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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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December 10, 2020

ShipHero CEO Aaron Rubin on the Tropical MBA Podcast

Aaron Rubin is a longtime veteran of ecommerce. His growing annoyance with the shipping costs related to his business drove him to create ShipHero, a remote company that offers outsourced ecommerce fulfillment services and warehouse management software to other ecommerce businesses.

Recently, more than 1 in every 200 ecommerce packages delivered in America were shipped through ShipHero.‍

Aaron was interviewed on the Tropical MBA Podcast, discussing how his first ecommerce business nearly went bankrupt, how a need to “scratch his own itch” led to the creation of ShipHero, and offered his take on where the ecommerce industry is headed in the future.‍

Listen to the podcast here.

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December 9, 2020

Picking Many Orders Using ShipHero Warehouse Management Software

[embed]https://www.youtube.com/watch?v=qrfYPK_aLuc[/embed]Hello, Nicholas here!It isn’t easy to ship lots of orders correctly from a warehouse. When shipping orders, the items need to be picked first before putting them into a package and printing that shipping label. This is a complete guide on how to use the ShipHero Mobile app to pick many orders, using the single-item batch feature. The app figures out the pick list, optimizes the picking route and confirms items that are picked by scanning the product barcode and placed into a single tote ready for the packer to ship.ShipHero provides industry-leading warehouse management software for ecommerce, and outsourced shipping if you’re hands-off. We make sure over 4,000 brands and 3PLs the world over deliver ecommerce every day.

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December 7, 2020

Black Friday: A Eulogy

Dearly Beloved,We are gathered here today to honor the memory of our dear friend, Black Friday, or as her best friends affectionately called her, B.F.

Hear ye, Black Friday was a good Friday, surely not as good as Good Friday, but close. Nay, who could forget how Black Friday enticed all of the stuffed and happy Thanksgivingites to venture from their eating dens into the shoppe world, so that they may purchase holiday tokens and trinkets for their loved ones. She will truly be remembered as a barranger of holiday spirit and- what?She’s… She’s just quarantined?!… But, CNN said so. They weren’t SURE? I had all this stuff prepared, unbelievable.

So, is Black Friday actually deceased like everyone predicted, or is she quarantined? What does the coroner have to say about the data?

Let’s Start With the Facts

For the sake of uniformity, and to get a bit nostalgic, let’s level-set on what Black Friday is/was.

Black Friday is the Friday after Thanksgiving and has been regarded as the beginning of the United States Christmas shopping season since 1952, with 30% of all shopping occurring between Black Friday and Christmas.

Since the rise of ecommerce, Black Friday has been widely regarded as the brick-and-mortar holiday, physically getting off your rump to purchase items, while Cyber Monday was the “celebration” of online sales.

To combat the hordes of rambunctious shoppers that would flock the stores every year, retail stores started opening earlier and earlier, even into Thanksgiving day. As such, retail stores in 2019 saw a 6.2% decrease in day-of Black Friday traffic with a 2.3% increase in Thanksgiving day traffic, hinting to a possibility that the Black Friday tradition may soon become obsolete.

Even way back in 2019, shoppers were becoming disillusioned with the Black Friday horror stories, avoiding the trampling crowds and opting to shop from the safety of their home. That may in part explain why Black Friday 2019 consumer spending hit a record $7.4 billion online.

Heading into 2020, experts and projections seemed to predict that this trend would continue, with in-store traffic steadily dwindling while online shopping carried the difference. But nobody could have predicted the actual outcomes.

Black Friday 2020

On Black Friday 2020, U.S. store traffic plummeted by 52% as retailers cut their hours and limited their deals in order to dutifully mitigate large gatherings.

Meanwhile, online shopping on Black Friday increased 21.6% YOY to $9.03 billion. If you’re thinking, a 52% decrease and a 22% increase, that doesn’t add up, well… you’re right.

According to statistics accumulated by Adobe Analytics, the month of November in 2019 reported $142.4 in online revenue, and the predicted online revenue for 2020 was a staggering $189 billion. So what did we actually hit? A mere $100 billion, basically a Jeff Bezos weekend.

People just weren’t in the mood to shop in November 2020… except in the case of Small Business Saturday which enjoyed about a 30% YOY growth, which makes sense because a Google research report this year indicated shoppers’ loyalty to small businesses has increased, as 66% say they plan to shop at local small businesses this holiday season.

So after looking at all these figures, can we definitively say that Black Friday has perished? That just seems so final. So permanent.

How COVID Measures Could Revive Black Friday

Consider this, the reason for Black Friday’s impending obsolescence was that shoppers and retailers alike couldn’t handle the large crowds. To address the problem, retailers didn’t implement a new system or improve their practices, instead they paid people more money to come in on a holiday.

Now may I ask, weren’t retailers recently pressured by a shall-remain-unnamed external force to implement a whole bunch of measures, like curbside pickup, contactless checkout and BOPIS, to avoid crowds altogether and improve the shopping experience?

These new omni-channel methods, while a result of necessity, could prove to be a big advantage when the holiday shopping floodgates open up next year in 2021: A Shop Odyssey.Of course, this is just an optimistic perspective from a Black Friday enthusiast, but it will certainly be interesting to see how retailers employ their newfound capabilities in a post-COVID era of retail.

Push to Digital

Of all the mysteries shrouding Black Friday’s possible disappearance, there is still one very clear trend: the push to online sales for retailers.Shopify Plus research data indicates the following trends for BFCM 2020:

  • 80% of Shopify Plus merchants surveyed who are participating in BFCM plan to only offer online sales, while 20% plan to embrace a hybrid approach.
  • 67% plan to sell through an online marketplace, including Amazon and Google Shopping.
  • Most brands will offer some type of discount for BFCM, and most will provide a blanket discount on all items.

Not only that, ShipHero collected the following statistics:

  • Cyber Monday volume was up 124.14% YOY, more than double that of 2019.
  • For the Black Friday to Cyber Monday period, average order value was up 15.36% YOY, increasing to $91.59 from $79.40 a year ago.
  • Also during this period, ShipHero total unit volume increased 104.06% YOY.

Online orders increased on both Black Friday and Cyber Monday. With the already overwhelmed fulfillment providers like Amazon, UPS and others reporting delays, volume restrictions or stalls in their fulfillment capabilities, more and more retailers are switching to alternative fulfillment providers. ShipHero saw a large growth in new customers, as well as revenue increases at existing customers.As we continue to navigate the most wonderful and turbulent time of the year, ShipHero is here to meet your customers’ demands during the holidays and year-round, with fast and accurate order fulfillment. Find out more here.

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December 3, 2020

Retailers Seek Ecommerce Fulfillment Providers for Last Mile Delivery

With the explosion of e-commerce showing no signs of slowing, retailers are increasingly leaning on the technological capabilities and geographic reach of fulfillment providers to place inventories in position for faster last-mile services.

Retailers are placing a greater emphasis on e-commerce versus brick-and-mortar shopping as consumers continue to show hesitancy to shop in stores amid the COVID-19 pandemic. But that emphasis on e-commerce requires positioning inventory closer to the customer in order to shorten the last-mile. As a result, retailers are turning to fulfillment providers with cloud-based technology capabilities to manage their inventories in real-time.

ShipHero CEO Aaron Rubin was asked about the growing trend in ecommerce fulfillment where companies are attempting to place their inventory closer to their customers.“Retailers will streamline operations, reduce brick-and-mortar presence, and outsource fulfillment to focus on their core service offerings,” Aaron Rubin told JOC.com.He expects a continued shift from brick-and-mortar dependence to an ecommerce-focused model and noted that many bankrupt retailers with physical stores are relaunching as online retailers and ramping up quickly by utilizing ShipHero’s fulfillment network, which currently consists of seven US warehouses. ShipHero’s warehouse management system software is in 500 warehouses at present.Read more here at Joc.com. (registration required)

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December 1, 2020

ShipHero Ecommerce Order Fulfillment Update: Black Friday and Cyber Monday

ShipHero Ecommerce Order Fulfillment Update

Tuesday, December 1, 2020

ShipHero just completed another successful Black Friday and Cyber Monday, helping our SaaS and fulfillment customers meet their holiday order rush.

Cyber Monday volume was up 124.14% year-over-year, more than double that of 2019.

For the Black Friday to Cyber Monday period, average order value was up 15.36% year-over-year, increasing to $91.59 from $79.40 a year ago.

Also, during this period, ShipHero total unit volume increased 104.06% year-over-year. The more than doubling of orders is due to the growth new customers using ShipHero as well as sales increases at existing customers.

ShipHero is here to meet your customers’ demand during the holidays and year-round,  with fast and accurate ecommerce order fulfillment. See what we can do for you here.

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December 1, 2020

How to Create a Successful Subscription Model in 3 Easy Steps

From the E-Commerce Experts at ShipHero - The Leader in Warehouse Management Software

We hope everyone had a wonderful Thanksgiving and are at least halfway through filtering your email inbox of the BFCM bombardment! Now, here’s a fun fact: around the same time the first Thanksgiving was held in the 17th century, the subscription business model was also first pioneered by publishers of books and periodicals, where travelling salespeople would go door-to-door to convince readers to sign up for continual editions! At the time, this was viewed as a wild derivation from the traditional business model that favored one-off transactions to instead emphasize recurring transactions and payments. Fast forward to today, as brands have progressively searched for ways to improve their holistic shopping experience and nurture relationships with their customers, it seems that they have figuratively taken a page out of these pioneer’s books and forged the rise of the new Subscription Economy.

The Subscription Economy is the term used to describe the trend of otherwise traditional businesses shifting to a subscription business model, where they offer recurring use or access of their product or service, whether monthly, yearly, seasonal or otherwise, rather than the traditional, one-time transaction. A myriad of prestigious companies have successfully employed this business model such as content streaming services like Netflix or Hulu, fitness centers and gyms, software companies like Dropbox, recurring subscription box companies like BirchBox, and more recently, traditional product companies that typically sell goods on a fixed cadence; for example, GNC for vitamins AKA “Subscribe and Save”.

With the recent introduction of Shopify’s Subscription APIs, online e-commerce brands using Shopify can now offer product subscriptions and completely transform how they engage with their customer base. This type of business model typically produces a long-term contract and relationship with a customer, allowing businesses to offer steep discounts for loyal customers that sign up for pre-determined and scheduled purchases.

Let’s briefly list the benefits of the subscription business model and then discuss how your business can make the shift to offer product or service subscriptions.

Benefits of Subscription Models

For reference, some examples of business models that have successfully employed the subscription model include:

  • Netflix  allowing access to content for a monthly fee
  • ButcherBox sending customers a box of meat on a set cadence; customers can subscribe to receive the box every 4, 6 or 8 weeks
  • GNC giving a 20% discount on vitamins when signing up for a monthly or 90 day recurring order
  • Magazines offering monthly or yearly subscriptions

Brands and businesses that have utilized the subscription business model have reported better customer relationships, better aggregate data, and better diversity in product offerings.

1. Turn Customers in Subscribers

Most large companies report that brand new costumes only generate 15 to 25% percent of their revenues, which means that return customers generate the bulk of the revenue. Focusing on return customers and subscribers allows companies to lower the acquisition costs of targeting a new audience, while also cultivating brand loyalty.

2. Gather More Fruitful Customer Data

As reported by Shopify, modeling and storing subscription data allows merchants to offer benefits like recurring revenue reports on active subscribers, new subscribers, and churned subscribers. This allows your company to better engage with your audience and create targeted content along the customer journey.

Many large brands report developing separate marketing strategies for subscribers and non-subscribers, as well as strategies to convert non-subscribers to subscribers including email campaigns and targeted discounts for subscription and account creation.

3. Sell the Same Product in Multiple Ways

Utilizing the subscription model, a single product could be sold in multiple ways, such as selling the good as a one-time purchase as well as a subscription, including bundles or cross-selling. Bundling, cross-selling and subscriptions gives brands the creative freedom to understand how their customers would prefer to engage with their products and services.

3 Steps to Building a Successful Subscription Model

Once you have decided to build a subscription model for your business, here are three simple steps to get you on your way!

1. Develop a Pricing and Bundle Strategy

When shifting to a subscription business model, subscription pricing and incentives are the most important and complex aspect to consider, because it directly drives the three basic growth strategies: acquire new subscribers, increase engagement and revenue per existing customers, and reduce customer turnover. A fixed subscription price can often be counterproductive because it foregoes the plethora of opportunity for flexible and creative pricing strategies.

Many brands choose to develop pricing strategies according to the factors that matter most to their business. For example, if your business aims to optimize quantity of engagement, customize the pricing to incentivize more usage (e.g., unlimited usage deals). Alternatively, if you want to increase your average order quantity, set subscription pricing that pushes subscribers to order in bulk at a set schedule with discounted prices. Finally, if customer loyalty is your desired result, consider developing reward programs or additional “points” for those that choose to subscribe at checkout.

As you can see, the subscription model offers endless opportunities for flexibility and creativity in customer engagement. There are also freemium options, early bird offers, free trials, bundles and more. Consider your business goals and start with a simple pricing tier, then adjust as you learn from your subscribers what they want!

2. Provide a Way for Customers to Manage Subscriptions

Cultivating strong customer relationships are absolutely essential in the subscription business model. Of course getting new subscribers is important, but in the Subscription Economy the bulk of customer transactions are alterations to active subscriptions like subscription renewals, suspensions, add-ons, upgrades, terminations and more.

As such, brands must provide customers with an intuitive method to manage their accounts throughout the subscription lifecycle. For this reason, Shopify has released a suite of APIs with webhooks to link to your app, thereby giving your subscribers all they need to manage their active subscriptions.

3. Scale with Infrastructure

Successful subscription businesses must rely on their automated processes and enterprise-grade systems to scale their subscription models to provide around-the-clock customer support and business continuity. Subscription-based companies, or those that want to start offering subscriptions, absolutely need seamless integrations with commerce systems, payment gateways, as well as fulfillment and logistics companies.

For that reason, warehouse management software companies like ShipHero integrate directly with Shopify to allow your brand to get as creative as possible with your product and service offerings, all while ensuring the reliable fulfillment capabilities that your customers have come to expect.

Not to mention, creating and shipping customized bundles, kits or bulk orders can get complicated and expensive through traditional fulfillment methods. That’s why ShipHero offers BulkShip: an intuitive interface to design preassembled bundles of products, such as a makeup kit you'd buy at CVS, or a more complex bundle that would get assembled at fulfillment. A good example of this could be a clothing subscription, where the customer selects the sizes, and then the kit is assembled, as Nicholas shows in the video link here.

By offering a subscription service, your brand will most likely be selling a variety of items in a variety of ways, so BulkShip allows brand owners to group orders quickly and pick a lot of the same product at once, making the fulfillment process quick and efficient.

Happy holidays from all of us at ShipHero! And if you like our blogs, be sure to Like & Subscribe ;)

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November 30, 2020

ShipHero Ecommerce Order Fulfillment Trends – Week in Review For November 30, 2020

ShipHero provides warehouse management software and outsourced ecommerce order fulfillment to over 4,000 brands, processing an annual gross merchandise volume (GMV) of over $5 billion.In an effort to provide useful data to the DTC community during Covid and the rapid changes occurring in our industry, we are sharing some of the broad segment trends from the products on our platform. Here is the data for the week ended November 30, 2020:

ShipHero order fulfillment trends for the week ended November 30, 2020

Today is Cyber Monday and the holiday rush is in full swing, as shown by the huge increases in volume over prior weeks. The ShipHero team is on it, helping our customers meet the surging demand.More charts available on data.shiphero.com.Do you find this information useful? Let us know! Twitter: @weareshiphero or Email al@shiphero.com.

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November 28, 2020

ShipHero Ecommerce Fulfillment Update For Saturday

ShipHero Ecommerce Fulfillment Update

Saturday, November 28, 2020

ShipHero Ecommerce Fulfillment is in high gear as we surpassed our all-time record volume.

Yesterday was our best sales day ever and today will be our second-best ever.

‍Here are the statistics for Black Friday and today, Saturday November 28:
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Black Friday (as defined by UTC, so starting at 7PM Eastern Thursday) ShipHero orders were up 79% year-over-year.

On Saturday (as defined by UTC, so starting at 7PM Eastern Friday) orders were up 117% year-over-year (more than doubling versus last year).

In addition, on Black Friday, the calendar day, as defined by Eastern Time, ShipHero processed 648,847 orders, up 87% year-over-year. Shopify reported being up 58% YoY for that same period.

As always, ShipHero is here to meet the holiday demand with fast and accurate ecommerce fulfillment. See what we can do for you here.

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November 23, 2020

ShipHero Ecommerce Order Fulfillment Trends – Week in Review For November 23, 2020

ShipHero provides warehouse management software and outsourced ecommerce order fulfillment to over 4,000 brands, processing an annual gross merchandise volume (GMV) of over $5 billion.In an effort to provide useful data to the DTC community during Covid and the rapid changes occurring in our industry, we are sharing some of the broad segment trends from the products on our platform. Here is the data for the week ended November 23, 2020:

ShipHero Ecommerce Order Fulfillment Trends for the week ended November 23, 2020

More charts available on data.shiphero.com.Do you find this information useful? Let us know! Twitter: @weareshiphero or Email al@shiphero.com.

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November 16, 2020

Holiday Shipping Season Kicks Off Early

Based on ShipHero’s sales volume, today, November 16, appears to be the unofficial kickoff of the holiday shipping season for DTC brands. It was ShipHero’s busiest shipping day ever. Three of our brands shipped over $1 million of goods today. Total volume was up 14% from last Monday and far eclipsed Cyber Monday of 2019.

ShipHero is here to handle your ecommerce order fulfillment, handling even the busiest days smoothly. Find out more here.

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