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Periodically conducting an inventory audit is an important part of effectively managing an eCommerce business. During an inventory audit, financial records are double-checked against inventory records which is a good way to make sure records are accurate. This may uncover possible issues such as damaged or missing items.An eCommerce business may perform an inventory audit at any time to check inventory on hand in order to get a better idea of where things stand. Businesses may choose to audit all or part of their inventory periodically. Regular inventory audits can help prevent inventory shrinkage and can identify issues such as SKUs that are consistently off.
An inventory audit should be done at least annually. An inventory auditor may engage in a variety of inventory audit procedures to confirm that the amount stated as inventory is accurate. An annual audit may be done each year for tax purposes or it may be done to get a clear idea of what products are on hand and when they need to be restocked. An inventory auditor may be someone on staff or a third party from an outside auditing company.
To describe methods used to verify inventory, it’s a good idea to start with your inventory audit objectives. Every inventory audit includes counts of inventory and data analysis and is a way to check inventory to ensure it matches the information within your automation system. Examples of methods that may be used to verify inventory include:
This method involves counting all items in stock, which may be time-consuming. To obtain accurate results from this method, you’ll need to pause the actions of your business while the count takes place. Cutoff testing ensures that nothing goes in or out of the storage areas while the inventory audit is done. This means operations such as shipping and receiving are paused.
Using this method, you cycle through part of your inventory based on SKU. Selected products are audited each cycle rather than auditing the entire inventory at once. One way to divide inventory for partial auditing is by using ABC analysis. This means grouping items by value such as “A” products are high-value items, “B” products are mid-tier and category “C” consists of the lowest value products. ShipHero has a cycle count feature that makes it super easy to execute this inventory method. Check out this video to find out more.
Another approach is to periodically do a physical inventory of just a few items. Regular spot checks may make it unnecessary to do an audit of your entire inventory very often which may be the best option for large companies with a large number of items in stock.A partial inventory count may be done periodically to make sure items counted match inventory records, and if they don’t match, a full audit may be done. An eCommerce business must consider not only stock that’s on shelves but also stock that’s in transit to and from the fulfillment center.
Accurately tracking the value of your inventory helps you to budget for future inventory decisions. Auditing inventory can be time-consuming but devices like barcode scanners can help track inventory electronically. Point-of-sale tracking using SKUs allows for real-time tracking of inventory balances keeping inventory counts up to date and providing important information on what stock needs to be replenished.Warehouse audit best practices include auditing items in the warehouse and reviewing the effectiveness of warehouse processes. This includes determining whether warehouse operations are complying with safety standards and policies. Having two people count each item and checking that their numbers match is a good way to improve accuracy.
Once an inventory audit is completed, an inventory findings report is done to provide detailed information on the value of your inventory which offers clarity on inventory accounting. This report can identify operational errors, help identify any inefficiencies in current inventory procedures and provides information needed to make budgeting decisions such as deciding whether to discontinue certain items that may have a surplus or it can provide insights into where funds could be redirected. Routine inventory audits provide one of the best ways to optimize inventory control.
If your eCommerce business is small, you may think inventory audits aren’t yet needed, but audits can be beneficial whether your business is large or small. Performing regular inventory checks helps you implement good inventory management practices that will continue to benefit your company as it grows.When you’re running an eCommerce business, effective inventory management helps you to have a handle on the size and condition of your inventory. Regular audits enable you to make sure that you have what you think you have in stock, and that you have enough inventory without having too much. When you know exactly what’s in stock and where it is, your business will run more smoothly and efficiently for your staff so that they can better serve your clients.
Whether you want to let go of running your own warehouse, or run your warehouse better, you can do both – and so much more – with ShipHero.Click HERE to Schedule a Meeting with Our Sales Team. About ShipHeroShipHero is a US-based, leading solution provider in the fast growing eCommerce fulfillment space. ShipHero served over $5 billion of eCommerce orders in 2020 and is growing rapidly. ShipHero provides warehouse management software for brands that operate their own warehouses as well as outsourced fulfillment as a service from ShipHero owned and operated North American warehouses. Some notable customers include Universal Music Group, Glossier and Canadian Tire. ShipHero is a Shopify Plus partner and more than 10% of Shopify Plus stores globally use ShipHero.Follow us today on Twitter and LinkedIn.
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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 like Extensiv, Deposco, or Logiwa, 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. Legacy providers like Extensiv, Deposco, or Logiwa 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.
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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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