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Are your outbound shipping costs eating your 3PL’s profits? Today, we will cover five critical factors affecting your shipping costs and provide actionable tips to help you reduce them. We'll give insights on everything from delivery speed to special handling fees to ensure you make operational decisions that save time and money.
For products shipped domestically within the US, two key factors come into play: the destination zone and the package's weight.
Carriers have established nine zones across the US, with the origin address as Zone 1. Your shipping fees increase as your package moves further from its origin. Here are the current zones with their mileage differences from the source.
When it comes to shipping packages, weight matters, it's a simple concept: the heavier the package, the more you'll have to pay to get it where it needs to go. But it's not just about weight; the package's dimensions also play a significant role.
It’s a tricky balance - you want your package to be the right size to hold your products but not so large that it triggers DIM weight surcharges. Investing in a packaging design strategy is worth the time to determine the optimal package size and weight to avoid unnecessary expenses. It's a small step that can significantly impact your bottom line.
If you're not taking advantage of duty relief programs for international shipping, you're leaving money on the table. The numbers don't lie - Section 321 alone can save you up to 20% on duty fees, and that's a significant amount. So, what exactly is Section 321 all about?
Section 321 of the Trade Facilitation and Trade Enforcement Act has revolutionized the eCommerce shipping costs for shippers from Canada or Mexico sending goods into the U.S. to individual customers. With tax and duty exemptions, faster clearance, and reduced paperwork, shippers have remarkable advantages at their fingertips.
Section 321's duty-free entry for goods valued at $800 USD per person per day is a smart way for businesses to grow, as it offers savings for brands looking to get their items to American consumers. While certain products are restricted, these regulations should not deter businesses from enjoying the benefits Section 321 can bring.
The persistent and aggressive growth in eCommerce demands a seamless process to satisfy customers’ needs, and delivery speed is an essential aspect of any business that hopes to keep up with customer demands in today's marketplace.
Margin integrity is crucial if you want to stay profitable. At ShipHero, we understand that maintaining a delicate balance between cost and delivery speed is essential for our margins to remain healthy. It hasn't been an easy process, and we've made our fair share of mistakes.
Nevertheless, we've learned that customers expect two-day delivery from Amazon but are generally willing to wait three to four days for other businesses. However, specific expectations, such as real-time tracking, still need to be met.
90% of customers want immediate updates and real-time order visibility. Adopting technological solutions can improve delivery experiences and lower consumer inquiries.
32% of global shoppers will abandon their carts if an estimated shipping time is too long. Rising standards are forcing 3PLs and carriers to reevaluate traditional distribution models.
Get ahead of the trend by utilizing micro-fulfillment centers (MCFs) to cut delivery times. MCFs are strategically placed in urban areas and stocked with popular products, making it easy for customers to pick up their online orders. This gives shippers the flexibility to meet rising consumer expectations promptly.
Although setting up these local centers can be challenging and pricey, it pays off in the long run by reducing shipping costs and providing an efficient and cost-effective service. Leading 3PL companies are already reaping the benefits of this strategy and improving their overall performance.
Last-mile delivery accounts for 53% of the total shipping cost, and 3PLs simply can't afford to miss the mark here. The final stage of the delivery process is where customer satisfaction and profitability are either made or broken. Unfortunately, too many managers responsible for supply chain and digital functions face significant challenges in this crucial area.
But fear not; there are solutions. By partnering with the right players, businesses can meet and exceed their customers' expectations while boosting their bottom line. That's why we offer Veho's efficient and cost-effective last-mile delivery solutions.
By prioritizing necessary orders and reducing failed deliveries, Veho can make money while delivering the high level of service customers deserve while saving your 3PL money on last-mile delivery.
When it comes to the efficiency of a warehouse, it's essential to have a well-oiled team handling the packing process. After all, warehouse teams can make or break the whole operation. Here are some questions to ask yourself regarding your teams.
Training is crucial for a proficient team, minimizing staff turnover, and boosting profits. It should cover SOPs, equipment handling, inventory management, customer order systems, and obtaining certification for specific tasks.
Regularly assess your packing station's efficiency to identify areas for improvement and reduce labor costs. Implement one-touch stations and focus on ergonomic design and workflow to optimize productivity and reduce errors.
Optimizing your picking paths might be the key to unlocking higher profit margins for your business. It's simple – a slower picking process leads to increased picking costs, inevitably leading to higher product prices for your customers.
While a 95% to 98% order accuracy rate may seem reasonable, it still allows for a 2% margin of error or potentially even worse outcomes. These errors can result in significant financial losses for your warehouse.
Fortunately, implementing warehouse automation can reduce human error and improve inventory control. This will significantly enhance picking accuracy, bringing it closer to 100% and ultimately saving you money by reducing mistakes and mispicks.
Measuring data is crucial to improve business operations. Knowing your warehouse's key performance indicators (KPIs) is essential. Collecting and analyzing the correct data identifies inefficiencies and avoidable expenses. You'll need to track everything from receiving through shipping to get a complete picture of your operations.
Here are a few KPIs to consider:
As a shipper, you're no stranger to handling fees for hazardous materials and fragile items. But did you know that these fees can have both advantages and disadvantages? Let's take a closer look at how they can impact your bottom line.
Shipping hazmat and fragile items can be profitable, but shippers must address customer concerns and competition while complying with regulations.
When it comes to shipping fragile items, there's no room for error. After all, damaged items don't just impact your bottom line - they can also significantly affect your reputation. That's why taking proactive steps is essential to ensure your items arrive at their destination in one piece. One way to do this is by enlisting the help of your special projects team to assemble kits or pre-assemble your items.
Surcharges are a necessary evil in shipping and logistics, so they can be the bane of your bottom line if you're not careful. That's why it's essential to be informed and proactive about the different types of surcharges your product lines may encounter.
Navigating outbound shipping can be a complex and costly process for 3PL operators. Negotiating base rates with carriers is just the beginning; understanding accessorial charges and selecting the best base rate based on package specifications is key to mitigating costs. The challenge lies in the surcharges associated with specialized services, which can drive up costs and make it challenging to predict expenditures.
Additionally, general rate increases can significantly impact carrier base rates for 3PLs. However, the right approach and tools can reduce shipping expenses. By utilizing shipping cost strategies, analyzing costs, and planning, surcharges can be minimized.
It is important to be mindful of shipping charges, as they can quickly add up and cut into your profits. One way to reduce these costs is by considering the size and weight of your parcels. Oversized boxes or improper packaging can result in higher fees. Look for carriers that offer the correct type of flat-rate shipping or the fees that make the most sense for you and your products.
Additionally, be aware of dim weight pricing (as we discussed at the top of this article), which considers the box's length, height, and weight. This can sometimes result in extra fees for light packages that take up a significant amount of truck space.
Reducing shipping charges is crucial for businesses of all sizes, and optimizing warehouse operations can help achieve this goal. Proper software training is essential to maintain consistency with the packing team and reduce unnecessary costs.
A warehouse management system (WMS) like ShipHero can provide automation that streamlines business operations, but it needs to be used accurately. Your WMS training program should cover all aspects of the hardware and software and the different methods used to manage goods efficiently within the warehouse. By emphasizing the importance of WMS training and implementing consistent warehouse practices, your business can reduce shipping costs and improve overall efficiency.
Troubleshooting internal errors such as incorrect scales and improperly stocked packing stations can also enable you to minimize touchpoints and increase automation. With automation rules, packers can always use the appropriate box when shipping specific products. These steps allow you to confidently assert control over your shipping process and save valuable business resources.
We offer a variety of automation rules to help businesses save money on shipping charges. Our VIP customer treatment rule ensures that your most valuable customers receive a gift SKU or marketing insert with their orders, express shipping, and prioritized order processing. Our pre-sale item rule helps businesses save by setting a partial shipping flag for orders that exceed a specific dollar amount.
Additionally, SKU-specific notes can be assigned to certain items, which is handy for fragile items that require special handling. Finally, we automate box type selections, streamlining the packing process and saving businesses time and money on shipping. With the proper automation rules, businesses can significantly reduce shipping charges and improve their bottom line.
To summarize, consider all five critical factors mentioned in this post to reduce your outbound shipping costs: destination and origin, delivery speed, warehouse team processes, special handling fees, and surcharges.
With the right tools and expertise, you can ensure that your 3PL profitability remains reliably on track. And with hard work and dedication to intelligent decisions about outbound shipping strategies—increasing or decreasing delivery speeds or minimizing surcharge risks— you should be more than capable of achieving your goals.
It takes a lot of work, but investing time now to craft an efficient system for managing outbound shipments will pay off down the line. To start managing your outbound shipments efficiently today, try a ShipHero demo and get a jump start on reducing those shipping costs!
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 thousands of 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.
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A 3PL Warehouse Management System (WMS) is a software solution that helps companies manage and optimize their warehouse operations. It provides a centralized platform for handling tasks such as inventory management, order fulfillment, shipping, and receiving.
It’s an essential tool for third-party logistics providers that lets them efficiently manage their clients' warehouse operations.
A key challenge third-party logistics providers face is managing the vast amount of inventory stored in their warehouses. The 3PL Warehouse Management System addresses this challenge by providing a comprehensive set of tools and functionalities to effectively manage and control warehouse operations.
At its core, the 3PL WMS is a software application that integrates with the existing warehouse infrastructure and automates various processes like inventory management, order fulfillment, and shipping. It provides real-time visibility into inventory levels. And it helps logistics providers optimize storage space and ensure accurate stock levels.
Moreover, the 3PL WMS enables efficient order processing by automating tasks like order picking, packing, and labeling. It provides warehouse staff with detailed instructions on how to fulfill each order, and this minimizes errors while improving overall productivity.
Another key feature of the 3PL WMS is its ability to track and trace goods throughout the warehouse. By using barcode scanning or RFID technology, the system can accurately track the movement of inventory from the moment it arrives at the warehouse to the moment it leaves for delivery.
Furthermore, the 3PL WMS offers advanced reporting and analytics capabilities. They can generate reports on key performance indicators like order accuracy, on-time delivery, and inventory turnover. This helps businesses identify areas for improvement.
In addition to these core functionalities, the 3PL WMS can be customized to meet the specific needs of different industries and clients. For example, it can support temperature-controlled storage for perishable goods or provide specialized picking algorithms for eCommerce fulfillment.
In conclusion, the 3PL Warehouse Management System is a powerful tool that enables third-party logistics providers to efficiently manage their clients' warehouse operations. By automating key processes and providing real-time visibility into inventory, the system helps improve productivity, accuracy, and customer satisfaction. It’s an indispensable asset for logistics providers in today's complex and competitive business environment.
To further understand the scope and benefits of third-party logistics, explore our detailed guide on 3PL services, which highlights how these services streamline operations and enhance efficiency.
Implementing a 3PL Warehouse Management System can bring numerous benefits to a company.
Firstly, it provides real-time visibility into stock levels and locations to reduce the risk of stockouts and minimize excess inventory.
Secondly, a 3PL WMS improves order fulfillment efficiency by automating processes like order picking and packing. This leads to faster order processing times and improved customer satisfaction.
Additionally, a 3PL Warehouse Management System lets companies optimize their warehouse space utilization. By providing insights into optimal storage locations and recommending efficient picking routes, it maximizes the storage capacity and minimizes unnecessary movement.
Lastly, a 3PL WMS enhances supply chain visibility by providing real-time tracking and reporting tools. This lets companies monitor the flow of goods, identify bottlenecks, and make data-driven decisions to improve overall efficiency.
Ecommerce businesses require specialized inventory management solutions to meet the dynamic demands of online retail. Learn more about ecommerce inventory management software that complements 3PL WMS for seamless integration and enhanced efficiency.
A good 3PL Warehouse Management System offers a range of features to support warehouse operations. These features include:
Choosing the right inventory management software is crucial for optimizing warehouse operations. Discover the best inventory management software options that can seamlessly integrate with 3PL WMS to provide comprehensive inventory control.
When considering a 3PL Warehouse Management System, it's important to assess the specific requirements of your business. Some key considerations include:
A key advantage of a 3PL Warehouse Management System is real-time visibility into warehouse operations.
Companies can access up-to-date information on inventory levels, order statuses, and overall performance at any time so businesses can quickly identify and address bottlenecks.
Following these steps will help you carefully plan and integrate a 3PL Warehouse Management System:
When choosing a 3PL Warehouse Management System, it's important to consider the following factors:
The cost of a 3PL Warehouse Management System can vary depending on factors like the size of your business, the features you want, and the vendor you choose. Some vendors offer pricing models based on the number of users or the volume of goods processed. Request quotes from different vendors and consider the long-term ROI when evaluating the cost of a 3PL WMS.
A 3PL WMS helps companies manage and optimize warehouse operations, including inventory management, order fulfillment, and reporting.
A 3PL Warehouse Management System can improve inventory accuracy, order fulfillment efficiency, warehouse space utilization, and supply chain visibility.
Key features include inventory tracking and management, order management, picking and packing optimization, real-time reporting tools, and system integration capabilities.
The cost varies depending on factors like the size of the business, desired features, and the vendor chosen. It's important to request quotes and consider long-term ROI.
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If you're looking for the best 3PL companies in Canada, you've come to the right place. This article will introduce you to some of the top players in the industry and provide valuable insights into the world of third-party logistics in Canada.
Before going into the specifics, it’s important to understand what third-party logistics or 3PL is.
In simple terms, 3PL refers to the outsourcing of supply chain management functions to a specialized company. These companies handle various aspects of logistics like transportation, warehousing, and distribution on behalf of their clients.
By entrusting their logistics operations to a 3PL provider, businesses can focus on their core competencies while benefiting from the expertise and resources of the 3PL company. It's a win-win situation that has gained popularity across industries.
In the transportation arena, 3PL providers play a crucial role ensuring the smooth movement of goods from one location to another. They have extensive networks of carriers and can negotiate favorable rates that save their clients money. Additionally, 3PL companies have the expertise to optimize routes, track shipments in real-time, and handle any unexpected issues that may arise during transit.
Warehousing is another area where 3PL providers excel. Most have strategically located warehouses equipped with state-of-the-art technology and systems to efficiently store and manage inventory. This helps businesses reduce their warehousing costs and benefit from extra scalability and flexibility. With advanced inventory management systems, businesses have real-time visibility into their stock levels, ensuring timely replenishment and minimizing stockouts.
And beyond transportation and warehousing, 3PL provider services can include order fulfillment, packaging, labeling, and even customer support. By leveraging these additional services, businesses can enhance their overall supply chain operations and improve customer satisfaction.
A key advantage of partnering with a 3PL provider is access to their expertise and industry knowledge. 3PL companies are always up to date on the latest trends, regulations, and best practices in logistics. They can provide valuable insights and recommendations to optimize supply chain processes across many industries.
Another benefit of working with a 3PL provider is scalability. With a 3PL partner, businesses can easily scale up or down their logistics operations without significant investments in infrastructure or resources. They can adapt quickly to market demands and seize new opportunities.
In conclusion, third-party logistics, or 3PL is the outsourcing of supply chain management functions to specialized companies. These companies handle transportation, warehousing, and distribution on behalf of their clients, letting businesses focus on their core competencies. 3PL providers offer expertise, cost savings, scalability, and value-added services, making them an attractive option for businesses across industries.
To have a better understanding of how 3PL companies operate and the diversity of services they offer, consider reading our comprehensive overview of 3PL companies, which provides insights into selecting the right partner for your logistics needs.
In Canada, the 3PL market is vibrant and competitive. With its vast geographical area and robust trade relationships, the country presents numerous opportunities for logistics companies.
Canadian 3PL providers offer a wide range of services, catering to industries like retail, e-commerce, manufacturing, and healthcare. From managing inventory and order fulfillment to overseeing transportation networks, these companies play a vital role in the supply chains of businesses across the country.
The 3PL market in Canada is constantly evolving to meet the changing demands of businesses. As companies seek to optimize their supply chains and provide seamless customer experiences, the role of 3PL providers becomes increasingly important.
A Key factor driving this growth is the rapid expansion of e-commerce. As more and more Canadians turn to online shopping, businesses need efficient and reliable logistics solutions to fulfill customer orders quickly and accurately.
Canadian 3PL companies offer a comprehensive range of services to meet the specific needs of their clients. Common services include:
These services can be tailored to suit small startups, large corporations, and everything in between. By leveraging the expertise of 3PL providers, companies can streamline their operations and gain a competitive edge in the market.
To explore the specific services provided by third-party logistics providers and how they can transform your supply chain, explore our detailed discussion on 3PL services, offering a closer look at how these services streamline operations for businesses of all sizes.
Partnering with a 3PL company in Canada offers several benefits for businesses:
Overall, partnering with a 3PL company in Canada is transformative for businesses, offering a pathway to reduce operational costs, enhance efficiency, achieve scalability, maintain a focus on core business areas, and leverage expert insights.
These combined benefits create a formidable foundation for businesses to thrive and expand in the highly competitive Canadian marketplace.
Small and medium-sized enterprises seeking to capitalize on these benefits should explore our detailed guide on 3PL for small businesses. This resource is tailored to help smaller companies understand how to effectively utilize 3PL partnerships to enhance their logistics operations and support growth.
Several 3PL companies in Canada stand out for their industry expertise, reliability, and customer satisfaction::
Each of these 3PL companies in Canada brings its unique strengths to the table, from extensive national networks and fast delivery capabilities to specialized services and global reach. Choosing the right 3PL partner depends on a business’s specific logistics needs, growth goals, and the strategic value the 3PL can provide in facilitating efficient and effective supply chain operations.
If you're considering partnering with a 3PL company in Canada, here are a few steps to get started:
In conclusion, the best 3PL companies in Canada offer a range of services to optimize supply chains and fulfill the unique logistics needs of businesses. By partnering with a reputable 3PL provider, businesses can unlock new efficiencies, lower costs, and gain a competitive advantage in the Canadian market.
The cost of 3PL services in Canada varies based on factors such as the scope of services required, volume of shipments, and industry-specific needs. It's best to request quotes from multiple providers to get an accurate estimate.
Absolutely. 3PL providers offer scalable solutions, making them suitable for businesses of all sizes. Small businesses can leverage the expertise and resources of 3PL companies to optimize their logistics operations and compete more effectively in the market.
Choosing the right 3PL partner requires careful consideration. Look for companies with experience in your industry, a strong track record, and the ability to meet your specific requirements. Conducting thorough evaluations and interviews will help you gauge compatibility and make an informed decision.
Yes, many 3PL providers in Canada can handle international logistics. They can handle customs clearance, freight forwarding, and global transportation, ensuring a smooth flow of goods across borders.
Absolutely. Many 3PL companies in Canada specialize in niche industries, such as healthcare and pharmaceuticals. They have the necessary certifications, infrastructure, and experience to ensure compliance with industry regulations and safely handle critical goods.
Many businesses turn to third-party logistics (3PL) companies for their shipping, warehousing, and fulfillment needs, but it can be overwhelming to choose the right 3PL provider for your business with so many available options. Any of these five 3PL companies would be a great place to start:
If you know what a 3PL is and why you might need it, then you have five places to start your search. If you don’t know much about 3PLs, keep reading.
Third-party logistics refers to the outsourcing of logistics activities to a specialized company. These companies handle tasks such as transportation, warehousing, inventory management, and order fulfillment on behalf of their clients. By partnering with a 3PL provider, businesses can streamline their supply chain processes and focus on their core competencies.3PL companies offer a wide range of transportation services. They generally have a network of carriers and can negotiate favorable rates for shipping goods. By road, air, rail, or sea, these companies have the expertise to ensure that products reach their destination efficiently and on time. They also handle all the necessary documentation and customs clearance, taking the burden off the businesses.Warehousing is another crucial aspect of logistics that 3PL companies excel in. They have strategically located warehouses equipped with the latest technology and infrastructure to store goods safely and efficiently. These warehouses are often equipped with advanced inventory management systems that allow businesses to track their inventory in real-time. This ensures that businesses always have visibility into their stock levels and can fulfill customer orders promptly.Inventory management is a complex task that requires careful planning and execution. 3PL companies have dedicated teams that specialize in managing inventory. They use sophisticated software systems to track stock levels, monitor expiration dates, and optimize storage space. By outsourcing this function to a 3PL provider, businesses can minimize the risk of stockouts and reduce carrying costs.Order fulfillment is the final step in the logistics process, and 3PL companies play a crucial role in ensuring orders get delivered accurately and on time. 3PL companies often have efficient order processing systems in place to handle everything from picking and packing to labeling and shipping. With their expertise, businesses can provide their customers with a seamless and reliable order fulfillment experience.Overall, partnering with a 3PL provider offers numerous benefits for businesses. It lets the business tap into the expertise and resources of a specialized logistics company, optimize their supply chain, and improve customer satisfaction. By outsourcing logistics activities, businesses can focus on their core competencies and gain a competitive edge in the market.If you're new to the concept of third-party logistics and curious about the breadth of services they offer, our comprehensive overview on 3PL services breaks down everything from warehousing to order fulfillment, equipping you with the knowledge to make informed decisions.
3PL companies come in all shapes and sizes, offering a wide range of services to cater to different business needs. While some 3PL providers specialize in specific industries or regions, others offer comprehensive solutions that can be tailored to any business. The top 5 best 3PL companies on our list have proven track records, extensive networks, and a reputation for delivering exceptional results.
eCommerce businesses, retailers, manufacturers, and distributors are among the industries that commonly use 3PL providers. Startups and small businesses often choose 3PL companies to handle their logistics needs so they themselves can focus on growth and core competencies. Larger corporations also benefit from outsourcing logistics tasks; they can streamline their operations and gain access to specialized expertise. Startups and small businesses often face unique challenges in logistics and supply chain management. Dive deeper into how a 3PL can be a game-changer for small businesses by visiting our detailed guide on 3PL services for small businesses, offering insights to streamline your operations and focus on growth.
The top 5 best 3PL companies mentioned above excel in certain core competencies that set them apart from their competitors. These core competencies include:
When choosing a 3PL provider, it is crucial to consider their fulfillment center locations and warehousing capabilities. The top 5 best 3PLs above have strategically located warehouses across the country, allowing for faster and more cost-effective shipping. These companies have invested in state-of-the-art warehousing facilities that prioritize efficiency, security, and scalability.
eCommerce businesses rely heavily on effective supply chain management to ensure timely order fulfillment. The top 5 best 3PL companies integrate seamlessly with popular eCommerce platforms such as Shopify, WooCommerce, and Amazon. They also support multiple sales channels, including marketplaces like eBay and social media platforms. By leveraging the capabilities of these 3PL providers, eCommerce businesses can enhance their customer experience and boost sales.
When selecting a 3PL provider, consider their track record of customer satisfaction. The top 5 best 3PL companies have a proven history of delivering a high level of service and exceeding customer expectations. They have earned positive reviews and testimonials from their clients, showcasing their commitment to excellence.
If you decide to partner with a 3PL provider, the onboarding process is generally straightforward. It typically involves:
By following these steps, you can start leveraging the benefits of 3PL services and optimizing your supply chain management.
While selecting a 3PL provider, avoid these common mistakes that can lead to poor service or unsatisfactory results:
By being aware of these common mistakes, you can make an informed decision and select a reliable and suitable 3PL provider.
The cost of 3PL services can vary depending on the volume of shipments, storage requirements, and the complexity of logistics operations. 3PL providers typically use a pricing structure that includes fixed costs like warehousing fees, and variable costs based on the services used. Carefully review the pricing details provided by potential 3PL providers so you know it aligns with your budget.
In conclusion, partnering with a reputable 3PL company can significantly optimize your supply chain and enhance your overall business operations. The top 5 best 3PL companies stand out due to their extensive networks, advanced technology, superior customer service, and customizable solutions. When choosing a 3PL provider, consider factors such as industry expertise, technology capabilities, and customer satisfaction. By avoiding common mistakes and understanding the pricing structure, you can make an informed decision and select the right 3PL provider for your business.
3PL stands for Third-Party Logistics. It refers to the outsourcing of logistics and distribution by companies to third-party firms that specialize in warehousing, transportation, and fulfillment services. These third-party providers manage all or a significant portion of a company's logistics functions, allowing businesses to focus on other areas without the need for extensive logistics infrastructure or expertise.
While it is not mandatory, utilizing a 3PL company can provide numerous benefits, particularly for businesses that require efficient supply chain management.
Consider factors such as reputation, industry expertise, technology capabilities, and customer satisfaction when selecting a 3PL provider. Additionally, ensure their services align with your specific business needs.
TikTok Shop is discontinuing "seller shipping" on February 25, 2026, a move that will halt fulfillment for any 3PL using non-integrated legacy technology. ShipHero's WMS is fully integrated and approved to support TikTok Shop’s new logistics requirements, allowing you to generate compliant labels and avoid a total operational lockout. By migrating to ShipHero before the deadline, 3PLs can eliminate onboarding fees and ensure their clients’ businesses remain active and profitable.
Starting February 25, 2026, TikTok Shop is officially discontinuing "seller shipping" (also known as "bring your own label") for all U.S. local sellers.
This means your clients can no longer use their own carrier accounts for TikTok orders.
As their 3PL, you will be unable to generate labels unless your WMS is directly integrated with TikTok’s new ecosystem. To keep your clients' businesses running, you must transition them to TikTok Shop Logistics Services through a verified partner.
ShipHero can keep your 3PL orders flowing from February 25 onwards.
If you are running your warehouse on legacy systems, you are at risk of a complete TikTok Shop lockout. Your fulfillment—and your revenue—will simply stop that day.
TikTok's latest policy creates a massive bottleneck for 3PLs using legacy technology.
To help 3PLs transition quickly and stay compliant, we are waiving all onboarding fees for new customers who join ShipHero before February 25.
There are only 6 approved ERP/WMS providers globally that meet TikTok’s new integration standards. ShipHero WMS is on that list. Most legacy WMS providers are not currently approved. To avoid a total operational blackout for your clients, you must move to a verified partner like ShipHero.
No. Starting February 25, TikTok will discontinue seller shipping. All shipping must go through TikTok Shop Logistics Services.
No. You can still manage fulfillment from your own 3PL warehouse using ShipHero’s direct integration, which pulls the required TikTok labels and logic directly into your existing workflow.
You will lose the ability to generate shipping labels for any TikTok Shop order. This will result in immediate fulfillment backlogs, client dissatisfaction, and potential loss of contracts.
Yes. ShipHero is the only U.S. based WMS currently supporting these requirements, allowing 3PLs to continue shipping without interruption.
TikTok Shop is introducing mandatory logistics changes that will stop fulfillment for unprepared sellers on February 25, 2026.
ShipHero's WMS is fully integrated and approved to support TikTok Shop’s new logistics requirements, ensuring your orders keep moving without interruption. By switching to ShipHero before the deadline, brands can maintain compliance and eliminate onboarding fees during this transition. Here’s everything brands need to know to continue fulfilling orders.
Starting February 25, 2026, TikTok Shop will discontinue "seller shipping" for all U.S. local sellers. This means you can no longer use your own carrier accounts to generate labels for TikTok orders. To stay compliant and keep selling, brands must transition to TikTok Shop Logistics Services.
Relying on legacy systems like Extensiv, Deposco, or Logiwa puts your business at risk of account suspension and shipping delays that kill customer loyalty.
If your current WMS or 3PL is not integrated with TikTok Shop Logistics Services, you will face a total fulfillment blackout on that date. Failure to adapt to these changes risks shipping delays that kill customer loyalty and can lead to account suspension on the platform.
For brands onboarding on or after February 9, 2026, these restrictions are already in effect.
ShipHero has done the due diligence and has built a direct integration to ensure that merchants can fulfill TikTok Shop orders themselves while remaining fully compliant with TikTok’s new label requirements.
To help brands and 3PLs transition quickly and stay compliant, we are waiving all onboarding fees for new customers who join ShipHero before February 25.
Currently, there are only 6 approved ERP/WMS providers globally that meet TikTok’s new integration standards. ShipHero WMS is on that list. If you are using legacy providers like Extensiv, Deposco, or Logiwa, they are not currently approved to support these specific TikTok Shop requirements. To avoid a total operational blackout, you must move to a verified partner like ShipHero before the deadline.
No. Starting February 25, TikTok will discontinue seller shipping. You must use TikTok Shop Logistics Services.
You can use Fulfilled by TikTok (FBT) to store and ship items through their network, switch to one of the six approved ERP/WMS systems, or use ShipHero's direct integration.
You must use TikTok Shop Logistics Services, but with ShipHero, you can still manage the fulfillment from your own warehouse using TikTok’s required labels and logic.
This connection type will not support the new label requirements. You must switch to a direct TikTok Shop connection within ShipHero to avoid fulfillment interruptions.
Yes. ShipHero is currently the only U.S. based WMS that supports these requirements, allowing our customers to continue shipping without interruption.
Imagine running a warehouse where orders are picked quickly, inventory is accurate, and all operations run smoothly without any errors or delays. Thanks to Artificial Intelligence, this can now become a reality with ease.
AI is transforming warehouse management by enhancing efficiency, intelligence, and the ability to meet the rapid demands of today’s eCommerce-driven market.
ShipHero is pioneering this revolution with its AI-powered warehouse solutions, setting new industry benchmarks. This article explores ShipHero’s AI Picking feature, highlighting how it’s transforming warehouse management and enhancing operational efficiency.
The integration of AI technologies, including machine learning, robotics, and predictive analytics, is revolutionizing warehouse operations, driving significant improvements in efficiency, accuracy, and overall performance. These innovations are optimizing processes across various areas, from inventory management to order fulfillment. Below are the key benefits of AI in warehouse management.
A combination of AI technologies is shaping smarter warehouse systems to help revolutionize warehouse management.
ShipHero has taken AI integration to the next level with its AI Picking feature, designed to significantly improve warehouse efficiency. This feature automates the picking process, reducing the reliance on manual labor and enhancing productivity in ways that were once thought impossible.
Let’s dive deeper into how ShipHero’s AI Picking works and the advantages it offers.
AI Picking optimizes warehouse operations in two key ways:
The AI Picking feature delivers a wide range of benefits:
The transformative power of AI extends far beyond just picking. AI is also revolutionizing other aspects of warehouse management, driving improvements in operational efficiency, inventory management, and safety.
AI automates tasks, reducing errors and increasing speed. Automated sorting and real-time inventory tracking ensure accuracy, while real-time monitoring helps managers adapt and ensure timely deliveries.
AI plays a vital role in maintaining accurate inventory levels. By leveraging predictive analytics, AI can forecast demand and optimize stock levels, helping warehouses avoid both stockouts and overstock situations. This leads to better inventory management and fewer disruptions in supply chains.
AI-driven systems can monitor warehouse conditions to ensure safety and compliance with industry regulations. These systems can analyze warehouse data and predict potential hazards before they occur, proactively reducing risks and ensuring a safer working environment.
AI technologies are playing a transformative role in the supply chain and logistics sectors by improving efficiency, reducing costs, and enhancing decision-making.
These intelligent systems effortlessly manage supply chain processes by using data to optimize operations, predict trends, and automate routine tasks. This ultimately reshapes everything, from how goods are moved to stored and delivered.
The future of warehouse management looks promising with greater automation and efficiency, but future warehouse digitization brings challenges, such as high upfront costs and the need for skilled personnel.
AI-powered drones, autonomous robots, and IoT integration are smart warehouse technologies that are revolutionizing warehouse operations. Drones will deliver goods quickly, while robots automate sorting and transportation, thereby reducing the need for manual labor.
IoT and AI integration will enable real-time monitoring and optimization of operations. Smart technology in warehouses is leading to fully automated systems that are faster, scalable, and need minimal human input.
While AI offers immense benefits, businesses must also consider certain challenges. High initial investments in AI technology, data security concerns, and the need for skilled personnel are just a few of the hurdles that must be addressed.
However, with a strategic approach, companies can eliminate the challenges and embrace AI’s full potential to boost accuracy in picking and improve overall warehouse operations.
AI minimizes error by automating tasks like inventory tracking, order picking, and sorting, ensuring greater accuracy and efficiency.
Yes, AI-driven predictive analytics can predict demand, track inventory levels, and improve supply chain efficiency by forecasting needs with greater accuracy to help businesses stay ahead of trends and market fluctuations.
AI solutions are becoming more cost-effective thanks to cloud-based services and subscription pricing models. These options make AI technology more accessible to small businesses, allowing them to take advantage of its benefits without large upfront costs.
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