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Fulfillment in Logistics: How Does It Work and Why Is It Important in Ecommerce?

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3pls, Global Logistics, Global Trade Daily

Fulfillment in Logistics: How Does It Work and Why Is It Important in Ecommerce?

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In the fast-paced world of ecommerce, the success of a business is often measured by the speed and efficiency with which it delivers products to consumers. This process is intricately tied to fulfillment in logistics, a crucial aspect that can make or break an ecommerce enterprise.

The number of individuals choosing online shopping over the conventional method of visiting brick-and-mortar stores has seen a remarkable increase. For ecommerce fulfillment companies and online retailers, it is crucial to establish a system that enables customers to monitor their orders at every stage until they reach the designated destination. This functionality benefits both sellers and buyers, ensuring transparency in each process and adherence to the outlined procedures.

Understanding How Fulfillment in Logistics Works

Fulfillment in logistics refers to the end-to-end process of receiving, processing, packaging, and delivering orders to customers. This process involves a series of interconnected steps, starting from the moment a customer places an order on an ecommerce website to the final delivery of the product to their doorstep.

#1. Order Processing

Once a customer places an order on an ecommerce platform, the order processing begins with the verification of the order details. This includes confirming the product, quantity, and any specific customer instructions.

An integral aspect of order processing is checking available inventory. This step ensures that the products requested by the customer are in stock. This is crucial in preventing issues such as overselling or backorders.

Before proceeding, the system authorizes the payment to ensure that the customer’s payment method is valid and has the necessary funds. This step helps in preventing fraudulent transactions.

After successful verification, the customer receives an order confirmation. This serves as a communication to the customer that their order has been received and is being processed.

Throughout the order processing stage, communication with the customer is essential. This may include updates on the order status, expected delivery times, and any potential delays.

Proper documentation is generated during order processing. This includes invoices, packing slips, and shipping labels. Accurate documentation is vital for record-keeping, inventory management, and legal compliance.

Order processing systems are often integrated with other systems, such as inventory management, customer relationship management (CRM), and shipping systems. This integration ensures seamless coordination between different aspects of the fulfillment process.

#2. Picking and Packing

Picking:

Picking refers to the process of selecting and retrieving items from the warehouse or storage facility to fulfill a customer’s order.

Once items are picked, they are sorted and consolidated based on individual orders. This ensures that the correct items for each order are gathered before moving on to the packing stage.

A crucial step in picking is the verification of selected items. This helps prevent errors and ensures that the right products are being prepared for shipment.

Packing:

Packing involves the careful and secure packaging of the selected items for shipment to the customer. Packing materials, such as boxes, bubble wrap, and so on, are used to protect items during transit. Efficient packing aims to maximize the use of space, reduce packaging waste, and ensure that products are well-protected.

Quality control checks are conducted during packing to ensure that the correct items are in order and that they meet quality standards. This step is crucial to minimize returns and customer dissatisfaction.

Packing involves the preparation of necessary documentation, including packing slips and shipping labels. Accurate documentation ensures that the package is properly identified and reaches the correct destination.

#3. Shipping

Ecommerce businesses typically offer various shipping options, allowing customers to choose the method that best suits their needs, considering factors like speed and cost. Common shipping methods include standard shipping, expedited shipping, and express shipping.

After the packing stage, a shipping label is generated. This label contains essential information, including the destination address, tracking number, and details of the shipping method. The label is affixed to the package, ensuring proper identification and tracking throughout the shipping process.

Ecommerce platforms often integrate with shipping carriers (e.g., FedEx, UPS, USPS) to streamline the process of generating shipping labels and accessing shipping rates. Integration allows for real-time tracking and updates on the package’s location during transit.

Providing customers with tracking information is a standard practice in ecommerce. This enables customers to monitor the status and location of their orders in real-time. Accessible tracking information enhances transparency and customer satisfaction.

Efficient shipping involves coordinating the movement of packages from the fulfillment center to regional distribution centers and, ultimately, to the last-mile carriers responsible for delivering packages to customers.

Businesses must consider shipping costs as a part of their overall logistics strategy. Factors such as package weight, dimensions, and destination influence shipping costs. Some ecommerce businesses offer free shipping promotions or subsidized shipping to attract and retain customers.

#4. Last Mile Delivery

Before reaching the customer, products are typically transported from larger distribution centers to local facilities strategically located in proximity to the delivery addresses. Local distribution centers help reduce the distance and time required for last-mile delivery.

Efficient last-mile delivery involves optimizing the route taken by delivery vehicles. This can be achieved through advanced logistics software that considers factors such as traffic conditions, delivery windows, and the geographic distribution of orders.

Customers often expect real-time tracking and updates on the status of their deliveries. Last-mile delivery services leverage technology to provide customers with accurate and timely information about the location and estimated time of arrival of their packages.

To accommodate diverse customer preferences, last-mile delivery services may offer various delivery options, including same-day delivery, next-day delivery, time-specific delivery windows, and contactless delivery.

Last-mile delivery involves the deployment of delivery personnel, including drivers or couriers, responsible for physically transporting packages to customers. Efficient logistics companies often invest in training and equipping their delivery personnel to ensure professionalism and customer satisfaction.

Integration of technology, such as GPS tracking, route optimization algorithms, and electronic proof of delivery (ePOD) systems, enhances the efficiency and accuracy of last-mile delivery operations.

Effective communication with customers is crucial during last-mile delivery. Notifications about the imminent arrival of a package and options for rescheduling or redirecting deliveries contribute to a positive customer experience.

The success of last-mile delivery significantly impacts customer satisfaction. A seamless, reliable, and timely delivery process enhances the overall customer experience and influences brand perception.

Why Fulfillment in Logistics Is Crucial for Ecommerce Success

Here are some important reasons why fulfillment in logistics is crucial for ecommerce success.

#1. Customer Satisfaction

 

An efficient fulfillment process ensures that customer orders are processed, packed, and shipped in a timely manner. Delivering products on or before the expected delivery date enhances customer satisfaction by meeting or exceeding their expectations.

Accuracy in picking and packing orders is crucial. When customers receive the correct items in their orders without errors, it builds trust and confidence in the ecommerce business. Accurate order fulfillment is a key contributor to customer satisfaction.

Providing customers with clear and transparent communication throughout the fulfillment process is essential. Regular updates, tracking information, and notifications about the order’s status contribute to a positive customer experience, reducing anxiety and uncertainty.

Well-packaged products protect items during transit and contribute to the perceived quality of the overall shopping experience. Quality packaging not only prevents damage but also enhances the presentation of the delivered products, positively impacting customer satisfaction.

Consistency in delivering a positive experience across multiple orders builds trust and confidence in the ecommerce brand. Customers who consistently have a smooth and reliable experience with order fulfillment are more likely to become loyal patrons.

Satisfied customers are more likely to share their positive experiences through word-of-mouth recommendations, both online and offline. Positive word-of-mouth contributes to customer acquisition and strengthens the brand’s reputation.

Ultimately, an enhanced customer satisfaction benefit leads to repeat business and customer loyalty. Customers who consistently have positive experiences with order fulfillment are more likely to return for future purchases, contributing to the long-term success of the ecommerce business.

#2. Competitive Advantage

An optimized fulfillment process enables quick and efficient order processing, packing, and shipping. Ecommerce businesses that can deliver products to customers faster than competitors gain a competitive edge, especially in industries where speed is a crucial factor.

Businesses that consistently meet or exceed customer expectations for reliable and punctual deliveries create a positive reputation, setting themselves apart from competitors that may struggle with fulfillment issues.

Businesses that cater to diverse customer preferences gain a competitive advantage by meeting the varying needs of their target audience.

In other words, if you are able to consistently deliver positive fulfillment experiences, you’re better poised to receive favorable customer feedback and reviews. As mentioned in the previous section, positive word-of-mouth and online reviews contribute to a positive brand image, differentiating the business from competitors with lower customer satisfaction.

#3. Cost Efficiency

Efficient fulfillment processes involve accurate inventory management. By minimizing overstock and stockouts, businesses can optimize their inventory levels, reducing holding costs and preventing unnecessary expenses associated with excess or insufficient stock.

Streamlining the order processing stage minimizes the time and resources required for handling each order. This efficiency reduces labor costs, lowers the risk of errors, and ensures that fulfillment operations operate at peak productivity.

Cost-efficient packaging involves finding the right balance between protecting products during transit and minimizing packaging materials. By optimizing packaging, businesses can reduce material costs, lower shipping costs (based on package weight and dimensions), and contribute to environmental sustainability.

The integration of advanced logistics software and automation technologies enhances efficiency and reduces the need for manual labor. This not only increases accuracy but also lowers labor costs, contributing to overall cost efficiency in fulfillment.

An efficient returns process is crucial for cost efficiency. By streamlining the returns management process, businesses can reduce the costs associated with processing returns, restocking inventory, and managing customer refunds or exchanges.

Using data analytics tools helps businesses make informed decisions about their fulfillment processes. By analyzing data on order volumes, customer preferences, and seasonal trends, businesses can optimize their operations, reduce waste, and control costs effectively.

#4. Scalability

Well-designed fulfillment systems can adapt to increased order volumes, ensuring a seamless experience for both the business and its customers.

Scalability allows businesses to handle fluctuations in order volumes efficiently. Whether facing seasonal peaks, promotions, or unexpected increases in demand, a scalable fulfillment system ensures that the business can meet customer expectations without compromising on efficiency.

A scalable fulfillment system enables businesses to allocate resources more efficiently. This includes labor, warehouse space, and technology. As order volumes fluctuate, scalable operations ensure that resources are deployed where they are most needed, preventing underutilization or overextension.

As businesses expand their product offerings or introduce new stock-keeping units, a scalable fulfillment system allows for the quick onboarding of these products into the existing logistics infrastructure. This agility accelerates time-to-market for new products.

Businesses aiming for geographic expansion can benefit from scalable fulfillment operations. Whether entering new markets or extending delivery coverage, a scalable system accommodates the increased complexity and volume associated with a broader geographical reach.

Seasonal peaks, such as holiday shopping seasons, can significantly impact order volumes. Scalability ensures that businesses can efficiently handle increased demand during peak periods, meeting customer expectations for timely deliveries and maintaining service quality.

Wrapping Up

Fulfillment in logistics is the backbone of successful ecommerce operations. From order processing to last-mile delivery, each step in the fulfillment process impacts customer satisfaction, brand reputation, and the overall success of an ecommerce business.

Embracing efficient and scalable fulfillment systems is not merely a requirement but a strategic necessity for businesses looking to thrive in the dynamic world of online retail.

Author bio

Andy Beohar is the Managing Partner at SevenAtoms, a leading B2B demand generation agency. SevenAtoms is dedicated to driving growth for SaaS and B2B businesses through innovative and optimized paid search and is recognized by Google as a Google Premier Ads partner. At SevenAtoms, Andy plays a strategic role in managing paid search campaigns. Let’s connect on LinkedIn and Twitter!

 

 

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Global Logistics, Global Trade Daily, News

Rising Supply Chain Returns Prompt Online Retailers to Adopt Tech Solutions and Tailored Policies

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E-commerce customer returns due to supply chain snafus have more than  doubled since 2022, according to Altman Solon’s 2023 E-Commerce Store-to-Door survey. The survey  underscores the importance of getting returns right by using new technologies and smart returns  policies, especially with frequent online shoppers (“Super Shoppers”) saying they make purchasing  decisions based on a company’s returns policy.  

The survey shows that 25% of shoppers returned packages due to damage compared to 11% in 2022,  while 17% of shoppers returned packages because the wrong product was delivered compared to 8%  last year. 

“While some returns are inevitable, retailers can make significant progress in reducing them by limiting  unforced errors related to the supply chain,” said Altman Solon Partner Patrick Marshall. “This means  investing in augmented reality and other visual packing aids to reduce mistakes, in addition to integrating  robotics, optical image recognition matching/validating solutions, and other warehouse technologies to  ensure package accuracy and fidelity.” 

The survey also explores the specific return preferences of different types of consumers, including super,  general, urban, rural, and suburban shoppers. Super shoppers are more than twice as likely (22%) to  make a return at a locker than general shoppers (9%). Home pick-up returns have a low “most used” rate  (6%) among general shoppers, but 19% of general shoppers prefer home pick-up, revealing opportunities  for retailers that encourage this option. However, respondents identified printing return mailing labels as  the second most common obstacle, so including pre-printed labels is critical to fostering home pick-up  options. 

“These days, retailers need to know not just what their customers want to buy, but also how they want  to send it back,” said Altman Solon Director Derek Powell. “Like they do with consumer buying habits,  online retailers need to use data analysis and AI to create returns policies that attract and retain more  customers.” 

The survey also identified ways for firms to reduce costs during the returns process through omni channel returns and inventory turnover, consolidating returns orders, and raising revenues through fees  to offset expensive return options. 

“Retailers don’t always seek out efficiencies in returns to the same degree they do when shipping their  products out,” said Altman Solon Director Suhaib Rangoonwala. ““But there are significant opportunities  for cost savings in processing returns and carrying inventory, as well as ways to increase turnover. The  long-term goal is to nudge consumers to return options that are cheaper and more efficient, which will  create a smoother process for retailers and customers alike.”

Other key survey results include: 

  • 25% of Super Shoppers return up to 25% of orders 
  • the frequency of general shoppers who return packages within a week has nearly tripled since  2022 (23% to 67%) 

Altman Solon’s 2023 Store-to-Door Supply Chain Survey polled nearly 450 U.S. consumers to explore  online purchasing habits across consumer segments. Other insights from the survey can be found here. 

Altman Solon is the world’s largest strategy consulting firm focused exclusively on the Telecommunications, Media,  and Technology (TMT) industries. We work with market leaders, challenger brands, and investors across TMT  sectors. We support our corporate clients in identifying, developing, and implementing company strategies, new  market entry approaches, digital innovation, and global M&A. We help our investor clients understand markets,  conduct due diligence, and make high-stakes decisions with confidence. 

Altman Solon has an extensive international reach with offices in Boston, London, Los Angeles, Mexico City, Milan,  Munich, New York, Paris, San Francisco, Singapore, Sydney, Warsaw, and Zurich, with successful projects  completed across the globe in more than 100 countries.

Report Source:

https://www.altmansolon.com/insights/e-commerce-returns-strategies/?utm_campaign=2023%20Supply%20Chain%20Returns%20[Content]&utm_source=PR

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Banking, eCommerce, Global Trade Daily

Unlocking Financial Prosperity: Managing Banking and E-Commerce in the Future

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In the rapidly changing digital landscape, e-commerce, banking, and finance are leading the way in transformation. Knowing the ins and outs of this financial growth is crucial as technology is changing the way we handle our finances and make transactions. This essay explores the intriguing opportunities and difficulties of the future and provides guidance on how to successfully navigate the shifting financial, banking, and e-commerce landscapes in order to achieve financial prosperity.

The Digital Financial Revolution

The days of just being able to conduct financial transactions at physical banks are long gone. A new era of finance has been brought about by the digital age, allowing us to invest, access our accounts, and make payments from the comfort of our homes. Mobile banking apps, online payment gateways, digital wallets for banks, and cryptocurrency are just a few examples of the digital financial revolution. As the technology continues to advance, we can anticipate even more innovations that simplify and enhance our financial lives.

E-Commerce: Changing the Way We Shop

E-commerce has become an integral part of our daily lives. The convenience of online shopping, the wide array of choices, and the ability to compare prices with a click of a button have revolutionized the retail industry. As consumers, it’s important to stay informed about emerging trends in e-commerce, such as augmented reality shopping experiences and the rise of sustainable and ethical consumerism. Navigating the e-commerce landscape involves making informed choices and ensuring the security of your online transactions.

The Intersection of Banking and E-Commerce

One of the most exciting developments in the financial world is the intersection of banking and e-commerce. Traditional banks are adapting to meet the changing needs of customers, offering seamless integration with e-commerce platforms and enabling online businesses to manage their finances more efficiently. As a business owner or consumer, understanding this convergence is essential for staying competitive and safeguarding your financial interests.

Financial Security in the Digital Age

With the benefits of digital finance and e-commerce come new challenges, particularly in the realm of security. Cybersecurity threats, data breaches, and online fraud pose risks to both businesses and individuals. Exploring strategies to protect your financial assets and personal information is a crucial aspect of navigating the future of finance, banking, and e-commerce.

Adapting to the Future

As the financial and e-commerce landscapes continue to evolve, adaptability and knowledge will be your greatest assets. Keeping up with industry trends, staying informed about regulatory changes, and making informed decisions will help you unlock financial prosperity in this dynamic environment.

In conclusion, the future of finance, banking, and e-commerce holds immense potential for individuals and businesses alike. To harness this potential and unlock financial prosperity, it’s vital to stay informed, embrace innovation, and remain vigilant in the face of emerging challenges. By doing so, you can navigate the exciting future of finance and e-commerce with confidence and success.

 

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Global Logistics, Global Trade Daily

E-commerce Returns Management: Strategies for Handling and Reducing Returns

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Returns are a certainty in the world of e-commerce. While they may seem inconvenient, they’re an integral part of the online shopping experience. As an e-commerce business owner, understanding and effectively managing this issue can be the difference between success and struggle. Here, we will delve into the world of e-commerce returns management, exploring strategies to handle them efficiently and reduce them. From streamlining processes to embracing technology, we’ll equip you with the knowledge you need to successfully navigate this challenging aspect of your business.

Understanding E-commerce Returns

Unlike traditional brick-and-mortar stores, e-commerce faces unique challenges regarding returns. Buyers often make purchase decisions based solely on product descriptions and images, sometimes leading to discrepancies between expectations and reality. Sizing issues, damaged items during shipping, and the occasional buyer’s remorse all contribute to the high return rates in online retail.

To effectively tackle this, e-commerce business owners must acknowledge that returns are not merely a problem to be solved but a natural part of the online shopping experience. By understanding the root causes and motivations behind them, you can begin to implement strategies that handle this area of your business efficiently and work towards reducing their occurrence.

The Cost of Inefficient Returns Management

Inefficiencies in managing e-commerce returns can have far-reaching financial and reputational consequences for businesses. The financial toll is two-fold: businesses incur direct costs associated with processing and restocking these items and face potential revenue losses due to damaged or unsellable goods.

Perhaps even more detrimental is the impact on customer satisfaction and loyalty. Customers who experience a cumbersome or frustrating returns process are less likely to return for future purchases, and they may share their negative experiences with others, tarnishing your brand’s reputation.

Moreover, inefficiency doesn’t only lead to unnecessary costs; it’s a revenue-draining pit that can erode profitability and hinder growth. Therefore, implementing effective management strategies is an investment in the long-term success and sustainability of your e-commerce business.

Key Strategies for Effective E-commerce Returns Management

Navigating the intricate landscape of e-commerce returns demands a strategic approach. So, let’s explore key strategies that empower e-commerce businesses to manage this area and foster customer satisfaction effectively.

Streamlined Returns Process

Simplicity and clarity are paramount in a successful returns process. One of the most common e-commerce mistakes is not clearly outlining refund and exchange policies. So, to avoid this issue, begin by designing an intuitive, user-friendly returns portal that guides customers through the process seamlessly. Furthermore, ensure you communicate return policies and timeframes, making them easily accessible on your website.

When returns are initiated, aim for efficient processing, with prompt communication to keep customers informed at every step. A streamlined process enhances customer satisfaction, reduces the burden on your team, and minimizes costs.

Accurate Product Descriptions and Imagery

Reducing returns starts with setting accurate expectations. Invest in high-quality product descriptions that leave no room for ambiguity. Utilize professional imagery that showcases products from various angles. Encourage customer reviews and feedback to provide authentic insights. When customers know what to expect, the likelihood of returns due to mismatched expectations decreases, bolstering your e-commerce success.

Quality Control and Packaging

Maintaining high-quality standards from your suppliers and conducting thorough quality control checks before shipping can significantly reduce returns due to product defects. Packaging is equally important – ensure items are well-protected and correctly labeled to prevent damage during transit. Investing in these aspects lowers return rates and enhances your brand’s reputation for reliability and quality.

Customer Support and Communication

Responsive customer support also plays a pivotal role. Ensure your support team is readily available to promptly address customer queries and concerns. Transparent communication throughout the process is essential. Keep customers informed about the status of their returns, processing times, and expected resolutions. You foster trust and loyalty among your customers by providing exceptional support and clear communication.

Data Analysis and Feedback Loop

Harness the power of data to identify trends and root causes of returns. Analyze return data to pinpoint recurring issues and areas for improvement. Implement a feedback loop that incorporates customer insights into your operations. Refine your processes based on data-driven feedback so you can proactively address issues, reduce return rates, and ultimately enhance the overall customer experience.

Technology and Automation

Modernize your e-commerce returns management with technology and automation. Implement software solutions that streamline this process, from efficiently initiating returns to restocking items. You can also leverage e-commerce platforms with built-in return management features. Automation is an excellent option for e-commerce businesses because it can help reduce human errors and ensure consistency in handling returns, ultimately saving time and resources. 

Reducing Returns Through Size Guides and Reviews

When it comes to fashion e-commerce, accurate sizing information is paramount. Provide detailed size guides and measurements to assist customers in making informed choices. Additionally, encourage user-generated reviews and photos that offer real-world insights into product fit and quality. Equipping shoppers with the tools and information they need can significantly minimize the difficulties stemming from sizing issues and enhance their confidence in purchasing from your store.

Post-Purchase Customer Engagement

Engaging with customers after they’ve made a purchase is another powerful strategy. Send personalized follow-up emails or messages asking for feedback and offering assistance. Provide valuable content and tips related to the purchased products. In addition, keep the connection alive by offering exclusive discounts or loyalty rewards. By staying engaged with your customers, you can address any issues early on, build trust, and minimize the chances of returns due to dissatisfaction.

Monitoring and Measuring Returns

To improve this aspect of your e-commerce business, you must measure the effectiveness of your strategies. Establish key performance indicators (KPIs) such as return rates, processing times, and reasons for returns. Regularly monitor these metrics to identify trends and areas for improvement. By setting benchmarks and analyzing the data, you can continually make informed decisions to optimize your returns process. 

Navigating the Returns Maze for E-commerce Success

Understanding and efficiently managing returns is pivotal. Inefficient e-commerce returns management can incur substantial costs, both financial and in terms of customer loyalty. By embracing streamlined processes, product accuracy, responsive customer support, data-driven insights, and modern technology, e-commerce businesses can effectively tackle returns, reduce their frequency, and foster a loyal customer base, ultimately ensuring long-term success.

Author bio

Anna Stevens is a seasoned e-commerce expert with a wealth of knowledge in online business operations. She brings her expertise from her role at Good Neighbors Moving Company LA, where she continually enhances operational efficiency and customer satisfaction in the moving industry.

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Learn how to improve your e-commerce returns management to boost customer satisfaction and reduce costly returns!

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Global Trade Daily

The Ultimate Customer Experience: Balancing Online & In-Store Retail

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In recent years, retailers have altered to the needs of the consumer. As part of that transition, emphasis was placed on making shopping as convenient as possible for customers. Retailers today have harnessed services such as buy-online-pick-up-in-store (BOPIS) or buy-online-return-in-store (BORIS) to help enable customers to shop however suits them best. 

The convenience of these channels caters to the increasing demands of consumers, who expect information and easy access to items at the click of a button. Yet, brick-and-mortar stores still hold a significant amount of value from an experiential perspective. While convenience is paramount in today’s environment, customers still have a significant amount of appetite for walking into a store and interacting directly with products and in-store associates. Moving forward, the in-store experience of customers will become critical to brand differentiation, while convenience remains preeminent online.

Clicks & Bricks: Balance Between Online and In-Store

In this new era, the challenge for retailers is to understand how they can provide a balanced omnichannel approach combining in-store and online shopping to optimize the customer experience. It has never been more important to provide seamless and convenient online shopping, while also delivering top-quality customer service in-store. With a plethora of alternative retailers only a search away, customers are ready to shop elsewhere if they do not feel that they are receiving the level of personalized service they expect. 

The question remains: how can retailers find this balance? For years now, many have answered that question with the implementation of an omnichannel approach, creating one seamless experience by utilizing all available sales channels. However, retailers are struggling to deploy this strategy effectively. According to SML’s latest State of Retail Insight Report, 93% of retailers claim that technology is important in facilitating a seamless in-store customer experience. Retailers can deploy the latest item-level RFID solutions that provide accurate inventory data in real-time, enabling them to provide a top-tier shopping experience for their customers.

Omnichannel is crucial. However, to execute the strategy effectively, retailers must improve their inventory accuracy and efficiency. Only then can they expect to find the balance between in-store and online.

Leveraging RFID for Smarter Logistics 

Through the use of item-level RFID, retailers can create efficient inventory management that streamlines online shopping channels. The industry standard of inventory accuracy sits approximately at 65%. By deploying item-level RFID, retailers can increase this to 93%-99% in the space of days and that level of accuracy can be maintained consistently, unlike annual physical counts that continue to deteriorate throughout the year until a new count is completed.

Enhanced inventory accuracy provides many benefits as retailers have complete visibility over where their stock is. From warehouse to storefronts, each business has an accurate view of inventory location down to specific items, allowing for improved organization and improved supply chain throughput to maximize the use of all existing inventory. With item-level RFID in place, retailers can create the foundation of a seamless omnichannel experience. An accurate view of inventory enables them to deploy strategies such as BOPIS and BORIS effectively, providing customers with the options and flexibility they demand while optimizing costs.

Crafting Valuable Experiences for Shoppers

In addition to supply chain operations, RFID also allows in-store staff to better serve customers on the shop floor. According to SML’s findings, 42% of retailers state they don’t have enough staff on the shop floor, while 30% agree that staff spends too much time completing mundane tasks. 

Item-level RFID allows staff to scan all in-store stock within minutes, significantly decreasing the amount of time spent trying to manually count inventory. This frees up the time of store associates to better serve customers on the shop floor and the use of dynamic Geiger search capabilities to quickly locate items further improves their overall experience as store staff can efficiently locate on-hand items for customers.

By leveraging the right technology, retailers can remain flexible to ever-changing customer needs. Retail continues to embrace digital. However, the high street is bouncing back as shoppers look to connect directly with store associates to gain product knowledge and experience customer service. Retailers must remain agile through both channels to remain competitive.

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Global Trade Daily, News

8fig Raises $140M to Propel Ecommerce SMBs During Economic Turmoil

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The company, which developed a combined model for funding and management, has channeled over $500 million into ecommerce businesses to date

8fig, the continuous funding and management platform for ecommerce businesses, announced the closing of a $140 million Series B funding round in combined equity and credit facility led by Koch Disruptive Technologies (KDT) with participation from existing investors Battery Ventures, Localglobe, Hetz, the Jesselson family, and Silicon Valley Bank, a division of First Citizens Bank. This brings 8fig’s total funding to date to $196.5 million.

At a time when many online sellers are struggling with cash flow crunches due to flailing economic conditions and reduced consumer spending, 8fig is focused on directly contributing to the sustained success of the ecommerce businesses in its network. This includes delegating more capital to finance ecommerce businesses and enhancing its supply chain management platform for online sellers.

8fig provides ecommerce businesses with bespoke funding plans that are optimized according to their supply chain and cash flow needs to accelerate growth. Online sellers can manage their funding and remittance schedules using the 8fig platform, which also offers tools for supply chain management, financial planning, and freight and logistics coordination. The funds from 8fig are disbursed incrementally and on an ongoing basis, and is equity-free. Using insights from 8fig’s platform, online sellers can quickly and easily respond to real-time industry changes such as fluctuations in demand and shipment delays and can change their funding plans accordingly, if necessary.

Since its inception, 8fig has delivered over $500 million in funding to online sellers. Its success has resulted in tremendous growth for the company, which increased its client base and annual revenue by 900% and 800% respectively in 2022. Over the same period, 8fig grew its global workforce threefold to 90 employees and further developed its platform’s capabilities, most recently releasing a mobile app version and a freight management and payment functionality. 

With the latest round of funding, 8fig will expand its growth efforts and scale its funding capabilities to support an increasing number of ecommerce businesses – helping them to continue growing amid economic uncertainty. Additionally, the company plans to implement enhanced financial management capabilities with new banking solutions and cash flow prediction models that will include alerts and insights based on business performance, as part of its quest to become a one-stop shop for ecommerce business management. 8fig is also collaborating with ecommerce marketing agencies on a financial tool to evaluate their clients’ cash flow requirements and mitigate risks by providing alerts and actionable insights.

 

 

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Archives, Global Trade Daily, Software

BairesDev Presents Five E-commerce Trends Based on 150% Increase in Software Projects

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The new report is based on the analysis of software development projects over the last 20 months and highlights a focus on user experience, new generation demands, and scalability.

BairesDev®, a nearshore software solutions company, has released a new whitepaper highlighting upcoming trends in software and e-commerce. The report’s analysis is based in part on a 150% increase in Bairesdev’s own software projects over the past 20 months – a period marked by challenges and innovation in online retail.

While e-commerce grew globally during the pandemic, Southeast Asia and Latin America experienced the highest growth in 2022, with over 20% in each region.

The report highlights five major trends:

  1. Brick and mortar is NOT dead. However, retailers must change how they operate. 54% of consumers prefer hybrid shopping, in which clients view a product online and purchase it in a physical store. With this in mind, retailers need to build an omnichannel presence to stay competitive. Companies need to take advantage of new technologies to reach the consumer creatively.
  2. Personalization or nothing. AI drives personalization, putting consumers at the center of the e-commerce experience and prioritizing their unique needs. Using augmented reality (AR) in an online store can increase sales by up to 71%. Immersive and interactive technologies that make the user experience more engaging (and easier) will only increase.
  3. Digital-conscious consumers demand ethical shopping: Gen Z and Millennials demand products and services prioritizing privacy, security, sustainability, and ethical practices. AI-based technology enables companies to improve their diversity and sustainability efforts.
  4. It’s all about data: Data-driven decisions are key to boosting business success, especially for retailers. As data-driven organizations are 23x more likely to acquire customers, 19x more likely to be profitable, and 6x more likely to retain customers, retailers should continue to invest in cloud computing technologies as businesses can access a wealth of data, using this information to make decisions in real-time.
  5. Mobile device usage is crucial to e-commerce: Mobile sales account for 43.4% of total e-commerce sales. To stay competitive, retailers must prioritize optimizing their e-commerce experience for mobile devices and delivering exceptional customer experiences. Companies failing to optimize their online shopping experience for mobile devices risk losing significant revenue and  engagement.

Click here to download the full report: https://www.bairesdev.com/blog/take-your-ecommerce-to-the-next-level/

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Archives, Global Logistics, Global Trade Daily

10 Defects in the Online shop – and How to Fix Them

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Good online shops are a rare breed – they’re convenient, they’re accessible and they offer a wide variety of products. But there are always problems in paradise, and these 10 shopping problems highlight them. These defects will not only make your life harder – the lack of an adequate response might also cause you to take your business elsewhere. But with our advice and guide to business registration in the USA, you can learn how to keep your customers satisfied. So, which of these 10 problems do you have?

✖1. You’re not clear about the shipping charges.

It’s the most common problem with online shopping portals and it often has a simple solution: communication. If you declare your shipping costs, at the beginning of the purchase process, you are less likely to lose customers before they’ve even completed their order. Make sure that your homepage is as easy to navigate as possible and that you have no problem communicating with customers on social media.

  • Develop a transparent pricing system that clearly shows all price components: product price, shipping price (including all eventual costs), and VAT (or other applicable tax). You can make it even more convenient for customers by including a calculator that enables them to estimate the final overall cost of their order.

✖2. Customer service doesn’t respond promptly.

Just like any other online shop, online stores need to provide customer service, and your customer service team has many people to answer the phone, solve problems and help customers from all over the world. If you don’t respond quickly to messages or don’t give customers sufficient information about the status of their orders you risk losing them as customers – and once again as potential return buyers.

  • Make your customer service as efficient and accessible as possible, not just via e-mail but also through social networks. In addition to providing immediate help, you can be proactive in predicting trouble and anticipating problems. This will help you respond more efficiently to customer needs and improve your service.

✖3. You don’t show the shipment status online.

In the most recent years, online shipping companies have improved considerably, making it easier for customers to track their packages in real-time using web portals and mobile apps. But while they provide tracking services, online shops often fail to communicate the status of the order online.

  • Don’t just leave things up to your shipping provider. Make it as easy as possible for your customer to track their order. Add a tracking number or link to your homepage, your delivery confirmation email, or any other communication with them. If possible, provide a localized response, so you can specify costs for different parts of the world and provide an accurate estimate of delivery costs in advance.

✖4. Your website isn’t mobile-friendly.

Almost 80% of internet users use a mobile device to browse websites. For online stores it means that you need to view your website from the perspective of a mobile user – otherwise, you endanger your customer’s shopping experience.

  • Test your website on multiple devices and make sure that it works on all modern web browsers (mobile and desktop). You can do that with free tools like the Google Chrome Frame plug-in for Internet Explorer or phone emulators like Opera Mini, which allows you to see how your site looks on different phones.

✖5. You ask them to register before they buy.

More and more people browse online stores on their mobile devices and expect these stores to be fully responsive. According to a recent report, this is quite an important issue because most online shoppers will abandon websites that don’t work well on their smartphones. It’s unfortunate, but as soon as a customer receives a message like “You need to register to make purchases”, it’s very likely that they will abandon your store and look for another one.

  • Have a clear call-to-action on your homepage, which guides customers through the entire process of purchasing and gives them access, regardless of the device they use. In addition, you should ask them to register only if it is necessary to complete the purchase or access special offers or offers that cannot be completed otherwise (eg. free delivery).

✖6. You don’t use Google Analytics.

Google Analytics is a free service that provides a lot of valuable information about your website in real-time, allowing you to understand how users interact with your site and what content works best for them. You can use these statistics to improve your website and increase its efficiency.

  • Write down your website’s URL in the analytics section of Google and install a tracking code on every page of your site. If you’re using any other analytics service you can use a Google Analytics plugin for that.

✖7. You don’t use simple and convenient payment methods.

Most online shoppers are more comfortable when they can complete a purchase without having to enter their credit card data multiple times or create an account. That’s why payment with PayPal is becoming even more popular.

  • Select the most convenient payment method (eg. PayPal, iDEAL, Sofortüberweisung) according to your market and provide easy access with no unnecessary links or redirects (eg. PayPal login button).

✖8. You don’t respect their data.

Online stores often collect information about their customers, such as an email address, a password, and a phone number for which they should be given more control over how it is used. But sometimes this information is revealed without an obvious “opt-in” when customers have no idea that it is being collected and when they don’t get to choose whether to share this information with you or not.

  • Make sure that the information you collect is essential and relevant to your customers (eg. email address for password recovery). Never collect a customer’s address or phone number, because of the risk of being a fraud (according to legislation in different countries).

✖9. You are not serious about operating as an online store.

In most cases, online stores are simply websites on which they sell products. But many online stores do more than just sell products by taking orders, writing and delivering them directly, or reselling them from other retailers – they operate according to business rules that differ from those that apply in brick-and-mortar shops.

  • If you want to sell a product that’s in high demand, you need enough stock to satisfy all your customers. If you have any special offers or sale items, list them on your website and make sure that you have the appropriate amount of stock.

✖10. You don’t use any marketing tools.

Marketing tools help you promote your online store and reach new customers while monitoring your online presence through Google Analytics and creating valuable customer profiles through Customer Relationship Management (CRM). Marketing tools are developed for a wide range of resources – from time-poor bloggers and small business owners to large companies with a budget for comprehensive marketing campaigns across multiple channels.

  • Keep an eye on your website stats for free with Google Analytics. Set up a free account with HubSpot, which allows you to set up tracking links and learn about your users, or start with a free trial of MailChimp, which enhances your online store by providing the opportunity to send marketing emails at low cost.

Conclusion

As you can see, many pitfalls can negatively affect the success of your online store. It’s not easy to stay on track and avoid these mistakes, but with the right knowledge, it is possible to avoid them. This article will help you learn what things might go wrong – so take a look at it every time you’re launching a new site or updating your current one. If you know other reasons why sites fail, please share them in the comments below.

 

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Archives, Global Trade Daily

71% of Online Sellers are Optimistic about Ecommerce Despite Cost of Living Concerns from Customers

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eDesk, the all-in-one help desk for eCommerce, has released results from their State of eCommerce 2022 survey revealing that online sellers remain optimistic on the current eCommerce market despite a looming recession.

During September 2022, eDesk surveyed over 200 online sellers that sell their products online via their own webstores and marketplaces in the United States that use the eDesk platform.

Delivering top customer service is essential for company growth particularly in the face of the market correction we have seen in recent months in eCommerce. The results from the survey show that cost of living is top of mind for consumers with 36% of complaints retailers have received from online customers focused on the cost of items, up from 24% just six months ago. The survey also found that:

  • 53% of sellers expect to see an increase in online shopping over the next six months.

  • 54% plan to raise prices over the same time period in response to the cost of living crisis.

  • 56% of online sellers’ delivery times have been affected by supply chain delays over the past 6 months.

  • Respondents have stated that shipping (37%) and delivery (28%) are among the biggest complaints they are getting from customers.

The survey coincides with the launch of eDesk Customer View which will bring all customer details, support and history together. The new omnichannel feature will help brands to automatically categorize their customers into clear segments, which will enable sellers to have a deeper understanding of their customer base and provide a holistic view across the customer journey. eDesk Customer View will empower support agents to solve customer issues in a personalized and proactive manner, and by having full visibility of all previous interactions and orders, queries will be resolved quicker, leading to loyalty, repurchasing opportunities and growth.

eDesk is the only customer support solution provider on the Amazon and Walmart development councils and works with customers including Superdry, Suzuki and Seinnheiser to help sellers everywhere easily integrate their eCommerce stack. They currently have native integrations with more than 250+ channels and work with thousands of customers globally powering over 14 million conversations every month, resulting in billions of dollars of eCommerce transactions every year.

eDesk surveyed over 200 sellers who sell their products online via webstores and marketplaces in the United States and use the eDesk platform. Over 55% of respondents stated that they will expand into new online channels over the next 6 months.

The survey also found that over 80% of online sellers believe a recession is pending, yet 71% are still optimistic about the current state of the ecommerce market. The report found that online sellers are ensuring they are “recession proof”, with almost half of online sellers stating that they will change their current eCommerce strategy and will invest in more tools to protect themselves from market upheaval over the next 6 months.

About eDesk

eDesk is an all-in-one eCommerce help desk that enables online retailers to deliver seriously extraordinary customer service, everywhere they sell. eDesk’s suite of award-winning, AI-powered eCommerce tools improves productivity, profitability and reputation through automation, commercial insight, and competitive benchmarking.

eDesk integrates seamlessly with more marketplace, webstore, communication, social media and logistics channels than any other customer support software provider, so eCommerce brands can respond to customer queries quicker, and focus on selling more to realize their growth potential.

eDesk is the only customer support solution provider on the Amazon and Walmart development councils, and counts Google, eBay, Shopify amongst key strategic partners.  Customers include Superdry, Pitstop Auto, Right Deals UK.

Founded as xSellco and rebranded as eDesk in 2021, the company is trusted by thousands of businesses around the world to power over 14 million conversations every month, resulting in billions of dollars of eCommerce transactions every year. eDesk is headquartered in Ireland with offices in the UK and the US.

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Archives, Education, Global Trade Daily

5 Ways Ecommerce Sellers Can Overcome the Top Inventory Management Challenges

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Inventory management can make or break an eCommerce business’ success.

With efficient inventory practices in place, eCommerce businesses can identify which and how much inventory to order at what time, helping to ensure smooth operations and happy customers. 

However, there are a number of factors involved in managing inventory properly, and if not executed correctly, they can pose major challenges for eCommerce businesses. The following factors all influence eCommerce inventory management and need to be paid attention to:

  1. Supplier relationships: Inefficient inventory management can lead to strained relationships with suppliers and cause your business to be moved to the bottom of your supplier’s priority list when they send the next batch of products.
  2.  Funding: Maintaining necessary cash flow is crucial in order to manage inventory. As the market continues to become more and more competitive, eCommerce sellers may struggle to raise capital that helps maintain inventory.
  3. Process automation: An increased reliance on manual processes increases the probability of errors in managing inventory.
  4. Data-backed insights: To make informed, data-driven decisions, you need to accurately forecast your inventory needs by tracking and crunching historical sales data.
  5. Volatile demand: You need to be able to inform your suppliers to increase or decrease the order quantity accurately to keep up with fluctuating demand. 

With this in mind, below are five ways to help you overcome the challenges associated with inventory management and set your eCommerce business up for success.

1. Maintaining relationships with suppliers

It will be difficult to keep up with the demands of your customers if you cannot restock your inventory as fast as it runs out.

This is where having a good relationship with your suppliers and manufacturers pays off. You need to be in their good books to be on top of their priority list.

Paying your suppliers timely, maintaining transparency, and establishing a personal rapport is crucial in strengthening your relationship with your supplier.

To ensure you are managing relationships with your suppliers as is necessary, consider using supplier management software. With such a tool, you can manage supplier payments, check invoice status in real-time, promote supplier self-service, and increase transparency.

2. Adopting revenue-based financing

Maintaining cash flow to keep up with operational expenses when scaling can be difficult for eCommerce sellers. One of the main reasons for this is that the financial requirements of eCommerce sellers depend on their revenue which, in turn, depends on multiple factors like seasonal demand, supply chain roadblocks, and so on.

This poses a potentially detrimental challenge to budding eCommerce sellers who have a promising business strategy but lack the necessary cash on hand to keep up. 

8fig, an eCommerce funding platform, can help solve this challenge by providing equity-free capital injections based on supply chain analysis. The platform helps sellers forecast their inventory’s lifecycle in the supply chain in order to help allocate funds accordingly. Based on a business’ projected needs and unique requirements, it can receive the appropriate funds to get over the hump, setting them up for rapid growth.

For example, Glitch Energy, an energy supplement brand, scaled to 7-figure revenue with the help of 8fig’s growth plan while retaining complete ownership.

3. Using AI-based automation and warehouse management

The warehouse marks the beginning of the fulfillment process. Proper warehouse management is important for many reasons, such as:

  1. Ensuring your inventory is updated.
  2. Reducing fulfillment mistakes and do-overs.

Now, global eCommerce sales are predicted to increase to $7.783 trillion by 2025 from $5.545 trillion in 2022. This increases the pressure on warehouse managers to keep up with the rising demand while ensuring smooth operations in warehousing processes.

Luckily, modern software tools help you automate the entire process. By leveraging data, artificial intelligence (AI) can guide robots to perform warehouse tasks with greater precision.

For instance, Newegg, an online computer store, has automated its warehouse to keep up with its increased customer demands while minimizing errors.

4. Leveraging predictive analytics for demand forecasting

Understanding parameters such as current product demand, customer segments, and product categories, among others, will help you map which products need restocking. This can be done using predictive analytics.

The roadblock here for budding eCommerce businesses is that they might not know where to begin or what data to track.

Here too, there is software that can help. In this case, Glew, an eCommerce analytics software, would be a great option. Its platform will help you track over 300 KPIs (including inventory analytics KPIs such as inventory velocity, sell-through rate, depletion days, holding cost, etc.) on a custom dashboard, helping you optimize your inventory better.

5. Planning inventory to stay on top of the demand curve

Just like many other facets of an eCommerce business (such as website traffic, conversions, etc.), inventory also needs real-time monitoring. That’s because inventory changes with every order, and to give customers the right information about their desired product, it needs to be up-to-date.

But inventory planning can be tricky because it is connected with other eCommerce processes such as fulfillment, warehousing, and returns, among others. Those eCommerce processes deal with a mix of customers, suppliers, and delivery partners — the seller being at the center — making inventory planning complex.

In 2017, 34% of businesses shipped a product late because their inventory wasn’t accurately updated, and this continues to remain a challenge today. As of 2022, the ratio of inventory to sales is around 1.25, suggesting that there is still room for improvement.

One way to overcome this challenge is to invest in inventory management software that can help you stay on top of the demand curve. A great example is Mountain Top Leather, a company that makes quality leather goods, which increased sales by 91% after adopting the inventory management tool from ecomdash.

Conclusion

To recap, as an eCommerce seller, you will likely encounter many inventory management challenges with regards to:

  1. Maintaining healthy relationships with suppliers
  2. Securing adequate funding
  3. Automation of warehouse
  4. Leveraging data for market analysis
  5. Updating inventory as per demand

Fortunately, you can overcome these challenges by using the right services and software as we have explained above.

We hope this article assists you in taking the right steps towards better eCommerce inventory management.