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The Issues eCommerce Retailers Face with Shipping

In this article
The end of seller shipping
The Solution: Integrated TikTok Shop logistics
Critical action for Shopify users
Join us before the deadline and save

By: Aaron Rubin, Founder & CEO of ShipHeroProviding fast, reliable shipping is crucial for growing your eCommerce retail brand. Pitney Bowe’s Holiday Shipping Survey found that over 90% of consumers consider shipping options a vital factor in their shopping experience, so meeting these expectations is crucial.Unfortunately, eCommerce retailers face many challenges with shipping. Some of the most common issues are:

Scaling fulfillment as you grow

As your eCommerce brand grows, managing supply chain processes becomes increasingly challenging. More stock needs to be managed, more orders must be fulfilled, and your team may struggle to keep up. Eventually, hiring more workers becomes necessary, which drives your costs up and won’t necessarily optimize inventory management.

Keeping up with major retailers and their fast delivery speeds

Outdoing that one competitor that copied your brand colors and runs suspiciously similar marketing campaigns to yours isn’t difficult, but when it comes to shipping speeds, you’re not just competing with other brands. You’re up against major eCommerce platforms like Amazon that offer expedited shipping, including free 2-day delivery options. Offering expedited shipping is costly for most growing eCommerce brands, and if you can pull it off, your options are to eat the costs or charge your customers more. Unfortunately, both options have serious drawbacks and can hurt your bottom line significantly.

Knowing when & how to leverage data

Effectively managing fulfillment processes, including inventory, involves a great deal of data, analytics, and reporting. Unfortunately, many eCommerce retailers struggle with accurate data logging and making sense of the information. Inventory reports, order history, pick and pack team reports, and other information is only useful if your team knows how to leverage them adequately.

Training & hiring warehouse fulfillment experts

Hiring a less experienced labor force may seem cost-effective on the surface. After all, fewer labor costs, less expenditure, right? Except it isn’t that simple.Warehouse fulfillment includes many processes that have to be executed efficiently and with great care. Otherwise, orders get delayed, and packages are damaged. Since inexperienced workers are less efficient and prone to making mistakes, your bottom line may suffer from costly returns and unhappy customers. Your options are to either train a less-experienced workforce or to hire experts, and both choices can be quite expensive.

Demand forecasting & inventory management

How do eCommerce retailers know which products are running low and when to reorder? How do brands prepare for the peak holiday season and demand surges? Answer: by managing inventory and forecasting demand.Unfortunately, efficiently managing inventory and accurately forecasting demand can be challenging. To monitor real-time inventory levels, eCommerce retailers need systems that actively record when items enter or leave the warehouse. Additionally, to forecast demand, you need systems that analyze previous data and industry trends to predict future orders. eCommerce marketplace fulfillmentMarketplace fulfillment helps small and medium-sized eCommerce retailers gain a competitive edge, but marketplaces have strict tenants in place that are challenging to fulfill.Marketplace fulfillment also comes with drawbacks that may hinder your customer’s experience - eCommerce retailers don’t have active control over the shipping process, which means you can’t directly prevent delays or incorrect deliveries.

Warehouse management software

Outdated warehouse management software (WMS) is not suited to meet the needs of modern eCommerce retailers. Many retailers have old WMS that is optimized for managing truck loads. However, the eCommerce market is overflowing with larger volumes of small orders. Thus, retailers need a WMS that can accurately track these orders, monitor inventory levels, and keep up with large order volumes.

Fulfillment tools

Fulfillment tools have come a long way - retailers can now optimize warehousing processes with the help of automation, conveyor belts, machinery such as cranes and forklifts, and even robots. However, buying these fulfillment tools requires a significant initial investment, and managing them requires a skilled labor force. Thus, eCommerce retailers struggle to get the most out of fulfillment tools, because training and hiring a skilled workforce is expensive and time-consuming for growing brands.

Carrier pricing

Shipping prices vary from carrier to carrier, and there is no designated ‘best’ partner to ship with. Some carriers may offer better rates for smaller packages, while others may be ideal for heavier items. To keep your costs low, and the prices your customers pay, it’s important to pick the carrier offering the lowest rates for each order.Unfortunately, calculating shipping rates with different carriers for each order, and comparing the costs, is a challenge many eCommerce retailers face.

How ShipHero’s WMS turns you into a fulfillment expert

ShipHero’s leading warehouse management software helps the fastest growing eCommerce retailers scale their fulfillment operations and optimize their workflow. And here’s how.

Automation rules & APIs

ShipHero’s WMS lets retailers set automation rules in response to actions and triggers. You can set automation rules to send order-related emails, set reorder points, and select shipping methods based on zip codes. Additionally, ShipHero’s API is built on GraphQL to meet the needs of individual businesses. You have complete control over how much data to pull based on your unique implementation needs.

Better analytics & reporting

ShipHero’s WMS delivers real-time data and analytics, so eCommerce retailers can accurately track inventory, optimize inventory management processes, and identify replenishment needs.

Faster shipping & fewer returns

ShipHero’s tech-enabled fulfillment experts cut down picking and packing times, reduce errors, and carefully manage your packages to protect them from damages. As a result, your orders are shipped faster, and customer returns requests decrease.

Inventory management

ShipHero’s WMS also streamlines inventory management by actively monitoring inventory levels, issuing reorder alerts, multi-warehouse and order allocations to manage automatic product allocation and more.

Mobile pick & pack tools

ShipHero’s secure mobile pick & pack tools help your fulfillment team pick orders faster and more accurately, decreasing shipping times and errors. The mobile application’s intuitive interface takes just 24 hours to get used to, and your team can leverage barcode scanning functionality to guarantee accurate pickings.Additionally, with ShipHero’s BulkShip feature, your team can process bulk orders faster with less manual overhead.

Powerful order management capabilities

ShipHero’s WMS integrates directly with all major eCommerce platforms and marketplaces, including Amazon, Shopify, WooCommerce, eBay and more. After integrating into your store, ShipHero’s WMS makes sure your orders are delivered on time.Retailers can use ShipHero’s WMS to track orders and update inventory data, validate customer addresses and details, automatically assign orders, set automation rules, and more.

Smart warehouse routing

ShipHero’s WMS comes with smart warehouse routing that retailers use to automatically allocate orders to any location, as soon as the customer completes the sale.

Or let ShipHero handle fulfillment for you

ShipHero’s leading WMS is trusted by thousands of eCommerce retailers, including leading Fortune 500 brands. However, some merchants prefer to outsource their fulfillment process entirely, so they can focus on growing their eCommerce brand.If you’re looking for an experienced, tech-enabled team to manage your order fulfillment process, here’s why ShipHero is the top choice for fast-growing eCommerce brands:

Real-time visibility

ShipHero Fulfillment keeps our eCommerce partners in the loop by providing real-time visibility and transparency. You can view and track orders, and see how they were packed and when they were shipped.

Inventory management tools

ShipHero’s industry-leading WMS optimizes your inventory and warehouse management processes to cut costs, reduce errors, and deliver better customer experiences. With our accurate demand forecasting, eCommerce retailers are safe from overstocking or running out of in-demand items.

2-day and overnight delivery

ShipHero Fulfillment helps even the fastest-growing retailers keep up with large order volumes and consistently offer expedited shipping at affordable rates. With ShipHero, you can deliver the best customer experiences without compromising your bottom line.

Conclusion

With the eCommerce sector becoming increasingly competitive, eCommerce brands have to meet customer expectations and outdo their competitors to grow steadily. While retailers face many shipping challenges, technology, automation, and an experienced workforce can help brands overcome these issues.Advanced warehouse management software like ShipHero’s helps eCommerce retailers fulfill modern needs, offering advanced analytics and reporting, accurate forecasting, automation rules, and mobile tools to decrease errors and reduce picking times. However, some businesses may benefit more from outsourcing their fulfillment processes entirely to a third party, like ShipHero Fulfillment. In fact, because of how effective 3PLs are, around 90% of Fortune 500s have partnered with one. So whether you need a powerful WMS or the best fulfillment partner, start growing your eCommerce brand today with ShipHero. Schedule a meeting today with our experts to learn more about our WMSbuilt for eCommerce brands & 3PLs looking to run their best warehouse and how ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.Click HERE to Schedule a Meeting Today Aaron Rubin, Founder & CEOShipHeroAbout the author: Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.Follow Aaron on Twitter&LinkedIn.

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January 22, 2026

Is Your 3PL Prepared For Tiktok’s New Shipping Requirements?

Executive Summary: Secure your revenue and protect your clients

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.

What changed for your clients?

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.

Your current WMS is a bottleneck

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.

Don’t leave your operations at risk

TikTok's latest policy creates a massive bottleneck for 3PLs using legacy technology.

  • Client Churn: If your WMS is not integrated, your clients will be forced to move to a 3PL that can support their growth.

  • Account Health Stakes: Failure to adapt risks shipping delays that kill customer loyalty and lead to client account suspensions.

  • Critical Action: If you currently funnel your clients' TikTok orders into Shopify and then to your WMS, that workflow will break.

Join us before the deadline and save

To help 3PLs transition quickly and stay compliant, we are waiving all onboarding fees for new customers who join ShipHero before February 25.

Frequently Asked Questions

I am a 3PL owner. How do I know if my WMS is compliant?

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.

Can my clients still use their own carrier accounts?

No. Starting February 25, TikTok will discontinue seller shipping. All shipping must go through TikTok Shop Logistics Services.

Do I have to send my clients' inventory to TikTok warehouses?

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.

What happens if we don't switch by February 25?

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.

Is ShipHero ready for this change right now?

Yes. ShipHero is the only U.S. based WMS currently supporting these requirements, allowing 3PLs to continue shipping without interruption.

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January 22, 2026

How Brands Can Avoid a TikTok Shop Blackout: Stay Shipping After February 25

Executive Summary

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.

The end of seller shipping

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. 

The Solution: Integrated TikTok Shop logistics

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.

  • Integrated label generation: ShipHero is one of only two WMS platforms globally and the only one in the U.S. integrated to handle the new TikTok logistics flow.
  • Direct store connections: Our software provides a direct TikTok Shop connection to automate the transition and remove manual workarounds.
  • Automated Rate Shopping: We compare carrier rates for every package to find the optimal route, protecting your profit margins even under the new policy.

Join us before the deadline and save

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.

Frequently Asked Questions

I use a WMS, how do I know if I can continue to fulfill TikTok orders? 

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.

Can I still use my own carrier accounts for TikTok Shop?

No. Starting February 25, TikTok will discontinue seller shipping. You must use TikTok Shop Logistics Services.

What are my main options for TikTok Shop fulfillment? 

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.

Do I have to use Fulfilled by TikTok (FBT)?

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.

What happens if I keep using my Shopify-to-TikTok connection?

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.

Is ShipHero ready for this change right now?

Yes. ShipHero is currently the only U.S. based WMS that supports these requirements, allowing our customers to continue shipping without interruption.

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September 9, 2025

How AI is Transforming Warehouse Management: Impact, Benefits, and Use Cases

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.

Benefits of AI in Warehouse Management

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.

  • Improves efficiency: By automating routine tasks, AI speeds up warehouse operations and streamlines workflows.
  • Reduces operational costs: With AI automating repetitive tasks, businesses can save on labor costs and minimize errors.
  • Enhances inventory management: AI ensures that inventory is always accurate, with real-time updates and better control over stock levels.
  • Predicts demand: AI accurately predicts demand, enabling businesses to manage inventory effectively and avoid stockouts or excess stock.

Key Components of AI-Driven Warehouse Systems

A combination of AI technologies is shaping smarter warehouse systems to help revolutionize warehouse management.

  • Inventory Management Systems – AI-powered inventory management systems ensure that stock levels are continuously updated and accurately tracked to improve operational efficiency and minimize errors in inventory counts.
  • Automated Guided Vehicles (AGVs) – Automated vehicles (AGVs) optimize routing by quickly transporting goods, speeding up processing times, and improving throughput.
  • Robotic Process Automation (RPA) – RPA automates repetitive tasks like picking, sorting, and shipping to allow 24/7 warehouse operations with minimal human intervention.
  • Predictive Analytics and Demand Forecasting – AI tools predict demand accurately, ensuring optimal inventory levels and reducing stockouts or overstocking.

ShipHero’s AI Picking: A Game Changer in Warehouse Efficiency

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.

How AI Picking Works

AI Picking optimizes warehouse operations in two key ways:

  • AI Path Optimization: By calculating the most efficient routes, walking time is reduced by up to 30%, allowing pickers to spend more time fulfilling orders.
  • Smart Batching: Orders are intelligently grouped to maximize pick density, minimizing trips while speeding up processing times.

Benefits of AI Picking

The AI Picking feature delivers a wide range of benefits:

    Increased Productivity: With optimized paths and smart batching, pickers can fulfill more orders in less time, dramatically increasing throughput.Lower Labor Costs: AI Picking reduces the need for human labor, cutting operational costs.Improved Warehouse Efficiency: Path optimization and smart batching maximize space and resources, streamlining operations.

Broader Impacts of AI in Warehouse Management

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.

Operational Efficiency

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.

Inventory Management

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.

Safety and Compliance

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.

Applications of AI in Supply Chain and Logistics

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.

  • Inventory Optimization: AI analyzes sales data, trends, and external factors to optimize stock levels. This reduces stockouts, overstocking, and excess inventory, ensuring more accurate and cost-effective inventory management.
  • Demand Forecasting: AI helps predict future demand by analyzing historical data and market conditions. This allows businesses to plan inventory, production, and procurement more efficiently, reducing waste and ensuring product availability.
  • Route Planning and Optimization: AI also optimizes delivery routes by considering real-time factors, including traffic and weather conditions. This helps businesses reduce fuel costs, improve delivery times, and enhance overall logistics efficiency.
  • Warehouse Automation: AI-powered robots can automate picking, sorting, and packing in warehouses. This increases accuracy, reduces labor costs, and enhances order fulfillment speed, eventually improving overall warehouse efficiency.

The Future of AI in Warehouse Management

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.

Emerging Trends and Innovations

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.

Challenges and Considerations

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.

Key Takeaways

  • AI is transforming warehouse management by making operations faster, more accurate, and cost-effective.
  • ShipHero’s AI Picking system demonstrates how AI can help warehouses handle more orders, cut down on labor costs, and streamline their processes.
  • AI improves routing, aids decision-making, and ensures timely stock replenishment, helping businesses stay competitive in eCommerce.

Frequently Asked Questions

How can AI help in reducing warehouse errors?

AI minimizes error by automating tasks like inventory tracking, order picking, and sorting, ensuring greater accuracy and efficiency.

Can AI be used for predictive analytics in warehouse management?

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.

Is AI in warehouse management affordable for small businesses?

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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