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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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September 9, 2025

Warehouse Receiving Process Checklist: Definition and Template

When pallets roll in and loading docks buzz, your warehouse’s receiving process becomes the gatekeeper of inventory accuracy. And if that gate isn’t well-guarded with structure, speed, and oversight, errors slip in.

A mislabeled item here, a damaged shipment there, and suddenly your warehouse faces stock discrepancies, late order fulfillment, or even lost customers.

A warehouse receiving process checklist streamlines receiving operations and ensures compliance across teams, regardless of who’s on shift.

What is a Warehouse Receiving Process Checklist?

A warehouse receiving process checklist ensures every shipment that enters your facility is properly documented, inspected, and integrated into your inventory system.

Unlike ad hoc or verbal processes, this structured document verifies product condition upon arrival, checks against purchase orders to confirm accuracy, and documents all inspections for future reference.

However, ShipHero’s digital platform already seamlessly integrates this checklist into your system, automating the tracking of goods from the moment they arrive.

Because it captures critical shipment details, a receiving checklist can double as a warehouse audit checklist sample, especially when preparing for performance reviews or inventory audits.

If you’re looking for ways to improve accuracy and accountability, learning how to audit your warehouse with a structured receiving checklist is a great place to start.

What to Include on a Warehouse Receiving Process Checklist

Receiving Checklist Sample 1          

                       

Receiving Checklist Sample 2

A well-structured warehouse receiving process checklist is crucial for ensuring accurate and efficient inventory management. Including the mentioned key components helps streamline the process, reduces errors, and enhances overall warehouse performance.

Here’s what you must include in your checklist to maintain control and accountability:

Purchase Order Number

This anchors the entire inspection. By referencing the purchase order (PO) number, warehouse teams can verify the received goods against the original order, ensuring the correct items and quantities are delivered.

Supplier Name & Address

Having the supplier’s full details improves accountability. If there’s a delivery issue, this info helps your team evaluate supplier performance and speed up resolution.

Date & Time of Delivery

Timestamping each delivery helps you review delivery schedules, track shipment delays, and identify potential gaps in receiving coverage.

Receiving Inspection

Here, staff will assess damage or discrepancies, confirm specifications (e.g., size, color), take photos if needed, and record all inspections in case of claims or audits. An effective inventory audit checklist incorporates these inspection protocols to ensure accuracy from the moment goods arrive.

Material Name

Listing the material name (e.g., product name, SKU, or description) prevents mix-ups during inventory allocation and ensures all items are accounted for. This also helps your Warehouse Management System (WMS) update stock records correctly.

Information Like “Delivered By” and “Received By”

Identifying who delivered and who received the shipment establishes accountability, helps resolve disputes over damaged or missing items, and ensures proper handoff records.

Documentation

Maintaining proper documentation, such as packing slips, invoices, and bills of lading, facilitates order reconciliation and supports formal audits and record keeping.

Why is a Warehouse Receiving Process Checklist Important?

A single receiving error often ripples through the entire warehouse. A structured receiving checklist breaks this cycle by establishing clear protocols that coordinate with supply chain operations and create accountability at every step. It drives big improvements in:

  • Faster receiving times: Teams know exactly what to do, in what order, and what to record.
  • Error reduction: Prevents items from being missed, mislabeled, or stored incorrectly.
  • Better supplier relationships: Helps track trends in late shipments, missing items, or recurring damage.
  • Improved stock accuracy: A clear receiving trail makes it easier to spot when something goes wrong.

This plays out in real operations. A mid-sized clothing retailer had ongoing issues with stock discrepancies during receipt. However, implementing a standardized receiving checklist significantly reduced the number of missing items and stock inaccuracies.

Employees also appreciated having clear instructions to follow, which reduced confusion and helped maintain a smoother workflow during peak delivery periods.

How to Create a Warehouse Receiving Process Checklist

Before drafting your checklist, take a closer look at your existing receiving workflow. Next, identify any inefficiencies and pinpoint areas that could benefit from more structure and consistency.

Decide on Information to Include in the Checklist

Choose the data points you’ll need based on your warehouse flow, system integration, and team size. Include only what’s necessary to document key handoff moments.

Choose a Proper Checklist Format

You can go with paper, but digital formats (via tablets or mobile apps) are easier to scale. Software-based checklists can instantly update records and integrate with your WMS.

Create the Checklist Using a Software Template

Use inventory management platforms or cloud-based tools to build your checklist. For example, ShipHero’s template system allows you to configure fields, set mandatory requirements, and establish workflow rules that guide staff through the receiving process. This makes sure every receiving action is consistent and auditable.

Train Employees

Train staff to make sure every team member follows standardized procedures. This minimizes human error, especially for new or seasonal workers.

Implement the Checklist

Roll out the checklist during a test period. Assign clear roles (e.g., receiver, inspector), gather feedback, and then launch warehouse-wide. Revisit and refine it quarterly to keep up with operational changes.

Warehouse Receiving Best Practices

Your warehouse receiving checklist works even better when paired with these best practices:

Building a Proper Receiving Schedule

Spacing out deliveries helps reduce bottlenecks and allows teams sufficient time to track inventory levels accurately. It also allows for more accurate inspections.

Optimizing the Warehouse Space

Keep receiving areas clutter-free and near the entrance. This shortens the time it takes to organize storage locations after goods are received.

Upgrading Warehouse Receiving Equipment

Invest in equipment such as barcode scanners, conveyors, or forklifts to speed up receiving operations, especially during peak seasons.

Separating Damaged Goods

Don’t let broken items enter inventory. Flag them, document the issue, and notify procurement so the issue can be escalated quickly.

Simplify Warehouse Receiving with ShipHero’s Automated Solutions

By leveraging real-time inventory tracking and barcode scanning, you can eliminate the need for manual checklists, ensuring that every received item is accurately logged. ShipHero automates the entire receiving workflow, reducing human errors and speeding up the process.

Customizable receiving workflows allow you to tailor the system to your warehouse’s specific needs, eliminating the need for paper-based checklists. Improve efficiency, accuracy, and consistency, all with ShipHero’s advanced automation tools.

Key Takeaways

  • A warehouse receiving checklist provides structured workflows that ensure accurate, efficient processing of incoming shipments
  • For operational transparency, checklists should include critical information, such as PO number, supplier information, inspection results, and timestamps.
  • For best results, use tools like ShipHero to digitize checklists, train your team properly, and regularly review performance.

Frequently Asked Questions

How Often Should You Update the Warehouse Receiving Procedures?

At least annually, or anytime your business introduces a new product line, supplier, or technology upgrades.

Is It Beneficial to Cross-Train Staff on Receiving Processes?

Absolutely. Cross-training builds flexibility, enabling teams to cover for absences and maintain efficiency even during peak periods or periods of high turnover.

What Should You Do If the Item Received Is Damaged?

  1. Document the damage with photos and notes.
  2. Isolate the damaged item to prevent it from entering inventory.
  3. Notify the supplier immediately with details and evidence.
  4. Update your stock count to reflect the issue.
  5. Follow supplier protocols for returns or replacements.

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September 9, 2025

Warehouse Daily Checklist: Guide and Free Template

One missed check can cost you thousands of dollars. You may have a damaged pallet, a missing fire extinguisher, or a skipped safety step that can put your team at risk.

Warehouse daily checklists serve as a pilot’s pre-flight checklist. Before takeoff, every switch, lever, and system is checked. Why? Because skipping one step can lead to serious problems. The same goes for your warehouse.

Without a solid checklist, you risk delays, missed shipments, or worse, accidents and safety violations. A checklist ensures your team follows the right procedures and nothing falls through the cracks.

Here’s everything you need to include in a warehouse daily checklist, its definition, and templates you could use to get started fast.

What is a Warehouse Daily Checklist?

A warehouse daily checklist is a structured form that helps warehouse staff systematically inspect, verify, and record essential tasks on a daily basis. It covers all the daily to-dos that keep your warehouse operations running smoothly and safely, such as inventory tracking and forklift inspections.

The warehousing and storage industry reported an injury rate of 4.8 per 100 full-time workers, nearly double the national average of 2.7. Following a daily warehouse checklist ensures the right procedures and safety protocols are followed and nothing important gets missed.

Creating an Effective Warehouse Daily Checklist Template

A great warehouse daily checklist supports the safety of your warehouse, reduces errors, and keeps your workflow on point. Here’s how to make a checklist that your warehouse workers will actually use and benefit from.

Components of a Warehouse Daily Checklist

Every component of your checklist ensures your facility, staff, and inventory remain safe, compliant, and productive.

Common components include:

  1. Inventory Checks: Your team should do an inventory audit. Monitor current stock levels, confirm the accuracy of quantities, check the condition of stored items, and inspect the labeling and bin organization to prevent errors, shortages, or misplaced goods. Real-time inventory visibility and predictive restocking tools, such as ShipHero, make this process seamless. Make sure that the receiving process is airtight as well.
  2. Equipment Inspections: Your checklist should ensure that all tools, forklifts, devices, and fire extinguishers are operating safely and efficiently. Inspect the equipment for wear and damage, document the condition, and update the maintenance schedule when necessary.
  3. Safety Protocols: Safety and security checks minimize accidents. Inspect the visibility of signage and emergency exits, and oversee the handling of known hazards.
  4. Cleanliness & Housekeeping: A clean and organized warehouse is a safer and more efficient one. Monitor the cleaning of floors, the clearing of walkways, and the organization of storage zones to support optimal workflow and reduce risk.
  5. End-of-Day Tasks: To properly close operations, include tasks that secure the workplace and prepare for the next shift. Record the completion of final duties, document the status of unresolved issues, confirm system backup, and update the daily reports for supervisor review.

Instructions should be clear and structured to help your team move through inspections efficiently and consistently.

Step-by-Step Guide

Your daily warehouse checklist doesn’t have to be very detailed and complicated. It needs to be thorough, practical, and easy to follow.

Here’s how to build a great one:

  1. Identify Daily Tasks: List out everything that needs to happen each day. Walk through the warehouse and discuss routine procedures with your supervisors and warehouse staff to capture all relevant information.
  2. Assign Responsibilities: For each task, decide who’s in charge. Is it a shift supervisor, floor staff, or a designated inspector? Make responsibilities clear so no task is missed or assumed to be “someone else’s job.”
  3. Format It Clearly: Use a structured, easy-to-use layout with checkboxes, concise instructions, and well-defined sections, such as safety and cleanliness. Keep it readable because you want quick glances, not long paragraphs.
  4. Incorporate Timing & Schedules: Some tasks should be completed in the morning, others throughout the shift, and some before closing. Schedule them accordingly, and use timestamps if needed (e.g., “Check emergency exits before 10 AM”).
  5. Include a Sign-Off or Signature Field: Have the assigned employee or team member document their name and time completed. This builds accountability and provides a record for inspections, audits, or compliance tracking.
  6. Involve Your Team in the Design: Ask your warehouse workers what works and what doesn’t. They know the real flow better than anyone. Involving them boosts buy-in, reduces resistance, and ensures the checklist actually helps them.

When your checklist comprehensively details the tasks in a concise manner, it becomes a tool that delivers massive impact. This ensures your warehouse operations run smoothly, safely, and efficiently.

Free Warehouse Daily Checklist Template

Ready to skip the setup and just get started? Feel free to copy our Warehouse Daily Checklist Template to your Google Docs or Microsoft Word document. It’s accessible, user-friendly, and 100% customizable to your needs.

Section Task Completed Person in Charge Time Signature
Inventory Checks Verify current stock levels
Check the condition of stored items
Confirm the accuracy of item labels
Inspect the bin and shelf organization
Equipment Inspections Inspect forklifts (damage, fluid levels, battery charge)
Ensure tools are returned to proper storage
Test barcode scanners and mobile devices
Safety Protocols Check fire extinguishers (placement, charge, expiration date)
Ensure emergency exits are accessible and clearly marked
Confirm that safety signage is visible and undamaged
Inspect for any spills or hazards in work zones
Cleanliness & Housekeeping Sweep and clean floors
Clear walkways and aisles
Organize storage zones
Dispose of waste and recycling properly
End-of-Day Tasks Secure all warehouse entrances and exits
Backup system data
Document unresolved issues
Submit daily report to supervisor
Remarks:


Employee Name: Date:
Supervisor Signature:

Simply plug in your specific details, and you’re set. It’s built to save time, support compliance, and help you manage your daily workflow like a pro.

How ShipHero’s Warehouse Management System Improves Warehouse Efficiency

ShipHero’s Warehouse Management System (WMS) boosts warehouse efficiency by automating key processes like inventory tracking, order picking, and shipping. By streamlining these workflows, it reduces manual labor, minimizing errors and delays.

The system’s real-time data updates allow staff to make quick, informed decisions, improving overall productivity. Customizable features enable businesses to adapt ShipHero to their specific operational needs, further enhancing efficiency. With ShipHero, warehouses can achieve faster turnaround times, reduced costs, and improved accuracy.

Key Takeaways

  • A daily warehouse checklist boosts safety, reduces errors, and supports smooth warehouse operations.
  • Include sections for inventory, equipment, safety, cleaning, and end-of-day procedures.
  • Download our free, customizable template to save time and increase productivity from day one.

Frequently Asked Questions

How Often Should a Warehouse Daily Checklist Be Reviewed?

Review a warehouse daily checklist, weekly, or monthly to maintain accuracy and relevance. Frequent reviews help align the checklist with workflow changes, new safety protocols, or operational updates.

Can You Customize a Warehouse Daily Checklist Template?

Yes, you can customize a warehouse daily checklist template. Most templates are designed to be modified based on team size, warehouse layout, and operational goals. Customization improves relevance and usability across different warehouse environments.

Is Training Required to Use a Warehouse Daily Checklist?

Yes, basic instruction and simple training on how to use the checklist ensure employees understand how to follow the checklist, report issues, and meet safety or performance standards. Training improves consistency and accountability across shifts.

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April 14, 2021

What Does 2-Day Shipping Mean?

How 2-Day Shipping Works and Why You Should Offer It

Today’s shoppers want the convenience of buying online with the gratification of getting their orders ASAP. And you can’t blame them. Giants like Amazon and Walmart have set the norm for the eCommerce industry by offering their customers two-day and even same-day shipping options.As a small retailer, you risk losing your customers if you can’t guarantee their ‘inalienable right’ to expedited delivery. Studies have shown that 26% of online shoppers abandon their carts due to slow shipping, and 53% consider delivery time an essential factor when evaluating their orders.The most intriguing part of the puzzle is that customers expect expedited shipping but still crave free deliveries, with 75% of U.S. shoppers expecting free shipping. Considering their lower order volume and lack of fulfillment infrastructure, the big question is, can small businesses compete with the giants?Well, the answer isn’t straightforward. But we can tell you it’s not impossible. In this article, we let you in on the most important things you need to know about two-day shipping and how you can offer it to your customers.

What Does 2-Day Shipping Mean?

When you offer two-day shipping, you deliver consumer purchases within two days of the order. Today’s online consumers tend to be impatient, so two-day shipping is essential to your eCommerce strategy.

The Benefits of 2-Day Delivery

How can you benefit from two-day deliveries? Here are some ways two-day delivery can provide a business advantage:

Meet Customer Expectations and Boost Loyalty

Many customers expect two-day shipping ability from all online businesses thanks to Amazon. Whether you like it or not, two-day shipping is a must. If customers don’t receive their items within two days, they may not return to your business again.On the flip side, consistently delivering within two days shows that you’re a reliable online business. If you keep fulfilling your two-day delivery promises, customers are more likely to continue shopping at your business.

Reduce Lost Sales and Cart Abandonment

There's something undeniably thrilling about waiting for a package to arrive in the mail, especially when it comes to last-minute holiday gifts or items that just can't wait. We've all experienced that sense of urgency, and it's no wonder that slow delivery speeds can be a deal breaker for many eCommerce platform users. In fact, a snail-paced shipping process can lead to customers abandoning their carts, causing businesses to lose out on potential sales. However, the simple solution of offering two-day delivery can work wonders. This speedy promise not only eases the minds of those eager customers but also makes them much more likely to hit that "purchase" button, knowing that their precious items will be in their hands in just a few days.

Gain Another Selling Point

Fast shipping speed is marketable. If you promise two-day delivery and consistently fulfill it, you can make it a selling point. Writing something like “free two-day delivery” on your marketing materials can attract attention and increase clicks. More clicks mean more people visit your online store, potentially increasing your sales.Just promising two-day delivery won’t do all the work, though. You must still put your name and logo on your marketing materials. It’s a combination of everything that makes your marketing materials work.

How Does 2-Day Shipping Work?

Depending on the seller, two-day delivery can be two business days or two full days. And the time can start counting from either the order cutoff time or the checkout time.For example, Walmart uses two business days and an order cutoff time model. So, if a buyer places an order after the cutoff time on Friday, they can expect to receive it on or before Tuesday since Saturday and Sunday are not business days. On the other hand, some other companies start counting the days once the order is packed, not minding whether it’s a business day.Whichever the model, deliveries eligible for two-day shipping usually vary between two shipping methods: air and ground. Each shipping method has different advantages and disadvantages, so let’s dive in:

Air Shipping

Air shipping entails using an airplane or jet to transport packages from the warehouse or fulfillment center to the customer. It’s mainly used for international shipping or shipping to customers far from fulfillment centers. Of course, airborne shipping costs can be pretty steep, making it almost impossible to offer free two-day shipping to customers.

Ground Shipping

Ground shipping uses vans, trucks, or cars to move orders from the fulfillment center to the customer’s doorstep. You may use your delivery vehicles or rely on an external shipping carrier, depending on your logistics approach. Ground shipping is easily the cheapest delivery model, and you can offer free two-day delivery without deepening your bottom line.It's a harsh reality for many businesses that ground shipping isn't suitable for delivering orders to remote areas far from fulfillment hubs. If you don’t have fulfillment centers spread across many regions, offering 2-day delivery via ground shipping can be next to impossible.

How 2-Day Shipping Grows eCommerce Businesses

A recent report from EtailInsights revealed that there are 2.1 million online retailers in the United States alone, and this number is expected to grow in the coming years. If anything, this stat tells you that eCommerce businesses have become just as competitive as brick-and-mortar retail, if not more. You’ll need to stay on top of your game to thrive in the space as a business owner. Here are a few ways two-day shipping can boost your eCommerce business:

Keep up With Shoppers’ Expectations

On average, online customers feel three days is an acceptable waiting time for an order. Once your delivery time exceeds three days, your customers will likely leave you for businesses that offer faster delivery. However, you’ll have a better chance of retaining your customers and expanding your customer base if you offer two-day shipping.

Improve Conversion Rates and Make More Sales

Your ads become more attention-grabbing if you include a promise of expedited shipping. Add tags and banners to all your ad copy, including emails, paid ads, and social media posts. When you do this, get ready for a considerably improved conversion rate and more sales.

Get Better Retention Rates

Customers who get their orders on time will likely make a repeat purchase. Moreover, you can offer 2-day shipping as part of a paid membership program like Amazon Prime to offset the costs of faster deliveries.

Stop Losing Sales to Amazon

Many online shoppers now regard Amazon’s free two-day shipping as standard. According to Metapack’s report, 27% of shoppers will choose the retailer with the best delivery option. Unless you sell an exclusive product, you’ll likely lose customers to the eCommerce giants.

Should You Offer 2-Day Shipping?

Yes, offering two-day shipping to as many customers as possible would be best. It’s the easiest way to reduce cart abandonment and order cancellation rates. However, two-day shipping for all orders can be detrimental to business, especially if you plan to keep the shipping costs low.If expedited delivery costs are too high, you can offer two-day shipping alongside other options and leave the decision to the customer. Another helpful strategy is restricting the service to a select group of customers like Amazon Prime.

Typically, How Much Is 2-Day Shipping?

The cost of shipping within two days depends on several factors. Here are some things that affect the price of a 2-day shipping program.

  • Type and amount of mailable items you are shipping
  • Peak period on the delivery calendar
  • Time and day delivery shipments are scheduled
  • Delivery carrier and service used
  • Zip code for the location of origin
  • Zip code and destination addresses
  • Dimensional weight
  • Package characteristics (e.g., hazardous materials, fragile items)

Also, note that the cost that a seller charges customers for two-day shipping can vary because of factors like fulfillment fees and channel costs.Fulfillment fees are the cost that a company or individual seller may incur for packing, processing orders, stocking inventory, and shipping. These fulfillment fees, in turn, can also vary based on pricing models, orders placed, and additional services like individual packaging.This explains why when you order an item for two-day shipping from an online marketplace, the cost may be more or less than ordering the same item directly from the item manufacturer’s site.

How to Keep 2-Day Shipping Costs Low

Two-day shipping doesn’t come without extra costs. If you’re not careful, you could lose all the gains you’ll make from offering two-day shipping if the costs eat too deep into your bottom line. And transferring the total cost to customers isn’t a viable option. As mentioned earlier, your customers want their delivery fast and free! The best you can do is to keep the shipping cost as low as possible. Here are some tips that can help:

Use Ground Shipping

Ground shipping is the easiest way to keep shipping costs low while delivering fast. However, it can only work if the fulfillment center is close to the customer. It's essential to know your customers well. That way, choosing locations near them will be a breeze and save you money in the long run. You could even offer one-day or overnight shipping to customers living closer to your fulfillment center.

Offer 2-day Shipping to Customers on a Membership Plan

Even with Amazon’s logistics prowess, only Amazon Prime members enjoy guaranteed two-day shipping. You can also work on a similar model for your eCommerce business. When you offer this perk to customers on a membership plan, more customers are likely to join, and the subscription cost may offset some shipping costs.

Leverage Distributed Warehouses

Operating from just one warehouse or fulfillment center will severely restrict your two-day delivery capabilities. If you cannot manage multiple fulfillment centers, you should consider partnering with a 3PL company. You’ll be reducing the transit time of customers’ orders and ensuring faster delivery.

Examples of 2-Day Shipping

Below are a few shipping methods you can use if you’re planning to start two-day shipping:

DIY: Negotiate Shipping Discounts With Carriers

If you handle fulfillment in-house, you’ll have to take the goods to your preferred carrier. The top carriers, such as FedEx and USPS, have two-day shipping plans you can subscribe to. If your business is big enough, you could even get them to pick the packages up from your warehouse with shipping discounts.

Outsourced: Partnering With a 3PL

Online sellers that choose this option store their inventory at the third-party logistics company’s fulfillment center, and the company ensures it’s shipped on time. This arrangement allows sellers to leverage distributed warehouses and reduce shipping costs. You get to retain customer information since all orders will pass through.

Best Shipping Options for Small Businesses

If you’re a small business looking for affordable, fast shipping providers, these are some of the best options you can choose from.

USPS

If you’re considering going for flat-rate shipping, USPS has pre-made boxes in sizes ranging from small to large, each with a different price. If your items fit the pre-made boxes, you may consider offering them as a parcel service option.Because of its pre-made box fees, flat-rate shipping through USPS will also help you accurately estimate your shipping prices ahead of time. This means you won’t be surprised by extra fees and end up losing money.USPS is also a top choice for those doing in-house fulfillment for their orders. If you have small order volumes, USPS offers the best value for money as a shipping option. Some services like Priority Mail Express have a money-back guarantee if your products don’t arrive on time.USPS offers free pickup services from your home or office, with tracking services and up to $50 insurance for most parcels. There are also no surcharges for Saturday deliveries, rural or resident deliveries, or fuel.

UPS

For small businesses sending large packages that weigh 70 pounds or more, UPS is the most cost-effective option. Unlike USPS, this is because it doesn’t have a size limit for its services. UPS can pick up your package from your office or warehouse for an additional fee. It also has two-day and three-day delivery shipments, guaranteed day ground delivery, and international shipping services to over 220 countries and territories.

DHL

While DHL is smaller than UPS, FedEx, and USPS, it’s one of the best options for international shipping. DHL can ship your customers’ orders to 220 countries and territories. It also has an easy-to-use quote calculator that can help you choose the best shipping rate and delivery times for orders, depending on your chosen service.DHL typically estimates costs based on the destination country and your items’ dimensional weight. Fragile or costly items can get either cargo or freight shipping insurance, depending on which applies to the order. For those needing help with customs clearance, DHL also has brokerage offices worldwide.

FedEx

Do your customers need 1-3 delivery speeds? FedEx is one of the most reliable choices for businesses where prime delivery speeds are the highest priority. FedEx has overnight shipping, same-day shipping for cross-country deliveries, and two to three-day shipping.FedEx Express may have fewer locations than UPS, but it’s still reasonably easy to find a location for dropping off shipments. FedEx Express also offers priority international deliveries, tracking, and insurance for shipments up to $100. This gives international customers the peace of mind to place orders from your small business.

2-Day Shipping FAQs

Below are answers to some frequently asked questions about two-day shipping:

What is second-day shipping?

Second-day shipping is when a company or seller ships the order within two days of it being placed. It is different from second-day delivery, which means that the order must reach the customer within two days of being placed.Note that this should also be distinct from 2-day shipping, which typically means the order should reach the customer within two business days of shipment out of the fulfillment center.

Is 2-day shipping actually two days?

2-day shipping doesn’t mean the customer will receive the package within 48 hours of placing the order – instead, it means they’ll receive it within two business days once the item is shipped to them.For instance, fulfillment center workers must pick, pack and label an order before it’s ready for shipping. So, if the customer places the order late, it may not be possible to ship the order on that day. In such cases, the two days will start counting the next day. For companies that work only on weekdays, the two days will not begin counting until Monday if the order is placed on Friday evening.If the seller drops off the package at the post office, two-day shipping will mean two days after the seller drops off the package. In some contexts, two-day shipping may suggest that the seller will get the order in the mail within two days. If you’re ever in doubt, you should ask your seller or service provider to explain their interpretation of two-day shipping.

What is the Amazon Prime Effect?

The Amazon Prime Effect refers to the two-day shipping service that most online customers now expect. Amazon set the expedited delivery standard via its Amazon Prime service. Prime customers typically get their goods within two days of placing the order.

Is 2-day shipping guaranteed?

Two-day shipping isn’t always guaranteed because it hinges on many factors, including the shipping carrier, days of operation, cutoff time, weather, and additional factors. Many online sellers only use two days as a delivery estimate. However, some sellers are bold enough to provide a money-back guarantee if your order does not arrive within two days.Even in cases where the seller provides a money-back guarantee, they still leave room for mishaps such as missing or stolen packages or lousy weather. You shouldn’t hastily provide guarantees around two-day shipping as an online seller. However, you should try to uphold your promises as much as possible.

What is the benefit of offering free 2-day shipping?

The main benefit of offering free two-day shipping is attracting many customers. However, you should know someone will have to pay for the free shipping and supplies, and that person is you. If it doesn’t make sense for your margins, you could be better off dropping the idea. Or, better still, offer it to a small subset of customers that may exceed a minimum purchase threshold or have subscribed to a particular service.

How to Offer 2-Day Shipping

Most small businesses need help handling the complexities of order fulfillment and expedited shipping. Thus, outsourcing your fulfillment services to a specialist company or another company with great logistics prowess makes excellent sense. Below are a few outsourcing options you can consider.

Fulfillment by Amazon (FBA)

Fulfillment By Amazon is available to a select group of Amazon sellers. To become FBA-eligible, you have to meet some preset criteria. Once you meet the requirements, your customers can expect guaranteed two-day shipping and could even upgrade to one-day shipping for a small fee.The downside to Amazon FBA is that the service is only available for orders placed on the Amazon marketplace. Unfortunately, you won’t have the contact information to remarket to your customers. Amazon could even use your order information to build competing products; there’s nothing you can do about it.Furthermore, you’ll incur considerable seller fees, despite Amazon using its branded packages for shipping. In essence, you have little control over the customer experience, and shoppers are likely to remember that they bought the item from Amazon than from you. In summary, it’s not a great option to boost brand visibility.

ShipHero

ShipHero is a third-party logistics (3PL) company with fulfillment centers nationwide, lowering last-mile delivery costs. We help sellers fulfill orders from business websites, third-party marketplaces, and other sales channels.When you partner with ShipHero, you’ll get guaranteed two-day shipping that doesn’t come with all the negatives of FBA. You’re also likely to pay less on deliveries, and you can distribute your inventory across the numerous fulfillment centers in the country to save on shipping costs. If you want to scale your fulfillment operations and gain access to powerful 3PL software without breaking the bank, there’s hardly any better option than partnering with ShipHero.

Stay Competitive

Offering fast and cheap delivery options is now central to attracting and retaining online customers. Unfortunately, many small businesses don’t have the logistics capabilities necessary to match the expedited delivery services provided by eCommerce giants like Amazon, Walmart, and eBay.Outsourcing your fulfillment needs to a 3PL company is the best way to remain competitive. If you can partner with the right logistics company, you can offer guaranteed two-day shipping and enjoy all the benefits of it.Learn how ShipHero can help you offer 2-day delivery by clicking the button below to contact our team.

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April 13, 2021

The Ultimate Shopify Fulfillment Service Guide

As customers get used to speedy deliveries of their online orders, a slow fulfillment process can lead to abandoned carts and lost sales. So, if you're a Shopify store owner who's thinking of growing their shop, consider looking at your fulfillment process. This under-appreciated channel could be the key to taking your business to the next level.

But planning your logistics operations and order fulfillment process can be daunting, especially if you’re new to the game. Fortunately, many fulfillment service providers are helping Shopify businesses expand their reach every day.

In this guide, we’re going to cover the basics of fulfillment and touch on more complex topics – like, knowing when the right time is to upgrade your fulfillment game, and what you need to know about partnering with a third-party fulfillment provider.

What is eCommerce Fulfillment?

eCommerce fulfillment is the process of fulfilling orders placed by customers through an online store. This can include receiving and processing orders, packing and shipping orders and handling returns and customer service inquiries.

Why is it Important to Stay on Top of eCommerce Fulfillment Services?

Fulfillment is a critical part of operating an online store, and it can have a major impact on the customer experience.

A well-run fulfillment operation can help to ensure that orders are shipped accurately and on time. Considering that most customers are used to big companies like Amazon promising two-day delivery, online businesses that can keep up with customers' high expectations and deliver in a timely fashion gain a competitive edge over other small businesses.

In turn, small businesses can see their customer satisfaction, customer retention rates and sales soar to new heights.

What Does Shopify's Fulfillment Service Look Like?

Shopify store owners have three main fulfillment options:

In-house Fulfillment

In-house fulfillment often entails hiring staff and renting a warehouse to manage your Shopify store's inventory, pack orders and ship them to customers.

For businesses that are just starting, this could be a feasible option. But as your business grows, you may find that maintaining a warehouse and staff just contributes to greater overhead costs and takes up too much of your time.

Dropshipping

Dropshipping is when stores don't keep the products they sell. Stores that dropship instead buy products from manufacturers or sellers and handle the distribution themselves. In that sense, store owners don't have to think about storage, handling and packing.

Third-party Fulfillment Service Providers

Shopify fulfillment services or third-party logistics (3PL) service providers are companies that cover every stage of the fulfillment process. 3PLs for Shopify are alerted of placed orders, take care of picking, packing, labeling, and see through the delivery of each order to customers' doorsteps.

With 3PLs, Shopify store owners don't have to rent warehouses or store stock at home. Instead, they can use the warehouses or fulfillment centers provided by the fulfillment companies.

Why Do You Need a 3PL Shopify Fulfillment Service?

There are many reasons why you might need a third-party Shopify fulfillment service. Perhaps you have a high volume of orders and can't keep up with the demand yourself. Or maybe you're selling products that are too big or heavy to ship without professional help. Whatever the case may be, fulfillment software and remote fulfillment service providers can help you win back your time and focus on improving other aspects of your business.

A good fulfillment service will be able to handle any size or type of order. They will have a network of warehouses and distribution centers around the country to ensure that your products are shipped quickly and efficiently. They will also have an experienced team of customer service representatives who can help resolve any issues that may arise. In addition, most fulfillment services offer competitive rates, so you can be confident that you're getting the best value for your money.

Look at it this way: 3PLs improve the entire process of fulfillment by providing end-to-end service. Starting with inventory storage down to delivery and customer service, fulfillment services provide help to minimize logistics costs and maximize efficiency. And by teaming up with the best carrier services to provide you with fast shipping options and affordable shipping rates, they keep your customers happy.

How to Work With a 3PL For Your Shopify Store

Here's a rough guide to how fulfillment solutions work for Shopify stores:

Send Your Products to the 3PL

The fulfillment process starts with merchants sending their products to be stored in warehouses and fulfillment centers by the fulfillment service providers. Some 3PLs host a large network of fulfillment centers around the world so that you can choose to store your products at locations nearest to your customers.

Having a network of fulfillment centers at many locations gives Shopify users a geographical advantage as it saves on transportation costs and restocking is done more efficiently upon need. Your products are stored at warehouses that comply with industry standards.

3PLs Leverage Inventory Distribution

Depending on where the bulk of your customer base is located, 3PLs recommend inventory storage at different inventory levels and locations so that your customers get their products delivered to them faster. For example, if the majority of your customer base is in the United States, it’s smart to have your products stored there.

3PLs know the importance of customer satisfaction and the impact it can have on a business. This is why they provide you with smart suggestions for inventory distribution based on our advanced software.

3PLs Ship Your Orders

3PLs partner with carriers to provide a wide range of options for shipping methods. Depending on what suits you and your company’s needs the best, 3PLs provide you with the optimal carrier combination for your shipment. For example, a 3PL like ShipHero partners up with USPS, UPS and DHL.

You Delight Your Customers

The shipment process has greatly improved over the last few decades. For example, the use of tracking numbers now makes it easier for stores and clients to keep tabs on their shipped packages as they move from the warehouse to the client's front door.

Aside from this, faster shipment times, lower shipment costs, and more packaging options all come together to provide a better, more enjoyable online shopping experience. And by keeping customers satisfied, you secure yourself great reviews and, in turn, a more promising future for your shop.

What is the Shopify Fulfillment Network?

The Shopify Fulfillment Network (SFN) is a network of fulfillment centers across North America.

If you have a business with a Shopify integration, you can utilize the Shopify Fulfillment Network to access Shopify warehouses for storage, picking, packing and shipping.

The SFN comes with a bunch of neat features, including:

  • Syncing with your online shop so that you can process orders and get notifications on inventory levels from one platform.
  • Distributing your products to the most efficient locations, helping you deliver your goods to customers faster.
  • Sending products in customized branded packaging.

When is the Right Time to Switch to Outsourced Fulfillment?

The advent of the internet coupled with the rise of technology has caused the eCommerce industry to have a massive growth spurt. And due in part to the COVID-19 pandemic, more and more people have turned to online businesses to sustain themselves, whether as producers or consumers. Many existing brick-and-mortar stores have also transitioned to eCommerce platforms to keep up with the growing demand for online shopping.

Most eCommerce companies usually start local and handle inventory management, order fulfillment and shipping on their own by storing products in their garage, for example. But as your business grows, storing products in your garage and handling shipments on your own no longer seems like the smart thing to do. There will come a time in your business journey when you will need to switch to a more robust fulfillment strategy.

So, what are the signs that you should start outsourcing your order fulfillment?

Cyclical or Uneven Sales

In case your business has already outgrown the inventory space in your garage and you are thinking about investing in a warehouse, take a minute and weigh your options. For companies with a fluctuating frequency of orders throughout the year, it might be counterproductive to spend money on a warehouse.

Such an investment will probably cost you more money than you’re expecting to make by this upgrade. This is where a fulfillment company shines. Fulfillment companies provide you with warehouse services that are adaptable to your needs. If your business is related to a niche that makes the sales uneven, it might be time for you to partner up with a fulfillment company.

You Don’t Have Time to Fulfill Orders

A booming business means a greater deal of orders coming in. Sometimes, business owners spend all their time keeping up with the fulfillment of the order instead of improving their business. This can limit the growth of your business in the long run, and no one wants that. If you spend all your time handling orders, it is a clear sign that you’re too busy and you need to switch to other fulfillment options.

Lack of Logistics and Fulfillment Infrastructure

External order fulfillment provides you with flexibility that your business might not have encountered while doing self-fulfillment.

Good fulfillment partners are equipped with the infrastructure to meet the needs of your growing business. International shipping is usually much more difficult to handle than local shipping due to the involvement of foreign rules and regulations. This is just one of the major areas where a fulfillment company can help you and keep your order fulfillment smooth and hiccup-free.

Who Should Not Work With a Third-Party Logistics Company

While third-party fulfillment providers certainly make the job easy for eCommerce businesses, not all businesses can manage a successful partnership with such fulfillment service providers. So, what type of companies should reconsider before opting for external order fulfillment?

Here are a few indicators that suggest it might not be time for you to switch to outsourced order fulfillment just yet.

Businesses With Limited Cash Flow

If a business is struggling to allocate enough funds for its shipping costs, it might not have enough capital to pay for a third-party fulfillment company at all. Such businesses are better off with the self-fulfillment option because outsourcing your order fulfillment demands a steady inflow of money.

Highly Specialized Businesses

Highly specialized projects with unusual products often demand custom packaging and shipping conditions. Fulfillment companies usually provide clients with standard default options for shipment unless specified.

Even if some fulfillment companies agree to provide fulfillment services for special orders, it might turn out to be costlier than if you went for the option of self-fulfillment. This is why highly specialized businesses are better off going for self-fulfillment rather than outsourcing their order fulfillment.

Businesses With Limited Daily Order Volume

If your business is only receiving a limited amount of orders per day, it might not be the right time for you to outsource your order fulfillment just yet. You might be able to handle the order fulfillment on your own.

This is because companies save more by bundling their orders. For example, if you have a low influx of daily orders, it can become uneconomical for you to store your inventory at a third-party warehouse because you will end up paying more for storage costs than what you’re making from your business.

How to Choose a Fulfillment Service for Your Shopify Store

So, what should business owners look for when selecting a fulfillment service provider?

Experience in Your Industry

Not all eCommerce businesses are alike. Different businesses have different customer bases and different needs. Likewise, different fulfillment companies have different capabilities and offer different services to their clients.

Before committing to a fulfillment service provider, make sure that what they offer aligns with what you’re looking for. While searching for fulfillment companies, look up what business niches they cater to and which industries they specialize in. Base your decision on which companies have a similar industry experience to your company’s demands.

Similar Existing Clients

While looking for a service provider, target the companies that cater to sellers of the same business niche as yours. This ensures that the fulfillment company has experience with a company with similar needs and will thus be a suitable option for you. If you are having trouble finding the right fulfillment company, ask for recommendations from merchants in your niche and then weigh your options.

While doing your research, don’t be afraid to contact fulfillment companies and ask any questions you have about their services.

Pricing Isn’t the Most Important Factor

An important determinant while choosing a fulfillment company is the offers and shipping costs that they provide. While it is wise to look for an option that gives you low shipping costs, price should not be the only factor in your decision.

Customer experience is more important in the long run and so you should look for companies that align with your values and your penchant for customer satisfaction. If your company requires custom packaging for products, it is better to invest in this rather than have all your products spoiled. So, look for factors other than price when deciding on a fulfillment service provider.

Technology and Integrations

While choosing a fulfillment partner, look for a company that is up to date when it comes to technology. Having the option of a provider with easy integrations into your existing online platform translates into smooth transitions and better coordination. Shopify integrations for your online shop make your fulfillment process seamless.

With Shopify’s premium technology, we provide our customers with the best fulfillment services. Our fulfillment network uses machine learning to suggest the optimal inventory storage options for you so that you save both time and money.

Data and Analytics

Data and analytics are powerful tools in the world of e-commerce when used properly. Fulfillment provides you with a fresh set of data that you can then analyze and use to your advantage to improve your services and business.

While working with a fulfillment provider, it is smart to partner up with a provider that provides real-time tracking and analytics. Shopify provides its users with a tracking number for every order so that you can track it in real time. Shopify also provides its users with customer order data so that it can be analyzed to yield points for improvement.

Let ShipHero Handle Fulfillment for Your Shopify Store

ShipHero is the only commercially available hybrid solution offering both warehouse management software and fulfillment service.

Should you decide to handle fulfillment in-house, ShipHero improves your warehousing capabilities by automating key processes and consolidating information such as real-time stock levels and shipping time into one platform.

And with one-click integrations with platforms like Shopify, you can take care of managing orders and processing returns in just a few simple steps.

‍ShipHero's Shopify-integrated fulfillment service lets you ditch paper pick lists with its native iOS app so you can cut down errors by up to 99.9%. We also offer seamless connections to top carriers like UPS, USPS and FedEx.

Take your Shopify store to the next level with ShipHero!

Final Thoughts

For eCommerce brands, the order fulfillment process is what makes or breaks a business. And while small shops can get by handling their own logistics, as brands grow, it's worth considering outsourcing the process to service providers that are designed specifically to streamline this part of eCommerce.

When it comes to choosing the right fulfillment partner, be sure to look for a service provider that offers you value for money, high-tech software and seamless integrations, useful analytics and a similar industry experience. Keep this in mind and make an informed decision to find the best fulfillment partner to help your brand grow sustainably!

Shopify Fulfillment Service FAQs

What is a fulfillment service?

A fulfillment service is a logistics service that takes care of things like inventory management, storage, order sorting, packing, shipping and returns.

Who can use Shopify Fulfillment Network?

A Shopify fulfillment network can only be used by businesses that have fulfillment centers in the US and Canada and that are based in the US.

How is your fulfillment fee decided?

Fulfillment fees are decided by the costs of your inventory storage, picking and packing, receiving, kitting and customer support.

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‍About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With over 5,000 brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.

Let us know how we can help you today by scheduling a call HERE.

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April 13, 2021

Strip NFTease, E-Crime on the E-rise

The Rise of E-Crime

This week, hackers released a database of personal data on over 533 million Facebook users, including emails, phone numbers and more (You can check to see if you were part of the leak here). Security experts say that this information has been available on dark-web for a while, and this recent “leak” is just a large accumulation of previously leaked data.

Am I in trouble?

Because this information is not new to hackers on the dark web, you may not experience an increase in theft attempts to you as a person; however, this large, aggregated leak is a treasure trove for hackers and cyber criminals hoping to steal from e-commerce companies.

Oh dang.

In 2020 alone, Sift estimates that more than $1 trillion was lost globally due to cybercrime. According to the same report, 62% of all payment fraud took place on a mobile device, and 45% of the U.S. e-commerce market was conducted on mobile devices in 2020. The perps mainly used ransom-ware attacks (taking control of a company’s systems and extorting them for money) or by using email-delivered malware to learn passwords and siphon funds.

Who are they targeting?

Transportation was the top targeted vertical, with reports of coordinated efforts to steal food/liquor deliveries in broad daylight. Also, loyalty businesses was the top targeted industry with a 275% increase in fraud attempts.

Where does this money go?

Video games mostly… actually. The top item purchased by cybercriminals is video game currency, followed by cryptocurrencies and site credits.

Strip NFTs

After 83 years, the major-league trading card company, Topps, announced plans to go public in a SPAC merger valued at $1.3B. The recent NFT-craze allows Topps to link collectibles to digital tokens, then receive payouts through Smart Contracts for the second-hand market sales -- like the Mickey Mantle card that just sold for $5 million (which Topps made a whopping $.05 on over 70 years ago). Beyond sports, Topps has forged partnerships with Marvel and Star Wars to branch into the collectibles market.

Smart Motors

Turntide Technologies says it’s able to use recent advances in machine learning, software and electronics to create highly efficient motors that greatly cut carbon emissions. Buildings owned by BMW, JLL and Five guys, as well as cooling systems on dairy farms, already use this smart motor to reduce their carbon footprint, and companies that have retrofitted old motors with this smart motor have cut their HVAC motor energy consumption by 64% on average. If scaled out to replace all motors, Turntide says it could eliminate 25% of global carbon emission.

Speaking of Engine-uity

NASA’s Mars Helicopter, Ingenuity, has survived its first Martian night and is sending miraculous pictures of the Red Planet, which (spoiler) don’t look too red.

ShipHero News

How To Create Content for Your E-commerce Business – Part 1: Video

The very first step to marketing your e-commerce store is simple: content creation. In the world of SEO, social media, and online sales, check out our blog to find out what it takes to create authentic and engaging video content that builds trust with your customer base.

The Fulfillment Innovation Wheel: Data Now

It’s your data, and you need it now! Reporting & Analytics has never been more important to your e-commerce warehouse operations. Find out the KPIs and reports you need to make to stay competitive, in our newest blog for ShipHero’s Fulfillment Innovation Wheel series - Data Now.

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April 13, 2021

How To Get Free Shipping Supplies To Save On Shipping Costs

Shipping customer orders on time is one of the most critical parts of your fulfillment process. And it’s vital to optimize the shipping process to keep customers happy.

Consumers are always looking for brands that offer them faster shipping times with minimal shipping costs (thanks, Fulfillment-By-Amazon.) While meeting these expectations isn’t always easy, business owners can lower shipping costs by reducing costs at individual stages of the fulfillment process.

One part of the shipping process where business owners can cut costs is packaging by getting their hands on free shipping supplies. There are a few promising ways to score some serious free shipping supplies, and we’ll take a look at those now!

How to Choose the Right Shipping Supplies

Good shipping practices balance safety and budget. Your packaging needs to ensure that items arrive safely, but you can’t use too many shipping supplies because it’ll raise costs.

Here, we’ll take a look at the three critical elements of good packaging for product shipping:

Containers

You have two main types of containers when shipping products, which are boxes and mailers. To ensure your items arrive safely at their destinations, you want them to fit snugly in their containers, so choose the smallest box possible. In addition to ensuring your items’ safety, small shipping boxes incur lower shipping costs.

Cushioning and Void Fill

Cushioning like bubble wrap, air pillows and packing peanuts fill the empty space in your containers, so your items don’t get jostled around during transit. Whichever cushioning method you choose, ensure that your products stay in place while the box is being moved so they won’t get damaged.

Special Care for Fragile or Irregular Items

Some items need special treatment to ensure their safety during transit. Here are some ways you can handle fragile or irregular items:

  • Multiple items in one box: Wrap each item with foam or bubble wrap so they don’t get scratched when bumping into each other during transit.
  • Delicate or fragile items: Wrap especially fragile items in bubble wrap or styrofoam sheets and fill the box with packing peanuts to ensure they stay in place.
  • Items with sharp edges: Dull the edges by placing folded cardboard or using a reinforced double-wall box to prevent the edges from breaking the packaging.
  • Wallpaper, posters, or rugs: You can’t fold items that shouldn’t have creases. Instead, roll them up and deliver them in tubular shipping boxes.

Where to Buy Cheap Shipping Supplies

You may need to buy your own shipping supplies if you handle shipping and delivery without third-party logistics. Here are some great places to get packaging materials and supplies:

Local Stores

If you’re only shipping a few items, your local office supply or stationery stores usually sell the things you need. Prices between stores may vary, so shop around to find the best deal.

Big Box Stores

Big box stores like Target and Walmart have locations all over the country, which makes shopping for shipping supplies easier. These stores also offer bulk shipping supplies for reasonable prices.

Amazon

Online retailer Amazon sells all kinds of shipping supplies, from poly mailers to cardboard boxes, at reasonable prices. For instance, a 25-pack of cardboard boxes is just $21.99 and can go even lower if you have the relevant coupons.

Additionally, Amazon also accepts cryptocurrency payments via BitPay.

eBay

eBay offers self-branded packing supplies like boxes, mailing envelopes and packaging tape to help its sellers deliver their goods. While it’s easy to access, eBay Shipping Supplies doesn’t have the best prices – a set of 25 cardboard boxes costs $31, for example.

To find better deals, you may need to look through eBay listings and search for sales and auctions that sell low-priced packing supplies.

Carriers That Offer Free Shipping Supplies

Many different carriers offer business owners free shipping supplies. One thing to keep in mind with each carrier is they only let you get free supplies if you use their services. For example, you can’t walk into the UPS store with FedEx’s packaging and expect them to let you ship it.

Let’s see what each one is offering.

How to Get Free Shipping Supplies From UPS

The advantage of working with a UPS store is they provide different boxes for each category of mail services. All you have to do is walk into your local UPS store, and they’ll provide packages for free.

How to Get Free Shipping Supplies From FedEx

You can get free shipping supplies from FedEx by going to their retail locations or ordering shipping supplies online. The packaging is complimentary when you ship with FedEx.

Are FedEx Boxes Free?

Yup! FedEx offers free shipping boxes and free shipping supplies in great variety. These boxes are free in small, medium and large sizes.

How to Get Free Shipping Supplies From USPS

The United States Postal Service offers shipping boxes and envelopes for free through its website. You can get boxes and envelopes in various USPS-standard sizes, which makes shipping easier if you deliver products through USPS.

However, there is a restriction to keep in mind when getting free boxes from USPS. When shipping your products, your mailing service must match the service listed on the package. For instance, using a Priority Mail Express flat rate envelope means you can only use USPS Priority Mail Express service.

Which Shipping Boxes Are Free at the Post Office?

The free boxes at the US Post Office include different USPS Priority Mail Boxes like the priority mail medium flat rate box and other free USPS boxes like the small flat rate box and the large flat rate box.

Where to Get Poly Bags for Shipping

You can buy poly bags wherever shipping supplies are sold. Some of the best places to look for poly bags include:

  • Local stationery stores or dollar stores
  • Large retailers like Walmart and Target
  • Amazon
  • eBay

Does USPS Have Free Poly Mailers?

The USPS does not offer free poly mailers, but you can get similar items like padded envelopes from its website.

USPS Poly Mailer Shipping Costs

Poly mailers are often used for lightweight items, so the cost of shipping poly mailers is generally very affordable. If you’re using USPS First Class Mail, shipping a package under 13 oz starts at $0.49.

How to Get Free Shipping Supplies from DHL

DHL is one of the most prominent names in international shipping. If you have a DHL account, you can order free shipping supplies from its website. Available items include boxes of various sizes, envelopes, flier bags and waybill sleeves.

Tips to Keep in Mind With Carrier Packaging

Free carrier packaging is excellent, but it’s not a ‘no-strings-attached’ deal. Here’s what to keep in mind when using free supplies from carriers.

Use Specific Mailing Services

When you’re getting free shipping supplies from a carrier, it’s often complementary, which means you are limited to a specific mailing service. Again, you can’t expect to get free supplies from FedEx if they know you’ll ship with UPS.

Use Only Specific Carriers

Carrier-supplied free boxes come with shipping labels and stamps, so other carriers can't use these boxes.

Don’t Order More Supplies Than You Need

We know it’s tempting, but carriers offer free shipping supplies and expect etiquette from their customers. So, don’t order more supplies than you need, even if they’re free. If it takes too long to get shipping supplies, head to your nearest customer center to pick up the supplies when needed.

Alternative Methods to Get Free Shipping Supplies

If you don’t want to commit to a carrier, there are other ways you can find free shipping supplies.

Reuse Old Packages

A great and cost-effective way to source your packaging is to look for reusable old packages and take off their old shipping labels. You can look up free packaging ads on websites like craigslist to reuse packaging that would have otherwise gone to the landfill.

Get Old Boxes from Local Stores

You can get free shipping supplies and old boxes from local stores. Depending on what type of packaging supplies you require, you could swing by your local furniture stores, grocery stores, boutiques, etc. This practice is especially popular with the community of recyclers and is a sustainable move for the environment.

Let ShipHero Handle Shipping for You

ShipHero is a leading 3PL that handles fulfillment for e-commerce brands. Here’s how you can improve shipping and grow your business with ShipHero.

The Right Packaging for Each Shipment

We use the packaging that we know is best for the types of products you're selling for every order. We consider factors like size, weight, fragility and more when we pick and pack orders. This will save you money on shipping costs as we don't charge for shipping supplies.

Save on Shipping Costs

ShipHero has volume discounts with major carriers like USPS, UPS, FedEx and more. We pass these savings on to you to reduce shipping costs. Our distributed fulfillment network sends orders to warehouses closest to your customers to reduce shipping costs and transit times.

Conclusion

The advantage of free shipping supplies is that since you can reduce your shipping costs, your business can lower the shipping charges that customers incur. Remember, customers are looking for faster shipping times and minimal costs, so you can drive sales by presenting them with attractive shipping options.

Get started with ShipHero today by clicking the button below.

Free Shipping Supplies FAQs

What shipping supplies does a typical business need?

Most businesses need shipping supplies like boxes or envelopes, package cushioning and tape. Here’s a quick checklist of shipping essentials every business should have:

  • Cardboard boxes
  • Poly mailers
  • Bubble wrap
  • Packing peanuts
  • Packing tape
  • Plastic wrap
  • Shipping labels
  • Markers or pens

How do you get free shipping supplies like boxes & mailers?

You can get free shipping supplies from carriers like USPS, UPS and FedEx by ordering through their website. Then, you can have them delivered or pick them up at the nearest office.

What should I know when using free carrier packaging?

Generally, mail carriers only accept free packaging from their own brand. So, for example, you can't use a UPS box to deliver goods through DHL.

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‍About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With over 5,000 brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.

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April 8, 2021

The Crucial Elements in Selecting 3PL Software

Order fulfillment is a complex process involving multiple stages such as picking, packing, processing, and shipping customer orders. The smooth operation of these stages is crucial to prevent customer complaints and maintain a high level of customer service. One very cost effective way to manage inventory and streamline the order fulfillment process is by leveraging the expertise of a third-party logistics (3PL) company.

These companies, often referred to as experts in the field, offer access to 3PL software that automates many aspects of the logistics process, enhancing efficiency and reducing errors.

This article will delve into the role of 3PL software and the factors to consider when choosing a top 3PL provider or one, including the consideration of your business requirements, budget, and business goals.

Understanding 3PL Warehouse Management Systems

A 3PL warehouse and inventory management system is a software solution designed to aid in a company's logistics operations. A 3PL system’s key features include warehouse task and inventory management, detailed processes for picking, packing, and shipping goods, delivery tracking, and shipping route optimization.

The level of automation provided by these systems can significantly improve warehouse operations, ensuring that items are managed efficiently and errors are minimized. These systems are particularly beneficial for large warehouses where manual inventory management can be time-consuming and prone to errors.

The Case for 3PL Software in Small Businesses

3PL software brings numerous benefits to small businesses, including the ability to streamline processes and manage sales, service and inventory levels effectively. Here are some reasons why small businesses should consider implementing 3PL software:

Efficiency and Cost Savings

3PL software can automate tasks such as order tracking, invoice generation, and payment processing, saving significant time and reducing the need for additional employees, thereby cutting operational costs. This efficiency can also improve the customer experience, as orders can be processed and shipped more quickly. In times of high demand, this efficiency can be particularly beneficial.

Minimizing Human Error

Manual data entry and processing can lead to errors, especially when information passes through multiple hands. 3PL software automates these processes, reducing the likelihood of costly mistakes. This automation can save time and also improve the quality of good customer service being provided to customers.

Meeting Diverse Business Needs

Different businesses have different needs, and 3PL software offers the flexibility to customize features according to these business needs. As your business grows, you can scale up the software by adding extra features. This scalability can accommodate the demands of growing retailers and ensure that the software continues to continuously improve to meet their needs.

Informed Decision Making

3PL software comes with reporting tools that provide insights into inventory levels, staff performance, and other crucial business information. These reports enable you to make better decisions based on accurate, real-time data. This data can also be used to inform product development efforts and improve customer relationship management (CRM) strategies.

The Advantages of Using 3PL Software

The success of your own third party logistics partner, provider partner or business largely depends on client satisfaction. In today's marketplaces, customers expect their orders to arrive promptly and appreciate the ability to track their orders throughout the shipping process. For small businesses, these operations can often be managed in-house, but for larger businesses with high-volume supply chain operations, forming a partnership with a third party logistics partner or a 3PL provider can ensure accuracy and efficiency. Here are some benefits of using 3PL software ecommerce business:

Automation Saves Time

3PL software can automate various tasks and integrate processes, saving time for both the logistics services providers and their clients. For example, integrations with eCommerce platforms like Shopify and Amazon can automatically capture orders and add the information directly into your database.

This automation can also improve the customer experience, as customers can receive updates on their orders in real time.

Cost Reduction

The automation capabilities of 3PL software can reduce costs for logistics and warehousing providers by reducing the need for data entry clerks. These cost savings for a supply chain and logistics company can then translate into lower shipping and warehousing costs for clients. This cost-effectiveness is particularly important for businesses operating on a tight budget.

Error Reduction

Manual handling of different stages of the order fulfillment process can increase the risk of errors. 3PL software automates data storage and processing, reducing the likelihood of costly human errors. This automation can save money and also improve the quality of service provided to customers.

Customization and Scalability

3PL software can be customized and scaled to suit the needs of both supply chain management or individual clients, making it easier to manage changes such as adding inventory, opening a new distribution center, or entering a new market. This scalability is particularly important for businesses experiencing rapid growth.

Business Insight

3PL software reports on the entire supply chain activity of most companies, from production to shipping, providing visibility into any part of the business at any time.

This visibility can help businesses to manage their own supply chain, other supply chains, and SKUs effectively and ensure that they have the capacity to meet customer demands.

Increased Transparency

Entrusting a 3PL partner or logistics partner with your company reputation entire supply chain can be daunting. However, 3PL software and services like ShipHero provides full visibility into logistics performance and current inventory levels from reliable partners, ensuring everything is running smoothly. This transparency can also improve the customer experience, as customers can track their orders in real time.

Enhanced Customer Support

3PL software can track orders and payments from start to finish, allowing customers to track shipments in real-time and easily make returns. The software also enables the company to offer expedited shipping options like same-day and two-day shipping. This level of customer service can enhance the company' customer experience and improve customer retention.

Every business is unique, and using 3PL software services may be more beneficial for some companies than others. If you're considering transitioning your business to third-party logistics services, it's important to know what to look for when shopping for 3PL software solutions.

Key Considerations When Choosing 3PL Software

When working with a third party logistics provider or third party logistics providers because of third party logistics providers third-party logistics companies, clients entrust the entire order fulfillment process to another entity. Making the wrong choice could cost your company in the long run, potentially leading to client loss and business challenges. Here are some factors to consider when looking for the best 3PL software:

Advanced Technology

Your third party logistics provider or chosen 3PL provider partner should have access to the latest technology. Advanced 3PL software can save you money and reduce errors through automation.

This technology should include enterprise resource planning (ERP) and transportation management systems (TMS) to ensure comprehensive management of your third party logistics operations.

Scalability

Many businesses outsource to a 3PL company when they've outgrown the capabilities of their in-house logistics department. If you plan to work with growing companies, choose 3PL software that can scale with their future business too.

Also, consider the capacity of the logistics partner and the software to handle increasing numbers of SKUs and items.

Compliance with Packaging and Labeling Standards

Logistics businesses need to comply with certain rules and regulations regarding product packaging and labeling. Good 3PL software can help you meet these requirements and prevent future issues. This compliance is particularly important to protect the rights of consumers and ensure that goods are correctly labeled.

Support for Multiple Client Accounts

In a single company, there may be several users of 3PL software as each division needs real-time access to the stored data. Good 3PL software should offer multiple user accounts so people from different divisions can log into the app simultaneously. This feature can improve collaboration and ensure that all employees have access to the information they need.

Invoicing Features

Most 3PL technology solutions include billing functions to ensure that invoices are paid out properly. This type of software automates put away, receiving, storage, and shipping, ensuring that charges for these services are always accurate and on time. This automation can also improve the customer experience, as customers can receive timely and accurate invoices.

Value for Money

Many clients work with 3PL providers to avoid the cost of logistics software. To provide your clients with the best value and service, choose a top 3PL partner or logistics partner, with software that offers advanced features at an affordable price. This value for money is particularly important for businesses operating on a tight budget.

There are many 3PL software options on the market catering to different needs. If you're planning to become a 3PL provider, research the type of logistics software your potential clients prefer and match your software to the client's needs.

The Bottom Line

The key to finding the best 3PL software partner is to take the time to examine your company's needs and find a software partner and solution to meet them. Don't forget to include the option for customization and scalability as well.

And remember, the things to consider when choosing a 3PL partner is not just about the software they provide and prioritize customer service, but also about the quality of their technology connecting their customer service, their ability to answer your questions, and their commitment to training their staff to meet your needs.

In the era of online shopping, shoppers have high expectations for fast and accurate delivery. This is where the role of a 3PL platform provider comes into play. A good 3PL platform provider will not only ensure the logistics company ensures efficient transportation of goods but the provider will also provide real-time tracking for shoppers, enhancing their shopping experience.

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April 7, 2021

Last Mile Delivery and Other Trends In Order Fulfillment

As online shopping grows in popularity and ubiquity, retailers and logistics providers have tried to find innovative ways to fulfill consumer expectations. While order fulfillment is still the backbone of retail businesses, today’s customers want fast delivery times. Thus, the main challenge for businesses is to deliver fast while keeping costs low.

The modern customer’s expectations of fast delivery come from online retail speed. By choosing products and finishing purchases with the click of a single button, they get into the mindset that their purchases should be delivered quickly. That’s why ensuring your product arrives at the customer’s door as soon as possible is essential to maintaining customer satisfaction.

Order fulfillment starts when the customer puts the order in and finishes when the item arrives at their door. For most companies, the final leg of the fulfillment process, often called last mile delivery, is the most challenging and expensive.

Keep reading to learn more about last mile delivery and how you can use it to optimize order fulfillment.

Understanding Last Mile Delivery

Last mile delivery is the final part of the order fulfillment process, where a product leaves the warehouse on the way to its final destination: the customer’s home, in most cases. The key challenge of last mile delivery is to ship items as fast as possible while keeping expenses down.

Last Mile Delivery in eCommerce

Last mile delivery can make or break an eCommerce retailer because the customer can find other stores that offer faster or cheaper shipping if you don’t fulfill their expectations. Unfortunately, last mile logistics are expensive – sometimes taking up more than half your logistics costs.

Online retailers and third-party logistics (3PL) companies usually face a dilemma regarding last mile delivery. To offer free or low-cost shipping, they must pay for delivery out of pocket or impose order minimums to cover costs.

Factors That Influence Last Mile Delivery

When you shop online, you may notice a gap between your item being marked “out for delivery” and arriving at your doorstep. This gap and lack of transparency signify an inefficiency in the last mile delivery process.

The last leg of order fulfillment operations usually involves an independent shipping carrier delivering the package from your warehouse to the customer. Several factors influence how long this process takes, such as:

  • Shipping company or 3PL provider size
  • Number of orders it handles daily
  • Carrier pickup frequency
  • Distance between fulfillment center and recipient
  • Area characteristics (e.g., rural or urban regions)
  • Number of deliveries/stops along the route

These hindrances to last mile delivery are usually out of your control and influence shipping times differently. For instance, smaller 3PL companies in rural regions may pick up items every two or three days, while larger logistics providers in urban regions typically schedule multiple pickups daily.

Last mile delivery is becoming necessary as eCommerce gains more ground in the United States. Moreover, the increased popularity of the free shipping movement means more pressure for you to foot the bill or implement minimum purchase amounts to reduce expenses.

Recent Last Mile Delivery and eCommerce Trends

The eCommerce scene is constantly evolving, so online retailers and 3PL companies have to change along with it. Adapting to the latest industry trends lets you capitalize on new opportunities and optimize your fulfillment strategy according to consumer demand.

Here are some eCommerce and order fulfillment trends you should watch out for:

  • Crowdsourcing and gig economy
  • Instant order fulfillment
  • Rise of USPS carrier services
  • In-house shipping carriers
  • Last mile delivery upselling
  • Smart and predictive technology
  • Fulfillment networks
  • Real-time package tracking and delivery updates
  • Autonomous delivery vehicles
  • Predictive shipping

Let’s dive into each trend and see how they can influence last mile delivery and other aspects of your business.

1. Crowdsourcing and Gig Economy

Crowdsourcing and gig-based delivery services have been rising these past few years. In addition to transport, companies like Uber and Postmates offer delivery jobs to their independent driving partners. While this system is less predictable than traditional route-managed delivery systems, it’s a flexible alternative that companies can use whenever they need something delivered quickly.

2. Instant Order Fulfillment

Thanks to the ubiquity of the Internet and online retail, people can find the products they need within minutes. As the purchase process becomes faster, customers expect fast delivery, resulting in high demand for same-day, one-day and two-day shipping.

As an online retailer or 3PL provider, you most likely use warehouse management software to assist in order fulfillment. However, even the most advanced software has limitations. You must work extra hard to provide same-day order fulfillment if you work in fast-moving industries like pharmaceuticals or food & beverage.

3. Rise of USPS Carrier Services

While private shipping carriers like UPS and DHL are still the most popular shipping choices for online retailers and 3PL companies, the United States Postal Service is also gaining some ground in this field. The USPS has started delivering eCommerce packages to compensate for declining traditional mail deliveries.

USPS often offers free package pickups, making them a strong choice for retailers and 3PL companies who want to save money.

4. In-House Shipping Carriers

Some retailers and logistics providers save money by using their own company vehicles and offering in-house delivery services. While cheaper, this shipping method is only viable in your company’s immediate area.

5. Last Mile Delivery Upselling

Most retailers already upsell on their product pages, but some are adopting last-minute upselling. With predictive technology, companies can guess what other products customers might want and offer them at checkout.

Some companies take upselling even further and stock their delivery vans with items the customer might want, so they can sell an additional item in person. Because this upselling method hinges on impulse purchases, it’s mostly implemented in food delivery.

6. Smart and Predictive Technology

Modern technology benefits both sides of the eCommerce coin. Customers know where their items are at all times through real-time tracking, and they can even monitor their status through temperature and humidity sensors.

Meanwhile, smart technology predicts the weather for retailers and 3PL providers to ensure that perishable and easily-damaged items aren’t compromised.

7. Fulfillment Networks

One of the best ways to improve delivery times and offer same-day delivery is to expand your fulfillment center network. Amazon, which is capable of two-hour deliveries, is one of the prime examples of great fulfillment center usage.

While most fulfillment center networks aren’t as big as Amazon, many companies rent warehouse space out in major cities to provide faster delivery.

8. Real-Time Package Tracking and Delivery Updates

Modern customers expect to receive orders quickly and track the entire shipping process. Fortunately, tracking technology makes real-time product shipping updates possible, giving your customer base complete visibility from when their item ships to when it arrives at their door.

9. Autonomous Delivery Vehicles

The availability of delivery drivers dictates shipping times. Since drivers are human and labor shortages happen, you can’t expect them to deliver goods 24/7. However, recent developments in self-driving cars and drones might mean that 24/7 delivery will eventually be a thing.

There are many gray areas regarding regulations and rules, but there’s also potential in self-driving delivery vehicles. Amazon has already invested $530 million into self-driving cars. Additionally, Amazon debuted the Amazon Scout delivery drone in 2019, with trials as recent as 2020.

10. Predictive Shipping

Reducing delivery times is the most common way to decrease last-mile shipping costs. But what if there’s almost no delivery time at all?

Major online retailers like Amazon are trying predictive shipping, which anticipates product demand based on consumer shopping habits. These companies often use predictive algorithms to determine high-demand seasons for certain items (e.g., fireworks leading up to the Fourth of July) and pre-ship items to local warehouses in anticipation of these demand spikes. This cuts down on delivery time and cost because the products are already halfway there.

Distributor Storage With Last Mile Delivery

Distributor storage is an integral part of last mile delivery. Most fulfillment companies or last mile delivery providers have a network of fulfillment centers where they store your products before shipping them out to customers.

When picking a 3PL provider, look for one with a good spread of fulfillment centers so you can offer high delivery speeds anywhere in the country.

Top Last Mile Delivery Companies

Last mile delivery companies ship items from fulfillment centers to customers. Different companies offer different benefits, so choose wisely.

Here are four great delivery companies used by many businesses and 3PL providers:

FedEx

FedEx is one of America’s biggest shipping companies, delivering packages all over the planet. It’s one of the best options if you’re looking for fast package deliveries and detailed shipment trackers.

However, FedEx’s rates are often higher compared to its peers.

UPS

UPS is another favorite among online retailers because it offers weekend pickups and deliveries. This company also provides same-day and next-day deliveries, which are indispensable for when your customers need their purchases delivered quickly. Moreover, UPS offers a high-volume discount if you’re shipping many packages simultaneously.

But while UPS offers affordable rates for small packages, you may need to pay extra fees and surcharges for heavier items.

DHL

DHL’s global presence means you can easily ship anywhere in the world. DHL also boasts great customer service with quick issue resolution and free pickup fees.

However, DHL doesn’t have a strong American presence compared to its counterparts, so finding a DHL office stateside may be a little more challenging.

USPS

USPS is one of your best options for small and lightweight packages, thanks to its low rates. With Saturday delivery and free home pickups, USPS is perfect for new online retailers who can’t spend too much on shipping.

Unfortunately, USPS doesn’t have a strong tracking system, so customers might not get full shipping transparency. Its customer service has also gotten a bad rap because of numerous unresolved issues.

How ShipHero Improves Logistics and Fulfillment

ShipHero is one of the best 3PL companies for eCommerce business owners. We outsource order fulfillment for over 5,000 stores to boost their shipping times and foster growth.

Here’s why you should choose ShipHero as your 3PL.

Distributed Fulfillment Centers

Keeping your entire stock in one warehouse may lead to high fulfillment costs and shipping delays. At ShipHero, we use distributed fulfillment centers to store your products at warehouses across the country. When your store receives an order, we forward it to the nearest fulfillment center to ensure faster and cheaper delivery.

Shipping Discounts

ShipHero has negotiated shipping discounts with carriers like UPS, USPS, FedEx, DHL and more. This lets us pass the discounts on to you, so you spend less on shipping.

2-Day Delivery and Overnight Delivery Capabilities

Want to build brand loyalty on par with Amazon and grow your market share? ShipHero lets merchants offer 2-day and overnight delivery to help compete with Amazon FBA sellers and other major retailers.

Conclusion

The solution to last mile delivery challenges is not one-size-fits-all. An online retailer or third-party logistics provider may find that a combination of improved technology and analytics could be the solution to rising last mile delivery costs.

There’s no singular solution for last mile delivery issues and challenges. However, using the right technology and analyzing relevant data helps your company develop the best cost-saving measures.

No matter your line of business, last mile delivery is an integral part of it. Always watch the trends and developments to capitalize on new cost-saving opportunities and measures.

ShipHero is a leader in order fulfillment. Contact us today to learn how we can help your eCommerce store.

Last Mile Delivery for eCommerce FAQs

What is eCommerce order fulfillment?

eCommerce order fulfillment encompasses the entire process of taking your product from the factory floor to the customer’s doorstep. Order fulfillment involves your supplier, warehouse manager, 3PL providers and shipping carrier.

What is the difference between drop shipping vs order fulfillment?

The key difference between drop shipping and order fulfillment is the party handling the order. With drop shipping, orders are delivered directly from the manufacturer or supplier. With order fulfillment, purchases are handled by the merchant or 3PL providers.

What are the bottlenecks in the order fulfillment process?

There are many bottlenecks in the order fulfillment process, like inaccurate orders, long packing times and courier delays. To eliminate these bottlenecks, examine your order fulfillment process and identify the cause before engineering a solution.

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‍About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With over 5,000 brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.

Let us know how we can help you today by scheduling a call HERE.

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April 6, 2021

The Fulfillment Innovation Wheel: Data Now

ShipHero recently launched The Fulfillment Innovation Wheel to help 3PLs understand what capabilities and service offerings they need to implement in order to be successful and to help online retailers and brands choose which 3PL is right for them by allowing them to ‘check the boxes’.

The Fulfillment Innovation Wheel listed a set of twelve (12) capabilities that fulfillment providers and logistics companies should implement to continually delight their customers and push themselves towards greater success and innovation.

The twelve capabilities are:

  1. 2-Day Delivery
  2. Same Day Shipping
  3. At the Box Personalization
  4. Designed for Returns
  5. Sustainable Fulfillment
  6. Resilient Shipping
  7. Distributed Fulfillment
  8. Data Now
  9. Automation
  10. Scale Up and Out
  11. Integration Stack
  12. Professional Services

In this article, we will be diving into Capability #8: Data Now.

‍And be sure to stay tuned for future articles as we deep-dive into each capability.

Capability #8: Data Now

It’s Your Data, and You Need it Now!

Now that that’s out of the way, let’s talk about the data reporting and insights that will make or break your business. Business operations and logistics enjoys the rather large benefit of being highly calculable, and therefore predictable.

Of course with the infrequent exception, building a resilient and optimized supply chain is made possible through accurate data collection, in-depth analysis and reporting, and intelligent predictions to beat the competition.

In this article, we’ll dive into:

  1. How to create the right data reports,
  2. How you can build a robust data pipeline, and
  3. How to use those insights to make intelligent decisions

Analysis & Reporting

Your warehouse operations can be broken down into four disciplines: Inventory Management, Operations, Shipments, and Production Efficiency.‍

Inventory Management involves keeping your product in stock, replenishing when you’re out, handling stale inventory and more. Reporting asks how you can do this more efficiently and with less waste.

‍Operations is the day-to-day functioning of the warehouse, such as getting products safely delivered out of the warehouse (i.e., the pick-pack-ship process); it is also managing errors or mis-picks as well as FEFO/FIFO workflows. Reporting allows you to optimize warehouse capacity.

‍Shipments is the process of delivering packages from the warehouse to your customers door in the cheapest and most time-effective manner. Reporting helps you see where you spend too much or take too much time.

‍Production Efficiency is the performance of your employees, if they are adhering to policies, how quickly they can perform their task, etc. Reporting helps you increase productivity and identify rockstars.

Key Performance Indicators

The goal of your reporting should explicitly improve certain aspects within each of the four disciplines, commonly referred to as Key Performance Indicators (KPIs). A KPI is a very specific data point that your business will track and set SMART goals against.

For example, Time to Deliver is a very specific data point that your company can track to see the health of their Shipments processes. By measuring the duration between the product leaving the warehouse and arriving at the customer for each order, you will be able to understand how your business compares to the competition and customer expectations.

You should also set SMART goals for each KPI to continually improve your supply chain. SMART goals are:

  • Specific, (e.g., Decrease Time to deliver)
  • Measurable, (e.g., by .5 days)
  • Attainable, (e.g., don’t set the goal at 8 hours)
  • Relevant, (e.g., do your customers care about delivery time?)
  • Time-Bound (e.g., by Q1 of 2022)

Understand every element of your warehouse at work by setting KPIs that have tangible benefits to your business, whether it’s reduced costs, increased efficiency, or improved customer experience.

Reference below for a non-exhaustive list of reports that ShipHero typically creates for their customers:

Inventory Management

  • Inventory Change Log - Every inventory change is logged. Know what changed, why, when and by whom.
  • Inventory Value Report - Review the total quantity and value of your inventory, right now, or by each month.
  • Cost of Goods Report - Understand the product profitability across any given date period.
  • Inventory Variance Report - Understand the actual quantity amounts of your inventory by any given date period.
  • Sales by SKU Report - Quickly view product sales in each of your warehouses, with estimated time to sell based on historical sales velocity.
  • Stale Inventory Report - Need to know the slow movers? Quickly identify products that might be sitting around and what to do about it.

Warehouse Operations

  • Replenishment Report - Quickly identify inventory bins that are running low or are empty and replenish products.
  • Serial Number Report - Individual products can be set to require a serial number log when shipped.
  • Lots Report - Track inventory lots and expiration. Manage FEFO & FIFO workflows.
  • Packer Error Report - Mistakes happen, no one is perfect. Just… Understand why they’re happening.

Shipments

  • Shipments Report -  Every shipping label, for every order, showing shipping cost and shipping charges.
  • Shipped Items Report - Filter in detail what items have been shipping across orders.

Production Efficiency

  • Picker Report - Every pick is logged. Review daily performance, including the number of unique items picked.
  • Packer Report - Just as important to picking, know how your shipping team is performing.

Data Collection

Once you set your KPIs and important data points, you must now collect the right information to accurately track progress towards your goals. Many companies use software tools to automatically track and analyze KPI progress, but many startups implement manual counting and calculating on an Excel spreadsheet to yield the same results.

To begin building a robust data pipeline, you should ask the question “what do I need to know?”  for each KPI.

In the Time to Deliver example, you need to know when the package was shipped out and when the package was delivered. But for the complete picture, you should also track how much the journey cost, who the carrier was, if there was any delay, etc. to be able to identify root causes of problems and create plans to improve the number going forward.

This may sound simple at first, but as your order complexity and business processes start to grow, finding automated solutions for KPI tracking and optimization is necessary. That’s why many companies turn to ShipHero’s WMS that gives powerful reporting capabilities with a simple click of the button.

Intelligent Decisions

Data analysis and reporting not only tells the current health and progress of your organization, but should also be used to make future-forward and long-term choices. This of course comes with a level of risk, depending on the quality of information.

In the example of Time to Deliver, if you determine that your product deliveries are arriving too late or over-budget, and you want to meet the 2-day delivery standard, then you can use reporting to make better inventory distribution decisions, like relocating inventory to closer warehouses.

Make sure you are getting the right reports into the hand of the right decision-makers so they can make the right choices. Nothing should be left to chance.

Wrap It Up

The amount of reports you can generate is virtually endless, so make sure you are starting with your SMART goals in mind. From there, ask yourself “what do I need to know” for each KPI and start collecting those data points. After the reports and KPIs are tracked, ensure your management team has proper visibility to be able to make intelligent business decisions.

Does your business have the right tools in place to offer affordable and sustainable 2-day delivery? If not, then you may find it hard to compete in the future, especially as more and more people elect for eco-friendly businesses with the same suite of capabilities.

If you’re already working with a fulfillment provider or 3PL, make sure that they’re well-equipped for the task. If not, maybe it’s time for a switch.

Our customers love that ShipHero can offer 2-day ground delivery anywhere in the contiguous United States at simple and transparent pricing. We attribute this success on the Fulfillment Innovation Wheel to Capability #8: Data Now.

‍Stay tuned next as we cover Capability #2: Same Day Shipping! It’s my data, and I need it now! ShipHero.

Innovation Wheel

Learn more about ShipHero's industry-leading warehouse management software.

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April 5, 2021

How To Create Content for Your eCommerce Business - Part 1: Video

An eCommerce Science Series

In the world of SEO, social media and online sales, the very first step to marketing your eCommerce store is simple: content creation.

From there, you can employ all the tips and tricks of boosting conversion, ranking higher with Adwords, and all that technical jazz, but it all starts with making authentic and engaging content … which also just so happens to be the most difficult to do.

In this blog series, we’ll cover all the ways your e-commerce business can start creating engaging content that tells your brand story and speaks to your audience. To start, we’ll break down one of the best ways for B2B and DTC brands to build trust and engage with your customer base: video!

In the top 100 search result listings, video appears 70% of the time. Not to mention, viewers of your product video are 64-85% more likely to purchase after watching, depending on its quality. So if you aren’t already using video, you’re not being seen.

In this article, we’ll dive into why video is the most effective tool to be seen and to be understood. Then, we’ll explain the various types of videos you can make. Finally, we’ll give you video recording guidelines to make the best possible content.

Ready? Lights, camera, action!

The Benefits of eCommerce Video

We know you’re here for the how-to tips, so let’s keep this brief. Simply put, leveraging video allows your business to:

  • Tell your brand story
  • Convert viewers to customers
  • Develop engagement and community
  • Cater to a mobile audience

The facts:

  • Average visitor session duration more than triples on product pages that feature videos.
  • Customers who watch product videos are nearly twice as likely to complete their online purchase.
  • For every one customer that reads a product description, four customers would rather watch a product video.
  • Over half of shoppers say that watching product videos makes them more confident about their purchases.

As for mobile:

  • According to YouTube (owned by Google), over 70% of watch time is from mobile users, with an average mobile viewing session of 40 minutes.
  • Online retailers see nearly 50% of their traffic coming from mobile devices.

The science is out there, and video is the premier way to tell your brand story, convert customers both on desktop and mobile, and increase overall engagement. So what types of videos should you be using on your e-commerce store?

The Five Types of Video Content

There are five primary types of videos you can leverage on your e-commerce store:

  1. Landing Page video
  2. Product description videos
  3. Demonstration videos (demos)
  4. User-generated or UGC
  5. Mobile Shopping

Depending on your specific business and audience, try implementing some or all of the below to maximize your engagement.

Landing Page Video

When shoppers land on your website for the first time, whether through a search or ad, they immediately scour the page for what makes your brand unique from all the others. Landing Page videos are the perfect opportunity to tell the story of your brand, allowing you to use strong visuals that are worth a thousand words.

Place the Landing Page video in an easy-to-spot location with an appealing thumbnail. Most companies place the video right next to their icon or slogan for easy clicks.

Product Description Video

Product Description videos are an important tool to convert site visitors to customers. With clear product visuals and well-articulated details, product videos are a great way to grab the attention of your visitors and deliver a complete understanding of what you sell and why.

Place the product videos right underneath product photos, or even consider substituting photos for clickable videos. The primary call-to-action for these videos should be to place items in their online shopping cart.

Product Demonstration Video

If a customer is interested in your product but not completely sold, they will seek out more information. Product Demonstration videos show the customer how your product is used, and how the product can interact with the world around it.

If you have a physical product, show how a customer can interact with or use the product. If it’s a software or digital product, consider screen-recording and walking through real-life use cases.

Product Demonstration videos are typically less “polished” than an advertisement and should feel like an authentic experience. E-commerce brands typically put these on YouTube and include links throughout the shopper journey.

User-Generated Video

Beyond videos produced by your company, some customers still seek a more genuine, authentic opinion. This is where User-Generated Content (UGC) allows your loyal users to share their personal experiences with your product and your brand. You may also know this as Influencer marketing, Ambassadorships, and more social media advertising.

51% of shoppers in the US say they trust UGC more than any other content on a company website, because after watching the videos, they have a better understanding of how the products work in a sincere, real setting.

Modern online retailers add UGC to their webpages to create community, and if you’re an established brand, your users will compete and have pride in appearing on your website (e.g., Nike).

Mobile Shopping Video

Mobile Shopping videos are those optimized videos catered specifically for users watching on a smaller screen, with features built in to click and purchase directly from their mobile device.

With a specific size and aspect ratio for product videos and images, along with predetermined social media channels (e.g., Instagram Shopping), you can provide a holistic mobile-shopping experience.

Wrap It Up

Successful eCommerce retailers are able to reach large audiences with creative, shareable content, and then convert that audience into customers with a well thought out shopper journey.

Video is an important tool in both capturing your audience’s attention and giving them the information they need to make a purchase. With the above information, you are now on your way to telling a better brand story and using powerful visuals to explain your products.

Once you’ve made the sale and the customer has clicked the ‘Order’ button, what comes next? How do you get your product to your customer’s door? And if the customer needs to return your product, how do you handle it? That’s where a 3PL like ShipHero comes in, to help you simplify everything that comes after the ‘Pay Now’ button. Learn more at ShipHero.com.

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April 2, 2021

The Suez Colonic, Just Sue It.

Suez Colonic

After tireless digging and tugging, the mega-ton blockage that has been constipating global trade for the past six days has finally been cleared from the Suez Canal. The global trade community has given a collective sigh of relief as vessels are now starting to pass through.

What Caused This?

Besides a lack of fiber (kidding), a seasonal dust storm, known as the khamsin, blowing winds at 40 knots caused the Ever Given to veer too far right and become embedded in the canal wall. While this is the story for now, navigation experts and engineers at the Suez Canal Authority are investigating the crash for technical and human error -- this could have massive insurance implications and lawsuits if a responsible party is identified.

How Did They Get it Out?

A full moon emerged (you can’t make this up) and brought in a high tide that buoyed the engineers efforts to re-float the ship. If this attempt failed, the tide would have fallen and they would have been forced to spend weeks unloading thousands of containers to help the Ever Given sit higher in the water. In total, hundreds of thousands of cubic feet of sand were removed.

The Fallout

Shipping operators estimate $12 billion of cargo is stranded along the 120-mile canal or idling outside it. Other shipping operators have already re-routed ships around the Cape of Good Hope, adding weeks and fuel consumption to the voyage. Experts estimate that this will result in another jam once all the vessels reach their destination at the same time, and over 360 vessels are waiting to pass through the canal. As a result, shipping and oil prices have risen, and the already beleaguered logistics industry will likely face additional delays and costs.‍

This post has been sponsored by: MiraLAX. Blockage in your canal? MiraLAX.

The Packet - Mid-image

The American Jobs Plan

Where the American Rescue Plan was Joe Biden’s attempt to bring us out of the pandemic, The American Jobs plan aims to help us the U.S. compete with China and other global powers… but mostly China.

The plan calls for massive investment $2T in infrastructure modernization like highways, railways, hospitals, and more. It also calls for heavy R&D funds for a sustainable and secure supply chain, with large quantities of funding directed towards emerging technologies and their role in the supply chain.

The Future

Boston Dynamics has introduced a new robot prototype, named Stretch, designed to pick-and-pack boxes around warehouses and distribution centers.

Stretch can move up to 800 cases per hour, picking up boxes around 50 pounds. It can adapt to any facility layout change, and it’s battery lasts around an entire shift (and can run continuously when plugged in.) The robot is battery-powered with a charge that should last through an entire shift. It can also run continuously when plugged in.

Just Sue It

Nike has filed a trademark infringement lawsuit against a small marketing company, MSCHF Product Studio Inc, that released 666 pairs of Satan-themed sneakers in collaboration with Lil Nas X to promote the rapper’s new song (spoiler alert: in the video he gives a lap dance to the devil) at a price tag of $1,018 each. Nike has publicly announced the shoes were made without their approval or authorization.

This comes at a time where Nike is experiencing large-scale boycotts in China, for statements Nike (and H&M) made about China’s use of forced labor to supply XinJiang cotton.

ShipHero News

The Fulfillment Innovation Wheel: 2-day Delivery

‍Staying competitive in today’s e-commerce landscape is easy! From the moment when the customer clicks ‘Order’, you just need to be prepared to cover potentially hundreds of miles to deliver your products to their doorstep… in under 48 hours. Tick-tock!  Learn more with ShipHero’s Fulfillment Innovation Wheel series: 2-day Delivery.

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March 29, 2021

The Fulfillment Innovation Wheel: 2-Day Delivery

ShipHero recently launched The Fulfillment Innovation Wheel to help 3PLs understand what capabilities and service offerings they need to implement in order to be successful and to help online retailers and brands choose which 3PL is right for them by allowing them to ‘check the boxes’.

The Fulfillment Innovation Wheel listed a set of twelve (12) capabilities that fulfillment providers and logistics companies should implement to continually delight their customers and push themselves towards greater success and innovation.

The twelve capabilities are:

  1. 2-Day Delivery
  2. Same Day Shipping
  3. At the Box Personalization
  4. Designed for Returns
  5. Sustainable Fulfillment
  6. Resilient Shipping
  7. Distributed Fulfillment
  8. Data Now
  9. Automation
  10. Scale Up and Out
  11. Integration Stack
  12. Professional Services

In this article, we will be diving into Capability #1: 2-Day delivery.

‍And be sure to stay tuned for future articles as we deep-dive into each capability.

Capability #1: 2-Day Delivery

Staying competitive in today’s eCommerce landscape is easy! From the moment when the customer clicks ‘Order’, you just need to be prepared to cover potentially hundreds of miles to deliver your products to their doorstep … in under 48 hours. Tick-tock!

2-day delivery has become the standard in eCommerce delivery, with major retailers like Amazon, Walmart, Target, and just about any business that wants to stay competitive all offering next-day delivery.

While the concept is simple, implementing 2-day delivery for your far-reaching customer base can be a huge undertaking. Not to mention, failing to meet this promise could result in irreparable damage to your credibility and brand.

So how can your business offer 2-day shipping? And what about sustainability?

Against the wishes of many environmentalists, the demand for speed and convenience has sky-rocketed during the COVID pandemic, with sustainability getting pushed to the wayside for more carbon-heavy transportations like air freight.

But will these carriers eventually have to pay the piper for their environmental footprint, and are there more sustainable options when it comes to 2-day shipping. Let’s dive in.

How Do Carriers Offer 2-Day Delivery?

Let’s first demystify what happens from the moment you click “Buy Now” until the package hits your doorstep.

First, your order information hits an order management system, which automatically transfers data to the appropriate fulfillment center based on inventory levels, warehouse capacity, cost and distance.

Next, a warehouse worker will be assigned to the order, with explicit instructions on how to pick the items, pack them in a box, and label the package correctly. The standard for getting this process completed is typically 24 hours.

From there, the order management system calculates the best shipping method based on carrier availability and cost. Depending on distance from the fulfillment center, the carrier will be air or ground freight. These are typically cargo planes or eighteen-wheeler trucks.

Once delivered to the closest distribution center, the package enters ‘last mile delivery’. Based on your address and the orders of your fellow consumers, the optimal route is calculated for delivery speed performance, and in rare cases, based on energy efficiency.

Finally, once those cute little delivery trucks arrive at your address, the mail carrier huffs it up your front steps and drops your package at your door. All the while, customers have been given access to real-time updates and tracking information so they can be with their package virtually every step of the way.

Phew, k you do that now. The eCommerce giants are able to offset the massive costs of offering free 2-day delivery in order to jockey for market position and win more customers, and sustainability is always an afterthought.

Through proper planning and partnering with the right fulfillment provider, your business can offer affordable and sustainable 2-day shipping to compete with the eCommerce elites. How? So glad you asked!

Your Guide to Affordable 2-Day Delivery

Ultimately, keeping 2-day delivery costs low while minimizing your carbon footprint comes down to the successful implementation of the following capabilities:

  • Distributed Fulfillment
  • Streamlined Pick-Pack-Ship
  • Ground Priority

Distributed Fulfillment means intelligently bringing inventory closer to your customers through a distributed network of fulfillment centers placed around the country and/or globe.

With the right Inventory Management System, you can forecast where your orders will come from and intelligently distribute your inventory accordingly.With this in place, you can minimize the distance in which your products must travel, which reduces delivery times and gives you more flexibility in shipping options.

Streamlined Pick-Pack-Ship means not a second goes to waste when orders are sent to your warehouse. Full-service Warehouse Management Systems guide warehouse workers through every step of the process to eliminate human error and expedite getting packages out the door.‍

Ground Priority is achieved when your inventory is properly located and your warehouse operations run smoothly, so that you can offer more affordable and sustainable ground shipping every time, as opposed to resorting to costly and carbon-intensive air freight.

Wrap It Up

Does your business have the right tools in place to offer affordable and sustainable 2-day delivery? If not, then you may find it hard to compete in the future, especially as more and more people elect for eco-friendly businesses with the same suite of capabilities.

If you’re already working with a fulfillment provider or 3PL, make sure that they’re well-equipped for the task. If not, maybe it’s time for a switch.

Our customers love that ShipHero can offer 2-day ground delivery anywhere in the contiguous United States at simple and transparent pricing. We attribute this success on the Fulfillment Innovation Wheel to Capability #1: 2-Day Delivery.

‍Stay tuned next as we cover Capability #2: Data Now! It’s my data, and I need it now! ShipHero.

Innovation Wheel

Learn more about ShipHero's industry-leading warehouse management software.

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