehouse Management Software can do everything listed above, but there is some responsibility on you. Adopting and implementing WMS takes time and patience, and requires that you and your employees buy into all the benefits this new technology will afford you. In many cases, this may mean ditching the old “tried and true” methods that so many long-time warehouse employees rely on. There could be some resistance to a paperless picking process or hesitancy about how to use the new technology.
Make sure you’ve set aside the time and patience to handle the challenges that will come with transition. While the benefits far outweigh the obstacles, it’s still important to set everyone’s expectations.
However, based on past experience, ShipHero is confident that you won’t regret making the change.
Schedule a meeting today with our experts to learn more about our WMS software built for ecommerce brands & 3PLs looking to run their best warehouse and how ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.
Click HERE to Schedule a Meeting Today
Aaron Rubin, Founder & CEO
ShipHero
About the author: Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.
Follow Aaron on Twitter & LinkedIn.
Oct 1, 2021 | Blog, Fulfillment, Warehouse Management Software
By: Maggie M. Barnett, Esq., COO of ShipHero
Despite everyone’s best efforts, the strain from COVID-19 is not diminishing. And it seems as though it will spill over into the holiday season. Oh good. (That was sarcasm.)
There’s been a lot of news lately about carriers and the challenges they’re facing, as well as how some larger brands are handling this challenge. There’s also been discussion about how these supply chain disruptions could easily get passed along into 2022 and 2023. The intent of this article is not to make anyone panic, but it’s important to level-set expectations and understand where things stand in the eCommerce space.
Delays, Delays and More Delays
According to data from the Port of Los Angeles, the time it takes a shipment to travel from China to the U.S. has increased 83% over pre-pandemic numbers. That’s an additional 73 days. And in retail, that is an eternity.
There’s also been reports of materials shortages. The chip shortage affecting the auto industry is the splashiest one, but now toy manufacturers are raising their hands to say that a shortage of resin is impacting their ability to make toys and get them to suppliers and retailers. So, not only are manufacturers and retailers finding it difficult to get product from China and other countries to the US and into their warehouses, now there are shortages that could prevent those products from being created at all.
The Big Guys Will Spend
Another recent development this week was news that large corporations like Home Depot and IKEA are willing to spend big bucks to charter cargo carriers in order to ensure delivery. This has resulted in some organizations also purchasing their own shipping containers (which are also facing a shortage). As demand for charters has increased, so has the cost.
Larger companies can afford to pay these exorbitant fees, but of course, smaller eCommerce retailers cannot. Plus, eventually the additional cost will have to be passed on to the consumer somewhere. There is very little chance that these companies will see these additional fees as just “the cost of doing business.” This could lead to inflation that for the most part has stayed relatively steady throughout the pandemic.
Chartering cargo planes has also become trendy for larger companies. Overall, the pressure to receive goods in time for the holidays is real. Shipping containers full of sellable merchandise won’t do the retailer any good, if it’s still sitting in a port halfway across the world when Christmas rolls around.
No One is Immune
A labor shortage combined with a supply chain shortage is a recipe for disaster, and we seem to have just yelled, “Bingo!” With companies, including carriers like FedEx still struggling to hire, packages are now taking even more circuitous routes to get to their destinations. FedEx Ground recently reported that around 25% of all of their shipments are being re-routed to different distribution centers to offset the labor shortage. Currently, FedEx estimates they are working with around 65% of the staff they need.
The United States Postal Service is set to levy surcharges to retail customers in an effort to deliver the mail on time. With horror stories in 2020 of people not receiving holiday gifts until January or February, the post office is enacting additional charges in an effort to get things delivered on time.
Is There Another Word for Unprecedented?
It’s been said often enough since March 2020 – everything we have experienced, whether personal or professional has been unprecedented. The 2021 shipping carrier crisis seems to be another item to add to the list.
Anecdotally, consumers in general are really starting to feel the effects of empty shelves. Earlier in the year, missing or understocked products were the exception. Now, people are noticing more and more items missing. Everything from sports drinks to Steam Fresh bags to canned goods to chicken wings have been running in short supply. While the USDA says there is currently not a nationwide food shortage, the pinch of low inventory is being felt by more consumers than earlier in the year. And the haunting look of empty shelves doesn’t help to quell consumer anxiety.
These shortages could lead to more consumers shopping earlier for the holiday season, choosing to snap up gifts and items they need instead of waiting for a sale or promotion. However, it’s still too early to tell if this is a trend that will bear out. As with many things surrounding the pandemic, we are in wait-and-see mode.
Keep Calm and Ship On
The best advice for any eCommerce retailer right now is not to panic. Stock the products you can get; use your historical reporting to make a list of SKUs that drive revenue. Focus on the things you can control, like warehouse efficiencies, employee satisfaction and shipping, and do your best to let go of the things you can’t (like cargo ships sitting in the Pacific Ocean). With so much uncertainty surrounding us, focusing on yourself and your organization is the key to success.
If you’re new to ShipHero Fulfillment, please schedule a meeting today with our experts to learn more about how we can help you get your orders picked, packed, and delivered with our fulfillment service. No setup fees – simply pay as you go. ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.
Click HERE to Schedule a Meeting Today
Maggie M. Barnett, Esq., COO
ShipHero
About the author: Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.
Follow Maggie on Twitter & LinkedIn.
Oct 8, 2021 | Best Practices, Blog, Fulfillment
By: Maggie M. Barnett, Esq., COO at ShipHero
Technology is pretty miraculous. Tracking your flight from your own airplane seat; watching your Uber approach your location; even clocking the progress of a DoorDash driver as he circles your complex because he can’t find your apartment – all of these would be impossible without technology, and more specifically, technology in the last mile.
However, eCommerce fulfillment and delivery are high ticket items for eCommerce retailers, and it can be a struggle to justify some of the more robust tech offerings and upgrades with a P&L that barely passes into the black. How can you justify some of the cost to upgrade your current technology? And should you?
We’re going to examine five of the biggest benefits of using last mile technology, especially as it relates to route optimization and demonstrate the benefits of these upgrades.
Last Mile Delivery Defined
First, let’s define last mile delivery. In the world of eCommerce and shipping, this is the phase of delivery where a product or shipment leaves the warehouse to make it to the customer. This is the route that the Instacart driver takes from Target, with your groceries and random beach towel order in his backseat. It’s the route the UPS truck takes from Amazon’s Fulfillment Center to your customer’s front door.
Optimizing the route in the last mile leads to a host of benefits for both you and the consumer. Here’s how.
5 Benefits of Route Optimization
1. Increased Visibility
Tracking technology, like those mentioned above, have resulted in one giant change for consumers – they know where their stuff is at all times. This means, they know when it shipped, they know what distribution hub it’s at; and they know when it’s out for delivery. They also know when it’s late.
By investing in technologies that expose the last mile, consumers get peace of mind, and eCommerce retailers get a bit more leeway. If a customer can see a product has left your warehouse and has been sitting in a post office three miles from their home for the past four days, the onus of late delivery is technically off of the retailer (you). Now, it is the post office’s fault (for better or worse), that their product is late. This means that the retailer can cut back on the number of “where’s my package?” emails, chat requests and phone calls and focus back on the process of shipping.
It might be hard to put a price tag on the time you’ve gained back in your day, but consider the employee hours necessary to respond to these messages or to track down orders when this type of tracking wasn’t available.
2. Faster Delivery Times
The fact is, the more you shine a light on something, the clearer it becomes. By providing end-to-end shipment tracking, order delivery times have come under more scrutiny, encouraging questions of some retailers and carriers as to why it can take so long for one item and not as long for another.
This is all part of the “Amazon Effect” – the erroneous belief held by many consumers that just because Amazon can deliver fuzzy dice and a gallon of ranch dressing in 2 days, that any eCommerce brand should do the same. Regardless of how plausible this is, it is a concern that has forced many eCommerce companies and carriers to confront their delivery process and speed to make improvements.
3. More Accurate Delivery
Another stalwart of the last mile delivery process is the proof of delivery. It’s no longer acceptable for a carrier to throw a package on the porch and call it a day. Now, carriers and eCommerce fulfillment providers are requiring more evidence that the package was delivered. This typically takes the form of photos showing the package and delivery address in the same shot; a signature by the package’s recipient; and/or barcode scanning.
Once again, exposing the entire delivery process from warehouse to doorstep has led to higher accountability for carriers as consumers now know when a package was supposed to be delivered and can easily tell when a carrier has missed the mark.
4. Lower Costs for Gas and Maintenance
Some organizations, especially those in larger cities, have started to experiment with urban warehousing and micro-warehousing. Both of these are exactly how they sound: retailers use warehouses located in urban centers; or use smaller locations to store a fraction of their most popular inventory to cut down on fulfillment and delivery times for these orders.
Urban warehousing was again popularized by Amazon when they began their same-day delivery in major U.S. cities. However, it does more than just shrink delivery windows; it also allows for lower emissions from delivery vehicles, and lower costs for gas and maintenance. These are all places where carriers have struggled to cut costs in the past, and with the always fluctuating cost of oil, it’s nice to know that there is some way to keep these expenses in check.
5. Getting More From What You Already Have
One more tactic that some retailers are taking in order to cut down on delivery times and enhance last mile delivery, is the use of brick-and-mortar retail locations as fulfillment centers. In some cases, this could mean using a store that is currently open for shopping to also fulfill orders for nearby addresses. However, it has also given rise to a phenomenon of dark stores.
Dark stores are repurposed brick-and-mortar storefronts that are now optimized for picking and packing and order fulfillment. This was first seen on a large scale during the pandemic, when grocery store chains like Whole Foods and Kroger converted some of their locations into dark stores. This is an especially handy option for retailers to leverage the proximity of their retail locations to major areas to convert online purchases into Buy Online, Pick Up In Store (BOPIS) sales instead.
More Changes, More Opportunities
If the past 20 months have proven anything, it’s that people and organizations, even businesses can be adaptable when conditions warrant it. What that means for last mile delivery and every other process on the supply chain is that more changes are sure to come. However, what type of opportunities these changes will bring is the more exciting question.
If you’re new to ShipHero Fulfillment, please schedule a meeting today with our experts to learn more about how we can help you get your orders picked, packed, and delivered with our fulfillment service. No setup fees – simply pay as you go. ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.
Click HERE to Schedule a Meeting Today
Maggie M. Barnett, Esq., COO
ShipHero
About the author: Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.
Follow Maggie on Twitter & LinkedIn.
Oct 15, 2021 | Blog, Fulfillment, Warehouse Management Software
By: Maggie M. Barnett, Esq., COO at ShipHero
It is inescapable; COVID is still continuing to wreak havoc on the lives and livelihoods of people across the globe, and there appears to be no real end in sight. While many eCommerce retailers have likely felt the pinch from a compromised supply chain, there was some hope at the beginning of the summer that shipments and material movement might get back on track to ensure a smoother Q4 2021. But it’s just not the case.
Supply Chain Strain
We’re seeing the effects of this strain on the supply chain throughout various steps in the process. At the start of the pandemic in March 2020, there was initial concern about the arrival of products due to factories and warehouses shutting down or moving to skeleton crews to maintain social distancing guidelines.
However, the strain has now spread to just about every inch of the supply chain.
- Impromptu Warehouse Shutdowns
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- COVID outbreaks in countries like China, can result in impromptu manufacturing and shipping delays. With very little warning, these facilities are closing for 5 to 10 days at a time and that length of time is certainly felt further down the line. These shutdowns have affected other Asian countries, too, where the United Nations estimates that 42 percent of all global exports are sourced.
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- Once a product is manufactured, it must be delivered to warehouses for shipping and then loaded onto cargo carriers to make its way to the U.S. There has been a decrease in the number of available cargo containers as the time to unload materials has increased. Cargo containers are loaded and unloaded with the unloaded ones being placed back into circulation. With more and more containers sitting on ships sitting in the ocean – and not a port – these containers are not available.
This situation is also exacerbated by a delivery driver shortage. While the U.S. trucking industry has said they’ve been experiencing a labor shortage for about a decade, the true extent of this labor gap has been put into stark relief as products remain sitting on a dock or warehouse, instead of traveling where they need to go.
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- All of those obstacles lead to longer shipping times and slow shipping speeds. Which is exactly what consumers don’t want. Some larger brands like Walmart and Target are chartering private cargo carriers for shipment and delivery, but this is not an option available to many eCommerce retailers.
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- Supply and demand is in full effect, meaning that as some products and component parts become harder to source, those products might see an increase in price. This was experienced at the start of the pandemic with toilet paper and during last spring with the shortage of building materials like wood. Additionally, issues like the semiconductor chip shortage have had a far-reaching impact on industries like automotive, healthcare and consumer tech.
Awareness of the Shortage Grows
As you’ve probably already experienced, the message of supply chain breakdowns and product scarcity are huge topics in global, national and local media. This trend will more than likely continue as we creep closer and closer to Christmas, when the sight of empty store shelves on the news can send consumers into a frenzy.
It’s important for eCommerce retailers to understand that while there is an increased awareness regarding shortages and the reason for them, there is still little in the way of consumer patience for delayed deliveries. While it is logical to understand that supply chain shortages will be a persistent issue throughout 2022 and 2023, when a consumer orders something, they want it NOW. This is the Amazon-effect in all its glory, but it is also a fact of 2021 holiday supply issues.
How to Make It Better
Unfortunately, with the supply chain compromised, a lot of the control has been taken from eCommerce’s hands. However, you can look at working closely with your suppliers as you start to review inventory for the holidays.
It is said that 80 percent of revenue comes from about 20 percent of skus. If this is true for you, stock up on the items that you know sell – don’t try and grab a little bit of everything this holiday season. Instead, analyze previous sales and focus your efforts on acquiring the products you know will move.
Another idea is to clearly communicate your shipping deadlines with clients. Do the math; if your cut off date to receive orders for Christmas delivery is Wednesday, December 15th at 8am EST, state that specifically on your website, across your social channels and in your app. You want to be sure that there are no misunderstandings amongst you and your customers when the delivery of a long-wanted Christmas gift is on the line.
The outlook for the supply chain is not the best. There is very little doubt that we will still be feeling the effects in 2022 and 2023. However, in your corner of the world you can take steps to overcome materials shortages, chip shortages and the like by focusing on the things you can control when it comes to your inventory.
If you’re new to ShipHero Fulfillment, please schedule a meeting today with our experts to learn more about how we can help you get your orders picked, packed, and delivered with our fulfillment service. No setup fees, no minimums, simply pay as you go. ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.
Click HERE to Schedule a Meeting Today
Maggie M. Barnett, Esq., COO
ShipHero
About the author: Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.
Follow Maggie on Twitter & LinkedIn.
Nov 19, 2021 | Best Practices, Blog, Fulfillment, Warehouse Management Software
By: Maggie M. Barnett, Esq., COO at ShipHero
The COVID-19 pandemic brought brick and mortar business operations to an abrupt halt, rapidly increasing the burden on eCommerce fulfillment. Unfortunately, as online shopping orders skyrocketed, so did package thefts in the United States.
As a business owner, stolen and damaged goods can affect your bottom line significantly. Damaged good claims generally translate to returns or refunds, which could mean lost revenue.
However, in both package damage and theft, accountability matters a great deal. Is your own fulfillment staff stealing inventory? Is your carrier responsible for the damaged goods? Did your customer leave the order vulnerable on their front porch for too long? Does a police report have to be filed?
Liability determines who takes the fall, so it’s important to take every precautionary measure in your capacity as a business owner. But first, you need to identify why your packages are being damaged or stolen so that you can come up with a relevant solution.
Why Do Packages Get Damaged or Stolen?
Porch pirates stealing local boxes off your customers’ doorsteps wasn’t uncommon during the global pandemic. But are your warehouses suffering from inventory theft? And what factors are damaging your delivered goods?
Here are some reasons that might be to blame:
No use of cushioning materials
Until teleportation becomes an option, delivering items invites risks and potential damages. However, you can reduce the odds of goods being damaged from shock, vibrations, or external force by using cushioning materials.
Cushioning materials form a protective layer that absorbs impact; pillows, bubble packs, and styrofoam sheets are popular choices. When deciding which material to use, consider the type of product you’re shipping.
Is it a large item or a small one? Do you need a more resilient, shock-absorbent material? You might also need to consider temperature-sensitive packaging for certain goods.
Packages are too big
Using oversized packages leaves room for the goods inside to move around during the delivery process. Consequently, they might get damaged from impact against the box’s walls or by falling on top of one another. This is why you need to use packages with the right dimensions for secure delivery.
Larger packages also require more cushioning material/padding, which increases your costs. If you reduce the padding, the goods are more likely to get damaged, inviting damage claims and order return/refund costs.
Thus, avoid using packages with the wrong dimensions to improve your customers’ experience and reduce costs.
Improper handling
Your package moves through several hands in the fulfillment process before reaching the delivery people. Every person handling the package poses a risk of damage or even theft. You can wrap your parcel in red tape labeled ‘Fragile material,’ and there is no guarantee that you’d receive it undamaged.
With the mass increase in shipping, mishandling is inevitable to some extent. However, the shipping company you use also plays a massive role in secure delivery. Some companies directly deliver the package to the recipient, while others leave it on the front porch.
Theft
A survey found that 1 in every 5 Americans fell victim to porch piracy during the early pandemic days. Package theft statistics also reported spikes in theft during the holiday season.
Holiday package theft can cost you heavily in returns and refunds if you’re held liable, so it’s vital to take safety precautions beforehand.
Unfortunately, efforts like a neighborhood watch, security systems, home security cameras and doorbell cameras do little to protect customers against package thieves. If customers feel your delivery process is at fault, they might hold you liable for the lost package.
However, since most package theft cases occur after the product is delivered to the doorstep, you typically won’t be held liable. If in-transit theft or damages occur (although they’re quite rare), you’ll need to take care of the replacement or offer a refund.
You can schedule package retrieval or leave the parcel in package lockers (instead of at the doorstep), Amazon Key, or Amazon lockers to reduce the risk of package theft and your brand’s liability. And make use of email or SMS delivery alerts to notify the resident that their package has been delivered.
Infestation
While the chances of package infestation are low, you shouldn’t completely rule out the possibility. Infestations are easily transmitted, and if your packages come into contact with them, they’ll happily set up camp.
International packages are at a greater risk of infestation because of crowded conditions on freight ships. So when you’re shipping internationally, exercise caution to prevent rodent and insect infestations. If you’re delivering consumables, the packages should be leak-free for protection.
Water damage
Fluctuating weather conditions are a nightmare for logistics companies. They slow your deliveries down and increase the risk of package damage. If it’s pouring down rain, delivery personnel have to be extra careful to protect packages from water damage.
Unfortunately, weather conditions aren’t the only cause of water damage. When packages are shipped via sea, the air and cargo’s moisture can seep in and cause packages to peel away somewhat.
How to Prevent Shipping Damage
It’s impossible to prevent shipping damages entirely, but there are tried-and-tested strategies to mitigate it.
Use the right packaging
Avoid oversized packaging like the plague – they’ll damage your goods and drive your costs up in the long run.
Beyond the package size, you also need to account for factors like the material itself and what padding you use. Natural fiber packaging is generally preferred for foods and consumables, but it’s expensive. Carriers generally use more budget-friendly packaging like food-grade cardboard or plastic for delivering items.
Don’t leave empty space in packages
You won’t always have the right-sized packages on hand, especially when you have large orders to fill. You might need to use larger containers at times like this, but you can mitigate potential damage by filling empty spaces with dunnage.
Kraft paper is the most economical choice for dunnage, and it’s eco-friendly too. Foam is generally used for electronics and sensitive items like medical equipment, and air pillows are used to protect goods from slipping out of place.
If you don’t use dunnage or padding, your product will move around, knocking against the walls of the container. The goods are also more susceptible to impact damage.
Wrap each product in protective material
When shipping fragile products or goods that are prone to leakage, you need to wrap them in protective material. The protective material you use depends on the items.
Bubble wrap is a top choice for fragile items like glass while packing paper or plastic covering works for more durable items.
Review data on shipping damages to see where improvements can be made
Reviewing previous shipping damages helps identify problem areas and improve your order fulfillment process. According to a HuffPost report, 1 in every ten eCommerce packages arrives damaged.
The damage may be caused in transit, in which case the shipment company is to blame. By studying past situations, you can better understand where the problems occur and why they keep repeating.
Online retailers need to review any holiday package theft to avoid refunds on lost packages.
Use shock/impact indicators
Impact indicators monitor any shock or damage the package endures, calculate it and report it back. It also alerts handlers in real-time to be cautious. Indicators aren’t expensive and they can protect your packages from costlier damage, making them promising long-term investments.
They also give you peace of mind, as you’ve taken the necessary shipping precautions from your side. The rest is up to the carrier.
Can I Hold a Carrier Liable for Shipping Damage?
You can hold a carrier liable for shipping damage if you can prove that the parcel was in good condition before it was handed over to the courier. Carriers like FedEx, USPS, UPS and others all have policies in place that can help you determine if the damage was caused by them.
After the package is passed to the carrier (in good condition), if any damages or delays occur, or if the package doesn’t arrive, you can hold them liable.
How ShipHero Reduces Shipping Damage
ShipHero Fulfillment helps brands and 3PLs reduce shipping damages to cut back on losses and improve their customers’ experience.
Fully-trained & professional fulfillment staff
ShipHero’s dedicated teams of fulfillment experts pick, pack and ship your orders with care.
We use the right packaging for each order
We don’t use boxes that are too big, and our fulfillment team is trained to use the best cushioning and dunnage for each item.
Insurance claims for shipments
ShipHero Fulfillment offers shipper’s insurance that covers both damaged and missing goods at a declared coverage rate of $1 per $100.
Conclusion
Package damages and theft result in losses and affect your bottom line, so it’s crucial to take thorough, protective measures. If your customers receive damaged goods or have them stolen, it’s important to identify the cause.
Sometimes, your company won’t be liable, and if it is, identifying the cause saves you from repeating the problem. If you need help guaranteeing reliable, secure delivery, then reduce your shipping damages with ShipHero. We’re already helping Fortune 500s and thousands of fast-growing DTC brands deliver orders safely.
If you’re new to ShipHero Fulfillment, please schedule a meeting today with our experts to learn more about how we can help you get your orders picked, packed and delivered with our fulfillment service. No setup fees, simply pay as you go. ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.
Click HERE to Schedule a Meeting Today
Maggie M. Barnett, Esq., COO
ShipHero
About the author: Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.
Follow Maggie on Twitter & LinkedIn.
Dec 10, 2021 | Blog, Fulfillment
By: Aaron Rubin, Founder & CEO of ShipHero
Technology has dramatically advanced the logistics industry in recent years, with warehouse and inventory management systems providing real-time analytics, tracking features, and many more tech-enabled features that streamline fulfillment processes.
But what if your warehouse could directly communicate low inventory and pick your items for you? What if your warehouse always maintained the right inventory levels? It might sound futuristic, but the technology is already here.
Welcome to smart warehousing.
What is a smart warehouse?
A smart warehouse is a tech-driven warehouse that stores raw materials and/or inventory, and uses various tools to monitor inventory and optimize warehousing processes. Unlike traditional warehouses, smart warehouses leverage AI and technology to streamline internal processes.
Smart warehouses can identify and accept orders, count your inventory, track goods, and make sure orders are sent to the correct location. They automate almost the entire journey of items from supplier to customer, with minimal mistakes.
Components of a smart warehouse
Intelligent warehouses are ‘smart’ thanks to various tools and technological features that automate and optimize warehousing operations. These advanced warehouses offer:
Scalability
With traditional warehouses, your team is primarily responsible for managing inventory and optimizing warehouse processes. This means that, as your brand grows, your workforce is under more pressure to manage a growing inventory and larger order volumes.
Smart warehouses, however, alleviate these stresses by scaling with your brand. Smart warehouses use warehouse management software (WMS) and other technology to accurately manage inventory (and monitor real-time inventory levels), fulfill large order volumes quickly, and minimize errors.
Data & analytics
Smart warehouses collect data from cameras, sensors and RFID cards to track and measure temperature levels, real-time inventory, order accuracy, pick and pack times and more. Access to data & analytics helps eCommerce merchants identify problem areas in the supply chain, and take action.
Additionally, smart warehouses monitor inventory levels and industry trends to improve the accuracy of demand forecasts, so merchants don’t have to worry about overstocking or being short-stocked.
Robotics & artificial intelligence (AI)
In general, robots can move faster and carry more items than humans, making them ideal for picking and packing. Smart warehouses leverage AI-powered robots to optimize these processes; robots can identify optimal routes, further decreasing picking times.
Radio-frequency identification (RFID)
You might be familiar with RFID from its application in credit cards. Instead of manually swiping your card through a machine, RFID cards transmit radio waves that verify your transaction from a distance.
Smart warehouses use RFID technology to optimize pick and pack processes, count inventory faster, and reduce errors. A digital RFID tag is added to each package as it enters the warehouse so the items can be counted automatically.
RFID technology offers more efficiency than traditional labeling and barcode scanners. Unlike barcode scanners, RFID can scan tags from a distance based on the package’s general proximity. This makes them superior not only for identifying packages but locating them in the warehouse too.
The Internet of Things (IoT)
IoT integrates warehousing processes by syncing data between different systems using the internet. Each machine or system, including robotics, WMS, and RFID, are linked through internet-enabled devices, allowing them to communicate effectively.
With IoT, robots can use RFID to quickly locate packages, WMS can help humans process orders faster and track order shipping. Thus, IoT facilitates an integrated data-sharing system that optimizes warehousing processes and minimizes errors.
Warehouse management software
WMS is used in both traditional and smart warehouses to optimize everyday operations. Advanced WMS integrates with your eCommerce store and other systems (such as robots or mobile workstations) to optimize pick and pack processes, manage inventory levels, and forecast demand, among other functions.
Smart warehouses get the most out of WMS by integrating them with other systems through IoT, like robots, sensors, and scanning systems.
Automated picking tools
Automated picking tools can be robotic or semi-robotic – they work with your pick and pack team to optimize inventory management.
Order pickers spend a great deal of time walking around warehouses, but computerized cranes and forklifts can automatically pick items and transport them across long distances in minimal time. Conveyor belts are also a popular, semi-automated option to increase picking speed.
Some more advanced warehouses use robots to automate picking times. Using IoT, AI, and RFID, robots can communicate with your WMS to know which items to pick, quickly scan and locate products, and deliver packages directly to your packing team.
How to benefit from smart warehouses
If you’re wondering how smart warehouses can improve your supply chain operations and optimize order fulfillment, here’s a rundown of the key benefits they offer:
Reduce manual labor & human error
Labor costs generally contribute the most to your warehousing expenditure, and as your brand grows, hiring more manual labor becomes inevitable. Unless you leverage automation, that is.
Smart warehouses leverage technology to automate labor-intensive, time-consuming processes, so your human team can focus on more specialized tasks and cut back on labor costs.
Another reason why businesses are gravitating towards tech-enabled warehousing practices is to reduce human error. Picking errors can result in additional costs for returns (and thus additional shipping), refunds, lost sales, and customer service.
Pick and pack errors can drain your profitability by 11-13%, which is why it’s important for brands to adopt IoT and automation. Robotics guarantee faster, more accurate pickings and help ensure orders are shipped to the correct location.
Lower inventory damage and inaccuracies
Damaged goods are another costly expense that’s inevitable when you’re using human labor. While you can’t eliminate damage risks entirely, smart warehouses mitigate them significantly by leveraging technology and robotics.
WMS, robots, and RFID work together to correctly identify each item and determine optimal transportation routes. Additionally, robots can carry heavier items without dropping them, ensuring packages are safely transported from inventory to your packing team.
Better analytics & reporting
Analytics and reporting not only help you optimize inventory management but also identify problems in supply chain management. With detailed analytics, you can determine where errors/damages occur, and investigate the issues.
Moreover, with smart warehouses, your WMS provides real-time inventory data and analyses trends to encourage accurate demand forecasting. This helps businesses prepare for demand surges, such as during the holiday season, and prevent overstocking.
Faster shipping & fewer returns
Customer experience is everything nowadays, and providing expedited shipping helps eCommerce retailers stay ahead of their competition. Unfortunately, warehouse picking can be a lengthy process, especially if your team has to navigate a large, well-stocked facility.
Smart warehouses help speed up picking times and optimize tracking and reporting to speed up your fulfillment process, resulting in faster shipping. Additionally, with a tech-enabled system, order inaccuracies and damages are reduced, resulting in fewer returns.
Efficient warehouse space utilization & optimization
Utilizing and optimizing warehouse space is a complex process that involves many considerations. Smart warehouses use inventory tracking to ensure your inventory levels are always balanced by preventing overstocking and alerting retailers to deadweight items.
Additionally, smart warehouses perform ideally when your warehouse is properly organized. Thus, to ensure your warehouse functions optimally, it’s important to implement a layout that makes retrieval and storage processes convenient.
Predictive order processing
Predictive order processing employs technology and automation to deliver better customer experiences. While supply chain processes were once primarily analog, smart technologies use buying patterns, trends, sales history, and similar data to predict orders before customers place them.
Thus, with predictive order processing, your team can get a head start on order fulfillment and deliver better customer experiences.
Higher customer satisfaction
Keeping customers satisfied is vital for improving customer retention, loyalty, and growing your brand sustainably. Smart warehouses help mitigate errors and speed up the fulfillment process to deliver better experiences, enhancing customer satisfaction.
Lower costs lead to lower prices
Speaking of customer satisfaction, low prices are a great way to attract customers and outdo your competition. With smart warehouses, brands can reduce warehousing costs by leveraging automation and reducing errors and damages. Thus, you can list goods at lower prices without hurting your bottom line.
Conclusion
Over the years, the rise of technology has dramatically improved warehousing and inventory management processes, optimizing supply chain efficiency. While smart warehouses may seem futuristic, the technology is here, and top eCommerce brands are leveraging it to stay ahead.
Smart warehouses use IoT, technology, automation, sensors, robotics, and other robust technology to reduce errors, minimize pick and pack times, accurately track and forecast inventory, and ultimately deliver better customer experiences while optimizing your revenue.
Schedule a meeting today with our experts to learn more about our powerful shipping software built for eCommerce brands & 3PLs looking to run their best warehouse and how ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.
Click HERE to Schedule a Meeting Today
Aaron Rubin, Founder & CEO
ShipHero
About the author: Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.
Follow Aaron on Twitter & LinkedIn.
Dec 17, 2021 | Blog, Fulfillment, Warehouse Operations
By: Aaron Rubin, Founder & CEO of ShipHero
Warehousing has been around for a long time, but in recent years, technology has advanced warehouse processes tremendously. As a result, businesses can optimize fulfillment operations and cut down logistics costs significantly.
Largely because of the COVID-19 pandemic, the eCommerce market grown rapidly over the past 2 years, increasing the need for optimized warehouse fulfillment.
eCommerce fulfillment can be more complicated than it is for its brick and mortar counterpart, and thus the need for more optimized, tech-enabled warehouse processes has increased.
The 6 key warehouse processes explained
Warehouse processes are categorized into the following 6 key components:
1. Receiving
In the receiving process, warehouse teams accept the inventory from suppliers. The team also verifies that the correct items are delivered and that they comply with the agreed quality standards. If any discrepancies are found, a report is generated, detailing the missing products.
2. Putaway
After the warehouse receives the products, your putaway staff transports the goods from the loading space to the warehouse storage location.
Products are putaway in areas that are easy to access, making it convenient for your picking team to locate them later. During the putaway stage, it’s important to transport products carefully and store them strategically to prevent damages.
3. Picking
In the picking stage, your fulfillment team locates and collects items to fulfill customer orders. Order picking can be costly and time-consuming, making up for an estimated 55% of your total operating expenses.
Some ways to reduce your picking costs and optimize the process are:
- Employing an experienced fulfillment team that’s skilled at locating packages and transporting them with care.
- Using barcode scanners or RFID to improve picking accuracy.
- Optimizing your warehouse layout and organizing your inventory, so your picking team can move around easily and conveniently locate items.
- Using machinery (like forklifts or cranes) or robots to transport items quickly and more securely.
4. Packing
After picking the products, they are brought to the packing station, where your fulfillment team prepares them for shipping. In the packing stage, it’s important to handle items carefully and to choose the right packaging, padding and dunnage.
Shipping damages are responsible for a whopping $1 billion annually in the U.S., as they invite costly returns, shipping costs and refunds. To mitigate these costs, packaging orders properly is essential.
The package’s size depends on the items’ dimensions, whereas the packaging material, padding and dunnage depend on the type of items. Fragile items, like glass or ceramics, are typically stored in cushioned packages, after being covered in bubble wrap.
After the items are carefully packed, they’re labeled with a packing invoice or sales order, ready for dispatch.
5. Dispatching
After the warehouse has successfully picked and packed the correct order, it’s time to dispatch the package to the right address. In the dispatch stage, fulfillment teams should make sure orders are shipped to the correct address to prevent costly wrong order complaints. Moreover, if packages are scheduled to arrive/be picked up in a given timeframe, your team should arrange the dispatch accordingly.
6. Returns
Retailers work hard to prevent the dreaded returns stage, but eCommerce returns are currently at a rate of 30%, making them an inevitability. The returns process involves costly reverse logistics; depending on your policy, you may have to pick up old items and ship the replacement order.
Businesses are bound by their return policy, which means you have to eat the costs if customers initiate the returns process. However, brands can implement the best pick and pack practices to optimize fulfillment and reduce return requests.
How to improve warehouse processes
Hire experienced warehouse managers
Warehousing costs make up a large percentage of your brand’s expenses, and fulfillment operations directly contribute to customer experiences. Slow pick and pack times (and thus slower shipping), wrong orders and damaged shipments make it difficult to maintain customer loyalty.
Thus, when hiring warehouse managers, look for experienced professionals that can optimize internal operations and streamline your team’s workflow. Good managers should:
- Have keen organizational skills, to optimize your warehouse layout and storage system.
- Be comfortable with numbers and skilled at interpreting data to track inventory and scale fulfillment operations.
- Be tech-savvy, so they can leverage the right technologies and automation to optimize warehousing processes.
- Keep up with the latest industry trends – warehousing technology is continually advancing, and keeping up with developments is critical to scaling your fulfillment operations.
Above all, good managers should be committed to continually monitoring your warehousing operations and identifying areas of improvement. They should actively work to remove both short-term and long-term friction from the supply chain, to cut fulfillment times and costs down.
Check-in with your workers
Your workers are on-the-ground and actively engaged with fulfillment operations, which means they might pick up on problem points that executives overlook. Check-in with your workers regularly, find out how they’re finding the workload and whether they have any suggestions to improve warehouse efficiency.
Implement software that supports the growth of your business
Logistics software has advanced significantly over the years, allowing businesses to minimize human error and optimize productivity. Warehouse management systems (WMS) are powerful software that streamlines supply chain operations by providing real-time inventory insights, meaningful data and analytics, automation rules and more.
WMS optimizes productivity and saves businesses from stock shortages (or surplus) by forecasting demand and tracking inventory. Additionally, mobile WMS tools help workers verify items and orders, minimizing pick and pack errors.
Audit warehouse processes every 6 months
Auditing your warehouse processes bi-annually doesn’t just help with identifying problem areas, but also monitoring the success of efficient practices. For example, if one of your warehouses has a lower ‘wrong order’ rate than others, you can identify the cause of their efficiency and implement it across the board.
Additionally, half-yearly audits help businesses avoid stagnation. For example, is your warehouse layout still optimal, or does it need improving because of new stock? Or, do you have deadweight stock that’s eating up space and increasing overhead costs? Don’t neglect to audit your warehouse processes regularly – they’re vital to optimizing supply chain efficiency and should be regularly vetted.
Review the entire supply chain
Supply chain problems and bottlenecks don’t necessarily occur after warehousing operations commence – some issues may arise earlier. For example, fulfillment operations might be delayed because your supplier is delaying the warehouse delivery. Reviewing the entire supply chain is important because, for this example, you might need to negotiate with the supplier (or change suppliers entirely) to optimize order fulfillment.
Work with a 3PL
Emerging brands might lack the resources to hire experienced fulfillment experts and optimize warehouse processes. This is why many growing DTC brands partner with third-party logistics providers to affordably scale their fulfillment operations.
Leading 3PLs provide businesses with complete transparency into their operations, and optimize your warehousing, inventory management, shipping and reverse logistics. The right 3PL partner can help you reduce errors and damages, cut down fulfillment costs and offer expedited shipping offers to customers.
How eCommerce stores benefit from optimized warehouses
Optimized warehouses have minimal errors and damages, fast pick and pack times, and optimal inventory management. Here’s how eCommerce stores benefit from them.
Grow their logistics network
Growing your logistics network is only sustainable if your warehouse operations are optimized. Otherwise, businesses that scale with inefficient fulfillment processes may suffer from late deliveries, increased wrong order complaints, and more damaged goods.
With optimized warehouses, fast-growing brands can scale their fulfillment operations without hurting their bottom line.
More efficient use of storage space
Warehouses with organized, strategic layouts make it convenient to locate required items. Additionally, optimized warehouses are designed to minimize picking times by leveraging shipping zones and implementing a clear route structure.
Orders are shipped faster
Optimized warehouses enhance the efficiency and speed of your warehouse operations, including packing and picking processes. As a result, your fulfillment teams can pick, pack and dispatch items quicker, leading to faster shipping times.
The advantages of working with a 3PL for warehouse management
Working with a third-party logistics provider helps brands scale their fulfillment operations sustainably while focusing on growth.
Optimized logistics network
3PLs optimize each stage of your fulfillment process, including warehousing, inventory management, pick and pack processes and shipping.
Access to distributed warehouses
Leading 3PLs have multiple warehouses nationwide, allowing partners to distribute inventory across various, strategically-located warehouses. By distributing your inventory, your 3PL can ship orders from locations closest to each customer, cutting down delivery times and costs.
More time savings & lower labor costs
Third-party logistics providers have skilled fulfillment teams and advanced software to optimize your fulfillment operations, saving time and cutting down costs.
In addition to the cost-saving benefits of a distributed inventory, 3PLs also use software to automate tedious processes and determine optimal picking routes and equip their pick and pack teams with mobile tools to minimize errors. The result is improved fulfillment efficiency and reduced expenses.
More efficient use of warehouse space
Thanks to their teams of fulfillment experts, 3PLs use optimized warehouse layouts and strategic organizational systems to make the most of the warehouse space. For example, items that are regularly bought together might be stored closely. As a result, items are easier to locate, and they can be picked conveniently with minimal risk of damages. In larger warehouses, fulfillment teams typically divide the storage areas into dedicated zones, to reduce complexity and make it easier to identify items.
Better data & analytics
Access to real-time data and analytics is vital to optimizing fulfillment operations. Otherwise, businesses are at risk of shortages, overselling, errors and delays. Advanced 3PL software provides real-time inventory analytics, implements automation rules, syncs your eCommerce store and inventory data, and provides more accurate demand forecasting.
3 things to look for in your next warehouse management system
Since warehouse management systems play such a vital role in optimizing your warehouse processes, here are three important features to look for:
Software that connects to your store(s)
eCommerce inventory management can be complicated because although your store is digital, the goods are still physical. Look for warehouse management systems that directly integrate with your store, syncing real-time inventory data to protect merchants from overselling.
Additionally, after connecting to your store, the WMS should provide your fulfillment team with important data like customers’ shipping addresses or picking lists. More advanced 3PL software even provides displayed vs actual shipping costs, so businesses can accurately monitor delivery expenses.
Software that’s compatible with your warehouse equipment
Look for WMS that’s compatible with your warehouse equipment; leading 3PLs make their API accessible to facilitate custom integrations. WMS that’s compatible with your equipment can set automation rules, sync important data (like humidity or temperature settings from sensors) through IoT, and streamline analytics.
Demonstrated ROI
Pick a WMS that has a demonstrated track record of increasing ROI for fast-growing businesses. A record of ROI improvements gives you the confidence that you’re choosing software that can help you achieve your growth goals.
Optimize your warehouse with ShipHero
ShipHero’s industry-leading warehouse management software (WMS) helps the fastest-growing DTC brands optimize their warehouses. Our WMS integrates directly with your eCommerce store, syncing inventory and store data and allowing you to set automation rules.
ShipHero’s WMS is compatible with modern warehouse equipment and provides vital data and analytics, including team reports and accurate demand forecasting. Additionally, we have a proven record of decreasing brands’ warehousing costs and increasing ROI.
Conclusion
Optimizing your warehouse operations is a comprehensive process; brands need to improve the efficiency of their warehouse operations to keep up with demand as their business grows.
For brands looking to run the best warehouses possible, check out ShipHero to learn how we can help improve warehouse operations so you can focus on growing your business.
Schedule a meeting today with our experts to learn more about our WMS built for eCommerce brands & 3PLs looking to run their best warehouse and how ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.
Click HERE to Schedule a Meeting Today
Aaron Rubin, Founder & CEO
ShipHero
About the author: Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.
Follow Aaron on Twitter & LinkedIn.
Jan 17, 2022 | Blog, Fulfillment, Warehouse Management Software
By: Aaron Rubin, Founder & CEO of ShipHero
The holiday season is over (at least for now), and you’re probably taking stock of your business’ performance. You’re examining revenue, profit and loss spreadsheets and hopefully, spending some time to debrief on everything that happened in the last few months (and maybe even, the last few years).
There’s a few things you might see as you pour through this data.
- You over- or undersold products due to inaccurate inventory numbers.
- Your pick/pack error rate skyrocketed during your busiest time of year.
- You don’t have any data to analyze because the person who updates your spreadsheets took a much-deserved vacation, and isn’t caught up yet.
These are just a handful of observations you might make – do they sound familiar?
Here’s the dirty secret no one may be willing to tell you – any of these problems, in fact ALL of these problems can be solved by doing one thing – adopting and implementing a robust shipping software platform with inventory and order management features.
Hope you weren’t expecting a flashier answer. Let’s talk a little bit about what shipping software might do for you and your business; how to know it’s time to switch from your current solution (or that you even need one to begin with); and what type of results you can expect if you switch.
Why Shipping Software?
Typically, emerging or rapidly growing brands use one of two systems when they start shipping products: they manage their own inventory, shipping and returns via spreadsheets or Google Sheets and buy a label printer; or they work with a cheap solution that can at least print labels for them without a lot of manual entry.
Some larger eCommerce brands may even try to build their own solution by using different tools to manage inventory, manage orders and manage shipping.
Here’s what happens if you do any of these:
- Your data is never right. Ask any of your competitors. When you’re not using systems that talk to each other automatically, there’s no way for your inventory to sync based on orders, returns or putaway.
At ShipHero, we’ve actually had multiple brands tell us this when they switched from a different solution to ShipHero.
“A main reason we switched from our old solution was the ability to get accurate inventory counts. Our inventory was always off, and it was extremely frustrating.”
– Alex Lewkowict, COO & Founder, Black Wolf Nation Skin Care
“Before, we might have had 1,000 units of size ‘medium’ somewhere in the warehouse, but we had no way of knowing how many were available to pickers … Now, we can finally track everything.”
– Jake Rajsky, VP, American Tall
Are you noticing a pattern?
- You have a lack of visibility into your process, your warehouse and your inventory. Want an up-to-the-minute snapshot of what’s happening with the inventory in your warehouse? Not available. Want to know how many packages you’ve shipped today? Sorry. How about a report of what inventory you can expect to receive tomorrow? Nope.
With a basic labeling software, these types of reports just aren’t available. In most cases, it will probably take you most of the day, and interfacing with a lot of different people to get the info you want.
At ShipHero, all of your inventory data, order information and shipment statuses are housed in one cloud-based system. Running a report is a few clicks of the mouse. You can even set-up automatic reports that will run on a set schedule and get delivered to your inbox.
- You’re ready to grow, but your system can’t handle it. Known in the biz as scaling, this is also one of the biggest complaints ShipHero hears about other vendors.
There is a tipping point where your current solution (or non-solution) will actually prevent you from growing. It’s normally once you hit an annual revenue of approximately $5 million. At that point, all the spreadsheets in the world aren’t going to get the job done.
“If you’re working out of your garage with your spouse, maybe use ShipStation. If you’re growing, use ShipHero,” Josh Bartholomew, DFTBA.com’s Warehouse Manager told us. He said that once DFTBA hit a certain revenue amount and number of orders, ShipStation just wasn’t cutting it anymore.
How to Know It’s Time To Switch
Aside from some of the big red flags mentioned above, there are a few other clues that it’s time to either switch your shipping software provider or time to get one altogether.
- Your shipments are always late.
- Your inventory is never right.
- Only one or two people in your organization know how to use the system you currently have; and it’s nearly impossible to train others.
- Your pickers are taking too much time to pick orders.
- Your shipping carrier rates are out of control.
Here’s what all of the reasons above have in common: no visibility. You can’t fix what you can’t see, and with an inadequate solution, you can’t see anything.
What to Expect When You Switch
It seems a little redundant, but the exact opposite of all the challenges listed in the last section is the first thing you can expect once you’ve switched solutions. Shipments will go out on time; inventory counts will be right; you’ll be able to train new employees on the system with ease; your pick/pack efficiency will increase; and your carrier rates will drop.
And here’s why – a true solution alleviates your issues, it doesn’t give you more.
You can also expect more peace of mind. Knowing that your systems are working as intended means that you don’t have to worry about them.
Here are some other intended (unintended) consequences:
- You’ll know where to find answers. If something isn’t adding up, it’ll no longer be a question of where to find the information to solve the problem. Troubleshooting will be so much easier.
- You’ll be able to plan ahead. Having the data you need when you need it will make it easier to understand the current state of your business, which will in turn make it easier to understand where your business is headed.
- You’ll have a partner to work with. The best vendors do more than sell you a product or solution; they partner with you. They help you get the most out of their product, which makes you more successful.
- You’ll have support. A vendor’s support team should be an added bonus when implementing a new solution. You can lean on them; it’s what they’re there for.
One More Ugly Truth
You already know this, but not all solutions are created equal. At ShipHero, we’d love to think that our competitors could deliver on all the promises we outlined above. But we know they can’t.
That’s why if you’re looking to switch to a shipping software on steroids, your only choice is ShipHero. Our shipping software offers everything above and more.
>h2>What ShipHero Delivers
Let’s take these points one at a time.
- ShipHero reduces mis-picks and mis-ships by 99.9%.
- ShipHero increases your picking efficiency by 3x.
- ShipHero reduces your warehouse costs by 35%.
- ShipHero has an outstanding Client Support Team that regularly gets rave reviews on platforms like the Shopify App Store, G2 and Capterra.
- ShipHero offers carrier rate shopping which gives you the best rate when you ship.
- On top of ShipHero’s stellar Client Support Team, we also maintain a robust library of knowledge base articles and product videos so you can always find the answer you need.
- ShipHero was ranked the #1 Shipping Software on the G2 Momentum Grid Report (Fall 2021).
- ShipHero serves more than 10% of Shopify plus stores globally.
- ShipHero has over 100 million packages shipped.
- ShipHero has more than $10 billion in shipped orders.
- ShipHero offers one-click integrations with the biggest carriers and online marketplaces in the eCommerce space.
- ShipHero has a dedicated Implementation Team that has perfected the onboarding process. They’ll have you up and shipping in 4-6 weeks. For more details about ShipHero’s implementation process, please click HERE.
When you become a ShipHero client, you get more than software. You get a proven solution that has helped emerging brands, eCommerce powerhouses and 3PLs all manage their warehouses with ease and efficiency.
You also get our Client Support Team which is dedicated to your success everyday. In fact, we have 3x the number of Support Team members as Sales Team members.
Obviously, we think ShipHero is the best solution for emerging brands looking for a shipping software on steroids. Our new Essential Plan with a low rate of $499/month is the perfect starting point for brands that are just starting to gain momentum. And the best part is, as you grow, ShipHero grows with you. You won’t need to look for a new solution once you get “too big.”
At ShipHero, we’re here for too big, big and big enough – and all the eCommerce brands in between.
For more information about switching to ShipHero, click HERE.
If you’re ready to schedule a call with one of our Software Experts, click HERE.
Aaron Rubin, Founder & CEO
ShipHero
About the author: Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.
Follow Aaron on Twitter & LinkedIn.
Jan 17, 2022 | Blog, Fulfillment
By: Aaron Rubin, Founder & CEO of ShipHero
When your eCommerce brand is in its early stages, manually logging data into spreadsheets and using label printers is good enough. It’s enough to manage your inventory and stay updated with your fulfillment needs.
But then your brand starts growing rapidly, and the volume of orders surges. Suddenly, static spreadsheets and manual printing aren’t good enough. Your eCommerce store deserves more than manual data logging and printing.
The Issues with Spreadsheets & Label Printers
Spreadsheets and label printers aren’t practical choices for fast-growing eCommerce brands, and here’s why.
They’re time-consuming & rely on manual labor
Spreadsheets don’t update automatically – you have to manually input inventory data, order data and other relevant information. Not only is this time-consuming, but it also means that if the sheets aren’t frequently up-to-date, you’ll be viewing outdated information.
Managing your inventory becomes difficult if you’re viewing outdated inventory information, including incorrect inventory levels or valuation. Your team is more likely to make mistakes.
Can’t be automated
When filling large volumes of orders, manually printing each label is inefficient and delays the packaging process. Unfortunately, standalone label printers don’t come with automation functionality.
Additionally, spreadsheets lack automation capabilities, too – they don’t automatically update themselves with real-time data. This means that, unless the information is frequently updated, you won’t have access to the most recent data.
Prone to errors
Humans make mistakes, and even the most experienced logistics teams aren’t safe from making the occasional typo. Unfortunately, when it comes to data as vital as your inventory, mistakes can cost you significantly.
Inaccurate inventory levels could lead to overstocking or shortages. Additionally, a wrong label could lead to wrong order complaints, inviting return costs, and return expenses.
Don’t integrate with your eCommerce store
Because spreadsheets can’t integrate with your eCommerce store, the data has to be manually inputted into the sheets. Moreover, the data doesn’t sync either, so if your sheets indicate a product shortage, you won’t know immediately.
Not knowing when you’re understocked prevents eCommerce merchants from removing the product listing on time. Thus, customers may order the item, and you’ll have to delay or cancel the order. Either way, you’re left with unhappy customers.
Since label printers don’t integrate with your eCommerce store either, you miss out on the benefits that an integrated process has to offer. You don’t get automated printouts with labels that have the relevant order details, including customer data, the required items, and the delivery address. Instead, your workforce has to manually pull the information off your site and use it accordingly.
Reporting is a mess
What orders were shipped today? What’s your current inventory value? You’ll need to have multiple spreadsheets for different reporting purposes, and making sense of the disparate data becomes tedious.
If you’re dealing with a large amount of data at scale, inefficient reporting delays fulfillment processes and invites errors.
How to Go Beyond Spreadsheets & Label Printers
As your eCommerce brand continues to grow, you don’t have to limit yourself to spreadsheets and label printers. There are more efficient, effective methods that require less manual work.
Use warehouse management software (WMS)
Warehouse management software is the most effective tool for organizing your eCommerce fulfillment data and streamlining your logistics. The software seamlessly integrates with your eCommerce store and provides real-time analytics – you’re no longer limited to static data from spreadsheets.
With WMS, eCommerce merchants can pull up real-time inventory valuation, monitor live inventory levels, and view today’s order history all from one centralized dashboard.
Work with a 3PL
Third-party logistics providers take order fulfillment troubles off your hands, including managing and updating inventory data. Leading 3PLs don’t rely on spreadsheets or label printers – they have their own software that syncs your data and streamlines fulfillment operations.
Make use of mobile software
Your logistics team is constantly on the go, whether they’re picking products from the warehouse or shipping them off with your carrier. Mobile logistics software equips your workforce with real-time data that they can use to verify orders and track inventory data, streamlining their workflow and reducing pick and pack errors.
Leverage automation
Advanced warehouse and inventory management software allows eCommerce merchants to set automation rules to perform tasks in response to “triggers.” For example, when a customer’s order is verified, your store-integrated WMS can automatically generate picking tickets to optimize your team’s workflow.
Additionally, fulfillment software can automatically notify eCommerce merchants of decreasing inventory levels if the stock falls below a given amount. You can also set automated reorder points to ensure you never face shortages or suffer from overstocking.
Use data to determine what needs to be improved
Access to real-time, organized analytics helps you focus on what the statistics indicate, instead of being bogged down by an overwhelming amount of disparate data.
With the right warehouse management software, you can access relevant data and analytics and identify problem areas.
Is your store’s return rate unusually high? Were there more packing errors this month than in the previous year? Do you have some dead-weight items that are driving up your warehousing costs?
These are just a few questions that shipping software can bring to your attention.
How ShipHero Improves Fulfillment Operations
ShipHero is a leading warehouse management software and fulfillment provider, catering to some of the fastest-growing DTC eCommerce brands. We streamline your fulfillment operations with:
Done-for-you fulfillment services
You can outsource your entire order fulfillment process to ShipHero – we’ll manage your inventory, organize data and analytics, take care of the shipping and even manage returns.
ShipHero Fulfillment is the top choice for eCommerce brands that want to focus on growing sustainably while knowing their logistics are in good hands.
Distributed inventory
You can split your inventory across ShipHero’s nationwide network of fulfillment centers to reduce delivery times and costs. When a customer places an order, it’s picked, packed, and shipped from the nearest center, minimizing travel time and fuel costs.
Worried that a distributed inventory might complicate inventory tracking and order data? Don’t be – ShipHero’s leading warehouse management software syncs all the data, and you can access real-time insights from your ShipHero dashboard.
Mobile pick & pack
ShipHero’s pick and pack teams are “mobile-powered” – which means they use smartphone devices to guarantee accurate picking and packing. The ShipHero Mobile App lets logistics personnel scan barcodes to ensure the correct items are shipped, and you can access customer information to guarantee orders are sent to the right location.
Conclusion
Spreadsheets and label printers are inefficient tools for logging and managing data. As your brand continues to grow, your workforce will struggle to keep data up-to-date and track inventory analytics.
A warehouse management software solution like ShipHero integrates with your eCommerce platform or marketplace, syncing all your relevant data and making it accessible from a single, centralized dashboard. Additionally, our mobile-powered workforce picks and packs orders with minimal errors or mistakes.
Your business deserves more than spreadsheets & label printers. So upgrade now with ShipHero.
Schedule a meeting today with our experts to learn more about our WMS built for eCommerce brands & 3PLs looking to run their best warehouse and how ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.
Click HERE to Schedule a Meeting Today
Aaron Rubin, Founder & CEO
ShipHero
About the author: Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.
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May 21, 2021 | 3PL Warehouse Management, Best Practices, Blog, Fulfillment, Warehouse Management Software
Ecommerce shipping is a key link of the supply chain that can make or break your business. Think that’s a bit of an overstatement? Well, last-mile delivery is recorded as the most costly part of the order fulfillment process – it’s one of the most pressing logistical challenges. Moreover, if order inaccuracies occur, and items are shipped to the wrong location, then have to face the additional costs of returns and refunds.
This is why it’s so important to optimize the shipping process. You need to cut down labor costs, transit times, fuel costs, and establish a seamless workflow. Easier said than done, though, right?
In this article, we’re going to take a look at how you can optimize the shipping process from different angles. Questions such as how much to charge your customers, what sort of hits your business should absorb, how to protect your own investment, and which data-driven tools to use, will be addressed and answered.
What is ecommerce shipping?
Shipping is a vital part of the order fulfillment process for ecommerce merchants. It consists of order receiving, order processing, and order fulfillment.
Fulfillment starts as soon as your customer hits the checkout button on the ecommerce platforms and purchases the products in their shopping cart. Once the site confirms the order, the chain moves forward. Small-scale ecommerce stores often store their inventory in their garages. At the same time, as you go up the scale, vendors usually employ the services of inventory storage facilities and warehouses. Upon confirming the purchase, service providers package, label, and ship the products to the destination address.
Shipping can be pretty challenging to handle on your own, especially if you have a growing business. This is the point where third-party logistics companies can be of big help. They optimize the fulfillment process and cater to your needs, and even help you minimize logistics costs. Various companies have different shipping policies and shipping rates, such as Amazon Prime, which offers overnight shipping.
ut not every business can pull this off. This is why your company’s shipping policy should be based on a combination of your budget and your customers’ needs.
What to keep in mind when shipping
There are many factors that ecommerce merchants have to account for when it comes to shipping. All the seemingly small details contribute to your overall shipping costs and total transit times. These factors ultimately determine customer satisfaction and directly impact your business’s reputation and future growth. Since your company’s ecommerce shipping strategy is so important, it’s worth investing time and resources to conduct proper research. Here are some of the best practices that online stores employ for shipping, to help you decide which one may suit your business best.
Offer Free Shipping
An effective way to reduce shopping cart abandonment is to provide some incentive to your customers. Companies usually use discounts and coupons to their customers for this purpose. Offering free shipping to your customers makes them feel more comfortable about placing an order.
Contrary to what the name might suggest, free shipping isn’t actually free. Either you take the hit and pay for the fees outright, or the fee is absorbed in a way that customers pay for it. You can do this by incorporating shipping costs into the sale price of your products. This way, you can offer free shipping without compromising on your own profits.
Charge Real-Time Carrier Rates
Another popular shipping strategy among online vendors is charging real-time carrier rates. This process is transparent and gives your customers a little wiggle room. How? Well, let’s say you partner up with multiple carriers. You can now let customers pick and choose the shipping option that best suits their need.
Shipping labels like FedEx, USPS, and DHL have different shipping costs, and no one carrier offers lower rates across the board – the pricing depends on numerous factors. Ecommerce platforms such as Shopify integrate real-time shipping rates of these carriers into their dashboard so that they are easy to handle. Customers can then choose what works for them, whether it is overnight shipping, two-day shipping, or flat-rate mail.
Charge a Flat Rate
If you don’t want the hassle of calculating shipping prices for each package, then flat-rate shipping is another reliable option. As the name suggests, this shipping option charges a single rate for each shipping order, regardless of the size or nature of the product.
This option is most suitable for businesses that sell a small variety of products with similar dimensions and weights. However, be sure not to set a very high flat rate for the items- it might scare away the customers. Postal services like USPS usually have several flat-rate shipping options.
Offer local delivery
If your customer base is near to your inventory storage facility, then offering local delivery is one way to go. Keep in mind, though, that this only works for local customers. You can set up the local delivery zone through the use of zip codes – customers within this area qualify as local customers.
Suppose you are catering to a large customer base outside your local area. In that case, you can still offer the local customers this option by putting an appropriate button at the checkout. The local delivery option can be set to be free of charge or at a low flat rate, depending on your budget. This option is best for strengthening your local customer base.
How to calculate shipping costs
An essential part of devising your shipping strategy is determining your shipping costs. If you partner up with a shipping label, couriers base their shipping rates on a number of factors. These factors range from the package weight and size to the origin and destination address. The bigger the product is and the farther away you have to send it, the more you’ll typically end up paying for shipping.
Before settling on your company’s shipping rates, be sure to assess the following factors.
Consider your margins
One thing ecommerce merchants should focus on is their profit margins- they determine the success of your business. Shipping fees are a significant part of the total fulfillment expenses- deal with them improperly, and you could end up losing money. Before you set up the total price of a product, consider all the little expenses like shipping costs, credit card fees, and packaging, in addition to the cost of the product. Your sale price should leave room for profit after taking care of all of these expenses.
Packaging and marketing
From a historical perspective, packaging and shipping were just ways to get the products to the customer. The up-gradation of technology and the evolution of business strategies have now transformed packaging and shipping into a marketing opportunity. And why not – telling your brands’ story with your product packaging and creating a memorable unboxing experience is a brilliant opportunity.
Packaging inserts and other items could take the whole experience up a notch when the customer unpacks their order- think of unboxing videos online and the publicity they gather! Of course, this type of marketing is another shipping expense and would add to the total costs.
Packaging options
While you can utilize packaging for marketing purposes, don’t lose sight of its original purpose – the package still has to securely hold all the goods. Of course, the safety level for each product depends on its nature. For example, you can ship sweaters and other clothing items in poly mailers, and they would be secure. But for fragile items with higher value, you might need to invest in sturdy boxes and maybe even packing peanuts.
While the nature and size of the product help determine your packaging needs, your customers’ values and preferences also need to be accounted for. Eco-friendly packaging options are often pricier than the standard options, but they appeal to the growing number of eco-conscious consumers. This is why it pays to at least provide eco-friendly packaging as an option to customers.
Insurance and tracking
Insurance and tracking help increase customer loyalty among online shoppers. They help secure your products and provide you with a safety net in case of any mishap. Shipping labels often provide relatively inexpensive or even free options for insurance and tracking. Like UPS and USPS Priority Mail, some carriers offer free coverage for mail orders above a specific price limit.
Customs declaration and forms
International shipping requires proper customs documentation that details the nature and the size of the shipment. More often than not, international shipping also comes with specific regulations and tariffs. Of course, these fees add up to the total shipping cost. Suppose you are catering to a global customer base. In that case, it’s wise to set your shipping policy so that it includes these costs. If you let the customer know of the customs fee beforehand, they won’t be surprised at the unexpected charges once they receive the parcel.
Should you offer free shipping?
Now that you have an idea of what constitutes the shipping expenditures, the next step is to determine whether to offer free shipping or not. Free shipping options are attractive to customers and directly impact conversion rates, but can your business afford to eat the costs and offer them? Well, several factors determine the feasibility of this decision.
The most important factor to consider is your company’s available budget and revenue. If your profit margins are high, offering free shipping probably won’t hurt you. Moreover, package dimensions, and the destination’s zonal distance are also factors to consider. Don’t forget to further account for the shipping rates of the shipping company you have partnered up with.
So far, we have discussed costs on the business owner’s end. Your customers are another critical determinant of your decision to offer free shipping. For example, if your target audience isn’t really interested in free shipping, then you won’t have to offer it in the first place. Of course, you can only determine how important free shipping is to them after doing some A/B testing. To sum things up, every company’s needs are different. As such, their decision to offer free shipping may vary.
How to Offer Free Shipping without Reducing Profits
Offering free shipping to your customers might not be feasible for every business. Sometimes, you end up losing more money than you make by taking this route. So, how can you realistically offer free shipping without breaking the bank?
Here are some pointers:
Decide if shipping is a marketing expense or COGS
If you want to offer free shipping, first determine how it affects your business. As stated earlier, you can utilize shipping as a marketing opportunity. If so, then free shipping expenses can be considered as marketing expenses. This is a profitable investment if it drives your sales up.
If free shipping isn’t doing much for your sales though, then the shipping costs might be an addition to the Cost of Goods Sold (COGS), and you may need to adjust your sale prices accordingly. Of course, new businesses might realize that this is more of a hit and trial procedure. You will have to test it first to determine whether the shipping expenses are a marketing expense or COGS.
Offer free shipping to limited shipping zones
One way to realistically offer free shipping is to limit the free shipping to specific zip codes and areas. For example, a US-based business might offer domestic free shipping. Still, since shipping to other countries like Canada and Australia comes with tariffs and customs fees, the free shipping offer might not extend to those countries. Shipping carriers base their rates on the zonal distance of the shipment, so it might be expensive to offer free shipping to far-flung areas. The point is to establish your free shipping policy on your carrier’s shipping rates and limit free shipping to nearby areas.
Surcharge your expedited rates
To offset your free shipping expenses, you can increase the rates of expedited shipping. This only works if your expedited shipping option is attractive enough. As an example, between free shipping with 10-day transit time and expedited shipping with 2-day transit time, chances are both options will attract a fair share of customers. So, you’ll be able to offer free shipping to the customers by surcharging the expedited shipping rates.
Offer free shipping with a minimum purchase amount
Setting a shopping threshold for free shipping is among the best practices employed by eCommerce platforms that offer free shipping. Amazon Prime is such an example. The logic behind it is simple enough. Customers must have a fair number of products in their carts before they can avail free shipping. The profit margin from the sold goods covers the free shipping expenses.
Ecommerce shipping FAQs
How do ecommerce sites calculate shipping?
Ecommerce sites like Shopify have integrations or built-in shipping cost calculators that determine the total shipping costs based on several factors. These include the shipping partner, package dimensions and weight, the zonal distance between the point of origin and the destination, and the transit time.
How is shipping calculated?
You can calculate the total cost of shipping through several determinants – some companies use shipping software for these calculations. These shipping costs include packaging fees, transit fees, and in the case of international shipment, tariffs and customs fees. The transit fees depend on the carrier rates that differ for normal, flat-rate, and expedited shipping options.
How does ecommerce delivery work?
Ecommerce stores either go for self-fulfillment or employ the services of a third-party logistics company. In the latter case, the fulfillment partner handles shipping by teaming up with different couriers. Once the eCommerce store confirms the order, the fulfillment partner sources the product from an inventory storage facility, packs it, and sends it out for shipping. The courier then ships the product to the destination.
What is the cheapest way to ship for a small business?
The cheapest shipping option for a small business is the mail service. USPS is a great shipping carrier with affordable rates. If you want to cut down on the transit time, you could partner up with a third-party logistics company-they also sometimes offer discounts.
Let ShipHero handle shipping for you
ShipHero is a powerful warehouse management solution that seamlessly integrates with your online store and handles warehousing and shipping for you. Shopify merchants can add ShipHero to their existing store on the platform; it is the #1 Warehouse Manager Software on the Shopify app store. ShipHero integrates seamlessly with major ecommerce platforms such as eBay, Amazon, Shopify, and more.
ShipHero aligns its goals with your own, to ensure that your customers are receiving the best services.
Reduced shipping costs
With ShipHero, you can enjoy great discounts on shipping rates from our partner carriers. The ShipHero integration on your online store dashboard lets you compare the shipping rates of different carriers like UPS, USPS, and FedEx. You can then determine which option works the best for you and eliminate the chances of overpaying for shipping. The fulfillment software allows you to save on shipping costs by identifying orders that you can merge. Furthermore, our algorithm picks out the fastest shipping routes, saving both on transit times and shipping costs.
Ecommerce integrations
ShipHero’s eCommerce integrations make the whole order fulfillment process a breeze. ShipHero’s mobile app lets you manage your operations from anywhere- you can track the inventory movement of your store in real-time. You can set rules to simplify packing and shipping tasks. Inventory synchronization and warehouse automation increase the efficiency of the supply chain – meaning that your customers ultimately receive their orders faster. Additionally, ShipHero sends order shipping confirmation and tracking data to customers when their orders are shipped, earning you the brownie points.
Reporting & analytics tools
You can access ShipHero’s premium reporting and analytics tools and use the data to enhance your brand’s growth strategy. The reporting tools give a comprehensive insight into shipment expenses, sales history, inventory stocks, cost of goods, and team performance. Essentially, it allows you to keep track of everything from one central place.
Ecommerce shipping is a vital part of the supply chain, and one of the most expensive stages too. To avoid hefty transit costs, delayed orders, and unhappy customers, optimizing the shipping process is vital. A powerful ecommerce shipping solution like ShipHero can help you meet your business goals and optimize your shipping process.
