Apr 13, 2021 | 3PL Warehouse Management, Blog, Fulfillment
As customers get used to speedy deliveries of their online orders, a slow fulfillment process can lead to abandoned carts and lost sales. So, if you’re a Shopify store owner who’s thinking of growing their shop, consider looking at your fulfillment process. This under-appreciated channel could be the key to taking your business to the next level.
But planning your logistics operations and order fulfillment process can be daunting, especially if you’re new to the game. Fortunately, many fulfillment service providers are helping Shopify businesses expand their reach every day.
In this guide, we’re going to cover the basics of fulfillment and touch on more complex topics – like, knowing when the right time is to upgrade your fulfillment game, and what you need to know about partnering with a third-party fulfillment provider.
What is eCommerce Fulfillment?
eCommerce fulfillment is the process of fulfilling orders placed by customers through an online store. This can include receiving and processing orders, packing and shipping orders and handling returns and customer service inquiries.
Why is it Important to Stay on Top of eCommerce Fulfillment Services?
Fulfillment is a critical part of operating an online store, and it can have a major impact on the customer experience.
A well-run fulfillment operation can help to ensure that orders are shipped accurately and on time. Considering that most customers are used to big companies like Amazon promising two-day delivery, online businesses that can keep up with customers’ high expectations and deliver in a timely fashion gain a competitive edge over other small businesses.
In turn, small businesses can see their customer satisfaction, customer retention rates and sales soar to new heights.
What Does Shopify’s Fulfillment Service Look Like?
Shopify store owners have three main fulfillment options:
In-house Fulfillment
In-house fulfillment often entails hiring staff and renting a warehouse to manage your Shopify store’s inventory, pack orders and ship them to customers.
For businesses that are just starting, this could be a feasible option. But as your business grows, you may find that maintaining a warehouse and staff just contributes to greater overhead costs and takes up too much of your time.
Dropshipping
Dropshipping is when stores don’t keep the products they sell. Stores that dropship instead buy products from manufacturers or sellers and handle the distribution themselves. In that sense, store owners don’t have to think about storage, handling and packing.
Third-party Fulfillment Service Providers
Shopify fulfillment services or third-party logistics (3PL) service providers are companies that cover every stage of the fulfillment process. 3PLs for Shopify are alerted of placed orders, take care of picking, packing, labeling, and see through the delivery of each order to customers’ doorsteps.
With 3PLs, Shopify store owners don’t have to rent warehouses or store stock at home. Instead, they can use the warehouses or fulfillment centers provided by the fulfillment companies.
Why Do You Need a 3PL Shopify Fulfillment Service?
There are many reasons why you might need a third-party Shopify fulfillment service. Perhaps you have a high volume of orders and can’t keep up with the demand yourself. Or maybe you’re selling products that are too big or heavy to ship without professional help. Whatever the case may be, fulfillment software and remote fulfillment service providers can help you win back your time and focus on improving other aspects of your business.
A good fulfillment service will be able to handle any size or type of order. They will have a network of warehouses and distribution centers around the country to ensure that your products are shipped quickly and efficiently. They will also have an experienced team of customer service representatives who can help resolve any issues that may arise. In addition, most fulfillment services offer competitive rates, so you can be confident that you’re getting the best value for your money.
Look at it this way: 3PLs improve the entire process of fulfillment by providing end-to-end service. Starting with inventory storage down to delivery and customer service, fulfillment services provide help to minimize logistics costs and maximize efficiency. And by teaming up with the best carrier services to provide you with fast shipping options and affordable shipping rates, they keep your customers happy.
How to Work With a 3PL For Your Shopify Store
Here’s a rough guide to how fulfillment solutions work for Shopify stores:
Send Your Products to the 3PL
The fulfillment process starts with merchants sending their products to be stored in warehouses and fulfillment centers by the fulfillment service providers. Some 3PLs host a large network of fulfillment centers around the world so that you can choose to store your products at locations nearest to your customers.
Having a network of fulfillment centers at many locations gives Shopify users a geographical advantage as it saves on transportation costs and restocking is done more efficiently upon need. Your products are stored at warehouses that comply with industry standards.
3PLs Leverage Inventory Distribution
Depending on where the bulk of your customer base is located, 3PLs recommend inventory storage at different inventory levels and locations so that your customers get their products delivered to them faster. For example, if the majority of your customer base is in the United States, it’s smart to have your products stored there.
3PLs know the importance of customer satisfaction and the impact it can have on a business. This is why they provide you with smart suggestions for inventory distribution based on our advanced software.
3PLs Ship Your Orders
3PLs partner with carriers to provide a wide range of options for shipping methods. Depending on what suits you and your company’s needs the best, 3PLs provide you with the optimal carrier combination for your shipment. For example, a 3PL like ShipHero partners up with USPS, UPS and DHL.
You Delight Your Customers
The shipment process has greatly improved over the last few decades. For example, the use of tracking numbers now makes it easier for stores and clients to keep tabs on their shipped packages as they move from the warehouse to the client’s front door.
Aside from this, faster shipment times, lower shipment costs, and more packaging options all come together to provide a better, more enjoyable online shopping experience. And by keeping customers satisfied, you secure yourself great reviews and, in turn, a more promising future for your shop.
What is the Shopify Fulfillment Network?
The Shopify Fulfillment Network (SFN) is a network of fulfillment centers across North America.
If you have a business with a Shopify integration, you can utilize the Shopify Fulfillment Network to access Shopify warehouses for storage, picking, packing and shipping.
The SFN comes with a bunch of neat features, including:
- Syncing with your online shop so that you can process orders and get notifications on inventory levels from one platform.
- Distributing your products to the most efficient locations, helping you deliver your goods to customers faster.
- Sending products in customized branded packaging.
When is the Right Time to Switch to Outsourced Fulfillment?
The advent of the internet coupled with the rise of technology has caused the eCommerce industry to have a massive growth spurt. And due in part to the COVID-19 pandemic, more and more people have turned to online businesses to sustain themselves, whether as producers or consumers. Many existing brick-and-mortar stores have also transitioned to eCommerce platforms to keep up with the growing demand for online shopping.
Most eCommerce companies usually start local and handle inventory management, order fulfillment and shipping on their own by storing products in their garage, for example. But as your business grows, storing products in your garage and handling shipments on your own no longer seems like the smart thing to do. There will come a time in your business journey when you will need to switch to a more robust fulfillment strategy.
So, what are the signs that you should start outsourcing your order fulfillment?
Cyclical or Uneven Sales
In case your business has already outgrown the inventory space in your garage and you are thinking about investing in a warehouse, take a minute and weigh your options. For companies with a fluctuating frequency of orders throughout the year, it might be counterproductive to spend money on a warehouse.
Such an investment will probably cost you more money than you’re expecting to make by this upgrade. This is where a fulfillment company shines. Fulfillment companies provide you with warehouse services that are adaptable to your needs. If your business is related to a niche that makes the sales uneven, it might be time for you to partner up with a fulfillment company.
You Don’t Have Time to Fulfill Orders
A booming business means a greater deal of orders coming in. Sometimes, business owners spend all their time keeping up with the fulfillment of the order instead of improving their business. This can limit the growth of your business in the long run, and no one wants that. If you spend all your time handling orders, it is a clear sign that you’re too busy and you need to switch to other fulfillment options.
Lack of Logistics and Fulfillment Infrastructure
External order fulfillment provides you with flexibility that your business might not have encountered while doing self-fulfillment.
Good fulfillment partners are equipped with the infrastructure to meet the needs of your growing business. International shipping is usually much more difficult to handle than local shipping due to the involvement of foreign rules and regulations. This is just one of the major areas where a fulfillment company can help you and keep your order fulfillment smooth and hiccup-free.
Who Should Not Work With a Third-Party Logistics Company
While third-party fulfillment providers certainly make the job easy for eCommerce businesses, not all businesses can manage a successful partnership with such fulfillment service providers. So, what type of companies should reconsider before opting for external order fulfillment?
Here are a few indicators that suggest it might not be time for you to switch to outsourced order fulfillment just yet.
Businesses With Limited Cash Flow
If a business is struggling to allocate enough funds for its shipping costs, it might not have enough capital to pay for a third-party fulfillment company at all. Such businesses are better off with the self-fulfillment option because outsourcing your order fulfillment demands a steady inflow of money.
Highly Specialized Businesses
Highly specialized projects with unusual products often demand custom packaging and shipping conditions. Fulfillment companies usually provide clients with standard default options for shipment unless specified.
Even if some fulfillment companies agree to provide fulfillment services for special orders, it might turn out to be costlier than if you went for the option of self-fulfillment. This is why highly specialized businesses are better off going for self-fulfillment rather than outsourcing their order fulfillment.
Businesses With Limited Daily Order Volume
If your business is only receiving a limited amount of orders per day, it might not be the right time for you to outsource your order fulfillment just yet. You might be able to handle the order fulfillment on your own.
This is because companies save more by bundling their orders. For example, if you have a low influx of daily orders, it can become uneconomical for you to store your inventory at a third-party warehouse because you will end up paying more for storage costs than what you’re making from your business.
How to Choose a Fulfillment Service for Your Shopify Store
So, what should business owners look for when selecting a fulfillment service provider?
Experience in Your Industry
Not all eCommerce businesses are alike. Different businesses have different customer bases and different needs. Likewise, different fulfillment companies have different capabilities and offer different services to their clients.
Before committing to a fulfillment service provider, make sure that what they offer aligns with what you’re looking for. While searching for fulfillment companies, look up what business niches they cater to and which industries they specialize in. Base your decision on which companies have a similar industry experience to your company’s demands.
Similar Existing Clients
While looking for a service provider, target the companies that cater to sellers of the same business niche as yours. This ensures that the fulfillment company has experience with a company with similar needs and will thus be a suitable option for you. If you are having trouble finding the right fulfillment company, ask for recommendations from merchants in your niche and then weigh your options.
While doing your research, don’t be afraid to contact fulfillment companies and ask any questions you have about their services.
Pricing Isn’t the Most Important Factor
An important determinant while choosing a fulfillment company is the offers and shipping costs that they provide. While it is wise to look for an option that gives you low shipping costs, price should not be the only factor in your decision.
Customer experience is more important in the long run and so you should look for companies that align with your values and your penchant for customer satisfaction. If your company requires custom packaging for products, it is better to invest in this rather than have all your products spoiled. So, look for factors other than price when deciding on a fulfillment service provider.
Technology and Integrations
While choosing a fulfillment partner, look for a company that is up to date when it comes to technology. Having the option of a provider with easy integrations into your existing online platform translates into smooth transitions and better coordination. Shopify integrations for your online shop make your fulfillment process seamless.
With Shopify’s premium technology, we provide our customers with the best fulfillment services. Our fulfillment network uses machine learning to suggest the optimal inventory storage options for you so that you save both time and money.
Data and Analytics
Data and analytics are powerful tools in the world of e-commerce when used properly. Fulfillment provides you with a fresh set of data that you can then analyze and use to your advantage to improve your services and business.
While working with a fulfillment provider, it is smart to partner up with a provider that provides real-time tracking and analytics. Shopify provides its users with a tracking number for every order so that you can track it in real time. Shopify also provides its users with customer order data so that it can be analyzed to yield points for improvement.
Let ShipHero Handle Fulfillment for Your Shopify Store
ShipHero is the only commercially available hybrid solution offering both warehouse management software and fulfillment service.
Should you decide to handle fulfillment in-house, ShipHero improves your warehousing capabilities by automating key processes and consolidating information such as real-time stock levels and shipping time into one platform.
And with one-click integrations with platforms like Shopify, you can take care of managing orders and processing returns in just a few simple steps.
ShipHero’s Shopify-integrated fulfillment service lets you ditch paper pick lists with its native iOS app so you can cut down errors by up to 99.9%. We also offer seamless connections to top carriers like UPS, USPS and FedEx.
Take your Shopify store to the next level with ShipHero!
Final Thoughts
For eCommerce brands, the order fulfillment process is what makes or breaks a business. And while small shops can get by handling their own logistics, as brands grow, it’s worth considering outsourcing the process to service providers that are designed specifically to streamline this part of eCommerce.
When it comes to choosing the right fulfillment partner, be sure to look for a service provider that offers you value for money, high-tech software and seamless integrations, useful analytics and a similar industry experience. Keep this in mind and make an informed decision to find the best fulfillment partner to help your brand grow sustainably!
Shopify Fulfillment Service FAQs
What is a fulfillment service?
A fulfillment service is a logistics service that takes care of things like inventory management, storage, order sorting, packing, shipping and returns.
Who can use Shopify Fulfillment Network?
A Shopify fulfillment network can only be used by businesses that have fulfillment centers in the US and Canada and that are based in the US.
How is your fulfillment fee decided?
Fulfillment fees are decided by the costs of your inventory storage, picking and packing, receiving, kitting and customer support.
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About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With over 5,000 brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.
Let us know how we can help you today by scheduling a call HERE.
Nov 11, 2022 | Blog, Warehouse Management Software
While many aspects of the shipping and fulfillment industry have gone fully digital, some still require a physical presence. Whether you’re an eCommerce business storing products in a warehouse or a 3PL managing inventory for multiple clients, inventory management is critical. But managing your physical inventory in a digital world can be tricky. Here are some tips to help you get started.
What is Inventory Management?
Inventory management is the process of ordering, stocking, and using a business’s materials or products. There are various types of inventory, like raw materials, cycle inventory, and MRO goods, which we won’t get into right now. But prioritizing your inventory helps you understand what you need to order or manufacture more frequently to continuously fulfill your customers’ needs.
Being a warehouse employee isn’t just about lifting heavy boxes all day. They also have to keep track of inventory and update information as necessary. When it comes to traditional inventory management, this often means laboriously filling out spreadsheets or keeping physical files updated. But with digital inventory management, they can kiss those days goodbye. Instead of relying on the fallible human memory, the warehouse team can depend on a fully automated system that does the updating for them. Stop worrying about a lapse in record-keeping causing disaster for business operations.
Let’s face it – warehouse work can be physically demanding without worrying about the warehouse’s physical inventory process. Digital inventory management allows businesses and warehouses to focus more on regular tasks while letting technology handle the rest.
Digital Inventory Solutions
Digital inventory solutions can help automate and streamline your inventory procedures. You can improve your bottom line by using inventory management software and other inventory control technologies, like barcoding and RFID tagging. Automating your inventory management processes can help reduce errors, increase efficiencies, and allow you and your team time to focus on other tasks.
Manual processes can often lead to errors and missed opportunities when managing your inventory. But automating your inventory with a digital inventory management system like ShipHero ensures accuracy and frees up time for you and your team to focus on the important stuff. Constant communication with your sales channels means you’ll always have up-to-the-minute information about what’s in stock, what’s sold out, and what needs to be replenished. Gone are the days of physical inventory count headaches and lost sales – let technology do the heavy lifting for you.
Inventory Tips and Tricks
Here are a few methods you can use to streamline your inventory management, no matter where you are in your process:
- Define your objectives and KPIs: What do you want to achieve with your inventory management process? You can develop KPIs to track progress if you reduce stock levels, increase turnover rates, or improve customer satisfaction.
- Develop standard operating procedures: Documenting your procedures helps ensure everyone on your team is on the same page and following the same process.
- Utilize technology: As we mentioned before, technology can significantly help manage inventory. From barcoding and RFID tagging to automated reordering systems, various technology solutions are available to help streamline your process.
- Conduct regular audits: Regular audits help ensure accuracy in your data and catch any errors that may have slipped through the cracks. Auditing also allows you to identify improvement areas in your process and make changes as needed.
- ShipHero Cycle Counts: Cycle counting helps to ensure that your physical inventory matches what you have recorded in the system, keeping everything in check. It also allows you to count smaller sections at a time, rather than having to shut down operations for a complete physical count. In other words, cycle counting helps prevent any potential inventory-related chaos and keeps your whole process running smoothly.
- Communicate with stakeholders: Good communication is critical in any business operation, but it’s imperative when managing inventory. Ensure everyone who needs to be informed about changes in inventory levels is kept in the loop. That way, there are no surprises down the road.
Digitize Your Inventory Management Process
In the digital era, physical inventory management can feel like a relic from the past. But efficient inventory management software allows you to have your cake and count it too. By automating the mundane tasks associated with physical inventory, you can spend more time checking things off your to-do list and less time inputting data. Why suffer through tedious physical inventory counts by hand?
You can make this process much easier with the right tools and solutions. At ShipHero, we specialize in helping businesses streamline their inventory management process so they can focus on what they do best – running their business. If you’re looking for help managing your inventory, contact us today to see how we can help.
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Talk to our software experts today and learn more about how our warehouse software is built for eCommerce brands.
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 significant initiatives, 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 impact the lives of employees, customers, partners, and investors.
Follow Aaron on Twitter & LinkedIn.
Sep 2, 2022 | Blog
Many modern consumers see online shopping as the default for browsing and purchasing from their favorite stores. After all, eCommerce sales hit $4.93 trillion (globally) in 2021. By the end of 2022, that’s expected to rise to an impressive $5.54 trillion.
Think pieces about the death of brick-and-mortar stores have inundated the web since 2014 – with article after article claiming the end of the days of physical stores with eCommerce websites as “nice-to-haves” but no longer sustainable as they largely relied on foot traffic for profit.
Yet, retail stores aren’t a relic. In fact, just 20.3% of retail sales are expected to come from eCommerce in 2022. Or, in the second quarter of 2022 in the United States, 14.5% of all sales. While that’s a marked increase from the just-over-5% of 2013, physical stores aren’t going anywhere.
Instead, many eCommerce brands are now moving towards opening a brick-and-mortar store to supplement their web shops, stabilize their brand, and diversify how they reach customers.
Advantages of having a retail store alongside your eCommerce brand
In fact, for many eCommerce brands, a brick-and-mortar store can offer advantages, including competitive ones.
1) More inventory points
Retail stores function as warehousing, allowing you to distribute stock, create a new logistics point, and to offer in-store pickup for local customers. Retail stores also benefit from having diverse stock, which makes it easy to use the point to distribute stock so that it’s as close as possible to your customers when they place an order.
2) Additional customer service points
Retail stores provide physical customer service points, where customers can talk to a representative in person, drop off returns, and pick up orders they placed online. Any of these strategies reduces your costs by reducing spend on shipping, sorting, and poor customer experiences – while giving your customer a faster and more positive experience.
Plus, if your customer can walk into a store with an item they ordered online, exchange it for something else, and walk out immediately with a replacement – they will be that much happier.
Buy Online, Pick Up Instore strategies are also increasingly popular, led by large marketplaces like Walmart, which uses curbside pickup and instore pickup to reduce demand on its logistics. Smaller retailers can do the same – but with fewer logistics points. For Walmart, it’s so much a success that in 2021, nearly a quarter of its earnings were click and collect orders.
3) Sustainability
Packaging, shipping, and delivery each have their own significant impact on C02 emissions and environment. Last mile delivery is particularly bad, as increases in traffic significantly increase congestion and pollution in cities but international shipping and even packaging are equally detrimental . eCommerce stores churn out massive quantities of packaging, from boxes to dunnage to paper and labels – and all of that is avoidable if you buy from a retail store.
Having retail stores alongside eCommerce stores gives customers the option to make more sustainable purchases. And, with the option to order online and pick up in store, those same customers can get the best of both worlds – convenience and availability with reduced impact on the environment.
How to bridge the gap between retail and online operations
While there are significant differences between online and in-person sales, you can run both with the same backend. In fact, as long as you have a front-end strategy in place to optimize the buyer experience for each, the back-end can be streamlined to avoid mistakes, to maximize inventory availability, and to reduce costs.
Sales
If you’re moving an eCommerce store to brick and mortar, optimizing the in-person sales experience should be a first step. Point of Sale or POS software is normally the first system to invest in. Here, POS relies on scanned barcodes to pull relevant products from inventory management and then allow customers to make a payment using their card. That’s quite a bit different from online shopping carts, which only have to communicate with PIM software and then pass orders on to a payment gateway.
At the same time, both should be synchronized, with data shared between each in as close to real time as possible. That’s especially important if you use your brick-and-mortar store as an extension of your warehousing. It’s critical that orders processed through the POS are updated in the online inventory in real time, as they are sold. That will prevent overselling or double selling products.
Here, distributed fulfillment and inventory management systems like Flxpoint can synchronize your systems, keeping your POS and local inventory in sync with inventory in your third-party logistics, other warehouses, and on other channels. Then, whether an online customer orders the last of an item, a customer tries to order an item after it’s just been sold in-store, that’s all updated, and customers can see the product is out of stock before they place an order.
Inventory
Similarly, it’s critical that you synchronize inventory across all channels, fulfillment points, and points of sale. If you don’t know what you have at every warehousing point at any given time, you have no way to track what you’re selling or why.
That’s especially important when you add offline sales to the mix, because it’s extremely easy to oversell thinking you have products left, when they’ve already been sold offline. For that reason, POS systems have to synchronize to master databases, so an item scanned out is treated as an item shipped out in your eCommerce system.
Flxpoint will resolve this issue as well, but can also help to avoid backorders or out of stock issues by diverting online orders to the next nearest warehouse location. If your customer is ordering closest to your retail store but the product is out of stock there, your eCommerce system could offer a delivery option or to ship to the store – but not immediate pickup in store.
Delivery
One of the key benefits of opening a retail store is enabling customers to buy online and pick up in store. Achieving that means synchronizing your processes so that retail stores can receive orders using the same software you process orders with.
Here, your brick-and-mortar store can serve as just another node in your inventory fulfillment network. Often, that will mean integrating the POS into your inventory management system, so you can receive orders in the same system where you process other orders in the system.
Here, tools like ShipHero allow you to import logistics points to automatically route orders to the nearest geographical point. That can include automatically submitting orders to your system, submitting pick and pack orders, and automating the process of preparing shipping labels and order tracking data.
Returns
Brick and mortar stores also allow you to create hybrid return options – with the intent of delivering a better customer experience. If customers want to show up in-store to return an item and get a replacement or money back, it also reduces costs on your end by reducing shipping, avoiding the issue of asking customers to take on the burden of paying return shipping, and providing a more immediate response.
However, doing so necessitates carefully synchronizing online orders with in-store inventory and orders. Your POS has to map to your shopping carts and online sales, so you can see orders, what customers paid, when they ordered, etc.
Here, tools like Loop Returns and Returnly can add return functionality on top of your omnichannel eCommerce solution. However, if you’re already using ShipHero, it also offers a native returns management solution – which may be a better call if you already use it.
And, of course, once you accept returns in a store, you’ll still have to process those returns, sort them, and move them to a warehouse or other facility – which will mean having logistics and integration in place.
Make your brick-and-mortar stores your competitive advantage
Eventually, brick-and-mortar stores can offer a lot of advantages for eCommerce brands. Not only do they give your brand trustworthiness, but they can also improve customer service, improve shipping speeds, and reduce costs for you and the consumer. And, if you choose locations based on where online orders take place, they can serve as valuable additions to your return and fulfillment processes. Of course, making everything run smoothly will require setting up tools to synchronize inventory across warehouses, sales channels, and points of sale.
About the Author
This is a guest post from Rachel Go. Rachel is a content marketer and strategist at Flxpoint, an enterprise ecommerce operations platform. Flxpoint enables merchants and brands to unify and automate every aspect of your ecommerce operations, and scale without manual processes or custom development slowing you down.
Jun 9, 2023 | Blog, Case Study, Fulfillment, Warehouse Management Software
ecomspaces’ search for a solution that could integrate with their 3PL was challenging until they found ShipHero. Discover how this revolutionary end-to-end solution helped ecomspaces offer swift service and satisfy customers.
What is ecomspaces?
Founded by Maïré Rosa, ecomspaces is committed to providing business owners with the resources and support they need to succeed in the world of eCommerce. They understand that running an eCommerce business is a complex and multifaceted endeavor.
That’s why they offer a one-stop-shop solution that provides all the services and support a business owner could need, all under one roof. From product photography to order fulfillment and international shipping, ecomspaces is the go-to destination for businesses looking to streamline their operations and scale their growth.
“I have a waiting list of clients [now],” Rosa said. “We have 50 right now and are working to bring on more once we have the room and the headcount.”
The Need to Automate
Training new employees and managing inventory was like navigating a labyrinth for Rosa. Clients could not access their Shopify inventory, and integrations needed to be improved. Everything had to be done manually, which was an incredibly daunting task. It all changed when Rosa had to travel to handle a family emergency in Puerto Rico.
Her phone and laptop were buzzing non-stop as everyone clamored for her attention. This was her breaking point. Then she remembered the ShipHero demo she had seen before. It might have been a little more expensive than what she was using, but clearly, what she was using wasn’t working. So, she decided to take the plunge and invest in ShipHero.
Rosa was particularly drawn to the billing automation and customer dashboard. This effective duo simplified processes and saved her valuable time, allowing her to focus on growth. Setting up everything only took a week, further enhancing her experience.
“Billing was a nightmare before. Now, it’s so much easier.” – Maïré Rosa.
No More Tedious Tasks
Ecomspaces struggled with the tedious tasks of answering questions and putting out fires. That was until they got ShipHero’s WMS up and running in their facility. With the software in place, ecomspaces was able to provide an unprecedented level of visibility to their clients, freeing up Rosa’s time to focus on growing her business. Rosa’s clients and customers could manage their accounts without constantly contacting her for support. With ShipHero, she had found the perfect solution to keep her business running smoothly.
ShipHero’s end-to-end solution has proven perfect for 3PLs like Rosa’s, with special features tailored to manage clients efficiently. Now, Rosa reports that ecomspaces has been enjoying incredible growth thanks to the benefits of ShipHero’s system, including allowing clients to use their shipping accounts and manage cash flow more effectively. No wonder more companies are turning to ShipHero to streamline operations and drive growth.
“We went from shipping less than 100 orders a day to shipping up to 1,000 orders a day (thanks to bulk ship!).” – Maïré Rosa.
Special Features Tailored to 3PLs
Ultimately, there was no question that ShipHero was the perfect solution for Rosa and ecomspaces. With special features tailored to 3PLs, Rosa and her team could move away from navigating a labyrinth and start growing their business. Now, more than ever, business owners can access the resources they need to succeed in eCommerce.
Take advantage of these tools by trying a ShipHero demo today! Investing in your business is the first step toward success.
ShipHero works with 3PLs just like ecomspaces to streamline processes and give them control of their warehouse operations. We’d love to help you do more with your warehouse – contact our team today to sign up for a demo.
Let’s Get Shipping!
Apr 7, 2023 | Blog, Warehouse Management Software
As technology expands, mobile commerce, or mCommerce, is becoming an ever more integral part of a modern business owner’s toolkit. In this blog post, we will dive into the fundamentals of mCommerce and discuss its rapid growth in recent years, along with the advantages of incorporating this type of technology into your eCommerce strategy. By understanding what mCommerce means to the future of shopping, you can adapt and ensure your business remains at the top.
Importance of Keeping Up with mCommerce
Mobile commerce volume is expected to hit $620.97 billion by 2024. This means nearly half (42.9%) of all eCommerce purchases will be made via a mobile device.
Keeping up with mCommerce cannot be overstated; it offers many benefits for consumers and businesses. For instance, mobile-friendly websites enable faster purchases, streamlining the shopping experience and leading to higher conversion rates.
This improved connection to customers allows businesses to provide more personalized content and targeted promotions, fostering loyalty and engagement.
Embracing mCommerce opens up avenues for increased scalability, enabling your business to adapt and grow in the fast-paced digital landscape.
Understanding mCommerce
What is mCommerce?
mCommerce is an evolution of commerce that has revolutionized how we engage in commercial transactions. Simply put, mCommerce refers to any transaction made on a mobile device, from purchasing your favorite pair of shoes to sending money to a friend for that delicious meal you shared. As the world becomes more connected through technology, it’s no wonder our mobile devices have become powerful tools, allowing us to enjoy a seamless shopping and banking experience at our fingertips.
Types of mCommerce
- Mobile Shopping: When you shop on your phone, tablet, or other mobile devices.
- Mobile Banking: Making financial transactions on a phone, tablet, or other mobile devices.
- Mobile Payments: Transferring funds to a person, business, or merchant using a phone, tablet, or other mobile devices.
Benefits of mCommerce
- Mobility
- Better Customer Experience
- Growth Potential
- Omnichannel Experience
- Variety of Payment Options
Read more about the benefits mCommerce provides on our blog, How is mCommerce Different from eCommerce and Why Does it Matter?
Key Strategies for Keeping Up with mCommerce
Creating a Mobile-Friendly Website
One major component for success in mCommerce is to create a user-friendly, mobile-responsive website. Implementing responsive web design allows your site to adapt seamlessly to various screen sizes, making it a breeze for customers to browse and shop on their smartphones and tablets.
Consider simplifying your website’s navigation to help users quickly locate the products or information they’re searching for.
Then, pay close attention to your website’s loading time, ensuring each page loads swiftly and efficiently.
By incorporating these essential tactics into your mCommerce strategy, you’ll be well on your way to creating a shopping experience that keeps customers returning for more.
Embracing Mobile Payments
For buyers’ journeys to be as efficient as possible, seamless integration of mobile payments into a business platform is another factor to consider. Businesses can offer their customers a frictionless shopping experience by accepting various mobile payment methods, such as digital wallets, smartphone apps, contactless cards, and buy now, pay later programs.
Plus, incorporating mobile payments into your operations can unlock a myriad of benefits, like faster checkout processes, better customer engagement, and improved loyalty programs.
But remember, paying attention to security is crucial, as customers entrust sensitive financial information to your business. Taking precautions to ensure the data’s safety can bolster customer trust, create a more enjoyable mobile shopping experience, and ultimately help your business flourish in the age of mCommerce.
Leveraging Social Media
Did you know TikTok, the most downloaded app in Apple’s app store, with almost 85 million users, triggers users to spend $50.4 million annually?
Social media platforms have global audiences in the billions – you have nothing to lose and everything to gain! Given social media’s enormous role in people’s lives, harnessing this vital tool can significantly boost your mCommerce game.
However, it’s not just about creating an account on every platform; it’s about choosing the right ones that align with your target audience and brand image. For instance, a clothing brand can immensely benefit from visually-driven platforms such as Instagram and Pinterest, while a tech company might succeed more on Twitter or LinkedIn.
Foster a genuine connection with your customers by engaging in conversations, providing valuable content, and offering dynamic promotions. When implemented correctly, using social media for customer engagement and promotions can be a game-changer and elevate your mCommerce experience to greater heights.
Utilizing Mobile Marketing
Mobile marketing, the art of promoting products and services via smartphones, tablets, and other mobile devices, has emerged as a vital component in reaching and engaging customers.
By developing and implementing robust mobile marketing strategies, you can boost brand awareness and foster more personalized interactions with your target audience.
Personalization in mobile marketing plays a significant role in fostering customer loyalty and driving sales. Personalization can achieve this through tailored messaging, customized product recommendations, and location-based promotions.
Ultimately, embracing mobile marketing and personalization techniques can help businesses stay ahead in the mCommerce game and lead to an enhanced overall user experience.
Embrace mCommerce
The rise of mCommerce presents a tremendous opportunity for businesses and industry leaders. Now is the perfect time to start implementing these strategies and deploying best practices to stay current and capitalize on this eCommerce growth trend for years to come!
With ShipHero’s warehouse management software, you can stay competitive in this ever-evolving digital landscape without stressing about manual labor, customer experience issues, or inventory discrepancies.
Not only will our WMS help drive productivity and lower labor costs, but it also ensures your business keeps up with today’s modern shopping demands. Contact us today to meet your mobile and eCommerce needs – our team is ready to get you where you need to be.
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 significant initiatives, 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 impact the lives of employees, customers, partners, and investors.
Follow Aaron on Twitter & LinkedIn.
Oct 6, 2023 | Blog, Fulfillment, Warehouse Operations
Staying ahead of the curve is crucial in the fast-paced third-party logistics (3PL) world. That’s precisely what 360Pro Fulfillment, a rising star in the fulfillment industry, achieved by teaming up with ShipHero. In this blog, we’ll dive into their journey and explore how ShipHero’s innovative software solution turned their challenges into triumphs.
Meet 360Pro Fulfillment: A New Player with a Fresh Approach
Founded in 2021, 360Pro Fulfillment is a three-person team with big dreams. Their mission? To provide top-notch 3PL services that streamline supply chain operations and put smiles on their clients’ faces. In a recent chat with Sean Doherty, Director of 360Pro Fulfillment, we uncovered their unwavering commitment to customer satisfaction and innovation. With a dynamic team like theirs, 360Pro Fulfillment is undoubtedly one to watch in the coming years.
Navigating a Maze of Challenges
Before the ShipHero partnership, 360Pro Fulfillment was entangled in a web of frustration. Their previous 3PL software provider left them dealing with inventory discrepancies and needing better process alignment. They needed a game-changer, and it came in the form of ShipHero.
“Sitting in the client seat, we wanted a different system – and then getting to know the other side of that equation where we’re the 3PL. I think I have a much different understanding of the system compared to what I did with Shipstation.” -Sean Doherty, Director of 360Pro Fulfillment.
Experience Smooth Sailing Ahead
ShipHero didn’t just solve their problems; it set them up for success. They received a comprehensive suite of services, including 3PL software, client portals, and seamless QuickBooks invoicing through CSVs generated by ShipHero. Even as a remote owner/operator, Sean found the platform incredibly user-friendly and intuitive. And let’s not forget the mobile app for order fulfillment, a real game-changer!
But it didn’t stop at the ease of use. ShipHero offered invaluable support in onboarding and connecting new clients. This made transitions seamless, fostering better collaboration and a smooth learning curve. Their tech support was top-notch, ensuring quick issue resolution and boosting overall satisfaction.
“One of the most attractive features was the onboarding that was offered. We had weekly calls, and it was a really great introduction. Then, between calls, I could access the different videos and articles to bring myself up to speed.” -Sean Doherty, Director of 360Pro Fulfillment.
Growth and Collaboration
Thanks to ShipHero, 360Pro Fulfillment has expanded its client base and improved collaborations. ShipHero’s resources empowered Sean to guide clients through integration and connection processes, providing real-time data access for informed decision-making.
Sean’s ambitious goal of reaching one million orders annually suddenly became more achievable as ShipHero proved its mettle during significant events, like a Good Morning America promotion that triggered a flood of orders.
“Have had a goal now to get to 1,000,000 orders on a yearly basis, and that was set because USPS tells me our next price break would be at a million orders. So we haven’t reached it yet, but I’ve always been fully confident that we will get there.” -Sean Doherty, Director of 360Pro Fulfillment.
ShipHero’s Game-Changing Impact
360Pro Fulfillment is a staunch advocate for ShipHero, citing its user-friendly interface, responsive tech support, and robust resources as key strengths. The platform has been the linchpin in their global scaling journey, fortifying their position in the fulfillment industry.
As 360Pro Fulfillment grows, its strategic approach to order fulfillment will revolve around ShipHero’s software. This includes delving into bulk shipping and mobile picking features to enhance results and performance.
“Our team is much more a Bulk Ship mentality team. They really like using the Bulk Ship feature and printing through the desktop. They have fun with the mobile app and they’re all able to use it.” -Sean Doherty, Director of 360Pro Fulfillment.
The Bottom Line: Unleash Confidence and Peace of Mind with ShipHero
360Pro Fulfillment’s journey is a testament to ShipHero’s transformative power. They’ve achieved seamless and efficient fulfillment services with a user-friendly interface, a reliable support team, and nifty features like Bulk Ship and PostHero. If you’re in the 3PL game and seeking a software solution that simplifies warehouse operations and ensures accurate fulfillment, ShipHero should be on your radar.
ShipHero isn’t just a partner; it’s a catalyst for growth and efficiency in the dynamic third-party logistics world. Don’t miss out on the transformation – take your fulfillment game to the next level with ShipHero.
Aug 25, 2023 | 3PL Warehouse Management, Blog, Warehouse Operations
Pick methods and totes are essential when considering how best to approach warehouse management. The size, layout, and overall condition of a warehouse all play critical roles in determining which strategies can work optimally for enhanced picking accuracy and efficiency. In this blog post, we’ll explore the pick methods we use at ShipHero, tips to optimize your picking, and best practices for tote organization.
Pick Methods
As a warehouse manager, you know that pickers are the backbone of your operation. They are the ones who spend the majority of their time on the warehouse floor, selecting and passing off goods to packers. It’s no surprise that the picking process can account for up to 55% of your operation costs. To minimize these costs, streamline the picking process as much as possible. With the right tools, your pickers can work more efficiently, making the process a breeze.
Multi-Item Batches
ShipHero’s pick methods are designed to maximize efficiency and productivity. Utilizing the multi-item batch function, we pick multiple orders with different quantities of products into unique totes. This process streamlines the picking and packing process, saving you time and increasing your output, eliminating the need to revisit the same product location multiple times in a single shift.
As a result, pick rates are faster, and your business can scale more efficiently. Improved employee morale is another benefit, as workers are empowered to work smarter, not harder.
How ShipHero Does It
Picking accuracy and speed are critical for a 3PL, and while we may be biased, we suggest using ShipHero WMS for a smooth and precise picking process. The mobile app prompts you to choose a number of totes, and visual clues such as color coding make it easy to pick items for different orders. Scanners confirm that the right item is placed in the correct tote for each order. You can find an entire video walk-through on how we use multi-item batch picking right here!
Single-Item Batches
When it comes to batch picking, single-item batches require a slightly different approach. Despite picking multiple orders, each order only contains one item. What sets it apart is that these items can vary in size and shape.
So how do you efficiently pick these orders? A cart with a bin and a tote barcode can come in handy. You can sort the smaller items into the bin, while the rest can go onto the cart. With this method, you can maximize your picking efficiency and ensure that the correct items get to their destinations.
How ShipHero Does It
When it comes to single-item batch picking, it’s important to have a specific process to ensure orders are picked efficiently and quickly. While it may seem straightforward, there are nuances to consider. Our app is designed to guide users to the correct location and helps them scan barcodes to select the required items quickly. This method can help complete a high volume of orders in just a few minutes. Watch our video to see precisely how single-item batches work.
Tips for Optimizing Your Picking Process
The location of your inventory storage, the type of shelving you use, and the location of your picking stations all affect accuracy and efficiency. Here are some simple tips for optimizing your picking process:
- Keep unique SKUs separate in storage.
- Ensure easy access to products for pickers.
- Assign specific zones for different products. (e.g., hot sellers, seasonal items)
- Efficiently minimize travel time by batching orders and optimizing your pick paths.
- Continuously adjust and improve your picking process as your business and inventory evolve.
Tote Organization
Efficient tote organization in the warehouse is crucial for companies to maximize their productivity. Totes are an excellent solution for transporting and storing items that vary in size and weight. They can also help streamline the picking and packing process with the pick-to-tote method. However, it’s not just about having totes on hand. To truly master the organization of totes in the warehouse, you must also focus on effectively labeling and categorizing the items within each tote according to their bin location to minimize the risk of errors and optimize the workflow.
Why Use Totes?
At ShipHero, we prefer plastic totes for their durability, stackability, and space-saving features. We also find them to be an excellent choice for these additional reasons.
- Easier to clean
- Low cost
- Durable
- Maintenance-free
- Efficient
- Recyclable
Mastering Bin Location
If you’re serious about warehouse organization, mastering bin location is crucial. The two most common methods of bin labeling are standard and serpentine rack labeling. With standard labeling, each rack, shelf, and bin gets a unique ID with numbers and letters reflecting aisle, rack, level, and bin. This method works well for straightforward warehouse layouts. However, if your warehouse is more dynamic, you might prefer serpentine rack labeling. It differs in that labeling follows a zigzag path up and down each aisle. Mastering bin location will help boost warehouse efficiency and accuracy regardless of your chosen strategy.
It’s a good idea to follow industry standards when organizing your shelves. This will help things run smoothly and avoid problems. It can also prevent the need to constantly rename things and make it easier for people who pick items from the shelves.
- Start numbering shelves from the ground up to avoid relabeling shelves as you add height. For example, if you have a four-shelf rack, label the bottom shelf as number one and the top as number four. If you add shelves, the new location will be added on top of shelf four without changing labels.
- To ensure the system accurately reads alphanumeric locations, it’s best practice to use zero for all numbers under ten. For example, use 01, 02, and 03 instead of 1, 2, and 3.
- Consistency is key. Using an inconsistent labeling method can cause chaos in your system and with your employees. Stick to a consistent approach to avoid confusion and maintain efficiency.
Pick-to-Tote
A tote-picking system offers numerous benefits. One advantage is dedicating a picking function to a specific area. With totes that can easily accommodate a range of items, pickers can focus solely on getting the pick right without worrying about sorting or organizing their items in multiple boxes.
This reduces operator travel and the required movements, allowing employees to complete more orders quickly and efficiently. Using well-labeled totes, dividers, and bins to subdivide inventory makes picking and sorting through large quantities of small items easy, further increasing productivity. With a tote-picking system, operators can concentrate on what matters: picking.
Make 2023 the Year You Upgrade Your 3PL
Take a look at how your warehouse processes are performing, and continually strive for improvement. Quite often, utilizing pick methods such as batching multi-items or single-items, together with the proper tote organization, is what makes the most significant difference.
With ShipHero, you can rest assured that you’re in good hands; our expertise ensures that your picking process is optimized for maximum efficiency and profitability. We understand that this is a big undertaking for any business owner–that’s why we provide many resources to make this transformation as seamless as possible. So, is your warehouse as efficient as it can be? If not, reach out to the ShipHero experts – we’ll be more than happy to assist you!
Apr 17, 2018 | Best Practices, Blog, Fulfillment
Originally featured on Startup Nation
Although it may seem like ages ago, many of us remember what an ordeal it was to order products that were unavailable in our local stores. Back then, free shipping wasn’t a thing. Two-day shipping was exorbitantly expensive and reserved for nearly-forgotten birthday presents for the notoriously hard-to-please grandma. And if we needed pedestrian items like lightbulbs or toothbrushes, we would pencil in an immediate trip to Walmart.
Fast forward years later, and we are not only ordering these items online, but Amazon Prime members can expect to receive them in two days with no shipping charge. With Prime, it seems that we can order nearly anything and have these items land on our doorsteps in two days or less. As a result, most of us are guilty of abandoning our carts on other sites after discovering that a) shipping isn’t free and b) it could take five to seven days to receive our orders. Why would we want to pay extra and wait when we can just click on our Amazon app and receive the same product within two days?
This common consumer behavior is supported by the fact that sites offering “free shipping” reduce abandoned carts by 36 percent.
And this means that it is now essential for e-commerce startups to offer free, fast shipping. But while this seemingly unreasonable demand may strike some as an insurmountable challenge, there are several things that entrepreneurs can do to get their orders out quickly and at low cost.
Businesses need to minimize the time between the order received and the shipping label on the box. When dealing with higher volume orders, it’s important to:
Influence the customer’s perception of speed
As soon as an order is shipped, the email with tracking information should be in the recipient’s inbox. Even if the order itself doesn’t arrive in two days, the knowledge that the product was shipped immediately will influence the shopper’s perception of shipping speed. The positive experience of knowing the order was shipped and the expectation of when the order will arrive increases the possibility of the customer returning for further purchases.
Get a shipping rate quote for each order
Shipping costs can vary widely among the different carriers, so it benefits business owners to search for the best price. If shipping many orders that are similar, then you may benefit from group shipping methods based on the order type. If handling orders that have a variance of line items, manually rate quoting each order can be time-consuming, which in turn causes orders to become backlogged. Instead, you should choose an optimized platform or program to quickly determine the cheapest option without holding up the order fulfillment process.
Build shipping costs into the order
It’s even possible to make money using this tactic, especially if the cheapest option among shipping carriers was chosen. Business owners can also review reports on how much was charged for shipping versus how much was actually paid. Typically, most WMS (warehouse management system) solutions provide these shipment reports that chart the historical performance of orders that were shipped out.
Reduce the steps required to fulfill orders
Entrepreneurs tend to use paper pick lists to manually fulfill orders. However, this can be a slow and error-prone process, especially if the warehouse is disorganized or pickers are unfamiliar with the warehouse layout. Instead of paper pick lists, go digital. The best way to improve order fulfillment speed is to incorporate barcodes. Barcodes eliminate the guesswork involved in picking and packing orders and drastically reduce fulfillment errors.
If a company has a wide selection of products in a warehouse that has aisles and shelves, it’s extremely important to organize inventory (and if possible) use technology to optimize picking routes. This reduces walk time, and again further eliminates potential mistakes when picking items for orders.
Use pre-calculated weights to simplify the packing process
Generally, the cost of shipment is determined by either the weight or the package it’s shipped in (or both, depending on what the order is and where it’s going). While using scales at the time of packing seems like a logical step to determine the weight of the order, there are solutions that allow you to set the weight according to the product’s SKU or the weight and shipping method of each type of shipping container. This method, combined with a rate quote comparison for each shipment, will allow you to achieve a more efficient shipment cost per order when weight needs to be accounted for.
Create magic when a customer receives their order with surprise and delight
It’s definitely a challenge to beat Amazon’s speed and free shipping; and even if an entrepreneur is running a very efficient operation, it will still be a benchmark to reach. So, what else can a growing e-commerce startup do to compete?
They can add an additional element of experience for customers by personalizing the order. If the owner is using Shopify as the e-commerce store, it’s possible to determine if the customer is a first time customer or has ordered before. Some WMS solutions provide automation rules to set personalized notes or even to add a free product to the order based on what is contained in the order, or the profile of the customer. This personal touch makes a big impact on the customer, and is often more valuable than the expected shipment that arrives a little bit earlier.
Dec 4, 2018 | Blog, Fulfillment
Every year, consumers drag themselves out of a post-Thanksgiving stupor to hit the stores for Black Friday. With some stores now opening as early as noon on Thursday and offering online promotions through the following Cyber Monday, Thanksgiving has become one of the biggest commercial holidays of the year.
According to Amazon, the five shopping days starting with Thanksgiving itself, nicknamed the “Turkey 5,” broke U.S. records this year with consumers purchasing millions more products than they had the year before. Adobe Analytics experts have revealed that e-commerce sales alone hit a record $8 billion this Cyber Monday alone, making it the biggest shopping day in U.S. history.
Sales figures are the most obvious way to capture a glimpse of the commercial significance of holiday shopping days like Cyber Monday, but it paints a limited picture. To grasp the true scope of this shopping extravaganza, it is interesting to view the shipping data for Cyber Monday purchases.
Let’s take a closer look at some of the sales data for Cyber Monday 2018 and how it correlates with data from the top shipping carriers in the U.S.
A Deeper Look at Cyber Monday 2018
While some families spend their post-turkey hours settled into their easy chairs watching Thanksgiving Day football or sleeping off their third helping of pumpkin pie, others load the kids into the minivan as soon as they finish their last bite and head out to hit the mall.
And then there are the online shoppers. Those savvy savers who avoid the long lines, taking advantage of holiday deals from the comfort of their La-Z-Boys.
According to Adobe Analytics, Thanksgiving Day shopping totals about $3.7 billion online with Black Friday sales totaling over $6 billion. The real money is spent on Cyber Monday – what Adobe has dubbed “the largest shopping day in US history.” John Copeland, head of Marketing and Customer Insights at Adobe announced that Cyber Monday sales topped $7.9 billion with $2 billion coming in from smartphones, an all-time high.
Financial figures aside, Amazon recently released a report of the types of products that sold on Cyber Monday 2018. Across the “Turkey 5,” Amazon customers alone ordered more than 180 million items. On Black Friday alone, customers ordered over 4 million toys and electronics through the Amazon mobile app and customers around the world purchased more than 18 million toys and over 13 million fashion items over the course of the weekend.
Not only did Cyber Monday 2018 reveal a record number of sales, but Akamai has released data on conversion rates for mobile and desktop devices. Conversion rates for mobile devices averaged 2.72% with desktops averaging around 5.12%. Bounce rates were up as well, with mobile devices bouncing 34.71% and desktops 25.74%.
Cyber Monday Shipments by Carrier
Every holiday season, retailers and customers rely on shipping carriers to get their purchases where they need to go. Shipping carriers hire countless seasonal employees and offer extra initiatives like Sunday delivery to help manage the increased load. They also release shipping deadlines to help consumers make sure their domestic and international shipments arrive in time for the holiday.
During the holiday season as a whole, shipping carriers struggle to keep up with the growing number of holiday sales and the challenge peaks on major shopping days like Cyber Monday. While private carriers like FedEx and UPS shoulder a significant portion of the holiday load, the United States Postal Service takes the biggest piece of the pie.
Here is an overview of the percentage of Cyber Monday 2018 shipments divided by carrier:
- USPS – 56%
- FedEx – 20%
- UPS – 9%
- First Mile – 9%
- DHL – 6%
Cyber Monday Shipments by Country
Though Cyber Monday is widely regarded as an American commercial holiday, online purchases made on this day travel around the world. According to 2018 Cyber Monday shipping data, the majority of purchases made in the U.S. were shipped domestically but another 9 international shipping destinations made the list. Here is an overview of Cyber Monday 2018 shipments divided by country:
- United States – 94.62%
- Canada – 2.34%
- Great Britain – 1.26%
- Australia – 1.03%
- France – 0.26%
- New Zealand – 0.15%
- Ireland – 0.06%
- Japan – 0.03%
- Singapore – 0.03%
- Korea – 0.02%
Cyber Monday Shipments by State
The beauty of online shopping is that customers can purchase from any online store no matter where they are physically located. Some states carry a larger piece of the pie, of course, based on factors such as population and demographics. Here is an overview of the percentages of Cyber Monday 2018 shipments divided by state:
- TX — 13.50%
- CA — 11.30%
- NY — 6.20%
- FL — 5.40%
- IL — 4.70%
- PA — 3.40%
- OH — 3.10%
- GA — 3.10%
- NC — 2.70%
- NJ — 2.60%
- MI — 2.50%
- VA — 2.40%
- WA — 2.30%
- TN — 2.10%
- MA — 2.10%
- IN — 2.00%
- MO — 1.90%
- AZ — 1.90%
- CO — 1.90%
- MN — 1.60%
- OK — 1.60%
- AL — 1.60%
- MD — 1.60%
- LA — 1.50%
- SC — 1.40%
- WI — 1.40%
- KY — 1.30%
- OR — 1.20%
- UT — 1.10%
- IA — 1.00%
- CT — 1.00%
- AR — 1.00%
- KS — 0.90%
- MS — 0.80%
- NV — 0.80%
- NE — 0.70%
- WV — 0.50%
- ID — 0.50%
- NM — 0.40%
- NH — 0.40%
- ME — 0.30%
- HI — 0.30%
- DE — 0.30%
- ND — 0.30%
- RI — 0.30%
- MT — 0.30%
- SD — 0.30%
- DC — 0.20%
- WY — 0.20%
- AK — 0.20%
- VT — 0.20%
Each year, more brick-and-mortar businesses close their doors or take their sales online to meet their customers where they are. Modern technology has made it easier than ever for consumers to find the products they want without setting foot outside the comfort of their own homes.
As holiday sales break records year after year, however, one thing remains constant – someone has to deliver those millions of purchases. Shipping carriers make use of modern technology themselves to streamline the shipping process, and they take steps to prevent holiday delays as much as possible. FedEx hires 55,000 seasonal employees each year, and UPS hires some 100,000 over the period of several weeks while also increasing hours and extending shifts for regular employees to manage the increased holiday load.
The world of consumerism is constantly changing, and it falls on the shoulders of shipping carriers like USPS, FedEx, and UPS to carry the burden of that change. Even as the world changes, however, U.S. consumers will still expect their packages to arrive on time and shipping carriers will do their best to meet these demands. 3PL software companies like ShipHero help your business find the best and cheapest carrier shipping options.
*Data based on an analysis of over 100,000 shipments during Cyber Monday 2018.
Oct 7, 2020 | Blog, Fulfillment
Ah yes.
The instant dopamine rush of seeing your name on that big, brown package sitting on your doorstep. You pick up the box and scurry inside, grab your trusty pair of scissors, open the box and… it’s not what you ordered. Dang.
ShipHero – We Have a Full Range of Ecommerce Fulfillment Services to Handle Your Returns and Much More
Is there a bigger frustration in the shopping experience than having to return an item? Long lines, obscure policies, unhelpful employees, and where the heck did you put that receipt? And that’s just pre-COVID, back when you could go to the store and meet the perpetrators face-to-face.
And what’s more, in the age of rising e-commerce sales where shopping, browsing and just about everything is done online, approximately 30% of orders are returned, which translates to 3 in every ten packages you can expect to return. This figure rises to a whopping 50% for clothing retail. Not only that, those percentages only account for when the shopper purchases items for themselves, not as a gift. Oh, and speaking of…
Black Friday Cyber Monday shopping is right around the corner, with most shoppers reporting to start shopping in October. 2020’s holiday season will smash ecommerce delivery records and with delivery companies like UPS, USPS and FedEx already strained or at capacity, let’s talk about the returns aftermath.
Online Returns
National Returns Day is January 2nd, so don’t forget to get your mailperson something nice.
In case you weren’t aware, National Returns Day is known as the day in which American shoppers return the highest amount of packages back to retailers. In fact, Reuters stated that “UPS estimated that it processed 1.9 million Christmas returns for U.S. retailers on National Returns Day 2020 (January 2, 2020), equating to a 26% year-over-year increase.”
When compared to purchases made in a traditional brick-and-mortar retail location, purchases made online are returned three times more frequently. The major cause of online returns stems from a disconnect between what is advertised online versus what is actually shipped to the consumer, and the main culprit seems to be issues with how the product is portrayed, such as low-quality images or incorrect size and style comparisons for clothing. In fact, discrepancies in sizing with each manufacturer are responsible for more than half of all customers that are returning clothing items due to a wrong size or fit.
Considering that e-commerce sales revenue is growing 15 percent year over year, and the product return rate sits around 30 percent of sales, that leads to about 4 billion additional units that need to be delivered and shipped. Considering the effects of the pandemic, with delivery companies already at capacity and demand only increasing, you would assume that this has an impact on what companies accept for returns. But, you can just return them for free, can’t you?
The Cost of Free Returns
We as consumers have come to expect relatively liberal return policies from our stores. With Amazon Free Returns, Walmart Free Returns, Nordstrom, and L.L. Bean all having notoriously generous return policies, almost 32% of shoppers in the US reported that they would forego an online purchase if there wasn’t an offer of free returns.
The process of preparing returned products to be sold further diminishes profit margins, and the term ‘Free Return’ comes with a lot of hidden costs, either tacked onto the price of goods by way of margins, or fronted by the retailer for competitive reasons.
In order to successfully reduce the adverse effects that returns have on your e-commerce business without taking the margins hit of ‘Free Returns’, you need to know why, when, and how customers return items, especially during these uncertain times. This is where reverse logistics supply chain capabilities are able to help your business maintain inventory, reduce operational costs, and provide your customers with a phenomenal return experience. So, what is reverse logistics?
Reverse Logistics: The Solution to Returns
Reverse logistics supply chain is defined as the operations involved in the moving of product from the end consumer back to the seller or manufacturer for the purpose of satisfying returns, salvaging value, or recycling and disposal.
According to a 2020 report by Tech HQ, “The global reverse logistics market is forecast to hit US$603.90 billion by 2025, and businesses can save millions of dollars if reverse logistics management is implemented and done properly. With the expansion of the e-commerce industry emerging in parallel with the closure of many brick-and-mortar stores, retailers can expect to see a hike in return goods once the reopening of the sector begins.”
While brick-and-mortar retailers have the ability to leverage their COVID-19 solutions of contactless check-out and curbside pick-up and dropoff to handle the onslaught of returns, those without a physical location must handle this through delivery and fulfillment companies.
If you are an online retailer, this should signal to you that solving returns will absolutely be an essential component of your business if you want to properly maintain inventory, retain revenue, avoid exorbitant operating expenses, increase customer loyalty, AND increase your company’s sustainability and eco-friendliness.
The answer seems to boil down to a data-driven approach fueled by big data, and in some cases, blockchain.
Partnering with companies like Happy Returns and Returnly will allow e-commerce businesses to turn logistical challenges into business opportunities, as well as transform return policies and processes into a holistic returns strategy. This translates to understanding all aspects like why, how, and when customers make returns, and using a data-driven approach to optimize the return process.
Smart fulfillment companies like ShipHero leverage their partnerships with companies like Happy Returns as well as their expansive big data collection and analysis capabilities in order to forecast returns and plan accordingly, ensuring that your customers are happy, your margins are intact, and your company is sustainable. Check out ShipHero’s full line of ecommerce fulfillment services that can handle your company’s fulfillment, returns, and much more.
