Providing quick, dependable delivery is critical for developing your eCommerce retail brand. According to the Pitney Bowe Holiday Shipping Survey, over 90% of customers consider shipping alternatives crucial to their purchasing experience, so fulfilling these needs is important.
Unfortunately, eCommerce businesses confront numerous shipping difficulties. Some of the most common problems are:
Scaling fulfillment as you grow
When your eCommerce brand develops, managing supply chain procedures becomes more difficult. More stock must be managed, more orders must be fulfilled, and your team may find it hard to keep up. Eventually, hiring extra staff is required, which increases your costs while potentially lowering inventory management.
Keeping up with major retailers and their fast delivery speeds
Outdoing one competitor that copied your brand colors and runs suspiciously similar marketing initiatives is not difficult, but you’re also competing with other brands when it comes to shipping rates.
You’re up against major eCommerce platforms like Amazon that provide quick delivery, including free two-day shipping. For most developing eCommerce businesses, providing fast shipping is costly, and if you can do it, your choices are to swallow the costs or charge your customers more.
Unfortunately, both of these options have significant drawbacks that may significantly damage your bottom line.
Knowing when & how to leverage data
Managing delivery processes, such as inventory, necessitates a significant amount of data, analytics, and reporting. Many eCommerce companies, on the other hand, have difficulties with accurate data recording and making sense of the information.
Reports on inventory, order history, pick and pack reports, and other information are meaningless unless your team knows how to make use of them.
Training & hiring warehouse fulfillment experts
Hiring a less experienced workforce may appear to be cost-effective on the surface. After all, fewer labor expenses means lower costs, right? Except it isn’t that simple.
It’s important to remember that the majority of goods available in a warehouse are handled by employees who have little or no experience. Because novice workers are less effective and prone to errors, returns and dissatisfied consumers may damage your bottom line. Your options are to either teach a less-experienced staff or engage specialists, both of which may be pricey.
Demand forecasting & inventory management
How can eCommerce companies anticipate when inventory runs low and when to reorder? How do companies plan for the peak holiday season and demand spikes, among other things? Answer: by monitoring inventory and predicting demand.
Unfortunately, accurately tracking inventory and forecasting demand may be difficult. To track real-time inventory levels, eCommerce companies require solutions that constantly note when items enter or leave the warehouse. In addition, to forecast demand, you’ll need systems that use prior data and industry trends to anticipate future purchases.
eCommerce marketplace fulfillment
Marketplace selling is an important tool for eCommerce businesses of all sizes to compete more effectively, but marketplaces have stringent tenants that are difficult to comply with.
There are disadvantages to eCommerce fulfillment, some of which may cause difficulties for your consumer: You don’t have direct control over the shipping procedure, so you can’t prevent delays or incorrect deliveries.
Warehouse management software
Warehousing management software that is no longer up to date (WMS) is unsuitable for eCommerce retailers’ needs. Many businesses rely on outdated WMS that was designed to manage truck loads. However, there are a lot of tiny purchases in the eCommerce industry. As a result, merchants need a WMS that can track these orders accurately, keep track of inventory levels, and react to large order volumes.
Fulfillment technologies have advanced considerably – retailers may now automate their warehousing processes with the aid of automation, conveyor belts, equipment such as cranes and forklifts, and even robots. However, purchasing these fulfillment tools might be costly at first, and maintaining them requires a knowledgeable staff.
As a result, eCommerce companies are stumped as to how to make the most of fulfilment technologies because hiring and training an expert staff is expensive and time-consuming for start-ups.
Packages can be sent via USPS, FedEx, UPS, or DHL. The cost of shipping varies depending on the carrier and there is no single ‘best’ partner to choose from. Some carriers may provide better pricing for smaller shipments while others might suit heavier items. To keep expenses low and the prices your clients pay, it’s critical to select the carrier that offers you the best rates for each order.
Unfortunately, many eCommerce companies find it difficult to determine freight rates with several carriers for each order and compare the costs.
With the eCommerce sector becoming increasingly competitive, eCommerce companies must meet client demands and outperform their rivals in order to develop. While merchants face several shipping problems, technology, automation, and a knowledgeable workforce may aid firms overcome these challenges.
Warehouse management software, like Launch Fulfillment’s, helps eCommerce businesses meet contemporary demands by delivering sophisticated analytics and reporting, precise forecasting, automation rules, and mobile tools to minimize errors and pick times.
Some firms, however, may find that outsourcing their fulfillment operations entirely to a third party, such as Launch Fulfillment, is more beneficial. In fact, over 90% of Fortune 500s have partnered with one because 3PLs are so successful.
Whether you want a sophisticated WMS or the finest fulfillment partner, start developing your eCommerce business now with Launch Fulfillment.
Schedule a consultation with one of our specialists now to learn more about how Launch Fulfillment can help eCommerce companies and 3PLs manage their best warehouse while also ensuring that businesses invest in solutions that match their requirements, improving productivity, revenue, and success.